Type: Process Essays
Sample donated: Jasmine Carter
Last updated: September 16, 2019
The term Industry 4.0was introduced by the government of Germany that relates to a new industrialrevolution. Industry 4.0 stands for the fourth industrial revolution.
Aftermechanization (Industry 1.0), mass production (Industry 2.0) and automation(Industry 3.0), the Internet of Things and Services is now moving intoproduction. Industry 4.
0 technologies enable outstanding growth opportunitiesand competitive advantages for Germany as a business location. Forecasts assumethat companies can increase their productivity by about 30 percent by means ofIndustry 4.0. Industry 4.0 does not end at the factory gates. After all,intelligent products not only actively control their own production process,but after delivery to the customer, they are also a platform for new businessmodels. In the future, there will be billions of intelligent products that areconnected to the Internet during their lifetime and that store huge amounts ofdata (Big Data) about their own operating and product status in a data cloud.
Thanks to the data obtained, products can be optimized. In addition, learningalgorithms link the delivered data to new information (smart data). Theyprovide the basis for offering the customer, in addition to the physicalproduct, individual data-based services (Smart Services).1For example, an operator of diagnostic devices can collect and evaluate data onthe entire inventory of the equipment in his or her responsibility and generatenew services, such as a diagnosis suggestion. Compared to current businessmodels, the underlying database will be many times higher. Also, SAP has alsocome up with its new products to greet the challenges of Industry 4.
0. The S/4HANA software is a ticket to entire new world of Warehouse Management Systemsafter SAP EWM and ERP. 1. The roadto revolution for LogisticsLogistic has come a long way. The markets for,and the marketing of, goods and services have undergone profoundtransformations over the past 30 years.
Logistics has played an important rolein such transformation. Before 1950s logistics was thought in military termsonly. The aim was to transport weapons, person-nel and food. Logisticactivities were not quite organized which led to conflicts between the providerof the services.
Understanding the past and acknowledging the present enables anextrapolation to what may be in store for logistics/SCM later on. The patterntoward expanded globalization, free trade, and out-sourcing all add to aproceeded and developing enthusiasm for coordination’s/SCM. According to aMcKinsey & Company study, “by the year2020, 80% of the goods in the world will be manufactured in a country differentfrom where they are consumed compared with 20% now.”22.
SAP: Thebest IT brand for logisticsWith 22.06 billioneuro profit every year SAP is the world leader providing business relatedapplications in terms of software and software – related service revenue. Basedon market capitalization SAP is the world’s third largest softwaremanufacturer. The companies vision quoting from SAP website “Is to help theworld run better and improve people’s lives.”The 45-year-oldcompany is making big in the market and is coming with new products to enhanceand fasten the business process. Back in 1972, the company was founded by 5German entrepreneurs who had the vision for business potential of technology.
Starting with one customers and a handful of employees, today the company hasmore than 345,000 customers all around the world and is stronger with more than87,800 employees.3SAP also providessoftware’s to run real-time supply chain for their customers. From planning thedemand to managing the inventory the software supports all the functionsnecessary to run an efficient and effective supply chain. The company is comingup with many new software systems that will help to optimize the supply chainnetwork even more. Focusing anddelivering services to almost all industries from customer sector to chemicalto finance to aerospace and defence. SAP is making its pathway open for all byproviding beneficial services.
2.1. Products of SAP SCMA supply chain is asystem that is responsible for moving a product or a service from place oforigin to place of consumption with the help of transport, people, informationetc.
SAP supply chain management provides a variety of products to theircustomers to have a smooth and efficient running supply chain. It is veryimportant for companies to have a smooth-running supply chain because it is aform of direct interaction with its customers. To help with this, SAPhas come up with products that can help ease the running of supply chain anddeliver effective results. The involvement of IT in warehouse has made itpossible for companies to have better warehouse management and in turn a bettersupply chain system. At last all the companies want their customers to be happywith the services they offer. For example, products should be delivered at theright place, the right time, in the right condition without damages and to theright customer. SAP is playing an important role in growth of Industry 4.
0.Not only just mappingsimply and automated warehouses into fully automated warehouses, the software’sfrom SAP also the enterprises to indulge in new requirements such asintegration of robot and value gains from current and future wave of technologylike Internet of Things and warehouse production. These new technologies likeInternet of Things, blockchain, machine learning and SAP HANA platform willlead to transformation of value chains to enables use of completely newbusiness models. The logistic platform of SAP has made transportation andwarehousing more efficient. It has enabled enterprises to deploy techniquessuch as ‘pick by light’ or ‘pick by vision’.
Pick by vision requires use ofsmart glasses and high-performance picking systems. Internet of Things connectioncreates a high level of automation; and warehouses can handle certain aspectsof the production process autonomously ? which is crucial because goods becomeincreasingly personalized.In case of transportlogistics, to forma a worldwide logistics platform, the airlines, oceancarriers and other association must agree on the standards set by authorities.For railroads and truck companies a good choice will be regional offerings. The pilot project between the HamburgPort Authority andSAP at the port of Hamburg are testimony to this. Here, trucking companies,container terminal operators, parking lot operators, and other port operatingfirms will soon be able to synchronize and coordinate their transports with oneanother on one platform. For a global logisticsplatform, ocean carriers, airlines, and other associations must agree onstandards.
For trucking companies and railroads, regional offerings are thebetter choice. The more companies that join the platform and the more datathere is, the more important the fast and efficient analysis – which is alreadypossible today – will become.41 Clemens Otte (2015)2 Ballou (2016)3 SAP Website4 Andreas Schmitz (2017)