While it is still at very early stages in India, Industry 4.0 is inevitable if we are to compete and succeed at the global arena. How should companies re-align their supply chain strategies to be ready for Industry 4.0?
Industry 4.0 will create the smart Factory with technologies like Internet of Things (IoT) and the Internet of Services (IoS). Four key aspects will impact the supply chain:
1. Smart factories - Automated and flexible manufacturing processes that are integrated with customers in support of product lifecycle changes will impact current plant locations & layouts
2. Internet of Services - Connected production facilities across geographies and company boundaries to create virtual production capabilities will create new business models and disrupt current supply chain designs.
3. Big Data & analytics - Capitalising on big data and predictive analytics - to drive flexibility at the process level, not just production lines or factories - will put more pressure on organisations to use production data to its
fullest.
4. Talent scarcity - The rise of smart machines will not see the demise of the knowledge worker rather, this increasing complexity will demand supply chain managers to expand their problem solving skills.
What should companies focus on for the same?
Companies need to re-align their supply chain strategies to be ready for Industry 4.0 and needs to focus on following thing:
1. Supplier management - The dynamic flexibility & reconfigurability of supply networks that Industry 4.0 promises will require re-evaluating SLA for both upstream & downstream in the value chain.
2. Supply chain visibility - Supply chain needs to be transparent & nimble to adapt quickly with both scheduled & un-scheduled scenarios, which will in turn increase asset utilization & reduce risks.
3. Lead-time & Demand planning - Fluctuating demand patterns will need to be optimized in shorter leadtime and balance with inventories & specific plant utilization. Demand system will be driven by signal of Mass Customization and will require IT integration both horizontally & vertically.
4. Product Lifecycles - Product lifecycle will become shorter and hence development time as well. New technology products and Supply chain speed to execution will be key differentiator between early movers and laggards.
Today, there is considerable awareness about going green and reducing carbon footprint. However, one aspect that companies might be overlooking is the energy spent in the various links of the supply chain. How can companies manage their supply chains energy efficiently to reduce their carbon footprints?
We have taken several steps in going green to reduce our carbon footprints and have achieved the benefits.
Out- bound Logistics: We are taking multiple steps to reduce number of trips or mileage, which will lead to less emissions. We are also working on higher utilization of truck space, movements, and optimizing pick-up points thru GPS tracked enablement. For long routes we tied up with TVS Logistics to do consolidation.
Packaging: Expendable packagings are replaced with returnable packaging solutions reducing the waste. This year we plan to achieve at least 20 percent increase in returnable/ reusable packaging across the plants.
Building/ Plants: Our all new machine procurement and building/plants are constructed considering electricity consumption in mind. At our new Viman Nagar, Pune office we have used highly efficient electric solutions, building
materials, and optimized space which will help us reduce carbon.
Procurement Processes: We have changed our PO from paper to digital in SAP. It has eliminated printing of over 1 Lac copies and approximately 5,000 couriers. This makes us more efficient and environmental friendly.
Alternate Materials: Our category team including Consumables continue to explore and implement solutions which are more environmental friendly and can reduce the carbon footprint. This year we have taken three projects and
currently under trial.
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