Industry 4.0 and Sustainable Supply Chain

Abstract

The integration of information technologies with industry has marked the beginning of the Fourth Industrial Revolution, which is called Industry 4.0 for short. The technologies of this era have been transforming not only the industry itself but also reshaping individuals and society. One cannot deny the very positive outcomes of Industry 4.0; however, it has also given rise to some environmental problems, including changes in climatic conditions, the running out of resources due to increasing amounts of production, industrial wastes, all of which pose irreversible threats to nature. These negative outcomes have mobilized individuals, non-governmental organizations and states requiring companies to reform the operation of supply chains in line with the sustainability principle of "meeting today's needs without compromising the ability of future generations to meet their own needs". The purpose of the current study is to present how Industry 4.0 might influence the functioning of the sustainable supply chain and the benefits it might bring. First, industrial revolutions, the concept of Industry 4.0 were introduced briefly. Then, the trends in supply chain management and with reference to sustainability and the possible contributions of Industry 4.0 to sustainability were discussed.

Industry 4.0 and sustainable business models: An intercontinental sample

“…Participants also mentioned the importance of technological developments in terms of organizational sustainability as they offer more flexible and personalized mass production opportunities. This is consistent with the findings of the literature (Bilgin, 2021;Dentchev et al, 2018;Hecklau et al, 2016;Mete, 2018;Mijatovic et al, 2020;Todeschini et al, 2017).…”

“…While daily and short-term policies may be sufficient for the education of the current workforce, it may be beneficial to develop regional, national, or global education policies at the point of training the future workforce. In this respect, the participants emphasize that organizational sustainability, as frequently mentioned in the literature (Bilgin, 2021;Demirkol & Tis, 2018;Küsbeci & Tekin, 2021;Matos & Silvestre, 2013;Pereira, 2019;Rouiller, 2018;Strohmeier & Piazza, 2015;Studer et al, 2006), should be seen as a government policy.…”

“…It is important in terms of waste of resources that production systems have a more flexible structure and that this flexibility can be applied in small batches of production. Products that can be processed in more detail and in small pieces have less waste and provide significant advantages to businesses in terms of sustainability (Bilgin, 2021, p. 141; Dentchev et al, 2018, p. 695). In this respect, new and existing companies must find ways to thrive in a competitive environment with innovative business models, while both respecting society and avoiding actions that harm the environment in which they operate.…”

“…In this context, organizational sustainability is related to compliance with human rights, attention to improvement of working conditions and employment age, gender, etc. It has an important role in issues such as ensuring fair distribution among social classes and equal sharing of consumption opportunities (Bilgin, 2021, p. 141).…”

“…Increasing populations of countries and changing consumption habits trigger the increase in production. The increase in production leads to an increase in the production of industrial waste and the consumption of natural resources (Bilgin, 2021, p. 141). In this context, another important point that stands out within the scope of the research is the concept of circular economy.…”