Abstract
This chapter seeks to explore the intricate relationship between sustainable supply chain management and Industry 5.0, emphasizing the broader context of sustainable development. By examining the challenges and opportunities arising from technological advancements in artificial intelligence, automation, big data, and the internet of things, the chapter aims to shed light on how supply chain practices can align with economic, social, and environmental sustainability values amid the intensification of socio-environmental issues and the increasing prevalence of Industry 5.0.
TopBackground
The advent of Industry 5.0 marks a pivotal juncture in the evolution of industrial practices, ushering in a new era where smart technologies intersect with traditional manufacturing methodologies. Unlike its predecessors, Industry 5.0 transcends mere automation, envisioning a harmonious collaboration between human expertise and machine capabilities, thereby emphasizing interconnectedness and synergy (Kannan et al., 2014; Sabbatini, 2022; Tallat et al., 2023). This convergence heralds both transformative opportunities and complex challenges for sustainable supply chain management (SSCM), as illustrated in Figure 1.
Ahmed et al. (2023) underscore the transformative potential of Industry 5.0 technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and advanced robotics, in reshaping supply chain dynamics. These cutting-edge tools empower organizations with real-time visibility into their operations, robust data analytics capabilities, and agile decision-making frameworks, thereby fostering enhanced transparency, efficiency, and sustainability across the supply chain ecosystem.
However, the integration of Industry 5.0 technologies also introduces a host of challenges that necessitate careful consideration. Richey et al. (203) highlight concerns related to data security, privacy, and ethical implications arising from the increased reliance on interconnected systems and vast data streams. Moreover, the rapid adoption of automation and AI-driven solutions raises apprehensions about potential job displacement and the evolving role of human labor within supply chain operations.
Navigating these complexities requires a comprehensive approach that balances technological innovation with ethical considerations and stakeholder engagement. Organizations must prioritize robust cybersecurity measures, data governance frameworks, and ethical guidelines to safeguard against potential risks and ensure responsible use of Industry 5.0 technologies within the supply chain context.
Key Terms in this Chapter
Circular Economy: Circular economy is an economic model that prioritizes the regenerative and restorative aspects of supply chain activities, aiming to minimize waste and promote sustainability.
Internet of Things (IoT): The Internet of Things involves the interconnectedness of devices and sensors, enabling real-time communication and data exchange to improve visibility and efficiency in various processes.
Digital Twin: Digital Twin technology creates virtual replicas of physical objects, optimizing processes and minimizing waste by providing real-time insights into the performance of assets.
Industry 5.0: Industry 5.0 represents the latest stage of industrial evolution, characterized by the integration of smart technologies like IoT, AI, and advanced robotics, emphasizing collaboration between humans and machines.
Blockchain: Blockchain is a decentralized and immutable ledger technology that enhances trust, transparency, and traceability in supply chain transactions, particularly valuable for ensuring authenticity and ethical sourcing.
Artificial Intelligence (AI): Artificial Intelligence refers to the development of computer systems capable of performing tasks that typically require human intelligence, including machine learning, data analysis, and decision-making.
Big Data: Big Data refers to the processing and analysis of massive datasets to gain insights, identify patterns, and support data-driven decision-making in supply chain operations.
Sustainable Supply Chain Management (SSCM): Sustainable Supply Chain Management involves integrating environmentally and socially responsible practices into supply chain processes to achieve economic, social, and environmental sustainability.