INDUSTRY 4.0
Industrial digitalization, or Industry 4.0, can be defined as the integration of digital technologies through industrial processes to improve efficiency and productivity.
Key takeaway:
INTERNET OF THINGS (IOT)
Connecting physical devices to the internet, collecting data and enabling real time monitoring.
BIG DATA ANALYTIC & AI
Utilizing advance AI algorithms, analyzing the Big Data generated by IoT, optimizing processes and defining predictive actions.
SUPPLY CHAIN INTEGRATION
Digitalizing the supply chain to improve inventory, production planning, demand forecasting and logistics.
CLOUD COMPUTING
Storing Big Data in the cloud, providing real time availability to all stakeholders.
Over the last few weeks, I’ve discussed the benefits of Industry 4.0 with several companies currently implementing it, and all of them reported big improvements in inventory levels, OEE, scraps, machine utilization, forecasting, ppm’s and more.
Upon further reflection, I realized that they didn’t just invest in IoT and software, but also in changing the mindset and work method of the entire team, with commitment and discipline from Management forming a crucial part of the process.
After all of this feedback, my conclusion is that nowadays digitalization is a must to remain competitive, not just because of data accuracy, but even more so because this data is available in real time and in the cloud; enabling faster reaction time, more efficiently and (important to note) remotely.
Therefore, more than considering the benefit of digitalization, the real question should be: What is the cost of NOT digitalizing? I assume it would be a loss in competitivity, in being phased out of the market.
If you are interested in investing in an exceptional team and increasing your company’s profitability, we encourage you to consider our next training focused on improving strategic purchasing skills. Additionally, please feel free to contact us for more information.
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