The article posted on MHLnews ( on 16th September 2015 talks about the effects of Industy 4.0 on the supply chain.

Industry 4.0 is essentially a blueprint for digitalizing the value chain from factory to customer. It includes technologies like the Internet of Things (IoT) and the Internet of Services, which in turn create the Smart Factory.

Simon Jacobson has outlined four key aspects of how Industry 4.0  will impact the supply chain:

  1. Smart factories – Automated and flexible manufacturing processes that are integrated with customers and business partners in support of product lifecycle changes – will impact current factory layouts.
  2. The Internet of Services – Connecting production facilities across geographies and company boundaries to create virtual production capabilities will create new business models and disrupt current supply chain designs.
  3. Advanced analytics – Capitalizing on big data and predictive analytics – to drive flexibility at the process level, not just production lines or factories – will put more pressure on organizations to use production data to its fullest.
  4. Focus on the knowledge worker – The rise of smart machines will not see the demise of the knowledge worker – rather, this increasing complexity demands supply chain professionals expand their problem solving and systems engineering skills.

He suggests that chief supply chain officers start preparing for these changes by focusing on Supplier management, Supply chain visibility, Demand planning, Supply network design, and Product innovation platforms  to get the best out of the Industry 4.0.

For more information, Read the article link provided.


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