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Evolution of Industrial Automation Supply Chain 

  • September 2015
  • 64 pages
  • Frost & Sullivan
Report ID: 3327255

Summary

Table of Contents

Evolution of Industrial Automation Supply Chain : Adoption of the Internet of Industrial Things will Disrupt Existing Supply Chain Frameworks
This research service presents the 5 essential elements of an industrial automation supply chain framework. It provides information on the status quo of technology adoption, cultural trends, and challenges faced with respect to aspects such as supply chain strategy, planning and scheduling, maintaining supply chain agility, and increasing visibility of information across the supply chain. In addition, this study discusses emerging industrial automation supply chain models and their impact on various end-user segments.

Executive Summary—CEO’s Perspective

For high-volume product lines such as ATEX motors, whose demand is volatile, it is efficient to manufacture components in a low-cost region based on forecast demand and assemble the final product near the customer location, based on customer order.

A major challenge that industrial automation vendors face is on managing frequent changes in order specifications or conditions. This challenge can be addressed by using technologies that can instantaneously notify related teams about changes in demand, supply, and production.

Adoption of technologies such as the IoIT is expected to enhance the accuracy of forecasting spare parts demand. This is expected to have a favorable impact across several end-user segments. Companies adopting IoIT can reduce their operating costs.

Predictive maintenance, enabled by the implementation of IoIT, is expected to eliminate the cost of periodic equipment maintenance. The value of savings is likely to significantly increase as the installed base of equipment increases.

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