🚀 Shaping the Future - Issue 05
The digital transformation of supply chains offers immense potential to derisk operations and navigate disruptions with greater efficiency.
🧠 DeRisking the Supply Chain
In today's rapidly evolving business landscape, the importance of supply chain management has taken center stage, and the digital transformation of supply chains has become a critical focus for many industries. To gain valuable insights into this shift towards digitalization in supply chain management, we recently had the opportunity to sit down with Crissa Klein to discuss about the current trends.
Traditionally, supply chains operated in a linear manner, with a flow of goods from product development to delivery. Disruptions at any stage often led to reactive problem-solving and delays. However, the digital supply chain has revolutionized this approach by providing real-time visibility into every stage of the process. This transformation offers a proactive way of addressing issues and ensuring that operations run smoothly. Advanced visibility platforms, such as Project44, are at the forefront of the digital supply chain revolution. These platforms allow companies to track shipments across different carriers and anticipate potential delays. This capability is particularly crucial in today's unpredictable landscape, where disruptions can arise from various sources, including geopolitical events and natural disasters. With real-time insights, companies can make informed decisions and mitigate risks before they escalate.
One of the most significant advantages of a digital supply chain is the ability to harness technology for risk management. Machine learning and predictive technology enable companies to identify potential risks and scenarios, from financial uncertainties to geopolitical tensions. This proactive approach empowers companies to plan for contingencies and establish backup supply bases, reducing the impact of disruptions on their operations.
As Crissa points out, the spotlight is finally on supply chain management, with companies recognizing the need for investment and innovation. The digital supply chain promises increased efficiency, resilience, and customer-centricity. However, the journey towards a fully derisked digital supply chain is an ongoing process that requires continuous adaptation to evolving technologies and emerging challenges.
You can watch the full conversation here.
📈 Key Industry Trend to Keep an Eye On
Predictive maintenance emerges as our highlighted industry trend this week, offering a game-changing approach to equipment upkeep and operational efficiency. In essence, predictive maintenance employs advanced data analysis tools to proactively detect anomalies and potential defects within machinery and processes. By leveraging historical and real-time data from various operational facets, manufacturers can anticipate and address issues before they escalate into failures.
The advantages of predictive maintenance are twofold. Firstly, it aims to minimize unscheduled downtime and reactive maintenance, allowing businesses to sidestep productivity losses and costly emergency repairs. Secondly, it optimizes maintenance schedules, steering clear of excessive preventive maintenance that could entail unnecessary expenses.
Predictive maintenance hinges on a multi-dimensional framework encompassing real-time asset monitoring, analysis of work order data, and benchmarking of maintenance, repair, and operations (MRO) inventory usage. It capitalizes on cutting-edge technologies like the Internet of Things (IoT), artificial intelligence (AI), and integrated systems, which foster interconnectedness among assets and systems. These tools, including predictive maintenance sensors, industrial controls, and software systems, enable data capture, analysis, and action.
Various techniques power predictive maintenance, such as vibration analysis, oil analysis, thermal imaging, and equipment observation. Manufacturers can collaborate with equipment manufacturers and condition monitoring experts to select the most suitable technique. As the manufacturing landscape evolves, embracing predictive maintenance not only boosts operational reliability but also fosters a competitive edge by ensuring streamlined processes and enhanced productivity. Manufacturers are encouraged to explore this transformative trend to stay ahead in today's dynamic industrial environment.
📚 What we’ve read this week
The report analyzes the Cost of Doing Business (CoDB) Index rankings across countries, with a focus on the United States. Despite higher primary costs, mainly labor, the U.S. excels in secondary costs like labor quality and business conditions, securing a strong overall ranking of fifth out of seventeen countries. Labor quality stands out as a critical advantage, enhancing U.S. competitiveness. The report also highlights that recent tax reform elevated the U.S. ranking from 11th to 5th place in the CoDB Index.
About 75% of advanced industry firms have embraced digital twin technologies, with automotive and aerospace sectors leading the adoption. Digital twins offer risk-free product development, enhance testing and insights, and leverage real-world data for improvements. Implementing digital twins results in shorter development times, cost savings, improved quality, and higher customer satisfaction. The global digital twin market is forecasted to surge to $73.5 billion by 2027.
Walmart is automating its Florida warehouse, replacing manual labor with robotic arms, conveyor belts, and screens to enhance supply chain efficiency. Despite initial reluctance from some workers, the company offers six weeks of training to adapt to the automated systems. Transitioned workers highlight reduced physical strain and increased mental engagement in their automated roles.
A highly automated Texas factory was supposed to bring the manufacturing of Craftsman mechanics’ tools back to American shores. The $90 million project was doomed by equipment problems and slow production. The attempt to re-localize production faced hurdles, emphasizing the importance of human expertise alongside automation.
Ford's battery factory plans in Michigan face local opposition, mirroring broader resistance to major manufacturing projects in the US. The factory aims to create EV batteries and jobs but sparks concerns over environmental impact and foreign involvement. Critics claim insufficient community engagement. Such NIMBY opposition challenges the Biden administration's manufacturing revival efforts. Despite the push for a renaissance, manufacturing jobs remain niche and face hurdles in communities. The resistance highlights the challenges of industrial development promotion.
🎤 Upcoming Events
👋 Get Involved
Join the Industry 4.0 Club and be part of our vibrant community, dedicated to shaping the future of manufacturing. By actively participating, you can make a meaningful impact in advancing Industry 4.0 and contribute to reshaping the manufacturing landscape.
We’re always looking for new contributors to share their expertise, experience and spread the word. You can contact us directly at info@industry40club.com with subject like “Getting Involved” and follow us on all social media (LinkedIn & Twitter) or donate to help fund the club’s activities.
💬 About Shaping the Future
Shaping the Future is Industry 4.0 Club’s official newsletter. We’ll be experiencing different formats over the coming weeks until we find the one that resonates the most with our members. You can help us improve by sharing feedback and suggestions. The newsletter will land in your inbox every Sunday morning; please subscribe to not miss anything and forward the email to someone you think would benefit from this.
If you were forwarded this and found it interesting, please subscribe and share!