Resilient Supply Chains: Manufacturing 4.0 Solutions

How resilient supply networks enable supply chain leaders to predict, manage, and respond to constant disruption. 

TAKEAWAYS:

●  Resilient supply networks and collaborative ecosystems, supported by Manufacturing 4.0 technologies, enable supply chain leaders to predict and resolve disruption effectively.
●  Companies are using Manufacturing 4.0 technologies to improve visibility, planning, and information management; creating platforms to identify key events and coordinate effective responses, as exemplified by Unilever’s use of predictive AI during the COVID-19 pandemic.
●  Building resilient supply chains involves proactive risk identification, communicating and collaborating with suppliers and partners, and pursuing leading supply chain best practices.  

In recent years, supply chain disruption has been the main catalyst for evolution in the manufacturing industry. And with supply chain disruption, we have seen a shift towards resilience rather than the typical focus on cost and service. What was previously thought of as “once in a lifetime” crises have become the norm as the frequency and costs of each disruptive event have increased.

To succeed in this environment, resilient supply networks and collaborative ecosystems are needed to communicate and plan across suppliers, partners, and customers. These networks are increasingly supported by Manufacturing 4.0 technologies, including digital solutions to improve visibility, planning, predictability, and the rapid response to disruption, all working in tandem to enable greater resiliency across the supply chain.

Resiliency starts with proactive risk identification and assessment, identifying sources of risk and associated probabilities. While adaptability to unforeseen challenges is often seen as the hallmark of resilience, predicting and preparing for issues before they present themselves ensures the best outcomes. With this, companies are looking to digitally support business planning, risk management, and organizational preparedness for future disruptions.

The evolution of supply chain thinking

As disruptions increasingly serve as a catalyst for change, the way leaders manage and think about supply chains is changing, too. The COVID-19 pandemic served as a watershed moment, reshaping entire industries as supplies of protective equipment and health and hygiene products were stretched beyond historic constraints. Other products experienced dramatic peaks and valleys in their demand curves – causing manufacturing and supply shortages – followed by increased inventories, and eventually a need to scale back production dramatically.