What is Industry 4.0?
It is expected that Industry 4.0 is going to become a business reality by 2025.
Industry 4.0 refers to the fourth industrial revolution where we have seen transformative technologies that have changed processes and infrastructure in manufacturing. This involves taking what was started in the third adoption of computers and automation, and now enhancing it with smart and autonomous systems fueled by data and machine learning.
There are many benefits to Industry 4.0 and if factories do not move with the times then they will very quickly be left behind. There is increasing pressure on businesses to re-think their strategies and embrace the technologies available to them.
One example of Industry 4.0 in action is ‘digital twin’ technologies. These digital technologies can create virtual versions of real-world installations, processes, and applications. It can represent a physical object, process, or service. For example, it can be a digital replica of a single component or machining process; or even large purpose-designed buildings. These can be robustly virtually tested to make cost-effective decisions before the expense is incurred on ‘real–world’ implementation.
For manufacturing businesses, the overall importance is incorporating the idea of new technologies and different digital methods to collect and analyse data, as well as providing a new digitally efficient way to do business.
Why is Industry 4.0 important to my business supply chains and what do I need to do to prepare?
As indicated by The Manufacturer’s Organisation, Make UK:
“if UK manufacturing is to thrive and prosper in the future, we need to step up the pace of digitisation to maintain and improve our international competitiveness”.
Industry 4.0 creates a disruption and requires businesses to rethink the way in which they design their processes and their supply chain.
Customer expectations are now growing. For example, the online trend of recent times has led to a need to meet the increased expectations of faster service times. For companies to keep up with the competition of supply chains it is imperative to evolve the way they work and embrace digital solutions.
Media focus has surrounded potential negatives, with stories of robots replacing human jobs. However, behind the headlines, there are opportunities for smarter supply chains, better products, and more efficient ways to carry out business.
What are the key cost-saving benefits of Industry 4.0 on managing supply chains?
Industry 4.0 technologies are not only about large-scale infrastructure changes. It is also about becoming more efficient; as well as faster and more responsive to customers. Here are some of the key cost-saving benefits of Industry 4.0:
- Digitalising supply chains
The use of digital data can help your business monitor components and processes in real-time; provide automated systems and improve customer and supplier selection. This will help businesses to quickly adapt to change and recognise new trends in the market. Similarly, software advances can provide a platform for fast and effective stock monitoring or invoicing functions.
- 3D printing and product quality
This allows businesses to put a system in place whereby customers can order a product exactly to their specification, using a wide range of materials that can be manufactured at a cheaper cost in a quicker time. Businesses will be able to quickly adapt to production on a larger scale if necessary, to deliver to customers.
Traditional manufacturing processes are vulnerable to added costs in returned, substandard products where production flaws arise. However, using digital technologies can help reduce and eliminate those costs through more advanced quality control means. Data collected from every point of production helps to control production conditions. For instance, accurately controlling the temperature, with real-time adjustments, to ensure that the quality of a product is at all times consistent.
- Net-zero and environmental impact
Moving towards digitalisation will help businesses become more sustainable and move towards net zero and green targets. Traditional manufacturing can often lead to a waste of materials, which in turn raises a business’s carbon footprint. Digitally monitored and controlled processes can reduce waste and in turn costs to your business.
How can we help
Simon Key is a Partner in our Dispute Resolution team, specialising in manufacturing and business disputes.
For further information in relation to the subjects discussed in this article, please contact Simon or another member of our team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.
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