Impact of Industry 4.0 on supply chain performance

Abstract

Impact of Industry 4.0 on supply chain performanceConsidering the crucial role Information Technology (IT) plays in achieving performance improvements in business processes, this paper aims to explore the potential impact of the fourth industrial revolution -Industry 4.0 and its associated technological advances on Supply Chain (SC) performance. This study is exploratory research, conducted based on inductive reasoning, which aims to bring new insights into the topic, and to provide forward-thinking for future research.Hence, through conducting a systematic literature review, the paper attempts to explore the impact of Industry 4.0 on SC performance and to conceptualise and develop findings into an operational framework underpinned by Systems Theory.Based on this research, the application of Industry 4.0-enabling-technologies is expected to bring about significant performance improvements in SCM by enabling a holistic approach towards supply chain management resulting from extensive supply chain integration as well as information sharing and transparency throughout the supply chain. Moreover, these technologies allow for huge performance improvements within individual supply chain processes such as procurement, production, inventory management and retailing through enabling process integration, digitisation and automation, and bringing about novel analytical capabilities.

Multistage implementation framework for smart supply chain management under industry 4.0

“…Moving on, Ralston and Blackhurst (2020) found that the smart systems may provide improved supply chain resilience, especially when owing to the new skills enhancement and capability development. The application of the 4.0 enabling technologies tends to enhance the entire supply chain performance, especially in terms of the procurement, manufacturing, inventory management, and trading, while also promoting the concept of information sharing and automation, digitization, and transparency across the supply network ( Factorachian and Kazemi, 2020 ). Ghadge et al.…”

“…Industry 4.0, or smart manufacturing, are the terms that are being used for digital transformation, using technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Cloud Computing (CC), Machine Learning (ML), and Data Analytics (DA), etc. These concepts have been built upon the interconnectedness of the machines and systems that are using the above-mentioned technologies, to self-correct and self-adopt according to environmental needs of time ( Fatorachian and Kazemi 2020 ). Another term that is being used is of that of resilient systems that are capable of self-correction.…”

Sustainability in the Aerospace, Naval, and Automotive Supply Chain 4.0: Descriptive Review

“…However, there are still areas to be exploited that can be beneficial in the automotive industry [ 65 ]. In order to help the leaders of the companies make their plants intelligent, it is clear that there is a need for integration, collaboration, and transparency of all the members of the chain [ 66 ]. Leaders are encouraged to establish sustainable policies, training programs focused on I4.0 and to consider I4.0 as a strategic decision to improve costs, reduce resources and energy consumption, and contribute to the development of healthy societies [ 44 ].…”

An Empirical Study on System Level Aspects of Internet of Things (IoT)

“…These sensors are connected together and also to the Internet. This advanced connectivity empowers real-time information tracking and sharing of the product information, which elevates the supply management operation [80]. • Quality Control and Management: Quality control and management ensures that the product is free from defects.…”