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Supply chain in Industrial Revolution 4.0
An industrial revolution has started to take place in many industries, one of them being in the supply chain. Looking at supply chain processes from manufacturing to delivery, many processes have extensively changed to become more sophisticated in ensuring effectiveness and eliminating redundant processes.
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novator 4.0 Indonesia was aimed to discover the Pancasila ideology in the country’s technological development. (Shutterstock/File)
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team power in Industrial Revolution 1.0, electricity and assembly in Industrial Revolution 2.0, partial automation in Industrial Revolution 3.0, then moving forward to the fourth industrial revolution, which is the exponential expansion of the Industrial Revolution 3.0, characterized by transformation in overall production, management and governance systems.
An industrial revolution has started to take place in many industries, one of them being in the supply chain. Looking at supply chain processes from manufacturing to delivery, many processes have extensively changed to become more sophisticated in ensuring effectiveness and eliminating redundant processes.
Supply chain 4.0 offers an advanced mechanism supported by myriad movement such as IoT (Internet of Things), Unmanned Aerial Vehicle, blockchain, mobile technology 5G and shared platforms. Earlier, technology was used to accommodate the supply chain process by having a focal point to trace each step in manufacturing, quality control, warehousing up until delivery.
Enter Industrial Revolution 4.0, in which information technology (IT) has played an important role in changing the landscape of industries and businesses, mainly in how businesses offer their products and services. The logistics industry, for instance, grew significantly in 2018 and is estimated to continue growing in the years ahead, with an impact of e-commerce growth. Businesses now need to adapt to current digital growth.
Several examples of Industrial Revolution 4.0 in the supply chain is the utilization of smart analysis to increase efficiency by using algorithm (intelligent), optimization of technology usage as a basic component of decision-making and workload that is intelligently done in the operational process.
Automation by using IoT technology and support for financial control through the supply chain concept requires logistics businesses to consider two things in utilizing digital technology so that customers’ needs can be fulfilled by being a game changer to create a new business model.
Operational digitalization as a new business model can be used by business owners to have an end-to-end integrated supply chain. A PricewaterhouseCooper report on Industry 4.0 related to a digital supply chain and logistics says that an integrated supply chain enables a company to have an efficient distribution system integrating supplier, production, inventory management, distribution and delivery to end user.
