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Citation: Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414,
http://dx.doi.org/10.17270/J.LOG.2017.4.2
Received: 31.03.2017, Accepted: 23.08.2017, on-line: 29.09.2017.
LogForum > Scientific Journal of Logistics <
http://www.logforum.net p-ISSN 1895-2038
2017, 13 (4), 401-414
http://dx.doi.org/10.17270/J.LOG.2017.4.2
e-ISSN 1734-459X
ORIGINAL PAPER
INDUSTRY 4.0 AND ITS IMPACT ON THE FUNCTIONING OF SUPPLY CHAINS
Natalia Szozda
Wroclaw University of Economics, Wrocław, Poland
ABSTRACT. Background: There is an increasing use of automation, data processing and exchange, cyber-physical systems, Internet of things and cloud technology in industry. Modern factories undergo constant transformation, which
has impact not only on the organization of manufacturing activities, but also on the functioning of supply chains. The
model of contact with the end customer, who frequently moves into the virtual world, is changing, which directly
translates to the formation of distribution channels. The occurring changes are referred to as the Fourth Industrial
Revolution, and we are its eyewitnesses. This paper explores the challenges for modern supply chains that arise as
a result of the fourth industrial revolution. It attempts to answer the question to what extent the Industry 4.0 affects the
organization of products and information flows in supply chains.
Methods: The article makes use of the results of social research, whereas the applied research technique was a survey conducted among 122 supply chains. Moreover, the results of the research performed in 2015 by McKinsey in the form
of an interview with 300 experts from production and service companies from USA, Japan and Germany were
demonstrated. Additionally, the following 5 case studies were presented: Logistics Knapp AG, Nova Chemicals, BMW,
Stratatys and Bosch.
Results: One of the research results of the article is a review of the literature on the development of the supply chain concept, as well as on the development of industry, with particular focus on the Fourth Industrial Revolution. The article
attempts to determine the impact of the Fourth Industrial Revolution on the functioning of contemporary supply chains.
On the basis of social research and case studies, conclusions are drawn about the significance of application of the
assumptions of Industry 4.0, as well as about the concerns of companies and entire supply chains regarding the inevitable
changes. Finally, a hypothetical supply chain using the assumptions of the Fourth Industrial Revolution is presented on
the example of a manufacturer of electric toothbrushes.
Conclusions: On the basis of the collected examples and presented research, it can be concluded that the idea of Industry 4.0 is not foreign to contemporary companies and has an influence on the organization of physical and information flows
in supply chains. Managers are aware of the changes occurring in the organization of production, procurement and
distribution processes in the entire supply chains. However, they are concerned about transferring processes into the
virtual world, due to data security issues and capacity of long-distance wireless networks.
Key words: supply chain, Industry 4.0., Internet of Things (IoT), cloud technology.
INTRODUCTION
The last five years have involved further
revolutionary changes in industry, referred to
as 'the Fourth Industrial Revolution' - Industry
4.0. Everywhere people are connected together
in social media, and this is transferred to the
field of industry, where machines, items and
employees get linked into a network in virtual
reality by means of IoT (Internet of Things)
technology. Communication between machines
and their users will be disseminated using
digital connections in the real time. Production
processes will be available and managed in
virtual space, whereas ICT (Information and
Communication Technology) will dominate
future business models.
,
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
402
The Fourth Industrial Revolution is
associated mainly with factories; however, it is
a far broader notion, referring also to other
areas of organization activities, e.g. global
supply chain management. This concept goes
beyond a single company and is carried over to
a network of links between organizations
where data are integrated in a cloud and
processes are organized along a supply chain
in virtual space.
INDUSTRY 4.0.
The industry has been developing on an
ongoing basis since the ancient times. The
biggest industrial revolution took place in the
18th century and was related to the transition
from the economy based on agriculture,
manufacturing and handmade production to
mechanical large-scale factory production. The
19th century was the age of steam and
electricity, referred to as the Second Industrial
Revolution. The other years of intense
development was the period after the Second
World War which continues until nowadays,
with scientific and technical development
taking place. The most important elements of
the Third Industrial Revolution include
computerization, use of new energy sources,
automation of work processes, as well as
improvement of means of telecommunication
and transport (Freeman, Louçã 2001). One of
the most significant changes in factories in the
post-war period was the implementation of
MRP (Material Requirements Planning) by the
team of Joseph Orlicky [Bayraktar et al. 2007,
Mabert 2007], as well as the so-called Lean
Manufacturing, initiated by Taiichi Ohno and
Eiji Toyoda in Toyota automotive plants
[Ohno 1995, Hadyś, Stachowiak, Cyplik
2014]. Industry 4.0., which was started in
Germany in 2011, is another milestone in
industry [Pfohl, Yahsi, Kurnaz 2015]. This
notion comes from a government project
intended to promote computerization of
manufacturing processes. In October 2012,
a working group managed by Siegfried Dais
from Robert Bosch GmbH provided the federal
government with a list of recommendations
concerning the concept implementation, and on
8 April 2013 the group presented the final
report. Industry 4.0. stems from the concept of
smart factory, involving the electronic flow of
production processes [Hermann, Pentek, Otto
2015]. This means that centrally controlled
devices communicate using the operating
principle of social media [Radziwon et al.
2014]. Machines and production materials
organize production on their own, beyond the
borders of a company, or even countries, in
order to ensure its optimum operation. [Pfohl,
Yahsi, Kurnaz 2015].
Source: own study
Fig. 1. Industrial revolutions - historical overview
Rys. 1. Rewolucje przemysłowe – przegląd historyczny
Factory 4.0 covers three possible
archetypes [Industry 4.0. How to navigate
digitization 2015]. The first one is a fully
automated company, in which cost efficiency
is most significant. This solution is applied for
mass products with a limited number of
product groups. The second model is mass
personalization of production. The functioning
of such companies is based on meeting
individual needs of customers, production is
carried out in small batches, whereas products
are highly individualized and delivered for
particular customer orders. There is a very high
variety of products. The third archetype are the
so-called e-factories, focused both on
individualization and remote operations. These
First Industrial Revolution
industry mechanization,
age of water and steam
Second Industrial
Revolution mass production,
implementation of production line and electricity
Third Industrial Revolution
computerization and automation
Fourth Industrial Revolution
cyber production, smart factory
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
403
companies operate on a small scale, producing
limited amounts of products. They are oriented
towards low investment expenditure in order to
maintain cost competitiveness.
However Industry 4.0 does not only refer to
changes in factories but also in distribution and
procurement. General Electric emphasizes the
role of the integration of complex physical
machinery and devices with networked sensors
and software, used to predict, control and plan
for better business and societal outcomes
[Drath, Horch 2014]. According to Pfohl,
Yahsi, Kurnaz [2015], Industry 4.0 can be
considered on the process, technology or
management level in the whole supply chain
and is defined as the sum of all disruptive
innovations derived and implemented in
a value chain to address the trends of
digitalization, autonomization, transparency,
mobility, modularization, network-
collaboration and socializing of products and
processes. Industry 4.0 is a collective term for
technologies and concepts of value chain
organization [Herman, Pentek and Otto 2015].
Based on the literature research, conducted by
Herman, Pentek and Otto [2015], the most
important are: Cyber-Physical Systems (CPS),
Internet of Things, Smart Factory and Internet
Service. However, Industry 4.0 is something
more, Pfohl, Yahsi, Kurnaz [2015] distinguish
more than 60 technologies related to this
concept. All of them can be divided into the
following four groups [Lee, Kao, Yang 2014]:
(1) data and connection, (2) analytics and
artificial intelligence, (3) human-machine
interactions [Chen, Wan, Li 2012], (4)
automated machine park. The description of
these groups is presented in Table 1.
Table 1. Technologies used in Industry 4.0.
Tabela 1. Technologie stosowane w Industry 4.0. Technologies in
Industry 4.0.
Components and benefits
Data and connection Large databases (big data) - data storage, processing and calculations
Internet of Things (IoT) and communication between machines (Machine to Machine) - connection and
transfer of information / data
Cloud technologies (cloud technology) - centralization of data storage and virtualization of storage
Analytics and
artificial intelligence
Digitization and automation of work based on knowledge - use of artificial intelligence and machine
learning
Advanced analytics - improved algorithms and data availability, implementation of advanced data
mining systems used mainly for predictions
Human Machine
Interaction
Touch interfaces and new GUI interfaces - possibility of quick communication using portable devices
Virtual reality - use of optics, including augmented reality glasses, in industry, e.g. in a warehouse
Automated machine
park
New production opportunities, e.g. using 3D printers - extended range of materials, increased precision /
quality, possibility to obtain spare parts or raw materials immediately
Advanced robotics - use of artificial intelligence, full automation of production, use of M2M technology
Energy storage - production and storage of energy by performing daily activities in companies
Source: Lee, Kao, Yang 2014, Pfohl, Yahsi, Kurnaz 2015; Yu, Nguyen, Chen 2016
Source: own study based on [Shrouf, Ordieres, Miragliotta, 2014, Wortmann, Flüchter 2015; Castro, Jara, Skarmeta, 2012; Yu, Nguyen,
Chen 2016]
Fig. 2. Industry 4.0. vs. Internet of Things
Rys. 2. Industry 4.0. vs. Internet rzeczy
,
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
404
One of the fastest developing technologies
used in Industry 4.0 is IoT (Internet of Things).
It is the indirect or direct ability of things and
objects to store, process, share or exchange
data using network connections [Shimizu, Hitt
2004, Yu, Nguyen, Chen 2016]. In contrast
with Industry 4.0., Internet of Things is not
focused on factory, and its application is
visible particularly in the distribution area,
mainly in customer service and use of objects.
Business models created using IoT
technology are completely different from the
traditional ones. They demonstrate departure
from conventional linear oriented value
streams to creating values within a network of
units. This means that when defining business
models, the focus is on the entire ecosystem,
including a supply chain, rather than on
a single company, so that all parties involved
improve their processes in order to maximize
benefits for the end customers. [Atzori, Iera,
Morabito 2010]
SUPPLY CHAIN - FROM LEAN MANUFACTURING TO VIRTUAL REALITY
From the moment when the supply chain
concept was formed, both its meaning and the
way of thinking about the concept has
undergone significant transformation
[Christopher, Holweg 2011]. The traditional
approach to thinking about a supply chain
refers to lean manufacturing concepts, in
which supply chains are organized in
accordance with the lean assumptions
[Christopher, Towill 2000; Witkowski 2010].
Products in such chains are characterized by
a long life cycle and long period of product
delivery to market (lead time), relatively small
variety, large amounts of sales and stable
demand, to the extent possible; an example is
Toyota, a global automotive manufacturer.
Lean supply chains are intended to counteract
operational risk and Forester effect, the so-
called bullwhip effect [Lee, Padmanabahn,
Whang 1997, Rutkowski 2005], which is
recognized in the case when long-term
forecasts which carry a large margin of error
are used for planning [Christopher, Holweg
2011]. Solutions such as VMI (Vendor
Managed Inventory) [Jaspersen, Skjott-Larsen
2005], or CPFR (Collaborative Planning,
Forecasting and Replenishment) [Mendes
2011] are applied in them. The solutions
applied in these chains are based on stream
values in order to eliminate waste, particularly
the waste of time [Potter, Towill and
Christopher 2015]. A different approach is
employed for the so-called innovative products
[Fisher 1997], the attributes of which are an
opposite of the above-described. The
efficiency of action is replaced with flexibility
or agility, and such chains are referred to as
flexible or agile supply chains. According to
Potter, Towill and Christopher [2015], such
approach means being close to the customer
and using knowledge gained from the market
and virtual organization in order to operate
successfully in a turbulent environment. An
example of a company using this approach is
Dell (American corporation operating in the IT
industry), which is moving its entire supply
chain organization into the virtual world
[Christopher, Holweg 2011], or Zara (Spanish
clothes manufacturer), which is capable of
implementing a new product for sale within
two weeks, including the design stage [Kaipia,
Holmström 2007]. Christopher and Holweg
[2011] referred to flexible supply chains as
supply chains 2.0 and distinguished between
two types of flexibility, namely dynamic and
structural. The dynamic type consists in
adjusting to customer needs with the use of
own internal resources of a particular supply
chain. The structural type means going beyond
the existing structures and it concerns elements
such as: (1) use of various supply sources, (2)
sharing company resources, (3) distinction of
base demand which is considered to be
predictable, and maintenance of appropriate
stock levels of materials and raw materials on
the basis of the determined forecasts, (4)
flexible employment adjusted to the company's
needs, (5) production of small batches, (6)
outsourcing.
However, contemporary supply chains are
not divided into lean, flexible or agile. The
concept of migratory supply chains is used
[Potter, Towill and Christopher 2015], with the
activity based on the strategy of production to
customer orders (pull strategy) and it combines
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
405
both agile and lean supply chain management.
The customer initiates activities undertaken in
a supply chain and creates its structure
[Christopher, Towill 2000] by specifying how,
when and where distribution of a selected
product is supposed to take place. This results
in gradual disappearance of the difference
between physical and online supply chain
[Potter, Towill and Christopher 2015] and new
distribution channels originate; they are
referred to as omnichannels [Brynjolfsson, Hu,
Rahman 2013, Cummins, Peltier, Dixon 2016].
This notion comes from marketing and is
related to the use of multiple channels and
integrated communication. In omnichannel
supply chains, distribution channels are used
not only in vertical, but also horizontal
direction, and the so-called crossing of existing
connections between production and end
customer takes place [Cummins, Peltier, Dixon
2016]. It is a combination of all possible sales
channels into one coherent system, adjusted to
the needs and habits of the purchaser. The
focus is on the comfort and facility of
shopping. Customers are not attached to
a particular retail outlet, on the contrary, they
select the convenient location for shopping.
This leads manufacturers and distributors to
using various distribution channels, however,
they cannot have an impact on the experience
of the customer, which is supposed to be
uniform, regardless of the selected manner of
delivery. [Brdulak 2016].
Industry 4.0 in global supply chain
management moves traditional relations
between supply chain links to a network of
connections in which data are aggregated in
disseminated servers. This is process
organization, starting from extraction, through
production, ending with sales, in virtual space.
Customer orders are automatically completed
upon receiving an order from the purchaser.
On the other hand, the warehouse knows the
time and amount of goods to be delivered, so
that there were enough products in stock.
Industry 4.0. in supply chains is supported by
technologies such as automatic identification
of cargo - AutoID, including in particular
RFID, which enables to trace a product at
every flow location [Whang 2009]. Each
collection of a product from a store shelf, or
bookcase in the warehouse, is recorded in the
system, and next stored in the cloud, which
provides all supply chain links with access to
this information. If stock levels are close to
critical values, the devices send relevant
information and the supply is launched.
Thanks to this type of solutions, stock
management is moved into the virtual world,
which prevents the shortage of materials, raw
materials and products.
Communication is an important aspect in
establishing connections between the links of
a supply chain operating on the basis of the
principles of the Fourth Industrial Revolution
[Rogers, Clark 2016]. The attributes such as
information delivery time, flexibility in
determining the location of message sent,
control of the source of message formation,
information owner, as well as type and
character of the message are significant
[Cummins, Peltier and Dixon 2016]. Proper
communication management is possible thanks
to the implementation of IoT communication
platforms.
Source: own study based on [Wortmann , Flüchter 2015; Castro, Jara, Skarmeta, 2012]
Fig. 3. IoT platform
Rys. 3. Platforma IoT
Platforms of this kind allow to control
infrastructure and costs of its maintenance, as
well to ensure proper scalability. IoT devices
obtain digital representation similar to profiles
on social network services. Any data gathered
by the connected devices are collected on
a particular profile. A platform is capable of
communicating with solutions of various
,
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
406
manufacturers and other links in a particular
supply chain, using IoT protocols and allowing
for integration of devices. It also enables two-
way communication - not only are advanced
IoT solutions capable of transmitting data, but
also of receiving instructions, information and
necessary support.
RESEARCH DESCRIPTION AND METHODOLOGY
Multiple questions arise on the basis of the
above assumptions, including: To what extent
does the Fourth Industrial Revolution have an
impact on the functioning of contemporary
supply chains? Do these supply chains apply
Industry 4.0 solutions in their structures? What
will supply chains look like in the future?
In order to address these questions, the
research conducted by the consulting company
McKinsey, as well as the results of social
research conducted among 122 supply chains
will be presented in the further part of the
article . Moreover, the concept of supply chain
operating in line with the assumptions of the
Fourth Industrial Revolution, as well as the
real examples of application of the Fourth
Industrial Revolution in contemporary supply
chains, will be presented.
SOCIAL RESEARCH
McKinsey [Industry 4.0. How to navigate
digitization 2015] conducted research in 2015,
based on interviews with more than 300
experts working in production and service
companies in USA, Japan and Germany,
operating in the following industries:
automotive, chemical, consumer goods, health
care, software, transport and logistics,
industrial devices, industrial automation and
semi-conductors. The purpose of the research
was to obtain expert opinions regarding
Industry 4.0 and the impact which, in their
opinion, this revolution will have on the
functioning of supply chains in the future, as
well as to determine the related opportunities
and risks. According to the experts, the Fourth
Industrial Revolution will increase income by
23% and efficiency by 26%. It will also have
an impact on reducing the lead time for
delivery of products in the market, as well as
on improving the quality of products and
services, and on reducing labor costs. 80% of
companies expect the Fourth Industrial
Revolution to have an impact on their business
models. Companies are not feeling confident in
the new environment yet. Only 48% of
manufacturers consider themselves to be well
prepared for the implementation of new
technologies. The most confident are
Americans - 83%, followed by Germans -
57%, whereas only 37% of Japanese
companies are ready to implement changes in
accordance with the assumptions of Industry
4.0. The companies expect that the following
technologies will be leading during the Fourth
Industrial Revolution: cloud technologies,
large databases, work automation and touch
interfaces. Advanced analytics is less
important. For the surveyed experts, the
biggest obstacles in the implementation of the
Fourth Industrial Revolution are as follows:
process control, data security, uniform
standard for data transmission, connection of
all process participants by means of wireless
networks. As can be noticed, the concerns are
mostly related to data sending. This has been
confirmed by the results obtained from the
research. Only 19% of American companies,
14% of German companies and 12% of
Japanese companies are willing to locate their
servers outside the territory of their country
and allow external companies to manage their
data. This will most likely be the biggest
obstacle in the implementation of the
assumptions of Industry 4.0.
In order to check what solutions in the field
of Industry 4.0 are applied in contemporary
supply chains, the following part of article will
present the result of the research based on
primary sources. Survey data obtained from
122 supply chains were used for the analysis.
The applied research process is descriptive in
nature. Due to the fact that research sample
selection was non-probabilistic and only the
organizations that gave their consent took part
in the research, statistical deduction was not
applied for the interpretation of results,
whereas the results of empirical data analysis
were formulated very carefully, rather in the
form of noticeable tendencies than certain and
representative conclusions. The obtained
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
407
results demonstrate that a part of the examined
supply chains apply solutions related
to the Fourth Industrial Revolution. 47% of
examined supply chains have information
systems which allow for precise monitoring of
all operations along the entire supply chain.
These solutions are particularly common for
fast-moving consumer goods (FMCG), and
thanks to their application companies have
current data concerning the status of deliveries,
stocks of finished goods, infrastructure and
employees. 35% of examined supply chains
have efficiently applied Collaborative
Planning, Forecasting and Replenishment
(CPFR) programs, whereas 39% of them use
Business Intelligence solutions, executed e.g.
by means of data warehouses which allow to
transform data into information and
information into knowledge. The pull concept
has been applied by 61% of research
participants, mainly automotive industry
organizations. As many as 75% of examined
supply chains allow for purchase of finished
products online, and the leader in this field is
the clothing industry, in which 95% of
examined supply chains offer this type of
solution. However, the possibility of adjusting
a product to individual customer order is
possible only among 5% of examined
organizations. A similar situation concerns the
use of IoT platform and transfer of processes
into virtual space - only 4% of examined
supply chains have applied these solutions in
their structures. With reference to production
processes, they have not been moved into
virtual space in any of the examined supply
chains.
CASE STUDIES
In order to illustrate in which areas of
modern supply chains the elements of the
fourth industrial revolution are implemented,
the article presents four case studies based on
the examples of the following companies:
Knapp Logistics AG, Nova Chemicals, BMW,
Stratatys and Bosch.
Logistics Knapp AG [Jost, et al. 2017] has
developed modern technology of completing in
a warehouse based on Augmented Reality -
KiSoft Vision15 in which hard paper copy was
replaced with digital carriers. It is based on
using glasses instead of paper or electronic
carriers, in which an additional image (virtual
reality) is imposed on the actual image. The
additional information in the form of an image
within a field of view allows an employee to
locate products intended for loading more
precisely, i.e. faster. Not only do glasses
enable to find particular materials, but they
also contain information regarding the manner
of loading products onto the pallet. The
program optimizes cargo, taking into
consideration dangerous and fragile objects.
The use of glasses releases the hands of
a warehouse employee, and their work is more
effective as a result. Additionally, the camera
installed in the glasses is capable of scanning
the product code, thanks to which stock levels
are monitored in the real time and information
about the location of objects is available at
every stage of the flow. The main advantages
of using this technology include time savings,
less errors and reduced hours of completing
process.
In the manufacturing company Nova
Chemicals [Ottewell 2013], there was
a problem with repair and maintenance of the
machine park in 11 factories of chemical
substances and plastics around the world. Over
the course of one year, more than 20,000
downtimes were identified, caused by
necessary repairs or maintenance of devices.
Due to the above, the company has
implemented a device (SAP EAM software) in
the field of analytics and cloud technology
which monitors devices, checks and
determines the schedule of necessary repairs
and maintenance in such manner that the
downtimes caused by excluding a particular
machine from production should be the least
intrusive (time and cost consuming) for the
manufacturer. The process participants may get
access to information concerning the
downtimes of a particular machine at any
moment. As a result of implementing this
software, the following benefits were
observed: the number of unplanned equipment
downtimes was significantly reduced, time
spent on sudden failures was reduced by 47%,
time intended for preventive maintenance
increased by 61% and observance of
maintenance schedule increased by 22%.
,
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
408
One of the most automated factories in the
automotive industry is BMW factory in
Leipzig [Kochan 2006]. Robots are used there
at every stage of production, both in the paint
shop and during the assembly. The RFID
implemented system enables tracing both the
product and its particular components
(materials and raw materials) at every stage of
the flow. Employees are equipped with mobile
tablets which are a control tool and provide
access to all data in the real time. The
management system is centralized, located in
the main building and operates as the 'central
nervous system'.
The Fourth Industrial Revolution is present
on a relatively large scale at Bosch [Rüßmann,
et al. 2015]. Integration between 11 factories
and 5,000 machines takes place here, whereas
all information is stored in the central database.
There is full automation of the flow of
materials and products in factories and
warehouses, e.g. through the use of RFID
technology. Moreover, there is a logistics
support system implemented, which enables to
obtain information in the real time. Another
important change consists in the
implementation of machine management
system (tool management) which optimizes
device operation. It ensures analysis and
measurement of the functioning of the entire
machine park in all factories in the real time,
which allows for ongoing tracing of operation
of a particular device, checking availability,
failure frequency and occurrence of failures,
e.g. excessively slow machine operation. This
system enables machine repair, identifies the
reason of defect occurrence and provides
a ready solution for repairing a particular
device. If it is not capable of identifying the
defect, the issue is referred to an expert who
solves it online. Having information about the
machine park operation at all production links
of a supply chain allows to determine
production schedule in an optimum manner,
without unnecessary downtimes and with the
maximum use of available resources. In the
event of problem occurrence, central
management ensures flexibility of operation
and possibility to find the best solution. The
combination of business applications, i.e. ERP
and CRM class systems, web applications and
user devices, machines, products, materials and
components into one system is possible thanks
to the application of IoT communication
platform. It covers elements such as platform
design, data storage, formation of network of
connections, as well as taking care of the
security of data transmitted between objects
[Shrouf, Ordieres, Miragliotta, 2014].
Another example of the application of the
Fourth Industrial Revolution in a supply chain
is the American company Stratasys [Rader
2016; Liaw, Guvendiren, 2017]. The company
is working on a project of producing
prostheses with the use of cloud technology
and 3D printers. It is a medical project,
expected to be completed in 2017. As of now,
production of prosthesis means that the patient
needs to wait for more than 8 weeks. This
period is to be reduced to the duration of the
project and prosthesis printout, which,
according to the researchers, will take one day.
Traditional production of prosthesis is
a process consisting of five stages. First, the
orthopedist with a technician take the measure
and prepare a working model, usually made of
plaster. Next, it is tried and adjusted to the
patient. The completed model is used for
manufacturing the mold form. The following
stages include casting and the first fitting,
which usually leads to further work on the
prosthesis, i.e. manual cutting and sanding in
order to adjust it to the patient. The new
prosthesis production model uses the Industry
4.0 technology. During the first meeting, the
measure is taken and processed by an IT
system. It is there that the prosthesis design is
formed, taking into consideration medical
indications and the patient's stature. The
completed design is printed on a 3D printer.
Precision of the printout allows to develop
a prosthesis which does not require any further
adjustment. The product is then ready to be
handed over to the patient.
Summarizing the above case studies, to
which the fourth industrial revolution applies,
it can be seen that the premise for the
implementation of the changes is the desire to
streamline processes, i.e. to make
organizational changes, including the
improvement of quality, reductions of time,
greater flexibility, and cost reduction. These
streamlines are implemented through the use of
modern technologies in the area of the fourth
industrial revolution, and are set out in Table 1.
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
409
They, in turn, constitute technological changes
that improve processes and contribute to the
introduction of organizational changes.
The above research results, as well as the
presented case study prove that companies
begin to introduce changes in their structures,
and the Fourth Industrial Revolution has
already started. However, these are changes in
particular supply chain links and they do not
concern the entire supply chain organization.
Therefore, a question arises - what will be the
functioning of a supply chain that uses the
entire potential provided by the Fourth
Industrial Revolution? In order to illustrate the
occurring changes, below is presented an
example of the supply chain of a manufacturer
of electric toothbrushes producing in
a traditional manner, as well as one using the
assumptions of the Fourth Industrial
Revolution [Dawid et al. 2017].
The traditional functioning model of
a supply chain of a manufacturer of electric
toothbrushes is based on mass production, the
so-called production for stock, executed in line
with the push concept. It consists in
performing consecutive activities (design,
production, sale) whose organization takes
place on the basis of plans specified at the
manufacturer, usually within the process of
forecasting product sales.
Source: own study
Fig. 4. Supply chain for electric toothbrushes for mass production
Rys. 4. Łańcuch dostaw produkcji masowej elektrycznych szczoteczek do zębów
In the new model, the planning process is
transferred to the distribution area, whereas
sales data are collected directly from end
customers and finished products. This is
a transition to pull model, i.e. organization of
operations in a supply chain to a specific
customer order. However, there is one
difference in comparison with the traditional
understanding of the pull concept. Data are
gathered not only from retail outlets, but also
directly from the products. Products provide
information regarding customer behaviors,
manner of toothbrush use, as well as wear and
tear, repairs, etc. These data are valuable for
the research and development department,
which is capable of improving future product
models on the basis of the collected
information about the product. At the same
time, demand forecasts are determined on the
basis of customer behaviors. The manner of
production is also changing. It is fully
automated, whereas production processes are
transferred into the so-called cloud where
production is managed. However, it is possible
to go one more step ahead. The data on
customer behaviors can be made available to
other entities, such as e.g. insurance companies
or health care units. On this basis health
insurance rates, as well as the reasons of
problems with teeth, are determined. And this
is not the end yet. Although electric
toothbrushes are a mass product, it is possible
to carry out 'mass personalization', which
means that toothbrushes are manufactured on
the basis of individualized customer needs
concerning e.g. color, type of bristle or
printout. Such solution has already been
implemented e.g. by Nike. In certain retail
outlets and online stores, it is possible to
design your own shoes, the so-called Nike ID.
The customer has the possibility to select the
model outer surface and color of even up to
eight footwear elements.
,
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
410
The application of the Fourth Industrial
Revolution in a supply chain also includes
development of distribution channels, the so-
called omnichannel, which has already been
referred to before. It is the toothbrush users
who determine when and how they want
a product to be delivered. It is important to
meet their needs and provide uniform
experience during the purchase, return or
complaint related to the product, regardless of
the applied distribution channel [Brdulak
2016].
Source: own study based on [Dawid et al. 2017].
Fig. 5. Supply chain for electric toothbrushes using the assumptions of Industry 4.0.
Rys. 5. Łańcuch dostaw dla elektrycznych szczoteczek do zębów przy użyciu założeń Industry 4.0.
CONCLUSIONS
Industry 4.0 is still an unexplored market,
and its development directions are multi-
branch. The business models of the functioning
of supply chains are changing; the same is
applicable for the end product, which is getting
increasingly individualized and adjusted to the
expectations and taste of the purchaser. Not
only does it concern selected industries where
products of high value are delivered, such as
automotive industry, but the changes are also
related to mass production, which is confirmed
by the results of the conducted social research.
Despite this, the use of available technologies
is still not common, which has also been
indicated by the research results. However, this
is only the beginning of an upcoming industrial
revolution, which is focused on
communication between devices and
aggregation of data obtained from devices in
the databases where they are stored. This
obviously creates numerous risks, related e.g.
to data security and capacity of long-distance
wireless networks. Therefore, construction of
appropriate supply networks and distribution
channels, as well as secure communication
networks of large capacity, will become
a future trend and significant element in the
development of industry and supply chains.
ACKNOWLEDGEMENTS
The study was financed by the National
Science Centre as a research project no.
2015/18/M/HS4/00388.
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CZWARTA REWOLUCJA PRZEMYSŁOWA I JEJ WPŁYW NA FUNKCJONOWANIE WSPÓŁCZESNYCH ŁAŃCUCHÓW DOSTAW
STRESZCZENIE. Wstęp: W przemyśle ma miejsce coraz powszechniejsze wykorzystanie automatyzacji, przetwarzania i wymiany danych, systemów cyber-fizycznych, Internetu rzeczy i cloud technology. Nowoczesne fabryki
ulegają ciągłej transformacji i wpływa to nie tylko na organizację działań wytwórczych, ale również na funkcjonowanie
łańcuchów dostaw. Zmienia się model kontaktu z ostatecznym klientem, który często przenosi się w świat wirtualny, co
bezpośrednio przekłada się na kształtowanie kanałów dystrybucji. Zachodzące zmiany nazwane są czwartą rewolucją
przemysłową, a my jesteśmy jej naocznymi świadkami. W artykule tym przedłożone są wyzwania przed którymi stoją
współczesne łańcuchy dostaw w wyniku czwartej rewolucji przemysłowej. Celem artykułu jest próba odpowiedzi na
pytanie w jakim stopniu czwarta rewolucja przemysłowa wywiera wpływ na organizację przepływów fizycznych
i informacji w łańcuchach dostaw.
Metody: W artykule wykorzystane są wyniki badania społecznego, a zastosowaną techniką badawczą jest ankieta przeprowadzona wśród 122 łańcuchów dostaw. Przedstawiono również wyniki badania przeprowadzonego w 2015 roku
przez firmę McKinsey w formie wywiadu z 300-toma ekspertami z firm produkcyjnych i usługowych z USA, Japonii
i Niemiec. Dodatkowo zaprezentowano 5 case studies: Logistics Knapp AG, Nova Chemicals, BMW, Stratatys oraz
Bosch.
Rezultaty: Jednym z rezultatów badawczych artykułu jest przegląd literatury z obszaru rozwoju koncepcji łańcucha dostaw oraz rozwoju przemysłu, ze szczególnym uwzględnieniem czwartej rewolucji przemysłowej. W artykule podjęta
jest próba określenia wpływu jaki czwarta rewolucja przemysłowa wywiera na funkcjonowanie współczesnych
łańcuchów dostaw. Na bazie badań społecznych oraz case studies zostają wyciągnięte wnioski na temat istotności
stosowania założeń Industry 4.0. oraz obaw przedsiębiorstw i całych łańcuchów dostaw dotyczących nieuniknonych
zmian. Na koniec przedstawiony jest hipotetyczny łańcuch dostaw wykorzystujący założenia czwartej rewolucji
przemysłowej na przykałdzie producenta elektrycznych szczoteczek do zębów.
Wnioski: Na bazie zgormadzonych przykładów i przedstawionych badań można stwierdzić, że pojęcie Industry 4.0. nie jest obce współczesnym przedsiębiorstwom i ma wpływ na organizację przepływów fizycznych i informacji
w łańcuchach dostaw. Menedżerowie oni świadomi następujących zmian w organizacji procesów produckyjnych,
w zaopatrzeniu i dystrybucji w całym łańcuchu dostaw. Obawiają się jednak przeniesienia procesów w świat wirtualny,
ze względu na bezpieczeństwo danych oraz przepustowość sieci bezprzewodowych dalekiego zasięgu.
Słowa kluczowe: łańcuch dostaw, przemysł 4.0., Internet rzeczy (IoT), technologie w chmurze
,
Szozda N., 2017. Industry 4.0 and its impact on the functioning of supply chains. LogForum 13 (4), 401-414. http://dx.doi.org/10.17270/J.LOG.2017.4.2
414
DIE VIERTE INDUSTRIELLE REVOLUTION UND IHR EINFLUSS AUF DIE FUNKTIONSAUSÜBUNG MODERNER LIEFERKETTEN
ZUSAMMENFASSUNG. Einleitung: In der Industrie findet eine immer breitere Inanspruchnahme von Automatisierung, Datenverarbeitung und -austausch, Cyber-physischen Systemen, Internet der Dinge und Cloud
Technology statt. Moderne Fertigungseinrichtungen unterliegen einer ständigen Transformation und dies beeinflusst
nicht nur die Organisation von Erzeugungsaktivitäten, sondern auch die Funktionsausübung von Lieferketten.
Es verändert sich das Modell der Berührung mit dem Endverbraucher, der sich oft in die virtuelle Welt versetzt, was
unmittelbar die Ausgestaltung von Distributionskanälen mit beeinflusst. Die sich vollziehenden Veränderungen werden
als die vierte industrielle Revolution bezeichnet, deren wir Augenzeugen sind. Im vorliegenden Artikel wurden die
Herausforderungen, vor denen die modernen Lieferketten infolge der vierten industriellen Revolution stehen, unterbreitet.
Das Ziel des Beitrags ist es, die Frage inwieweit die vierte industrielle Revolution die Organisation von Material- und
Informationsflüssen innerhalb der Lieferketten beeinflusst, zu beantworten.
Methoden: Im Artikel wurden Ergebnisse einer sozialen Umfrage in Anspruch genommen, und die angewendete Untersuchungstechnik war die innerhalb von 122 Lieferketten durchgeführte Befragung. Es wurden dabei auch die
Ergebnisse der Erforschung, die 2015 von der Firma McKinsey in Form eines mit 300 Experten aus Produktions-
Dienstleistungsunternehmen aus den USA, Japan und Deutschland durchgeführten Interviews projiziert. Zusätzlich
wurden 5 Fallstudien: Logistics Knapp AG, Nova Chemicals, BMW, Stratatys und Bosch dargestellt.
Ergebnisse: Eines der Forschungsergebnisse des Vorhabens ist die Literaturübersicht im Bereich Entwicklungskonzepte von Lieferketten und Industrieentwicklung mit besonderer Berücksichtigung der vierten industriellen Revolution. Es
wurde dabei ein Versuch zwecks der Ermittlung von Beeinflussung der Funktionsausübung von modernen Lieferketten
seitens der vierten industriellen Revolution unternommen. Anhand der sozialen Umfragen und Fallstudien wurden
Schlussfolgerungen zur Relevanz der Inanspruchnahme der Industrie 4.0 und zu Befürchtungen seitens der Unternehmen
und der ganzen Lieferketten hinsichtlich unvermeidbarer Veränderungen gezogen. Zum Schluss wurde eine
hypothetische Lieferkette, die die Annahmen der vierten industriellen Revolution am Beispiel eines Produzenten von
elektrischen Zahnbürsten in Anspruch nimmt, dargestellt.
Fazit: Aufgrund der angeführten Beispiele und projizierten Forschungsergebnisse kann man feststellen, dass der Begriff Industrie 4.0 den modernen Unternehmen nicht fremd vorkommt und die Organisation von Material- und
Informationsflüssen innerhalb von Lieferketten weitgehend und positiv beeinflusst. Die Manager sind sich der sich
vollziehenden Veränderungen in der Ausgestaltung von Produktionsprozessen, in der Versorgung und Verteilung
innerhalb der ganzen Lieferkette bewusst. Wegen der Datensicherheit und der Kapazitäten von drahtlosen Netzwerken
bei längeren Reichweiten befürchten sie jedoch die Versetzung der Prozesse in die virtuelle Welt.
Codewörter: Lieferkette, Industrie 4.0. Internet der Dinge, Cloud-Technologien
Natalia Szozda
Department of Logistics
Wroclaw University of Economics
Komandorska 118/120, 53-345 Wrocław, Poland
e-mail: [email protected]
Reproduced with permission of copyright owner. Further reproduction prohibited without permission.
