The impact of Industry 4.0 implementation on supply chains

TLDR

The study analyzes how Industry 4.0 implementation affects supply chains and proposes a new conceptual framework to guide adoption by addressing drivers and barriers. The authors conduct a critical literature review and build a system‑dynamics simulation that incorporates identified drivers and barriers to evaluate Industry 4.0’s impact on supply‑chain performance and inform a conceptual implementation model. The study finds that Industry 4.0 introduces both challenges and opportunities, identifies key implementation obstacles, and offers a framework that can help supply‑chain managers navigate the transition. The study notes that simulation results underpin a conceptual model for successful Industry 4.0 implementation in supply chains.

Abstract

Purpose The 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/approach A 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. Findings Industry 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/implications 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. Practical implications The study is expected to benefit supply chain managers in understanding the challenges for implementing Industry 4.0 in their network. Originality/value Simulation 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.