SupplyChainManagement4.0SupplyChain Innovation towardsIndustry4.0

JorgeCalvoPresidentGlobalSCMDivision,ExecutiveOfficer

RolandDGCorporation, JapanProfessorOperationsStrategyandIndustry4.0

GLOBISUniversityGraduateSchoolofManagement, TokyoMay2016

EnvisioningSCM4.0:FourthIndustrialRevolutionMasteringtheFourthIndustrialRevolutionIndustry4.0ischaracterized byarangeofnewtechnologies thatare fusingthephysical,digital andbiological worlds,impacting alldisciplines, economies andindustries,andevenchallenging ideasaboutwhatitmeanstobehuman.The resultingshiftsanddisruptionsmeanthatwelive inatimeofgreatpromiseandgreatperil.Theworldhasthepotential toconnectbillionsmorepeople todigitalnetworks,dramatically improvetheefficiency oforganizationsandevenmanage assetsinwaysthatcanhelp regenerate thenaturalenvironment,potentially undoingthedamageofpreviousindustrial revolutions.

Prof.KlausSchwab(2015)FounderandExecutiveChairmanWorldEconomicForum

ThekeyroleofSCM4.0Undertheparadigm shiftofIndustry4.0,itisneededastrategicholisticvisiontoseethenewgrowingforest,throughtheoldtrees.WiththeconfluenceofsocialandbusinesstrendsofIndustry4.0.,andtheemergingtechnologies,thevaluechainwillbecomefullydigitalandgloballyintegrated;fromsuppliers,factoriestocustomers.DigitalizationhasstartedbytheintegrationofinformationflowsandtheincrementaldigitalizationofproductsandservicessupportedbyInternetofThings.Nextwillbetheimplementationofintelligentprocesses,fosteredbyArtificialIntelligence.Theglobalsupplychainmanagementwillplayakeyroleinthenewparadigmlookingholisticallybeyondtheexistingsilosandfunctions.Thedecentralizedandintelligentsupplychainoptimizationwillinvolvebothhyper-communicationandbigdatatoachievethehighestagility.EverysingleobjectinthevaluechainmayhaveitsownIPaddresscommunicatingwithothers;likeproducts,parts,materials…butalsocontainers,trucks,manufacturingdevices,plusnewhuman-machineinterfacesanddigital-to-physicaltransfers.EverythingmaybecomeanindividualpartoftheSmartSupplyChainsupportedbyIoTandAI,whereproducts,servicesandinformationconverge.Companiesneedtochangethewaytheyplan,source,make,deliverandservicehavingthecustomerinthegravitationalcenterofadigitalbusinessecosystem.

EnvisioningSCM4-0:RevolutionizingBusinessSupplyChainInnovation• Thethreestagesofinnovation:substitution,scaleandstructuraleffect.• TheimpactofInternetonSupplyChainManagementhasleadtobusiness opportunitiesfarbeyondsupplychainintegration.• Supplychainstructuralchangesresultedinimportantnewprofitcenters.Hau Lee(2015)StanfordGraduate School ofBusinessProfessor ofOperations, Information, andTechnology

DigitalubiquityisrevolutionizingbusinessItiscausingcompaniestotransformtheirbusinessmodelsandchangehowtheycreateandcapturevalue.Companiesthatpreviouslymanufacturedproductsorprovidedservicesarebecomingsoftwareandanalyticscompanies,developingnewtypesofcapabilities-likecollaborationandcoordination-andformingentirelynewkindsofpartnerships.Digitalubiquityisalsocausingcompaniestocompletelyrethinkhowtheygoaboutoperations.Operationsisoftenmistakenlyviewedas"manufacturing,"butoperationsiswhatgivesacompanyitsabilitytoact.Aswitheveryotheraspectofacompany,digitaltechnologyisenablingcompletelynewoperatingmodels.MarcoIansiti (2016)HarvardBusiness SchoolDavidSarnoff Professor ofBusiness AdministrationUnit Head,Technology andOperationsManagementandthe DigitalInitiative

EnvisioningSCM4.0:SupplyChainDigitalization

© The Economist

© Accenture

SCM4.0Model

SCM4.0:• Digital• Agile• ValueNet• DataDriven• RealTime• ControlTower• Responsive• Sensing• Intelligent• Social• …

NewParadigmIndustry4.0

NewBusinessContextIoT&AI

NewCorporateCultureCollectiveLeadership

NewSCManagementSystemSkills, Competences andProcesses

SCM4.0

EmergingTechnologies

InformationTechnologies

SCM4.0

IoT&AIBigData

SCM4.0RoadMap

CloudSIOP

CloudControlTowerBigDataRobotsRFID

CloudCPFRSensors3D Printing

Industry4.0

IoT&AIAugmentedRealitySimulationsFactory4.0Logistics 4.0

SCM4.0DigitalValueNetwork

DigitalPlanning,OrderFulfilment,Forecast

Accuracy

GlobalInventoryOptimization,LeadTimeReduction

RealTimeResponsiveness,Resilience&

Agility

MarketResponsiveness,

ServicingDigitalValueNetwork

GlobalDataSystemDemand&Supply

Platform

GlobalDigitalProcesses,Partnerships

NewSCManagement

System

GlobalSCMDigitalizationFOCUS

OBJECTIVES

TODAY

ToBEEnd-to-endDigitalValueNetwork:ConnectedDigitalRealtimeResponsiveIntelligentScalableTransparentCollaborative

New:SkillsCompetencesSystemsProcessesCulture

SMC4.0End-to-EndDigitalValueNetwork

Adapted from Bovet y Martha (2000).

PlanningLogisticsManufacturingMarketingServiceITHR

Aparadigmshiftneedsaholisticvision