Lecture 10

Question 1

What is the Fourth Industrial Revolution (Industry 4.0), and how does it relate to supply chain management?

Answer 1

• Industry 4.0 integrates digital innovations like AI, IoT, cloud computing, advanced robotics, and 3D printing to transform supply chains.
• It enables real-time data sharing, modular systems, and advanced analytics for better decision-making and responsiveness.

Question 2

What are the phases of supply chain evolution?

Answer 2

1. SCM 1.0: Focused on dynamic flexibility within existing systems.
2. SCM 2.0: Introduced structural flexibility for rapid supplier and location changes.
3. SCM 3.0: Enabled by real-time integration and modular, digital ecosystems.

Question 3

How does cloud computing support SCM 3.0?

Answer 3

1. Provides real-time data sharing across stakeholders.
2. Enhances structural flexibility and resilience.
3. Supports dynamic reconfiguration of resources and cost-effective scalability.

Question 4

How is AI applied in supply chain management?

Answer 4

1. Risk Mitigation: Scenario-based risk assessment and disruption modeling.
2. Procurement: Advanced analytics for supplier selection and cost optimization.
3. Inventory Management: Real-time demand prediction and optimization of overstocking or understocking.
4. Logistics: Efficient route planning, warehouse layout optimization, and backup strategies.
5. Sustainability: Optimizing delivery routes and resource utilization to minimize environmental impact.

Question 5

What are the challenges of AI in SCM?

Answer 5

1. Data privacy and regulatory compliance.
2. Biases in algorithms affecting fairness.
3. Cybersecurity threats.
4. Complexity in operationalizing AI systems.
5. Workforce dynamics due to automation.

Question 6

What are some recent trends in logistics impacting supply chain strategies?

Answer 6

1. Sustainability: Focus on circular supply chains, reuse, and recycling.
2. AI and Digitalization: Predictive analytics, digital twins, and risk mitigation.
3. E-commerce and Last-Mile Logistics: Decentralized micro-fulfillment centers and agile urban distribution.
4. Cybersecurity: Investments in robust systems to protect digital platforms.

Question 7

How does cloud computing enable structural flexibility in supply chains?

Answer 7

• Allows dynamic reconfiguration of suppliers and locations.
• Facilitates real-time data integration and sharing for better decision-making.
• Reduces costs through scalable, pay-per-use models.

Question 8

What did Gammelgaard and Nowicka (2024) emphasize about cloud computing in SCM?

Answer 8

• Cloud computing enhances adaptability and resilience in supply chains.
• It fosters collaboration through platform-based models and real-time data sharing.
• Key challenges include cybersecurity and trust in digital ecosystems.

Question 9

What insights did Richey et al. (2023) provide about AI in logistics?

Answer 9

• AI improves risk mitigation, inventory accuracy, and logistics efficiency.
• Challenges include operational complexity, biases, and ethical concerns.
• AI can help supply chains optimize for sustainability and customer satisfaction.

Question 10

How does the DHL Logistics Trend Radar (2024) highlight the future of supply chains?

Answer 10

• Emphasizes trends like circularity, AI ethics, diversity, e-commerce evolution, and green urban transformation.
• Highlights the importance of digital marketplaces and personalized services for customer-centric supply chains.