Sara Behdad, University of Illinois
Topics: Digital Manufacturing, Web 2.0, Autonomous Systems, IT Industry, Cloud
Digital manufacturing is one of the most important up-and-coming industries according to the speaker. The IT industry has created many new technologies to help advance the industry. There are four key elements which are cloud storage in a database, information management software regularly being used, the use of a robust data communication network and the management of application software. All key features need to use the most advanced and updated technology to properly coordinate with supply chains and other partners.
There are four main benefits to switching from traditional methods to digital manufacturing. The first is inventory management. With inventory management, it is easier to properly plan and understand what products are available. The second is reduced costs because businesses are no longer wasting as many resources as possible because the third reason is inventory visibility. Finally, there is reduced uncertainty. The current industry suffers from all parties involved not fully understanding what they should do. With the use of technology, it is easier for all parties to understand exactly what they should do.
Digital manufacturing also helps with horizontal and vertical communication. Horizontal communication is defined as communication between people within the same level at an organization. For example, product supporters communicating with each other is an example of horizontal communication. Vertical communication is when different levels of an organization communicate with each other. For example, shipping and sales communicating with each other is an example of vertical education.
Digital manufacturing also reduces the bullwhip effect. The bullwhip effect is when a small change in consumer purchasing creates a large change on the supplier’s end. This is a problem because it can lead to the mismanagement of inventory or a supplier spending more money than they need to. This will trickle down to the consumer as commodities will be over or under-supplied.
The final section of the video is about how Web 2.0 technologies will improve supply chains and how this will benefit the end consumer. With supply chains becoming global that means there needs to be an easy way to communicate with partners and suppliers. Web 2.0 technologies offer services such as instant communication, planned maintenance and more data sharing. All of these services allow for companies to plan around disruption because there will be fewer surprises or chances of misinformation being spread. While some organizations do not want to share all information for a variety of reasons Web 2.0 still benefits everyone.