Industry 4.0 And The Future Of Supply Chains

22 Apr 2025

(Source: forbes.com)

Industry 4.0 And The Future Of Supply Chains
By Samuel Nata Charis

 

The initial Industrial Revolution, characterized by the advent of steam-powered machinery, fundamentally reshaped manufacturing processes beginning in the late 18th century. However, a widely accepted perspective posits that subsequent industrial transformations have occurred. The second such revolution, spanning the late 19th to the early 20th centuries, witnessed the emergence of mass production facilitated by electrical power and the implementation of moving assembly lines. The third industrial revolution, commencing in the 1960s, has been propelled by advancements in computing and process automation.

Many analysts currently believe we are in the midst of a fourth industrial revolution, often referred to as Industry 4.0. Key aspects of this transformation include digitalization and enhanced connectivity, which involve the capture, exchange, and application of data across both physical and digital environments.

What are the key technologies fueling Industry 4.0, and which of these are predicted to have the biggest influence on organizations going forward, according to a Deloitte survey of business leaders?

  • Internet of Things: 72%
  • Artificial intelligence: 68%
  • Cloud infrastructure: 64%
  • Big data/analytics: 54%
  • Nano-technology: 44%
  • Advanced robotics: / RPA 40%
  • Sensors: 40%
  • Blockchain: 17%
  • 3-D printing: 10%
  • Augmented reality: 9%
  • Quantum computing: 7%
  • Edge computing: 6%

Even though there’s a ranking of importance, these technologies don’t operate independently; they’re a team. For instance, IoT gadgets and sensors grab and send data, which gets stored and sorted in the cloud. Then, analytics and AI can use that data to help businesses make smarter choices. It’s like everything’s connected and working together to constantly get better.

What does “Industrial Supply 4.0” look like today? Here are some current concepts and technologies.

  • Data Capture (IoT Connectivity)
    – Mobile apps
    – Automated supply
  • Data Analytics (Descriptive, Predictive and Prescriptive)
    – Organizing captured data to visualize activities, patterns and the current state
    – Creating simulated scenarios to predict and prescribe future states
  • Systems Integration
    – EDI integration
    – Integrating captured point-of-use data with supplier warehouse systems and other upstream systems for a more proactive supply chain
    – Integrating buyer-supplier demand forecasting systems to avoid gaps and risks

The Next Step: Artificial Intelligence

With things getting more complicated and risky, and with massive amounts of data constantly growing, businesses are turning to AI to get to insights and understanding faster.

When it comes to supply chains, this means using AI to analyze huge amounts of data and tons of different factors to forecast demand, align production, and make better choices about buying materials and moving goods. 1  Think about questions like: Where’s the best place to get supplies based on knowing what’s happening earlier in the chain? Or, what’s the quickest way to ship things right now? The idea is that AI can give immediate, correct answers to these kinds of questions and even make decisions on its own to make the supply chain work as smoothly as possible.   

Collaboration Is The Path Forward

Even though tech defines Industry 4.0, the real aim is to make human tasks like logistics, engineering, and production better, which ultimately leads to happier customers. It all starts with teamwork – everyone involved needs to be on board to create these systems, ensure they work well together, and be ready for things to change.

A crucial move is to stop keeping data separate in different systems used by suppliers and locations and instead start sharing data across the entire supply chain. In this setup, if you’re too focused on competition with your suppliers, it’ll hold you back; working together is the way to go.

If you’re serious about Industry 4.0, you need a partner who’s just as committed. Look for companies that are putting money into technologies that can capture and share supply chain data with you. Find partners who are using AI and setting up clear, complete data flows – that’s what makes AI really useful for the supply chain. Also, make sure they’re investing in people who can set up, support, and improve these solutions. These people will help your business handle changes and succeed in this fourth industrial revolution.

References:
Hicks, J. (2022, July 27). Industry 4.0 and the future of supply chains. Forbes. https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2022/07/27/industry-40-and-the-future-of-supply-chains/