First coined by the German government in 2011, Industry 4.0 has steadily gathered pace across all industries over the past decade. Our latest infographic explores how the rise of industrial automation technologies will transform the manufacturing industry.

What is Industry 4.0?

Industry 4.0 refers to the fourth industrial revolution and the global move towards smart manufacturing. It is a collective term that refers to the seamless integration of industrial automation, data exchange and manufacturing technologies. Industry 4.0 will see more and more manufacturers adopt smart technology and real-time data to increase productivity and reduce costs.

The Rise of Industry 4.0

Unlike previous industrial revolutions, today’s business owners are aware that Industry 4.0 is on the horizon and are already taking steps to prepare themselves. According to a study by Oracle, 69% of organisations believe Industry 4.0 is going to have a significant impact on their business. A further 56% report a strong intention to invest in the relevant technologies across all areas including manufacturing (71%), R&D (44%) and logistics (33%).

The Power of Smart Manufacturing

In all supply chains, companies are always looking for ways to make it more efficient and increased digitization is more often than not the answer. Industrial automation technologies have the potential to connect all areas of your business to improve productivity, speed and efficiency all around.

The use of such data-driven technologies has dozens of applications. For example, real-time data can be enormously beneficial in terms of satisfying customer demands. Data gleaned from thousands of sensors and data points can be helpful in spotting equipment faults, thereby ensuring timely replacement and avoiding production downtime.

Preparing for Industry 4.0

Rolling out digital capabilities across your company takes time and you need to have a strategy in place. Following thorough research, create initial pilot projects to help secure funding for a larger rollout. Based on the results from these, you can identify the capabilities you need and hire accordingly.

Viewed by some as the “lifeblood” of Industry 4.0, data and analytics are increasingly fuelling decision-making. Therefore, businesses will have to learn how to identify, gather and analyse the right data. The smart use of data and analytics can help give businesses of all types the edge they need to beat their competitors and to increase efficiencies throughout the supply chain.

To succeed in Industry 4.0, you must attract the best talent, and without the right digital culture this will be difficult. Yet 25% of business leaders identify “insufficient talent” as one of the major challenges in adapting to this new world. As smart manufacturing becomes more common, the skills shortage will only continue to widen. In addition to acquiring tech-savvy talent, employers must also take responsibility for upskilling staff now so that they have the required skills and tech know-how they will need to adapt as their roles develop over the next few years.

Read more in the infographic below about the preparations you will need to make now in order to succeed in Industry 4.0.

Research has shown that the average stockout rate for retailers is around eight percent. In other words, when a customer visits your store (be it online or brick and mortar) one in 13 products will not purchasable at that time. It’s evident that stockouts are a universal problem costing retailers tear-inducingly large sums of money in lost sales.

For most retailers, stockouts are one of the top contenders for “worst nightmare” situation, and for good reason. Not only does OOS affect profits, but in our digital age of instant gratification the unavailability of products can have a devastating affect on customer experience. 30% of customers feel that products being OOS hurts their shopping experience. In most cases when a product is unavailable, frustrated customers will simply switch to a competitor or buy substitute products rather than wait it out.

In today’s fast paced retail environment, real-time inventory management is commonly reported as one of the biggest headaches for retailers. There is a myriad of reasons why a stockout may occur. For example, retailers may underestimate customer demand for a particular item, their employees may lack sufficient training on the subject, or it may simply be the case that a supplier has let them down.

So what can be done to prevent stockouts? Fortunately, there are many solutions to stockout troubles. One effective way to combat OOS is to put inventory controls in place; a good rule of thumb is to always eliminate stock issues for the 20 percent of items that account for 80 percent of total sales. Another good idea is to dedicate a good amount of time to demand planning and sales forecasting or to implement an inventory management system.

Check out our infographic below to learn more about how you can prevent the out of stock problem to boost profits and satisfy customers.