IR 4.

0 ROLE IN SUPPLY CHAIN

LOGISTICS NETWORK
DESIGN/CONFIGURATION DECISION

Submitted by - Group 1
PGP/23/199 AYUSHI JAYASWAL
PGP/23/433 ANKIT SHARMA
PGP/23/451 MOVIA R
CONTENT
Progression along industry revolutions
Industry Revolution 4.0
Logistics 4.0
Impact of IR 4.0 on Logistics
Case - BMW Group: Use of Industry 4.0 in production logistics
PROGRESSION ALONG INDUSTRY
REVOLUTIONS
 The First Industrial Revolution began through the use of steam
power and mechanization of production. Developments such as
the steamship or the steam-powered locomotive brought about
further massive changes because humans and goods could move
great distances in fewer hours.
 The Second Industrial Revolution began through the discovery
of electricity and assembly line production. Henry Ford carried
over the idea of mass production principles into automobile
production and drastically altered it in the process.
 The Third Industrial Revolution began through partial
automation using memory-programmable controls and computers.
Known examples of this are robots that perform programmed
sequences without human intervention.
 Then came IR 4.0 or Industry 4.0 which refers to the further
development and optimization of the entire value chain in the
manufacturing industry.
INDUSTRY REVOLUTION 4.0
 IR 4.0 represents a new stage in the organization and control of the
industrial value chain. It is the digital transformation of
manufacturing/production and related industries and value creation
processes.
 It can be defined as “a name for the current trend of automation and
data exchange in manufacturing technologies, including cyber-
physical systems, the Internet of things, cloud computing and
cognitive computing and creating the smart factory”.
 It is characterized by, among others, even more automation than in the
third industrial revolution, the bridging of the physical and digital
world through cyber-physical systems, enabled by Industrial IoT, a
shift from a central industrial control system to one where smart
product define the production steps, closed-loop data models and
control systems and personalization/customization of products.
 COMPONENTS OF A SUPPLY
CHAIN
 Planning – It starts with the decision whether to manufacture the components yourself
or to buy them from a supplier. Will you manufacture domestically or internationally?
Buy from a domestic or international supplier? Make goods to stock or to order? Planning

 Sourcing - Sourcing means identifying, evaluating and bringing suppliers that will
provide with goods and services and it depends heavily on the business needs.
Return of Goods Sourcing
 Demand & Inventory - The two must be brought together by bringing in demand
planning at the early stages of your product development process. Accurate
forecasting is the key
 Production - Anything that cannot be produced can’t be sold, so feasibility check and
Supply
estimation are important aspects. Chain
 Warehousing & transportation - There is a need to store the product somewhere,
Warehouse & Demand &
which is where the warehouse comes in. Subsequently, one needs to be able to Transportation Inventory
transport and deliver goods from point to point.
 Return of goods - Not all of the products will be in pristine condition and some may
reach the buyer in a defective state. These rules about what can be returned and what Production

not and how your returned goods should be managed and should be clearly laid out.