Today the supply chain has evolved tremendously from a fixed job of a bridge between sales and production functions with a focus on raw material supply to product manufacturing lines and finish goods dispatch to the final consumer to an independent function with a separate hierarchy. The SCM focus has adopted the upgraded planning methods such as integrated S&OP and outsourced logistics. Further, the world has seen continuous wealth shift towards the rural areas over the past few years and the online product purchase is rapidly increasing due to the buyer’s trust in communication transparency and easy much option access. To adapt to these trends SCM requires being faster, granular, and precise.

The Supply chain efficiency can be increased by up-gradation with new technology and eliminating the waste in the process. We studied the step by step SCM 4.0 implementation process to achieve the SCM 4.0 application benefits like global inventory and lead time reduction with the help of digitized material planning, order fulfilment, and forecast accuracy. We have analyzed the key six value SCM 4.0 enablers as improvement levers that will generate a change in capital cost, manufacturing agility, and service are planning, physical flow, performance management, order management, collaboration, and strategy.

Further, We carried a pilot study on SCM 4.0 implementation with current state mapping of value chain identified the wastage like manual data capturing, manual planning based on gut filling, low service levels, and high inventory that can be prevented or eliminated by the effective SCM 4.0 application. Also, We noted that SCM 4.0 deployment face some problems like training needs and skilled talent, senior leadership involvement, change management, and small and medium business needs tailor-made solutions.

Keywords: SCM 4.0, Cloud, Digitization, Digital Waste, Big-Data.