Industry 4.0 Adoption in Supply Chain Operations: A Systematic Literature Review

Abstract

Industry 4.0 adoption in industry and business has grown extensively. Supply chain had an opportunity to adopt Industry 4.0 in improving flexibility, efficiency, and response to consumer demands. Considering Industry 4.0, adoption in supply chain operations must be realized as an opportunity and challenge for practitioners. Hence, this study conducted a systematic literature review with a qualitative and quantitative approach to formulate supply chain 4.0 dimensions and operations in assessing readiness for adopting industry 4.0. A Preferred Reporting Item for Systematic Review and Meta-analyses (PRISMA) and bibliometric analysis are performed to analyze the literature related to industry 4.0 adoption in supply chain operations. This research combined a qualitative and quantitative analysis in reviewing the literature to deliver a broader benefit of Industry 4.0 in supply chain operations. This study found 525 papers related to Industry 4.0. Moreover, only twenty papers discussed supply chain specifically. Literature analysis using quantitative and qualitative approach showed that industry 4.0 adoption in the supply chain is limited to the maturity model with digital transformation. This study proposed five comprehensive dimensions to capturing supply chain operations: technology and information technology (IT) infrastructure, supply chain integration and coordination, manufacturing operations and inventory, leadership and human resources, and sustainability. The proposed dimensions for supply chain operations are based on a conceptual analysis of literature. Further verification and empirical analysis is needed to gain deeper insights. While digital technology and transformation are the main focus of Industry 4.0 adoption in many sectors, supply chain management requires broader applications as it involves various sectors and stakeholders. To further analyze this, a readiness and maturity model needs to be developed to assess the adoption of Industry 4.0 in the supply chain, taking into consideration the proposed dimensions.