New technological solutions heralded by the Fourth Industrial Revolution (4IR) or Industry 4.0 – such as advanced robotics, autonomous systems and additive manufacturing – are revolutionising traditional ways of creating value.A growing trend in the supply chain and logistics environment is transforming all end-to-end steps in production and business models.Several logistics experts contacted by Freight News say that Industry 4.0 is shaping the way supply chains are evolving and becoming more competitive.It allows supply chains to navigate through the chaos inf licted on the global economy by the Covid-19 crisis since 2020, says one of our sources. “It is also providing the enabling technologies and platforms that will allow for comprehensive decarbonisation in the future.”More than anything, supply chains require visibility, and the technologies that have come to the fore with the 4IR, such as the Internet of Things (IoT) and blockchain, have empowered supply chain managers, shippers and carriers to improve service levels and lower costs significantly.According to McKinsey & Company, the last decade has seen companies operating under increasing levels of disruption. Changing customer preferences and demand as well as ongoing economic uncertainty, trade barriers and logistics issues have been pushing businesses to find new global supply chains. A research collaboration between the World Economic Forum and McKinsey looking at 103 manufacturing sites around the world showcased how Industry 4.0 could be leveraged to achieve faster, more sustainable change through the use of digital technology to build more agile and customer-focused organisations.Around the world, logistics-centred businesses are redefining their businesses on the back of this rapidly changing world, one that is more often being described as vuca – volatile, uncertain, complex and ambiguous. More recently the acronym has been extended by adding an H for the hyperconnected environment. It is this H, according to the experts, that is the driving force behind Industry 4.0.More than anything, says Tommie Snyman, a consultant at To c a A d v i s o r y Services, it is a digital revolution allowing people to work smarter and more efficiently.“Industry 4.0 introduces us to a tidal wave of technological developments and capabilities, optimising how we conduct business. Digitisation of the industrial sector will bring about major benefits as it redefines processes from production to dispatch to final delivery.”It is an important first step in this new era as there is still too much paper in the logistics sector.According to Snyman, while there has been some resistance to change across the industry, it is becoming easier and technology solutions are far more accessible. There is also a realisation of the long-term benefits for companies.“In all the industrial revolutions, there were changes in technology that had an impact on operations. What is different with Industry 4.0 is that it changes how we do things. There was a lot of data in the Third Industrial Revolution, but now the focus is on what we are doing with that data. The accessing and utilisation of that data are the dr iv ing forces.”For the most part, experts agree that even with all the change and disruption experienced to date, we’ve only scratched the surface when it comes to the potential of technology. As the cost of technology declines and access improves, more companies will embrace Industry 4.0 as they scramble to remain ahead of the game.
