Supply chain management has changed over the years, particularly in the last decade, with a rapid shift from traditional computerization to an increasingly Cloud-oriented model.
However, Cloud technologies need proper implementation with proper tools. Edge computing was born as an answer to issues related to latency and service availability, quickly evolving into a new way to manage field operations.
Edge computing: why it is a valuable supply chain support
We have mentioned that in the past few years the rate of Cloud adoption in Italian manufacturing realities has increased considerably. However, the move to cloud has not always been approached with the right maturity and level of analysis. In Italy, in particular, the precarious situation of the Internet infrastructure weighs heavily, which, at the latest official surveys¹ sees only 20 percent of the territory covered at least 100 Mbps.
A situation that does not facilitate a 100% cloud-based strategy, particularly for manufacturing companies that in many cases are located in decentralized spatial contexts. Recall, in fact, that in the OT world, related to field operations, acceptable latency times to be able to keep production running are in the millisecond range.
Edge Computing, by introducing the importance of proximity as a determining factor, solves these problems at the root. Edge and Cloud work together: the former collects field data with specialized devices close to production, while the latter handles storage, processing and analytics.
Edge computing can also benefit from the simplified connectivity offered by 5G, providing redundancy in the connection to the enterprise data lake.
The advantages of Edge computing in production management
As we have seen, Edge Computing is a technology that is revolutionizing the way industrial manufacturing is managed, making it more agile, efficient and secure. By bringing computing power and some of the data processing as close to the source as possible, latency times are reduced, resources are optimized, and performance is improved. Edge computing also does not exclude cloud computing, but complements and enriches it, creating a hybrid and scalable architecture.
What are the concrete advantages of Edge Computing in production management? Let’s analyze them by points.
Improved visibility and control
Through Edge Computing, data from sensors and IoT devices throughout the supply chain can be collected and analyzed in real time. This provides complete and up-to-date visibility of goods, their status and location. With this feature, more informed and agile choices can be made to improve the supply chain, even based on contingency.
Latency reduction
Edge computing processes data close to the source, that is, to the devices that produce it. This decreases latency, that is, the time required to transfer and analyze data. This allows faster response to unexpected events and increases the efficiency of processes.
Increased reliability and safety
Edge computing enables the supply chain to better withstand network problems and failures since, in fact, an always-on connection to the outside world is not essential for initial data management.
Cost optimization
Edge computing saves on data processing and storage costs, since the first processing can take place on-site, reducing processing and storage costs. Because of its ability to act as a bridge between the OT world and the cloud, it ensures more efficient use of resources.
Improved sustainability
For similar reasons, Edge Computing can also support business sustainability by reducing the need for data movement. In addition, in most cases, specially designed devices are used to operate at low power and high efficiency.
Edge and Cloud: allies or rivals?
A common mistake is to consider Edge Computing as opposed to Cloud. Ideally, a project should leverage the advantages of each approach: Cloud Computing for long-term storage, disaster recovery and advanced analytics; Edge Computing for speed and operational resilience. Edge technologies also support traditional solutions where the enterprise has its own servers, bringing data collection and processing closer to production and reducing latencies and OT network complexity.
Increasing efficiency through Edge Computing
The adoption of Edge Computing is critical for companies seeking to optimize supply chain management in a changing industrial environment. By addressing latency and service availability issues, this technology paves the way for new possibilities to increase the operational efficiency and resilience of IT and OT infrastructures.
By implementing systems based on Edge Computing, companies can benefit from more immediate and localized data management, significantly improving response times and the quality of services offered, even in areas with limited bandwidth coverage or in settings where business continuity is critical.
¹: Source. Ministry of Enterprise and Made in Italy – Ultra Broadband
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