Contemporary developments in Supply Chain 4.0=Supply Chain 5.0?

1. Contemporary developments in Supply Chain 4.0 = Supply Chain 5.0?

2. Using a mix of disruptive technologies properly to generate or deliver products or services is called Supply Chain 4.0. The technologies proponents of Industry 4.0’s are Internet of Things, Cloud Computing, Artificial Intelligence, Big Data Analytics, Machine learning, Additive Manufacturing, Robotics, Blockchain and Augmented Reality. The integration of these technologies provides better performance of supply chain processes in terms of resource utilization, efficiency, integration, collaboration, responsiveness, flexibility, quality and transparency.

3. Emerging idea of Supply Chain 5.0 The ultimate aim of integrating these technologies is to develop a cyber-physical system to cover supply chain processes. However, the Industry 4.0 revolution has observed a clear distinction between humans and machines, specifically robots. On the idea of achieving the maximum benefits from both humans and robots, some visionaries are spreading the idea of the Fifth Industrial Revolution – also called Industry 5.0: the reconciliation between humans and machines. Industry 5.0 seeks to take these highly automated, connected and intelligent digital ecosystems and pair them with a human touch. This means leveraging the human element in a way that helps customize end-user experiences, optimize workflows, etc.— getting the best from both the people and technology involved in the process. Industry 5.0 aims to cater to the hyper-personalization and hyper-customization needs of customers, which requires the right mix of human creativity and machine efficiency. As EsbenOstergaard, founders and inventors of Universal Robots, which is a market leader within collaborative robots (cobots) puts it, “while robots are excellent at manufacturing standard products in standardized processes in a high production volume, adding this so-called special something to each product is a challenge where robots require guidance.” Human touch is not only needed in customizing and personalizing products but also in ensuring seamless end-to-end supply chain processes: from selecting the right raw materials to understanding the personalization and customization requirements of individual customers.

4. What market gap does Supply Chain 5.0 fulfills? Supply chain 5.0 caters to the hyper-personalization and hyper-customization of customer needs, which requires the right mix of human creativity and machine efficiency. It puts people back into the heart of manufacturing, allowing them to focus on more creative tasks and cognitive problem-solving. The supply chain 5.0 could bring in advantages: • Improving on Efficiency, profit margins and customer delights by enhanced customization or mass customization. • Reducing Supply chain risk and making the supply chain more resilient based on more current information, artificial and human intelligence. • Enabling Logistics and supply chain functions to spend more time on strategic simulation and decision making and less on fighting fires or matters of basic execution. • Improving supply chain integration for more strategic partnerships. Industry 5.0 is a visionary concept which aims to include the human, social, and sustainability aspects amid the current and highly focused technological scope of Industry 4.0.

5. Partingthoughts To conclude we can say, Supply Chain 5.0 aims at mass customization, adds revolutionary technologies, improves supply chain resilience, enables a super smart and sustainable society. If you believe that this is something you are cut out for and need 360° career assistance from a globally renowned institution, then you want to have a look at our Distance MBA in Logistics and Supply Chain Management at UPES CCE.