Subject: Transport Management

Subject Code: DTP 3539

Topic of Assignment
Understanding Supply Chain 4.0 Technology and Its Potential Impact on
Global Value Chains
(Case Study Transport Management)
Group Members:
Mohammad Zakwan Haziq Bin Mohd Mazuan (LM09200006)
Muhammad Haziq Farhan Bin Helmi (LM09200012)
Intake: September 2020
Semester: 6
Lecturer: Dr Mohammad Khairuddin Bin Othman

Course of Degree/Diploma: Diploma in Logistic Management

PICOMS INTERNATIONAL UNIVERSITY COLLEGE
Supply chain 4.0 is the improved version of the supply chain that incorporates a variety of
Industry 4. technologies. It combines advanced AI algorithms, business intelligence tools, data
sciences and other next-gen technologies to significantly improve supply chain management.

1. Based on your reading and understanding, why do you think the Supply Chain 4.0
technology is important to be adopted by most of the transport companies? Discuss. (10
marks)

Based on my understandings of Supply Chain 4.0 technology, it is important for transport

companies to adopt and apply the current technology and management practices in the field.
With the adoption of Supply Chain 4.0 technologies in the transportation and logistics industry,
companies will have better collaboration between the logistics parties since it involves the
fulfilment of delivering goods or supplies to where it demanded by the logistics provider. For
instance, supply chain involves numerous parties’ player such as the supplier, distributor,
manufacturing, wholesaler, retailer, and end user itself in order to deliver product or providing
services to consumer. Thus, Supply Chain Management system (SCM) is introduced and
integrated supply chain ecosystems can be achieved as it will optimize and ease the operational
processes between the parties. As a result, better communications and information’s between
the parties and improved supply chain management.

In transportation and logistics industry, Transport Management System (TMS) was created to
improve shipping efficiency, lower cost, and real-time supply chain visibly to customers. TMS
provides visibility into day-to-day transportation operations, trade compliance information and
documentation, and ensuring the timely delivery of freight and goods. Transportation
management systems also streamline the shipping process and make it easier for transportation
companies to manage and optimize their transportation operations, whether on land, air, or sea.
Therefore, transport companies able to achieve greater efficient transportation planning and
execution.
2. What are the critical roles of Supply Chain 4.0 technology in supporting the transport

management activity and service market? Elaborate. (10 marks)

The Supply Chain 4.0 has contributed heavily in supporting the transport management
activities and service market by providing more accurate and forecasted data such as expected
supply and demand, trends, and sales. Logistics or transportation companies are dependent in
these data to develop their business strategies such as utilize their budgets, plans, and goals.
For instance, logistics companies should develop related strategies to anticipated demand when
there are sales or promotions seasons by the E-commerce companies such as Shopee.
Whenever Shopee has seasons sales, there will be higher demand for logistics provider by
Shopee to delivery their packages to their respective customers. Thus, this data’s provides
visibility for logistics company to prepare themselves to grab the opportunities.

Based on forecasted data’s, logistics companies able to provides efficient services to consumer.
With the technology Internet of things, transportation companies able to connect and exchange
data between their parties and customers. such as up-to-date tracking packaging and estimated
time of arrival. As a result, the level of customer satisfaction will be higher thus customer
loyalty can be obtained.
3. What are the impacts of Supply Chain 4.0 technology on the global value chains
including firms and consumers? Explain. (10 marks)

The Supply Chain 4.0 technology brings huge impact on supply chain values globally which
also involved a lot of firms and consumer. There’s a lot of impacts that could be identify such
as:

a) Improve access to information

This could be seen when a good supply chain technology connects previously isolated
data. When distinct sections of supply chain (such as individuals, software systems, or
external trading partners) fail to exchange information in a consistent, reliable, and
repeatable manner, it is known as information silo. Silos can form when functions and
departments within a corporation (such as sales, production, and distribution) fail to
communicate information. As a result, forecasts are inaccurate, executions are flawed,
and reaction times are longer.

b) Improved insights
Supply chain technology makes it simpler to evaluate data, gain insights (on topics
such as customer demand, transportation/warehouse constraints, and supplier lead
times), and make decisions that have both direct and indirect effects on overall supply
chain performance. Furthermore, supply chain technology incorporates decision
support features to assist people in making better decisions more quickly. Businesses
can use this to churn data and run real-time simulations based on various scenarios,
allowing them to evaluate multiple solutions. Better decisions can be made if the trade-
offs associated with each scenario response are better understood.

c) Improved agility
The use of technology in the supply chain improves agility. Executives can address
problems or generate new business opportunities much more quickly when they have
better insight, thanks to increased access to information and simulations. You will not
be able to work with agility if your processes, systems, or organisation have obstacles
(or silos). You must monitor events throughout your entire supply chain, assess their
 impact, and plan proactive solutions.

d) Better collaboration
Collaboration is the process by which two or more people or organisations work
together to achieve a common goal. In order to maintain a consistent flow of
information, analysis, and choices, successful supply chains embed systems and
technology that enable, monitor, and evaluate collaboration between individuals,
departments, and organisations. Collaboration is becoming increasingly important as
omnichannel consumers' demands for choice, speed, and flexibility rise. Negotiating
these expectations successfully requires agility and reactivity, which only technology-
enabled businesses can provide. The ability to maintain synchronisation across a large
network is a distinguishing feature of highly competitive supply chains.

e) Improved customer loyalty

Due to the challenges that the omnichannel consumer faces, supply chain technology is
more important than ever to customer happiness and loyalty. Before they come into the
shop and make a purchase, customers want to know that the items they're looking for
are in stock. Retailers want on-time, complete shipments to ensure they have the
necessary goods in stock when customers buy locally or place online orders with them.
As a result, the customer experience and loyalty improve. This would not be possible
without the visibility, accuracy, and agility provided by supply chain technology.

4. Identify two (2) new technologies that are brought together with the evolution of
Supply Chain 4.0 and explain their functions, accordingly. (10 marks)

Within year 2022 there’s quite a lot of technologies that have been brought in or created to
catch up with the evolution of Supply Chain 4.0 but there’s also a few technologies quite
interesting and unbelievable to be achieved such as:

a) Robots and automation

Robots have long been used in the supply chain, moving goods and materials
throughout a warehouse, during transport, and during the fulfilment process.
However, as AI technologies advance, robots will be assigned many manual tasks
 previously performed by humans, such as picking and packing orders and automating
heavy loading tasks. AI, machine learning, and IoT connectivity are assisting in
significantly improving the precision and mobility of industrial robots while also
aiding in safety, allowing for a new generation of cobots (collaborative robots) to
work alongside humans rather than being cordoned off in a separate safety zone. The
potential for human-robot collaboration is driving large-scale deployments throughout
the supply chain. According to IDC, by 2023, 65% of warehouse activities will use
robots and situational data analytics to help with storage optimization, increasing
warehouse capacity by more than 20% and cutting work order processing time in half.
According to the same study, more than 60% of global manufacturers will invest in
AI-enabled robotic process automation by 2023, resulting in increased productivity
and helping to close the ongoing supply chain talent gap. Amazon has expanded its
use of robots with cobots that help pick, sort, transport, and store packages, and it
recently introduced robots that scan and box items for shipment into some facilities
this year, boasting an ability to pack at four to five times the rate of the average
human worker. Amazon also claims that robots allow it to store 40% more inventory,
allowing it to meet Prime delivery promises.

b) 3D printing
The desire of consumers for personalised products, combined with a push for made-
to-order and localised production, is drawing attention to 3D printing. Supply chain
players are ramping up investment in the technologies, allowing them to decentralise
production and make product and parts in local assembly hubs, thanks to new
materials, metal additive manufacturing technologies, and less expensive hardware.
Companies can cut logistics and transportation costs, reduce their carbon footprint,
avoid geopolitical risks and tariffs associated with offshore outsourcing, and get
products to consumers faster, a competitive advantage in today's instant-gratification
society. The ability to produce parts and, in some cases, complete products on demand
appeals to a wide range of supply chain players, from OEMs to dealers. Furthermore,
with advances in materials, lower-cost hardware, and new AI-driven software design
tools, companies can produce fully functional parts, not just prototypes, that are
lighter and waste less material than was previously possible with traditional
technologies.