Cloud Inventory Key To Industry 4.0 Success

Supply chain, product demand, and worker shortage all prompt the implementation of Industry 4.0 philosophies which automate time intensive, manual work to ensure that people have information to maximise their decision-making capabilities. Moving inventory management from paper, tape measures and spreadsheets to sensors and custom inventory software provides a great example of Industry 4.0 automation.

A storm of challenges face organisations including the strain of product demand, limited supply chain resources, and an unprecedented exodus of people leaving the workforce.

Industry 4.0 technology and systems provide some relief.

Industry 4.0 is a system that combines informational and operational technology to make manufacturing more aware, predictive, and autonomous. Employees operating in a 4.0 environment are highly connected with a more complete view of their business ecosystem.

“Ultimately, you want to run autonomously in a closed-loop system where humans set parameters, but technology runs itself,” said Chris Hill, Technology Program Director at Iowa State University Centre for Industrial Research and Service. “Sensors and software directly feed an Industry 4.0 environment. They replace a physical process and feed information back to people.”

Hill said he still sees employees manually measure material. They write data on paper and hand it to someone else who enters it into a spreadsheet.

“We’re seeing that people want more meaningful work. It’s a high priority,” Hill said. “With technology, we can re-evaluate work, take it out of the hard, physical realm and make it more value-added.”

One way Hill’s research center identifies opportunities is with wearable sensors tracking employee movement. Managers can look at data and pinpoint times that employees engage in extra activity—like climbing ladders—throughout a shift.

In the numbers

• According to Fortune Business Insights, globally, Industry 4.0 market size was valued at $114.5 billion in 2021. That market is projected to grow to $377.3 billion by 2029 increasing by 16.3% during that period. The numbers were derived by looking at product offerings like sensors, software, robotics, PLC automation, control room solutions, motors, generators, and others.
• Product demand has strained bulk material markets including global dry bulk according to a 2021 global market report by Research and Markets.com. Growth is mainly due to companies recovering from COVID-19. The report showed global dry bulk materials market will grow from $306.5 billion in 2021 to $389.4 billion in 2025. That represents a 6.2% compound annual growth rate CAGR).
• According to Yahoo Finance, supply chain disruptions are increasing due to consumer demand, labor shortages, and trucking and shipping capacity restraints. More than 70% of retailers said supply chain disruptions negatively impacting business. That is a 42% increase from a year before.
• About 36% of U.S. adults don’t have jobs and they are not looking for work. The U.S. has more than 3 million fewer Americans participating in the labor force compared to February 2020, according to the US Chamber.

• Labor shortage is not unique to the U.S. As of early 2022, Europe struggled to fill 1.2 million open job roles. Australia had 400,000 vacant positions and Singapore reported 163 jobs for every 100 available workers.

Taking baby steps toward automation

Engineers utilise finite element analysis to break down engineering and mathematical modeling. Those implementing Industry 4.0 can do the same by breaking processes down to smaller steps and watching for automation opportunities along the way, Hill said.

He said supply chain analysis has shown the need for more dynamic material ordering and storage. Decision makers often navigate long lead times to receive material, but more and more are looking to identify substitute material.

Unleashing communication between locations

No matter where people are located, employees can share data via cloud-based reports. Sensors and software, for example, gather inventory data and prepare it for customer service, purchasing, compliance, production, and Enterprise Resource Planning.

Sharing data, a team can identify bottlenecks, trends, and opportunities. Even maintenance can use data to facilitate predictive maintenance reducing downtime. History found on these cloud reports can help with predictive models and condition-based alerts. Sensor data is used to track equipment, improve work process, streamline supply chains, increase safety, and bring higher overall efficiency.

Inventory of Things (Io T)

Level sensors and software fits into the category of Internet of Things (IoT).

• Provide insights for data-driven decisions to increase efficiency and drive down costs
• Shorten lead times for production
• Reduce carrying costs and last-minute purchases
• Reduce waste on bulk inventory that could spoil
• Accurate inventory feed data to Enterprise Resource Planning systems
• Streamline transportation and timely ordering

From a business standpoint, inventory management streamlines bulk material handling for inventory balancing, planning and control. For balance, it’s important to have the right amount of inventory to fulfill production and free up money tied to safety stock. Control refers to managing the physical and logistics of inventory.

Level sensors begin the process of real-time inventory measurements. Non-contact technologies, such as radar and laser, update quickly for continuous inventory monitoring. Cloud software organises and presents data to provide key performance indicators (KPI) to meet business objectives.