The Impact of Industry 4.0 Implementation on Supply Chains

Ghadge, A., Er Kara, M., Moradlou, H. & Goswami, M. (2020), “The impact of Industry 4.0 implementation on supply chains”, Journal of Manufacturing Technology Management

26 Pages Posted: 4 Feb 2020

See all articles by Abhijeet Ghadge

Abhijeet Ghadge

Cranfield University - School of Management

Merve Er-Kara

Marmara University - Faculty of Business Administration

Hamid Moradlou

Cranfield University

Mohit Goswami

Indian Institute of Management (IIM), Raipur

Date Written: January 10, 2020

Abstract

Purpose – The research 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 Industry 4.0 paradigm.

Design/methodology/approach –A critical literature review is performed to explore key drivers and barriers for Industry 4.0 implementation under four business dimensions: strategic, organizational, technological, and legal & 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 Industry 4.0 concept into 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 SC 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: Industry 4.0, Digital supply chains, System dynamics, Digitization, Implementation

Suggested Citation

Ghadge, Abhijeet and Er-Kara, Merve and Moradlou, Hamid and Goswami, Mohit, The Impact of Industry 4.0 Implementation on Supply Chains (January 10, 2020). Ghadge, A., Er Kara, M., Moradlou, H. & Goswami, M. (2020), “The impact of Industry 4.0 implementation on supply chains”, Journal of Manufacturing Technology Management, Available at SSRN: https://ssrn.com/abstract=3517821

Abhijeet Ghadge (Contact Author)

Cranfield University - School of Management ( email )

Bedfordshire, MK43 0AL
United Kingdom

Merve Er-Kara

Marmara University - Faculty of Business Administration ( email )

Bahcelievler Campus, Ressam Namık İsmail Sokak
No: 1, Bahçelievler
Istanbul, 34840
Turkey

Hamid Moradlou

Cranfield University ( email )

Cranfield
Bedfordshire MK43 OAL, MK43 0AL
United Kingdom

Mohit Goswami

Indian Institute of Management (IIM), Raipur ( email )

GEC Campus, Old Dhamtari Road, Sejbhar
Raipur, 492015
India

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