scholarly journals The impact of Industry 4.0 implementation on supply chains

2020 ◽  
Vol 31 (4) ◽  
pp. 669-686 ◽  
Author(s):  
Abhijeet Ghadge ◽  
Merve Er Kara ◽  
Hamid Moradlou ◽  
Mohit Goswami

PurposeThe study aims to analyse the impact of Industry 4.0 implementation on supply chains and develop an implementation framework by considering potential drivers and barriers for the Industry 4.0 paradigm.Design/methodology/approachA critical literature review is performed to explore the key drivers and barriers for Industry 4.0 implementation under four business dimensions: strategic, organisational, technological and legal and ethical. A system dynamics model is later developed to understand the impact of Industry 4.0 implementation on supply chain parameters, by including both the identified driving forces and barriers for this technological transformation. The results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains.FindingsIndustry 4.0 is predicted to bring new challenges and opportunities for future supply chains. The study discussed several implementation challenges and proposed a framework for an effective adaption and transition of the Industry 4.0 concept into supply chains.Research limitations/implicationsThe results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains.Practical implicationsThe study is expected to benefit supply chain managers in understanding the challenges for implementing Industry 4.0 in their network.Originality/valueSimulation analysis provides examination of Industry 4.0 adoption in terms of its impact on supply chain performance and allows incorporation of both the drivers and barriers of this technological transformation into the analysis. Besides providing an empirical basis for this relationship, a new conceptual framework is proposed for Industry 4.0 implementation in supply chains.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carina Acioli ◽  
Annibal Scavarda ◽  
Augusto Reis

PurposeThe purpose of this paper is 1) to investigate the effects on the crucial Industry 4.0 technological innovations that interact between the real and virtual worlds and that are applied in the sustainable supply chain process; 2) to contribute to the identification of the opportunities, the challenges and the gaps that will support the new research study developments and 3) to analyze the impact of the Industry 4.0 technologies as facilitators of the sustainable supply chain performance in the midst of the Coronavirus (COVID-19).Design/methodology/approachThis research is performed through a bibliographic review in the electronic databases of the Emerald Insight, the Scopus and the Web of Science, considering the main scientific publications on the subject.FindingsThe bibliographic search results in 526 articles, followed by two sequential filters for deleting the duplicate articles (resulting in 487 articles) and for selecting the most relevant articles (resulting in 150 articles).Practical implicationsThis article identifies the opportunities and the challenges focused on the emerging Industry 4.0 theme. The opportunities can contribute to the sustainable performance of the supply chains and their territories. The Industry 4.0 can also generate challenges like the social inequalities related to the position of the man in the labor market by replacing the human workforce with the machines. Therefore, the man-machine relationship in the Industry 4.0 era is analyzed as a gap in the literature. Therefore, as a way to fill this gap, the authors of this article suggest the exploration of the research focused on the Society 5.0. Also known as “super-smart society,” this recent theme appeared in Japan in April 2016. According to Fukuda (2020), in addition to the focus on the technological development, the Society 5.0 also aims at the quality of life and the social challenge resolutions.Originality/valueThis article contributes to the analysis of the Industry 4.0 technologies as facilitators in the sustainable supply chain performance. It addresses the impacts of the Industry 4.0 technologies applied to the supply chains in the midst of the COVID-19 pandemic, and it analyzes the research gaps and limitations found in the literature. The result of this study can add value and stimulate new research studies related to the application of the Industry 4.0 technologies as facilitators in the supply chain sustainable performance. It can encourage the studies related to the COVID-19 impacts on the sustainable supply chains, and it can promote the research development on the relationship among the man, the machine and the labor in the Fourth Industrial Revolution.


2018 ◽  
Vol 24 (4) ◽  
pp. 965-984 ◽  
Author(s):  
Florian Bienhaus ◽  
Abubaker Haddud

Purpose While digitisation is a key driver of the fourth industrial revolution (Industry 4.0); organisations have different approaches to deal with this topic to get a clearer picture of the opportunities and challenges concerning the digital transformation. The purpose of this paper is to identify the impact of digitisation on procurement and its role within the area of supply chain management. The research will also explore potential barriers to digitising procurement and supply chains and ways to overcome them. Finally, the significance of potential enabling technologies to the digitisation will also be examined. Design/methodology/approach A quantitative approached utilising an online survey was used to collect the primary data for this study. Data were collected from 414 participants directly involved with procurement or related business functions and work for different organisations in different industries. The survey included eight items about the impact of digitisation on organisational performance in the area of procurement and supply chains; ten items related to key barriers to digitisation of organisations and ways to overcome them; and seven items about enabling technologies to leverage procurement procedures and processes digitisation. All of these items utilised the Likert five-point level of agreement scale. Findings The findings indicate that digitisation of procurement process can yield several benefits including: supporting daily business and administrative tasks, supporting complex decision-making processes, procurement will become more focussed on strategic decisions and activities, procurement will become a strategic interface to support organisational efficiency, effectiveness, and profitability, and supporting the creation of new business models, products, and services. The authors were also able to confirm that there are barriers to digitising procurement process and supply chains and such barriers found in existing procedures, processes, capacities, and capabilities. Finally, the significance of a number of enabling technologies to the digitisation process was revealed. Originality/value To the best of the authors’ knowledge, this is the first study of its kind with participants located world-wide. Industry 4.0 as a topic had been explored within different business areas and functions but very limited research specifically explored potential impact, barriers, and enabling technologies of procurement 4.0. The results can be beneficial for organisations already implemented Industry 4.0 or planning to do so. The study can also benefit academic scholars interested in the researched topic, business professionals, organisations within different sectors, and any other party interested in understanding more the concept of procurement 4.0.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt

PurposeThis study explores the countermeasures taken by retailers to mitigate the effects of COVID-19 on supply chain disruptions.Design/methodology/approachThis research uses a multiple case study approach and undertakes 36 semi-structured interviews with senior management of the four largest retailers of the United Arab Emirates. The respondents were designated at different positions such as Vice President, Director and Project Manager.FindingsResults reveal that retailers are employing six countermeasures to mitigate the effects of COVID-19 on supply chains. Particularly, retailers are securing required demand, preserving cash flows, redirecting inventory, adding capacity to their distribution centres, becoming more flexible with their direct or third-party logistics provider and finally widening delivery options for their suppliers to mitigate the impact of COVID-19.Research limitations/implicationsThis study has some limitations. First, the results of this study cannot be generalized to a broader population as it attempts to build an initial theory. Second, this study uses a cross-sectional approach to explore the countermeasures employed by retailing firms to mitigate the effects of COVID-19.Originality/valueA notable weakness in a supply chain disruption literature is an unfulfilled need for research examining the strategies employed by retailers to respond to/address the challenges posed by COVID-19. Our study fills this gap.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sindhuja P.N.

Purpose Information security is an essential element in all business activities. The damage to businesses from information security breaches has become pervasive. The scope of information security has widened as information has become a critical supply chain asset, making it more important to protect the organization’s data. Today’s global supply chains rely upon the speedy and robust dissemination of information among supply chain partners. Hence, processing of accurate supply chain information is quintessential to ensure the robustness and performance of supply chains. An effective information security management (ISM) is deemed to ensure the robustness of supply chains. The purpose of the paper is to examine the impact of information security initiatives on supply chain robustness and performance. Design/methodology/approach Based on extant literature, a research model was developed and validated using a questionnaire survey instrument administered among information systems/information technology managers. Data collected were analyzed using exploratory and confirmatory factor analysis. Further, to test the hypotheses and to fit the theoretical model, Structural equation modeling techniques were used. Findings Results of this study indicated that information security initiatives are positively associated with supply chain robustness and performance. These initiatives are likely to enhance the robustness and performance of the supply chains. Originality/value With the advancements in internet technologies and capabilities as well as considering the dynamic environment of supply chains, this study is relevant in terms of the capability that an organization needs to acquire with regards to ISM. Benefiting from the resource dependency theory, information security initiatives could be considered as a critical resource having an influence on the internal and external environment of supply chains.


2019 ◽  
Vol 14 (2) ◽  
pp. 360-384 ◽  
Author(s):  
Maria Drakaki ◽  
Panagiotis Tzionas

PurposeInformation distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records. As inventory inaccuracy contributes to the bullwhip effect, the purpose of this paper is to investigate the impact of inventory inaccuracy on the bullwhip effect in radio-frequency identification (RFID)-enabled supply chains and, in this context, to evaluate supply chain performance because of the RFID technology.Design/methodology/approachA simulation modeling method based on hierarchical timed colored petri nets is presented to model inventory management in multi-stage serial supply chains subject to inventory inaccuracy for various traditional and information sharing configurations in the presence and absence of RFID. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results.FindingsThe bullwhip effect is increased in RFID-enabled multi-stage serial supply chains subject to inventory inaccuracy. The information sharing supply chain is more sensitive to the impact of inventory inaccuracy.Research limitations/implicationsInformation sharing involves collaboration in market demand and inventory inaccuracy, whereas RFID is implemented by all echelons. To obtain the full benefits of RFID adoption and collaboration, different collaboration strategies should be investigated.Originality/valueColored petri nets simulation modeling of the inventory management process is a novel approach to study supply chain dynamics. In the context of inventory errors, information on RFID impact on the dynamic behavior of multi-stage serial supply chains is provided.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme Francisco Frederico ◽  
Jose Arturo Garza-Reyes ◽  
Anil Kumar ◽  
Vikas Kumar

PurposeThe purpose of this paper is to present a theoretical approach based on the balanced scorecard (BSC) with regard to performance measurement – PM in supply chains for the Industry 4.0 era.Design/methodology/approachThis paper combines the literature of PM and specifically the BSC with the literature related to the dimensions of supply chain in the context of Industry 4.0.FindingsDimensions extracted from the literature based on supply chains within the context of Industry 4.0 showed a strong alignment with the four perspectives of the BSC, which make it suitable to be considered as a performance measurement system (PMS) for supply chains in this new context.Research limitations/implicationsFrom theoretical perspective, this study contributes to the limited literature on PM for supply chains in Industry 4.0 era. The study proposes a supply chain 4.0 Scorecard and strongly support researchers to conduct future empirical researches in order to get a deeper understanding about PM in supply chains in the Industry 4.0 era. As limitations, the theoretical framework proposed needs further empirical research in other to validate it and obtain new insights over the investigation conducted and presented into this paper.Practical implicationsPractitioners can use this study as a guide to develop more effective performance measurement systems – PMSs in their organizations.Originality/valueThis research is unique as it addresses a significant knowledge gap related to PM in supply chains in the Industry 4.0 era. It brings a significant contribution in terms of understanding how to measure performance in supply chains in this new era.


2020 ◽  
Vol 26 (5) ◽  
pp. 1093-1119 ◽  
Author(s):  
Andrea Patrucco ◽  
Federica Ciccullo ◽  
Margherita Pero

PurposeThis paper contributes to the literature on supply chain process management by discussing how Industry 4.0 technologies can support process re-engineering in the context of the construction industry.Design/methodology/approachThe paper discusses the impact of Industry 4.0 technologies through an exploratory case study focused on the materials management process, using a coproduction of research approach where the main findings are obtained through the involvement of internal and external process actors.FindingsThe results show that the introduction of Industry 4.0 technologies could radically improve process performance, better supporting the execution of activities, increasing the effectiveness of communication between actors and favoring data collection and sharing. These technologies, characterized by the level of risk connected to their implementation, need to be introduced in combination with new organizational mechanisms, which may be beneficial for several supply chain actors.Originality/valueThrough the adoption of a research coproduction methodology, which is not common in the literature, this paper contributes to the ongoing discussion about how Industry 4.0 technologies contribute to process-centric supply chains, by discussing the benefits of these tools from the perspective of process actors.


2019 ◽  
Vol 10 (2) ◽  
pp. 290-313 ◽  
Author(s):  
Matloub Hussain ◽  
Mehmood Khan ◽  
Mian Ajmal ◽  
Karim Sajjad Sheikh ◽  
Amiruddin Ahamat

Purpose The purpose of this paper is to develop a framework for the identification, categorization and prioritization of social sustainability barriers in health-care supply chains. Design/methodology/approach An exploratory survey tool is used to identify barriers that are relevant to a health-care supply chain. The identified barriers are grouped into five main categories and experts’ opinions were applied to validate the content. Finally, an analytical hierarchical process (AHP) is used to prioritize the main categories and sub-categories of the barriers. Findings The exploratory phase identified 34 barriers that are relevant to a health-care supply chain. These barriers were grouped into the following categories: poor infrastructure, organizational culture, poor coordination, stakeholder disparity, and uncertainty. Organizational culture and poor coordination were assigned the highest priority through the AHP. Overall, lack of management support, lack of commitment and lack of coordination were found to be the top relevant barriers to a health-care supply chain. Research limitations/implications This study only explored and prioritized the barriers of social sustainability. Future research should explore the impact of the identified barriers on the overall performance of the hospital supply chain. Practical implications The findings of this study may be of value to the local health-care industry in achieving their objectives by overcoming social sustainability barriers, which would in turn facilitate the implementation of social sustainability programs that can positively contribute to the overall supply chain performance. Social implications Social sustainability has grown in importance as a pressurizing issue to push supply chain managers to assess their social impacts on the communities. This is especially important in service supply chains such as health care, where human element is a part of every stage. Originality/value Despite practitioners’ and academics’ growing emphasis on the social dimension of sustainability, the categorization and prioritization of social sustainability practices across health-care supply chains and general service care supply chains have not been addressed. This study aims to cover this gap by contributing to both the academic literature and the practical health-care environment.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahesh Kumar ◽  
Omkarprasad S Vaidya ◽  
Rajiv Kumar Srivastava

PurposeThe purpose of this paper is to improve the understanding of the role of the bottlenecks in the dynamic software development supply chains. The paper examines the effects of the task priorities in the software development and investigates the possible strategies to manage them effectively.Design/methodology/approachIn this paper, a software development supply chain has been simulated. This includes modeling of the various sizes of software requirement, different priorities, variations in development times, quality defects, etc. The model assumes a fixed set of resources of various skills. The model is studied for the bottlenecks, throughput, work in progress (WIP), etc. under various work preemption scenarios.FindingsThe results indicate that job priorities impact the bottleneck formulation, throughput and WIP of the software development. The work interruption policies to accommodate priority jobs adversely impact the throughput. Selective introduction of interruptions by leaving the bottlenecks from interruptions helps balancing the throughput and priorities.Research limitations/implicationsThe impact of the learning curve and knowledge acquisition time needed by the resources to restart the interrupted work has not been considered in this paper, which can be a future area of research.Practical implicationsThe paper helps the practicing managers evaluate the dynamics of the bottlenecks with various task management approaches and comprehend the possible tradeoffs between priority and throughout.Originality/valueThe paper looks at software development from a perspective of workflow dynamics. This is a pioneer effort, as it utilizes simulation and modeling approach in understanding the software supply chains better.


2018 ◽  
Vol 38 (12) ◽  
pp. 2389-2412 ◽  
Author(s):  
Hugo K.S. Lam

Purpose The purpose of this paper is to theoretically hypothesise and empirically test the impact of sustainable supply chain practices (SSCPs) on firms’ financial risk. Design/methodology/approach This research adopts signalling theory to explain the signalling role of SSCPs and the moderating role of the signalling environment in terms of supply chain characteristics. It collects and combines longitudinal secondary data from multiple sources to test the direct impact of SSCPs on firms’ financial risk and the moderating role of supply chain complexity and efficiency. It conducts various additional tests to check the robustness of the findings and to account for alternative explanations. Findings This research shows that SSCPs help firms reduce financial risk but do not affect their returns. Moreover, the risk reduction of SSCPs is greater for firms with more complex and efficient supply chains. The findings are robust to alternative variable measurements and analysing strategies. Research limitations/implications This research reveals the role of SSCPs in reducing financial risk, urging researchers to pay more attention to the financial risk implications of supply chain practices in general and SSCPs in particular. Practical implications This research encourages firms to engage in SSCPs to reduce financial risk and enables them to assess the urgency of their SSCPs investments in view of the complexity and efficiency of their supply chains. Originality/value This is the first research examining the impact of SSCPs on financial risk, based on longitudinal secondary data and signalling theory. The empirical evidence documented and the theoretical perspective adopted offer important implications for future practice and research on SSCPs.


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