Strozzi Fernanda
Associate Professor
Cattaneo University, Castellanza (VA), Italy
Title: From Smart Factories to Smart Supply Chains: the risks and opportunities of Information Sharing
Abstract: In Strozzi et al. 2017 the concept of the ‘Smart Factory’ was studied. A Smart Factory is a production plant where the pillars of Industry 4.0 are implemented. In 2016 the Boston Consulting group published an interesting report identifying nine pillars of the Smart Factory concept i.e. vertical and horizontal integration, cloud, cybersecurity, augmented reality, Big data analytics, Internet of Things, autonomous robot, simulation and additive manufacturing (The Boston Consulting Group, 2016). The Smart Factory operates in a network in which companies, suppliers and customers are closely linked. The importance of the well-functioning of the supply chain for the factories is huge. Jabeene et al., (2017) stated that the manufacturers lose 9% to 20% of profits in a time span of six months due to supply chain problems. The main causes of these losses lie in the high inventory of goods, deficit of spare parts, unnecessary damage charge, underutilized plant capacity, and the excess cost of the warehouse. All these losses may be eliminated, or at least reduced, with better integration of the activities of the supply chain levels i.e. between supplier, manufacture and distributors. Supply chain management deals with “having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer” (Mallik, 2010). To better deal with the increasing challenges to be faster and cheaper and, at the same time, to manage the increase of complexity, the uncertainty and the vulnerability, supply chains must become much smarter (Butner, 2010). This is possible thanks to the improvements in information technologies and in other engineering technologies. The new version of the supply chain tries to combine information, data, products, physical objects and business processes establishing a large-scale intelligent infrastructure to (Schuster et al., 2007). Wu et al (2016) defined a smart supply chain as “the new interconnected business system which extends from isolated, local, and single-company applications to supply chain wide systematic smart implementations”. They performed a literature review on the Smart Supply Chain Management and they observed that “the Information in the supply chains really refers to what smart is all about”. Colicchia et al. (2018) performed a recent literature review on the information sharing in the supply chains and related risks and opportunities, taking into account the evolution over time. The topics studied range from the impact of information sharing on supply chain performances and the problem security problem to the main the enabling factors, such as institutional forces, interpersonal relationship and trust. Their paper sheds light on what is happening today and what the trajectory for the future are. In this presentation the different views of Smart factory concept in Europe, US and China will be presented and the main characteristics that the Smart factories need to have to be part of a Smart Supply Chain will be analyzed. The risks, opportunities and the future development of the Smart Supply Chains will be discussed.