How ecosystems leverage technology to transform through Industry 4.0

Advancing supply chains: embracing Industry 4.0 and beyond

While today’s supply chains may still reflect that traditional model now, transformation calls for a move to not just what’s next, but what’s beyond that. Organizations can no longer operate solely within their four walls. They must evolve into Industry 4.0, where agile and networked ecosystems break the linear paradigm.

Ecosystems have the power to push supply chains beyond what’s next, elevating the industry to the point of establishing supply chains that are autonomous and self-driven. Within that reality, business as usual involves blockchain, drone delivery, generative AI, the Internet of Things (IoT) and more.

Enhancing supply chains with strategic ecosystem partnerships

What we’re seeing with many clients is the drive to move from now to next to beyond. But they’re quickly realizing that such a move only happens through leveraging the right partners and technology. It all must connect seamlessly, even though all the moving parts are moving forward. In other words, it takes the right ecosystem.

Ecosystems orchestrated by EY teams align key elements integral to transforming supply chains. This includes the EY team, the client and their existing vendors, one or more EY alliance partner — plus all the technology, systems and processes that support every aspect of the organization.

Driving supply chain growth with pivotal technology integration

As supply chains mature and shake loose the bridle of linearity, their complexity increases in proportion to their new-found agility. This makes having the right technology — and the right technology relationships — more vital.

In the context of growing into the supply chains of beyond, having the right technologies within ecosystems adds momentum to this maturation. EY teams work with a wide spectrum of technology vendors, enabling the orchestration of bespoke ecosystems that address individual clients’ needs.

Blue Yonder is one such vendor, adept in transportation and warehouse management, planning, merchandising, control tower and order management. Incorporating Blue Yonder into ecosystems has resulted in co-innovation in the service of addressing supply chain client challenges and accelerating digital supply chain transformation.

Ecosystems as differentiators for supply chains

EY teams have orchestrated ecosystems to drive value for supply chain clients across the industry. Without exception, they not only make a difference, but also prove to be differentiators.

Case study: global supply chain digital transformation

In one instance, a consumer goods multinational sought to drive digital transformation initiatives across its global supply chain. The coordination and implementation challenge was proportional to the scope of the company’s operations. So, a comprehensive, cutting-edge approach was needed.

The EY team orchestrated an ecosystem with Blue Yonder. This ecosystem approach ensured that the digital transformation initiatives would be realized to their full potential, delivering business value across the client’s domestic and international shipping footprint.

Working with Blue Yonder and the client, the EY team focused on network design, inbound planning, supplier management, outbound planning and execution, end-to-end visibility and third-party freight pay.

The engagement produced significant results:

• Integration with 16 different ERP Instances
• Parcel integration with XPS
• A single system used by business units globally

Thanks to the EY-orchestrated ecosystem, the team was able to build end-to-end differentiated logistics capabilities for both inbound and outbound orders while providing real-time analytics. Through this engagement, the EY team enabled the client to effectively achieve their digital transformation objectives while positioning them for future advancements and success.