In today's rapidly evolving industrial landscape, digital transformation plays a crucial role in enhancing efficiency, reducing costs, and optimizing processes. Supply Chain 4.0 is a key component of this transformation, leveraging cutting-edge technologies to streamline operations and create a seamless flow of information and materials across the supply chain.
What is Industry 4.0?
While the modern industry was
developing, three great industrial revolutions took place; the invention of
mechanical workbenches working with water and steam in the 18th century, mass
production in the 20th century with the use of electricity and the production
line, and automation with programmable machines in the 1970s. Industry 4.0 is
predicted to be the fourth industrial revolution. This concept was first used
in 2011 at the Hannover Fair in Germany. The report, in which Industry 4.0 took
place for the first time, stated the 20-year plan of Germany's industry.
Industry 4.0 was adapted and started to be used for many sectors following the
fair in Germany, such as Agriculture 4.0, Logistics 4.0, and Supply Chain 4.0.
The main idea of Industry
4.0 is to realize the transformation of information technologies in the
industry. The two key components of this idea are next-generation software and
hardware and the internet of things. In this way, structures that are lower
cost, energy-efficient, sustainable, measurable, traceable, minimizing risks,
strengthening competition in international markets, allowing to follow the
dynamics in the economy instantly, and smart factories with integrated smart
cyber-physical systems can be adopted.
What is Supply Chain 4.0?
One of the concepts that
emerged following the concept of Industry 4.0 was Supply Chain 4.0. What is
Supply Chain 4.0? It stands for the digitization and automation of
processes between supplier, manufacturer, and customer.
Supply
Chain 4.0 meaning refers to the integration of digital technologies such as AI, IoT, and big
data analytics to optimize every stage of the supply chain, from procurement to
delivery. Supply chain 4.0 covers all
steps from the time the ordered product is shipped to the end of the product's
lifetime of usage. The supply chain is concerned with the purchasing,
processing, production, and shipping of raw materials to customers, and
concerns all parties involved in these processes: suppliers, factories,
warehouses and distribution centers, retailers, and end users. Supply Chain
4.0 examples include real-time tracking, predictive analytics, AI-driven
inventory management, and automated warehouses that enhance efficiency and
reduce errors. Supply chain management, on the other hand, ensures that all
parties involved in the supply chain are properly integrated and is concerned
with controlling these activities. The supply chain is a very complex and large
network due to its structure, and it is important to transport materials
quickly with an efficient information flow.
Turkey's Position in Supply 4.0
We can say that the place
where Turkey stands for Industry 4.0 supply chain contrary to the three
industrial revolutions in the past is promising. According to the report titled
"CEO's Perspective on Digital Transformation in Turkey" published in
2016, the digital maturity level of companies from various sectors is stated as
"7% of them are entry, 59% are developing and 34% have an advanced digital
structure". In addition, according to the same report, it is stated that
companies allocate 27% of their investments to digital development.
Of course, the transformation
of information technologies in the industry cannot be considered only on the
basis of companies, this process can only be completed when the parties with
which the companies work together, as well as the companies, go through the
mentioned technological transformations. For this reason, Industry 4.0 has
brought concepts such as Agriculture 4.0, Logistics 4.0, and Supply Chain 4.0.
TradeAtlas: Your Partner in Digital Trade Transformation
At TradeAtlas, we provide
innovative solutions that contribute to digital transformation and facilitate
trade processes. With our extensive trade database, market insights, and
digital tools, we empower companies to navigate the evolving global trade landscape
with ease and efficiency. If you want
to explore TradeAtlas for free, you can click here.
For
detailed information on the subject of trade digitization, you can review the
content “What is Trade Digitization?”.
