Technology which has left no sphere in our environment, to lurk into, has created new bounties in business as well. 

Supply Chain is the coordination and management of supply chains.

Logistics management is the process of integration and preservation of goods in an organization whereas  Logistics is basically a subdivision of the supply chain.

One of this advancement is Supply Chain 4.0 which is the restructuring of the previous supply chain – design and planning, production, distribution, consumption, and logistics. This is by using technologies viz Industry 4.0. 

Industry 4.0 refers to a new breakthrough in the industrial revolution that has its nucleus on interconnectivity, automation, machine learning and real-time data. It is poignancy as it comes to aid manufacturers with ongoing challenges by being more flexible and reacting to changes in the market painlessly. It can augment the speed of ride of innovation and is very consumer friendly leading to faster design processes.

As you read further you will find how supply chain 4.0 and logistics will increase efficiency to a great extent. 

Handpicked for our Leaders: What exactly is Digital Transformation in 21^st Century?

Before continuing, let’s note that the Logistics and Supply Chain Management terms are often used interchangeably but they are not the same. Logistics management is the process of integration and preservation of goods in an organization whereas Supply Chain is the coordination and management of supply chains. Logistics is basically a subdivision of the supply chain.

Increase your business efficiency by subscribing to Learn Transformation and making use of supply chain and logistics. For example it will:

• Transform business model

Supply Chain 4.0 revolves around the deployment of modern tools such as the data analytics, independent robotics etc. It will transform the model of supply chain management from a linear model in which, commands diffuse in the order- supplier, producer, distributor, consumer, to a more integrated model in which information flows in like the rays of sun to the supply chain. This will make supply much more customer-driven.

• Customer’s fulfillment  

Consumers click on the product to order it and are left disappointed on seeing, ‘out of stock’.  To avoid this kind of situation supply chain 4.0 and logistics prove to be efficient. As logistics store goods or products until they are further needed elsewhere. Logistics management gives efficient transport and storage.

Once goods reach their destination, logistics store them. They will store goods until they are needed further in the supply chain or for delivery to the final customer.

Check out the Video-

• E-Commerce 

A good supply chain hastens e-commerce processes to meet customers’ expectations. Older technologies were accumulating large amounts of information in e-commerce, which can be used to improve supply chain outcome. E-commerce also has an SCM structure which needs reverse logistics.

Reverse logistics are the planning and execution of the movement goods from final destination for all purposes related to reuse of materials. It captures their value and gives way for proper disposal.

Almost, all e-commerce businesses give the benefits of exchange and returns for customer convenience. This increases the need for logistics. 

• Accuracy

The present day management systems of supply chain provide transparency. The data dispenses a mutual information basis for all levels of priority and functions in the supply chain. The integration of data of suppliers, service providers, etc. in a supply chain cloud certifies that all stakeholders guide and decide based on mutual facts.

Handpicked for our Leaders: What exactly is Digital Transformation in 21^st Century?

• Collaboration

The supply chain cloud organizes the next door of collaboration in the supply chain. Supply chain clouds are joint supply chain platforms between customers, company and suppliers, advancing rationed logistics infrastructure.

Another advantage is the end-to-end connectivity. The collaboration along the chain allows for lower inventories through swapping of well grounded planning data, change in lead time depletion through immediate information provision throughout the chain, and an early-warning system and the ability to react swiftly to disruptions anywhere.

• Reducing costs

Curtailing today’s digital waste and adopting technologies is the new gear to speed up operational effectiveness of supply chains. Costs can be reduced by applying advanced methods to calculate the clean sheet i.e. calculation of the actual costs of the service, costs of transport and warehousing and by enhancing the network. 

The goal should always be to have minimum wastes and minimal kilometers in transport and also not compromising on the service standard laid down for the customer. The amalgamation of efficient automation and productivity, improvement in warehousing on-board units in transportation, etc. can give way to savings. Reduction can also be reached by strengthening perspectives of dynamic routing.

Handpicked for our Leaders: What exactly is Digital Transformation in 21^st Century?

FAQ’s