The revolution in Supply Chain Management is through Digital Technology revolution in Industry 4.0. it brings in Transparency and accountability into the system bringing waste down to minimal. Procurement 4.0, Transportation 4.0, Supply 4.0 or Logistics 4.0, Whatever we may call it is going to change the face of the Industry. Data Analytics is going to make every ones life easy.

1. JAYESH C S PAI

3. “INDUSTRY 4.0”
• INDUSTRY 4.0 IS THE SUM OF ALL
DISRUPTIVE INNOVATIONS DERIVED AND
IMPLEMENTED IN A VALUE CHAIN TO
ADDRESS THE TRENDS OF
DIGITALIZATION, AUTONOMIZATION,
TRANSPARENCY, MOBILITY,
MODULARIZATION, NETWORK-
COLLABORATION AND SOCIALIZING OF

5. DIGITALIZATION
• THE COMPANIES’ INTERNAL PROCESSES,
PRODUCT COMPONENTS,
COMMUNICATION CHANNELS AND ALL
OTHER KEY ASPECTS OF THE SUPPLY
CHAIN ARE UNDERGOING AN
ACCELERATED DIGITALIZATION PROCESS
• THE DIGITALIZATION PROCESS ITSELF IS
THE MOST IMPORTANT CHARACTERISTIC
FEATURE AND ENABLES ALL OTHER
CHARACTERIZING FEATURES.

7. AUTONOMIZATION
• “INDUSTRY 4.0” TECHNOLOGIES AND
CONCEPTS ARE ENABLING MACHINES AND
ALGORITHMS OF FUTURE COMPANIES TO
MAKE DECISIONS AND PERFORM
LEARNING-ACTIVITIES AUTONOMOUSLY.
• THIS AUTONOMOUS DECISION-MAKING
AND LEARNING IS BASED ON MAN-MADE
ALGORITHMS AND ENABLES WHOLE
FACTORIES AND MANUFACTURING
FACILITIES TO WORK WITH MINIMUM
HUMAN-MACHINE INTERACTION

8. TRANSPARENCY
• WHILE GLOBAL SUPPLY CHAINS ARE
CHARACTERIZED BY HIGHLY COMPLEX
STRUCTURES, THE AVAILABLE “INDUSTRY 4.0”
TECHNOLOGIES ARE INCREASING THE
TRANSPARENCY OF THE WHOLE VALUE CREATION
PROCESS.
• THROUGH THIS INCREASE IN TRANSPARENCY,
DECISION-MAKING IN THE COMPANY WILL BE
MORE COLLABORATIVE AND EFFICIENT.
• NOT ONLY THE SUPPLY CHAIN PROCESSES, BUT
ALSO THE BEHAVIOUR OF CORPORATE PARTNERS
AND CUSTOMERS WILL BE MORE TRANSPARENT
TO THE COMPANY

9. MOBILITY
• THE DISSEMINATION OF MOBILE DEVICES
MAKES COMMUNICATION, DATA SHARING
AND GENERATION OF VALUES POSSIBLE
FROM ALL OVER THE WORLD.
• THE MOBILITY OF DEVICES IS CHANGING
THE WAY CUSTOMERS ARE INTERACTING
WITH COMPANIES, AND THE
COMMUNICATION AND INTERACTION OF
MACHINES IN THE PRODUCTION PROCESS

10. MODULARIZATION
• “INDUSTRY 4.0”-TECHNOLOGIES ARE
ENABLING THE MODULARIZATION OF
PRODUCTS AND THE WHOLE VALUE
CREATION PROCESS, E.G.
MANUFACTURING FACILITIES.
• MODULAR PRODUCTION FACILITIES CAN
BE ADJUSTED IN THEIR QUANTITY
AUTONOMOUSLY, WHICH IS INCREASING
THE FLEXIBILITY OF THE PRODUCTION
PROCESSES

11. NETWORK-COLLABORATION
• JUST AS HUMAN BEINGS IN OUR SOCIETY
ARE INTERACTING IN SOCIAL NETWORKS,
THE COMPANIES’ PROCESSES WILL BE
DEFINED AND ACTIVITIES WILL BE
DECIDED THROUGH THE INTERACTION OF
MACHINES AND HUMAN BEINGS WITHIN
SPECIFIC NETWORKS IN AND OUT OF THE
COMPANIES ORGANIZATIONAL BORDERS

12. SOCIALIZING
• THE COLLABORATION IN NETWORKS IS
ENABLING MACHINES (NOT ONLY
SMARTPHONES) TO START
COMMUNICATING AND INTERACTING
WITH OTHER MACHINES AND/ OR
HUMANS IN A SOCIALIZED MANNER.
HEREWITH, THE COLLABORATION WITH
MACHINES IS SOCIALIZED, SINCE HUMANS
ARE ABLE TO GET INTO A CONVERSATION
WITH THE MACHINES

14. WITHOUT A DIGITAL SUPPLY
CHAIN, THERE IS NO LOGISTICS
4.0
• SAY GOODBYE TO “MANUAL.”
• A DIGITALISED SUPPLY CHAIN OFFERS
SIGNIFICANT ADVANTAGES IN TERMS OF
CUSTOMER SERVICE AND INCREASED
EFFICIENCY, ALLOWING SHIPPERS TO
CREATE COMPETITIVE ADVANTAGES FOR
THEMSELVES, THEIR SUPPLY CHAIN
PARTNERS AND THEIR TRANSPORTATION
PROVIDERS.

16. LOGISTICS 4.0 – WHAT DOES THE
BUSINESS NEED?
• EASE OF ACCESS, QUICK INFORMATION
PROCESSING, SECURITY, AND, MOST IMPORTANTLY,
ALL OF THIS IN ONE PLACE.
• A SINGLE SYSTEM WHICH WILL PROVIDE THE
COMPANY WITH EVERYTHING THAT IS AVAILABLE IN
SEVERAL OR MORE SYSTEMS OPERATED BY ONE
EMPLOYEE.
• MODERN LOGISTICS 4.0 WILL TRANSPORT US FROM
PRINTED DOCUMENTS, THOUSANDS OF ACCESSES
TO MANY WEBSITES, THOUSANDS OF TELEPHONE
AND E-MAIL INQUIRIES TO ONE PLACE TO A
GREATER EXTENT.

20. PROCUREMENT LOGISTICS IN A PRODUCTION FACILITY
• THE FUNDAMENTAL TASKS OF PROCUREMENT LOGISTICS
ARE THESE:
• THE TRANSPORT OF GOODS FOR INPUT MATERIALS THAT
THE FACILITY DOES NOT PRODUCE ITSELF, FROM THE
SUPPLIER TO THE PRODUCTION SUPPLY, INCLUDING THE
UNLOADING AND PREPARATION FOR USE IN THE
PRODUCTION FACILITY (EXCLUDING WAREHOUSE AREA
MANAGEMENT);
• CONTROL OF THE FLOW OF COMMUNICATIONS AND
INFORMATION AT THE INCOMING GOODS POSITION;
• ENDEAVOURS FOR ONGOING DEVELOPMENT WITH A
LONG-TERM PERSPECTIVE, INCLUDING THE INTEGRATION
OF NEW TYPES OF COMMUNICATION TECHNOLOGIES IN

21. I4.0 SOLUTION REQUIRED FOR
• MORE THAN 1,000 TRUCKS BRING MATERIALS TO THIS
PRODUCTION FACILITY EVERY DAY. ANY DISRUPTION IN THE
DELIVERIES LEADS DIRECTLY TO PRODUCTION LOSSES.
• THE OPTIMAL INTERPLAY OF THE COMPONENTS
INFRASTRUCTURE (ROADS AND WAREHOUSES), MACHINES
(TRUCKS, FORKLIFTS, OR INDUSTRIAL TRUCKS), CONTAINERS
(SUCH AS PALLETS), AND PEOPLE (ORDER PICKERS, FORKLIFT
OR TRUCK DRIVERS) IS DECISIVE FOR THE PROPER
FUNCTIONING OF THE TRUCK DELIVERIES.
• THE AIM OF THE I4.0 SOLUTION IS TO SECURE THE
INTERACTION OF THE COMPONENTS IN REAL TIME. GOODS,
MACHINES, CONTAINERS, AND INFRASTRUCTURE ARE LINKED
WITH ONE ANOTHER, GIVING RISE TO AN INTELLIGENT SYSTEM

22. I4.0 SOLUTION IS EXPECTED TO
CONTROL
• UNRECOGNIZED DELAYS IN DELIVERIES WITHIN
A SPECIFIC WINDOW OF TIME
• TRAFFIC CONGESTION OF ARRIVING TRUCKS AT
THE FACTORY GATES AND ON THE FACTORY
PREMISES
• LACK OF SPACE FOR WAITING TRUCKS
• TRUCK TRAFFIC BACKING UP WHEN LEAVING
THE PREMISES SO THAT IDLE TIMES AT
UNLOADING ZONES AND DELAYS IN

23. I4.0 SOLUTION IS EXPECTED TO
CONTROL
• DATA TRANSMISSION ERRORS BETWEEN THE FACTORY AND
SUPPLIERS, E.G., ABOUT THE NUMBER OF UNITS IN CURRENT
CONSIGNMENTS, THAT AFFECT PRODUCTION PLANNING
• BREAKDOWNS IN COMMUNICATIONS WITH THE TRUCK
DRIVERS
• LATE RECOGNITION OF DISRUPTIONS IN THE TRANSPORT
PROCESS SO THAT EVEN COST-INTENSIVE
COUNTERMEASURES NO LONGER HAVE THE DESIRED EFFECT
• ISOLATED MONITORING OF THE PARTIAL PROCESSES
OUTGOING GOODS FROM THE SUPPLIERS, TRANSPORT TO
THE FACTORY, AND UNLOADING AT THE FACTORY WITH THE
CONSEQUENCE THAT THE PROCESS PARTICIPANTS CANNOT
VIEW THE OPERATION OF THE PARTIAL PROCESSES AND

24. I4.0 SOLUTION AND ITS EFFECTS
• AT THE HEART OF THE I4.0 SOLUTION IS A
SOFTWARE PROGRAM THAT EMPLOYS ALGORITHMS
FROM OPERATIONS RESEARCH AND FUZZY LOGIC TO
PROVIDE WORKFLOW SUPPORT FOR COMPLEX
PROCEDURES.
• PLANNING AND SCHEDULING DECISIONS ARE MADE
AUTONOMOUSLY IN REAL TIME. THE PROGRAM IS
CONNECTED VIA INTERFACES TO IT AND THE
PHYSICAL TECHNOLOGIES OF THE PRODUCTION
FACILITY AND ITS COOPERATION PARTNERS,
ENABLING THE PRODUCTION FACILITY TO CONTROL
THE ENTIRE PROCESS FROM THE TRUCKS’ JOURNEYS

25. ITS EFFECTS
• TIME MANAGEMENT IN PRODUCTION IS
SYNCHRONIZED WITH REAL-TIME PLANNING FROM
PROCUREMENT LOGISTICS. THE INFORMATION
BETWEEN SUPPLIERS, FREIGHT AGENTS, AND
FACTORY IS COORDINATED ONLINE
• THE IN-FACTORY PROCESSES AND THE IN-HOUSE
RESOURCE PLANNING ARE CONTROLLED DIRECTLY
AND DECISIONS ARE MADE ON THE BASIS OF THE
INFORMATION. SIMULTANEOUSLY, RESPONSES TO
SINGLE, UNFORESEEN EVENTS ARE INITIATED WITHIN
ONLY A FEW SECONDS.

26. ITS EFFECTS
• SUPPLIERS CAN GO TO A WEB PORTAL TO
BOOK TIME WINDOWS FOR PLANNED
DELIVERIES; INFORMATION IS
TRANSMITTED BY THE PORTAL TO THE
PRODUCTION FACILITY’S IT SYSTEMS.
GENERAL CONDITIONS SUCH AS THE
POINT IN TIME AT WHICH THE GOODS ARE
REQUIRED OR THE NUMBER OF OPEN
WAITING AND UNLOADING ZONES ARE
TAKEN INTO CONSIDERATION.

27. ITS EFFECTS
• AFTER DEPARTURE, THE IDEAL ROUTE IS
DISPLAYED TO TRUCK DRIVERS ON THEIR MOBILE
ANDROID DEVICES. THEIR LOCATIONS ARE
CONTINUOUSLY TRANSMITTED TO THE
FACTORY. DELAYED TRUCKS CAN BE IDENTIFIED
IMMEDIATELY SO THAT VEHICLES ARRIVING
PREMATURELY AT THE FACTORY CAN BE
PROCESSED EARLIER WHEN THE SITUATION
PERMITS. IN CONTRAST TO PREVIOUS METHODS,
ORGANIZATION USING PEN AND PAPER OR EXCEL

28. ITS EFFECTS
• IF THERE ARE DISRUPTIONS IN THE FACTORY
ITSELF, THE PLANNING IS REVISED ONLINE,
SCHEDULING DECISIONS ARE MADE
AUTOMATICALLY, AND THE EFFECTS ARE
COMMUNICATED TO THE TRUCK DRIVERS VIA
THEIR ANDROID DEVICES. THE ONGOING
EXCHANGE OF INFORMATION WITH ALL OF THE
TRANSPORTERS MAKES IT POSSIBLE TO
CALCULATE FACTORY CAPACITIES FOR IN-
HOUSE PROCESSES AND TO PROVIDE PLANNING

29. ITS EFFECTS
• IN THE ADMINISTRATIVE PROCESS OF INCOMING GOODS,
THE FACTORY GATE IS AUTOMATICALLY OPENED
WITHOUT ANY MANUAL INPUT BECAUSE THE ENTRANCE
GATES HAVE ALSO BEEN AUTOMATED. AT THE ENTRANCE
TO THE FACTORY, THE ROUTE THROUGH THE FACTORY
PREMISES TO THE UNLOADING ZONE OR AN OPEN
WAITING SPACE IS DISPLAYED ON THE DRIVERS’ ANDROID
DEVICES SO THAT THERE IS NO TRAFFIC CONGESTION ON
THE PREMISES. IF IT IS INITIALLY NECESSARY FOR THE
DRIVERS TO GO TO A PARKING POSITION, THEY ARE
AUTOMATICALLY NOTIFIED WHEN THEY CAN DRIVE TO
THE UNLOADING DOCK.

30. ITS EFFECTS
• FACTORY WORKERS TAKE OVER THE PHYSICAL-
OPERATING PROCEDURE OF THE PROCESSING –
PHYSICALLY TAKING POSSESSION OF GOODS, INCLUDING
UNLOADING AND INSPECTION FOR QUANTITY AND
QUALITY – AT THE LOADING RAMP. THE FACTORY IT
MONITORS AND DETERMINES THE REQUIREMENTS FOR
HUMAN RESOURCES AS WELL AS TECHNICAL UNLOADING
RESOURCES (E.G., FORKLIFTS). THE AUTOMATED
CALCULATION TAKES INTO ACCOUNT DISTANCE, ORDER
PRIORITY, TIME, LOADING AND WAREHOUSE CAPACITY,
AND THE TECHNICAL AND ORGANIZATIONAL
CONDITIONS.

32. FUTURE OF PROCUREMENT
• 1 SUPPLIER INNOVATION MANAGEMENT.
• 2 DIGITAL SUPPLY-CHAIN INTEGRATION.
• 3 DIGITAL CATEGORY & SUPPLIER MANAGEMENT
• 4 BIG DATA ANALYTICS
• 5 DIGITAL PURCHASE-TO-PAY PROCESS
• 6 STRATEGICALLY LINKED LEADERSHIP
• 7 DIGITAL & AGILE ORGANIZATION

34. PROCUREMENT 4.0 FRAMEWORK
• 1. NEW PROCUREMENT VALUE
PROPOSITION
• 2. DIGITAL CATEGORY AND SERVICE
PROCUREMENT
• 3. DIGITAL SUPPLY CHAIN AND SUPPLIER
MANAGEMENT
• 4. INNOVATIVE PROCUREMENT DATA
UTILIZATION
• 5. DIGITAL PROCESSES AND TOOLS

41. THE LINKING OF DATA AND
TRANSPORT LOGISTICS

42. AUTONOMOUS TRANSPORT
ROBOTS

43. QUANTUM LEAPS IN
PERFORMANCE
• THOSE WHO ARE SLOW TO EXPLORE
DIGITISATION AND DATA ANALYTICS MAY
FIND IT DIFFICULT TO COMPETE. IN AN
INCREASINGLY COST-COMPETITIVE
MARKET, NO COMPANY IN THE
TRANSPORTATION AND LOGISTICS
SECTOR CAN AFFORD TO LOSE
OPPORTUNITIES TO IMPROVE THEIR COST
AND REVENUE POSITION AGAINST THEIR
MARKET PEERS.