Reap the Benefits of an Industry 4.0 Supply Chain

It’s a hot term these days: “Industry 4.0.” But what exactly is it? First defined in 2011 by Dr. Siegfried Russwurm, German professor and Chief Technology Officer of Siemens AG, Industry 4.0 refers to the fourth phase of industrial evolution—the coming of “cyberphysical” systems.

This era is characterized by interconnectivity between equipment and facilities throughout supply chains made possible by the Internet. (For context, the first phase was mechanization driven by water and steam power; the second phase was electric powered mass production on assembly line; and the third phase was digital, representing the transition to computerized and automated machinery).