Technology Innovations Transforming the Supply Chain
Sectors such as supply chain, manufacturing, logistics and transportation are currently facing an extreme shift in the adoption of new technologies. Not only has the current pandemic been a catalyst in adoption, technology is currently in the midst of its biggest transformation yet. New technology innovations have enabled us to automate processes, manage the supply chain and track data using blockchain.
3D printing has been around for over 20 years but has only recently been adopted by large-scale markets. This technology allows for companies to create specific devices or products in-house using specialised materials while minimising cost. This means independence for the supply chain and manufacturing industries as well as reducing delivery times and eliminating the need to store a large number of products in a warehouse.
3D printing is a globally used language meaning that digital files can be sent from anywhere and then printed locally, allowing for on-demand files to be printed immediately reducing inventory build-up and costs. This streamlined approach only brings positives to the manufacturing and supply chain sectors, and boasts huge benefits such as dealing with less risk, having more control and adding agility to their product lifecycle.
Typically, a drone is an unmanned aerial vehicle that can be controlled remotely or flown autonomously using in-built programmed flight routes. Drones are technology that some sectors often steer clear from as they can come with some uncertainties such as overcrowding air space and needing more infrastructure for storage.
However, they are small, light and relatively inexpensive to operate. Also, the biggest advantage of drones is that they are incredibly fast compared to on-road transportation systems that can be affected by traffic and road works.
Drones are currently finding their place in the supply chain sector. In the near future, it is very possible that drones will be the new delivery service for small packages in both cities and remote areas. They would decrease transportation costs as well as intensely reduce the supply chain due to their speed and accuracy.
A technology that seems to be ever-increasingly important at the moment, and will still find itself being heavily adopted into some of the most important sectors in the world. Blockchain handles sensitive data, tracking a timestamp and reference link at each step in a transactional record.
Unfortunately, even though blockchain when effectively utilised can be incredibly powerful to a company, the technology is extremely hard to implement. In the supply chain and manufacturing industry, blockchain technology can increase transparency and is near impossible to hack therefore mitigating third party security systems.
These technologies have helped to build a strong and agile supply chain. It is essential that supply chain leaders consider technology at the forefront of their business as it is the key to supply chain transparency, utility and production.
Japan Seeks to Revive Stalled Semiconductor Industry
Post-pandemic, Japan has seen the consequences of relying solely on foreign imports for its semiconductors. Over 64.2% of its chips are usually imported from South Korea and Taiwan, leaving the country dependent on its neighbours. Industries from auto manufacturers to consumer electronics firms wait for chips, to no avail. But now, the Japanese government looks likely to put real funding behind its semiconductor industry, with top officials emphasising their support.
Domestic supply chains have never been more important. Rather than remain tied to international shipping routes during shortages and delays, governments are doing everything in their power to develop local lines of supply. But the question remains: can Japan pull it off?
How Will Japan Pay For It?
Herein lies our first issue. Japan’s debt has rapidly increased over the past few years, and the semiconductor industry will need roughly a trillion yen—US$9bn—in this fiscal year alone. This cost, however, pales in comparison to what Japan could lose if it fails to keep up with Europe and the US. Both nations have launched aggressive funding measures to revive their local semiconductor industries. And if Japan refuses to invest due to its debt, it could slow down progress in fields ranging from artificial intelligence to autonomous driving.
According to Tetsuro Higashi, the former president of Tokyo Electron and Japan’s top government advisor in semiconductor strategy, ‘If we miss this opportunity now, there may not be another one’. Yet one advanced wafer fabrication factory can cost more than US$10bn, and any money poured into the industry will go fast. That’s why Japan, rather than invest trillions and trillions in failing domestic firms, is considering a second option.
What Do They Plan To Do?
Japan now intends to look abroad and convince overseas chip foundries to come to its shores. Its past failures mostly centred on trying to merge domestic firms that were already going through tough times. ‘This sort of made-in-Japan self-reliance approach hasn’t worked out well’, said Kazumi Nishikawa, a director at the Ministry of Economy, Trade, and Industry’s IT division. ‘This time the goal is to offer a strong incentive for an overseas logic foundry to come to Japan’.
As follows, Japan will now reach out to industry partners and leaders in other countries, including the industry heavyweight Taiwan Semiconductor Manufacturing Co. (TSMC), to build Japanese bases. According to the South China Morning Post, the heart of Japan’s mission is a US$337.2mn research and development project in Tsukuba that will involve TSMC and more than 20 Japanese firms. ‘I think we need to cooperate with our overseas counterparts’, said Akira Amari, a senior member of the ruling Liberal Democratic Party. ‘[And] TSMC is the world’s top logic chipmaker’.
Indeed, if that’s Japan’s strategy, the future looks bright. TSMC recently set up a venture near Tokyo to research energy-efficient 3D chips with several Japanese partners. And in the future, the multinational chipmaker may consider expanding its Japanese operations—that is, if government incentives pave the path forward.