Impact of SCM 4.0 on Business and the Right Strategy to Overcome It

The presence of Supply Chain Management or SCM 4.0 marks the increasingly reality of the digitalization process in the business world in the 21st century. Today's supply chain processes rely heavily on technology, making it more complex and dynamic. In Supply Chain Management 4.0, supercomputer technology, smart robots, driverless vehicles, neurotechnology developments, and various other technologies have been implemented.

Even though the supply chain in the 4.0 era can be faster, more accurate, flexible, and efficient, all parties involved in SCM must be prepared to face new challenges. One of them is the reduced employment opportunities. These changes may seem daunting, but they inevitably have to be faced.

Impact of SCM 4.0 on Industry

Supply Chain Management plays an important role in the industry. Without SCM, it feels like the process of distributing goods / products to various places will be difficult to do. In fact, industrial and economic development in Indonesia could be hampered.

The emergence of supply chain management 4.0 is deemed able to answer the high demands of customers for maximum service. Because, in SCM 4.0 customer orientation and needs are important things that will be explored. In addition, in this 4.0 supply chain management there are also several important components that can make the process more efficient, such as big data, simulation, horizontal and vertical system integration, internet, cloud computing, and so on.

SCM in the 4.0 era was also able to create many new opportunities in the logistics sector. Because, now humans can more easily optimize brain function because in this supply chain management has been equipped with various technologies, such as supercomputers, smart robots, driverless vehicles, and so on.

Although the presence of Suppy Chain Management 4.0 can make the supply chain more capable of increasing the efficiency of customer needs, there are challenges that must be faced by all parties involved in supply chain management. This 4th generation SCM is predicted to cause less work done by humans because it has been replaced by machines. In addition, supply chain management in the 4.0 era also made technology disruption so fast that it forced many companies to immediately leave their comfort zone.

The various impacts raised by SCM in the 4.0 era may seem very challenging, but like it or not, they must be faced. This must be done by all parties involved in supply chain management during the industrial revolution 4.0 in order to make progress and be able to survive in the midst of increasingly tight business competition today.

How to deal with SCM 4.0?

The presence of SCM during the 4.0 industrial revolution at this time has indeed brought about so many changes in the supply chain process run by the company. To face the various challenges that exist, all human resources involved in the supply chain must be able to improve their abilities in digital skills.

HR must continue to explore their capabilities in the digitization process by implementing learning by doing. They must continue to try and apply technology, explore new collaborations to improve digital skills. So, you could say that human's digital skill is the main key in facing SCM in the 4.0 era. Because of that, an earlier understanding of SCM applications is very necessary even since he was in college.

This is an overview of what impact SCM 4.0 has and the right strategy to deal with it. Soltius Indonesia introduced SAP Integrated Business Planning (IBP) as a cloud-based supply chain solution that has been supported by SAP HANA. Thus, SCM can be managed in a more integrated manner.