The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics

Abstract

The impact of digitalisation and Industry 4.0 on the ripple effect and disruption risk control analytics in the supply chain (SC) is studied. The research framework combines the results from two isolated areas, i.e. the impact of digitalisation on SC management (SCM) and the impact of SCM on the ripple effect control. To the best of our knowledge, this is the first study that connects business, information, engineering and analytics perspectives on digitalisation and SC risks. This paper does not pretend to be encyclopedic, but rather analyses recent literature and case-studies seeking to bring the discussion further with the help of a conceptual framework for researching the relationships between digitalisation and SC disruptions risks. In addition, it emerges with an SC risk analytics framework. It analyses perspectives and future transformations that can be expected in transition towards cyber-physical SCs. With these two frameworks, this study contributes to the literature by answering the questions of (1) what relations exist between big data analytics, Industry 4.0, additive manufacturing, advanced trace & tracking systems and SC disruption risks; (2) how digitalisation can contribute to enhancing ripple effect control; and (3) what digital technology-based extensions can trigger the developments towards SC risk analytics.

Editorial to the Special Issue onOperations Research Models for Supply Chain Finance

“…However, this is no longer necessarily true. In the big data era (Choi et al., 2018a), digital technologies (Choi and Luo, 2019; Ivanov et al., 2019a) such as blockchain technologies (Choi et al., 2019b; Dolgui et al., 2020) are well established and it is critically important to consider other kinds of models and analyses. To be specific, data‐driven models should be given more emphasis and computational‐based analyses should also be examined with more theoretical backups.…”

Analysis of the Risk Impact of Implementing Digital Innovations for Logistics Management

“…Looking for studies on the relationship between the risk of implementing digital technology and the area of logistics management, we can point to studies loosely related to this problem. D. Ivanov, A. Dolgui, and B. Sokolov have analyzed the impact of digital technologies on risk in logistics management [29]. The problem of risk is also presented in the aspect of cyber security [30].…”

Low-Certainty-Need (LCN) supply chains: a new perspective in managing disruption risks and resilience

“…SC resilience encompasses both proactive and reactive stages (Bhamra, Dani, and Burnard 2011;Jüttner and Maklan 2011;Spiegler, Naim, and Wikner 2012;Pettit, Croxton, and Fiksel 2013;Brandon-Jones et al 2014;Ambulkar, Blackhurst, and Grawe 2015;Tukamuhabwa et al 2015;Chowdhury and Quaddus 2017;Yu, Li, and Yang 2017). As such, an integration of pro-and reactive decisions is important for increasing SC resilience by utilising the synergetic effects between mitigation and contingency policies (Sheffi 2005;Tomlin 2006;Melnyk et al 2014;Ivanov et al 2016;Geng and Xiao 2017;Ivanov and Rozhkov 2017;Rezapour, Farahani, and Pourakbar 2017;Ivanov 2018a;Ivanov, Dolgui, and Sokolov 2018).…”