Supply Chain Innovation in the Era of Industry 4.0

Introduction

Industry 4.0, also known as the fourth industrial revolution, has had a profound impact on business, society, and the supply chain. In Industry 4.0, the supply chain will be digitalized, opening up new opportunities for competitive advantage through innovative supply chain designs, processes, and enabling technology. SCM stands for supply chain management and integrated logistics systems, with the objective of reducing the amount of inventory throughout the supply chain (Chong et al., 2011). SCM displays a crucial role in improving supply chain performance and fostering organisational performance (SCI). In response to social and technological changes, supply chain systems are constantly evolving (Zijm et al., 2019). To maximise the effectiveness of SC systems, businesses must ensure that they are running at peak efficiency (Azevedo, 2013). Economic progress in an organisation can be measured by its ability to create value from new ideas. It contributes significantly to the success and competitiveness of organisations, but it has also presented significant challenges (Gao et al., 2017; Wu & Tsai, 2018). Companies in order to improve supply chain performance are investing in technological innovations which helps in effective information sharing among supply chain members and as well as to assist in the development of effective communication channels and collaboration mechanisms (Tiwari 2020). Supply chain innovation is becoming increasingly important for many businesses in the era of Industry 4.0. Supply chain integration made possible by Industry 4.0 reduces deployment time and costs while simultaneously fostering new ideas and faster response times (Tiwari 2020). Supply chain innovations improves operational productivity and service efficiency using new logistical and marketing procedures by combining advances in information and related technologies (Bello et al., 2004). One of the biggest challenges for organisations is the impact of advanced technological innovations, and Industry 4.0 helps to improve supply chain performance (Neely, 2005; Bititci et al., 2013; Bhagwat and Sharma, 2009). SCM and its impact on various supply chain processes have been discussed by Ben-Daya et al., (2019) on the impact of Industry 4.0 and the role of IOT. As a multifaceted process involving knowledge, organisation, technology, and market forces, and the innovation process has many facets. A company's supply chain operating model is transformed by implementing SC strategy and identifying key enablers that help it offer value to consumers (Stevens and Johnson 2016). The Fourth Industrial Revolution's conceptual and technological advances are hugely helpful in this effort (Kagermann et al. 2013). Innumerable research studies have confirmed the significance of ICT in supply chain management (Prajogo and Olhager 2012).