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Industry Dynamics


Industry 4.0 and distribution centers Transforming distribution operations through innovation

Counts:509    Time: 20-09-16    From: Suzhou Teknect Engineering Co., Ltd.

RECENT years have seen the rise of connected technologies throughout the manufacturing and distribution value chain.1 This marriage of digital and physical systems—known as Industry 4.0—has paved the way for increasingly connected experiences that impact everything from product design and planning to supply chain and production.2 Beyond the processes of designing and producing goods, however, the technologies inherent in Industry 4.0 can also impact the manner in which finished goods are moved, warehoused, and distributed. Industry 4.0 technologies enable warehousing facilities to adapt to significant changes in their business. The last several years have seen the migration away from warehouse-based stockpiling of inventory to high-velocity operations, pushing more products through the same physical assets while bringing down overall costs. Known as distribution centers (DCs) rather than warehouses, they are an important component of the supply chain infrastructure and are increasingly treated no longer as cost centers, but rather as strategic facilities to provide competitive advantage. As the need for greater order customization, shorter lead times, better quality control, reduced labor costs, and higher production output is increasing, adaptable advanced technologies are emerging as a solution to achieve these goals.