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The impact of Industry 4.0 implementation on supply chains

Abhijeet Ghadge (Centre for Logistics and Supply Chain Management, Cranfield School of Management, Cranfield, Bedfordshire, UK)
Merve Er Kara (Department of Industrial Engineering, Marmara University, Istanbul, Turkey)
Hamid Moradlou (Centre for Logistics and Supply Chain Management, Cranfield School of Management, Cranfield, Bedfordshire, UK)
Mohit Goswami (Operations Management Group, Indian Institute of Management Raipur, India)

Journal of Manufacturing Technology Management

ISSN: 1741-038X

Article publication date: 6 March 2020

Issue publication date: 13 March 2020

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.

Keywords

Acknowledgements

The authors acknowledge support of Masters student Mr Shashidhara Krishna Iyer Jagannath from Cranfield University for preliminary modelling work. The project has been partially supported by IMPRESS’s grant no- IMPRESS/P898/27/18-19/ICSSR

Citation

Ghadge, A., Er Kara, M., Moradlou, H. and Goswami, M. (2020), "The impact of Industry 4.0 implementation on supply chains", Journal of Manufacturing Technology Management, Vol. 31 No. 4, pp. 669-686. https://doi.org/10.1108/JMTM-10-2019-0368

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited