By Ben Barlow
Today, we find ourselves at the very pinnacle of high-tech advancement, with sophisticated and highly-advanced technological systems and devices making their way into many aspects of our daily lives.
The business world is of course no exception to this and there is a belief that we are now entering a ‘fourth industrial revolution’ stemming from this advancement – which is in-turn impacting on many different business areas.
One such area is the supply chains and logistics operations many businesses use, which may soon become faster and more effective. However, there could also be knock-on effects for those businesses out there who are struggling to keep up.
What is the ‘Fourth Industrial Revolution’?
The ‘Fourth Industrial Revolution’ is described in this post from the World Economic Forum as ‘a technological revolution that will fundamentally alter the way we live, work and relate to one another’. It goes on to explain how this will build on the ‘Third Revolution’ which is the ‘digital revolution that has been occurring since the middle of last century’ and will be characterised by a ‘fusion of technologies…blurring the lines between the physical, digital and biological spheres’.
While there’s an argument here that this may just seem like an extension of the Third Revolution, the post debunks this by claiming that the ‘unprecedented’, ‘exponential’ growth of technological advancement is ‘disrupting almost every industry in the country’. This is different to the typically ‘linear’ growth seen in the Third Revolution.
A key example of this is how we are now instantly connected to billions of others around the world at the push of a button on a device. Equally, significant advancements in autonomous machines, robotics and even A.I. are regularly being announced and rolled-out.
Examples within Supply and Logistics
Looking into supply and logistics, there are also examples of this. Already there are faster deliveries within specific timeframes that can be ordered from anywhere with internet access. In addition, we’ve seen trials with drones and autonomous vehicles for the transportation of goods.
The piece from the WEF suggests how the Fourth Revolution will see a ‘supply-side miracle’ as transportation becomes even faster and more efficient through these developing technologies. They also claim that ‘costs will drop’ and this could ‘open new markets and drive economic growth’.
The Impacts on Supply and Logistics
If these forecasts are to be believed, for a business that either works in logistics, or which relies on a supply chain, the impacts of this could be both rewarding and concerning.
Naturally, the positives of more effective and productive supply and logistics could help many companies to achieve greater success. However, the automation of more systems could lead to cuts in personnel, but also may lead to increased consumer expectations that might not be achievable for all businesses - particularly those with tighter budgets.
Further Actions for Businesses
A final consideration for such businesses then would be to keep abreast of the latest developments and to seek as much business advice and guidance as possible, to keep their respective companies in-line with the modern customer and the markets.
This way they can gradually adapt to the major changes the Fourth Industrial Revolution is predicted to bring, rather than finding themselves caught-out when it’s too late.