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Supply Chain Views from an Industry 4.0 Perspective

Today, building and running a smart supply chain (SSC) is difficult. To handle these issues, supply networks must become more intelligent. More intelligent supply chains have shown a lot of promise. Before any modifications can be made, the commercial and technical obstacles must be resolved, as well as any issues with the policy. A total of 294 studies have been examined in depth as part of a systematic literature review. The examination of the papers centered on scrutinizing the analytical unit and identifying the most cutting-edge technological approaches for establishing an intelligent supply chain. The outcomes of the study revealed a predominant emphasis among researchers on exploring the concepts and methodologies associated with intelligent supply chains.

1.1. Introduction

There has been an increase in interest in Industry 4.0 in the supply chain in recent years, which represents an interconnected system in the various processes and activities that produce value in the form of goods and services in the customer’s hands (Christopher 2005). The majority of supply chains are known for having numerous supply–demand issues, such as overstocking, stock-outs and delivery delays, which have been hot topics in the literature (Wong et al. 2012). This is because of complexity, uncertainty and other factors.

The supply chains have become more complicated, expensive and fragile. For instance, when supply chains interlace more and more, a company’s sensitivity to unanticipated consequences and interruptions grows significantly (Abdel-Basset et al. 2018). The adage “cheaper, faster and better” is still common in management, but traditional supply chain tactics and procedures have shown some inconsistency in dealing with the increased complexity, unpredictability and vulnerability of supply chains. According to Sam Palmisano, who served as Chairman of the IBM Corporation from 2003 to 2012, the incorporation of “smart” into decision-making procedures and management systems represents an enhancement compared to the previous narrow focus on speed and capacity. In fact, it is anticipated that conventional supply chain management improvements will continue to progress further (Zhao et al. 2020).

The notion of the “smart supply chain” is being used to implement intelligent transformation using advanced technologies, such as the Internet of Things (IoT), Big Data, blockchain, artificial intelligence (AI), cloud computing, cyber physical systems, paperless warehousing and digital twins. These phrases were developed based on the connectivity of intelligent devices and systems that make use of the technologies listed above, allowing them to self-correct and self-adapt to changing environmental conditions (Wu et al. 2016).

The remainder of this chapter is organized as follows. The definition of an SSC and its characteristics are presented in section 1.2. The crucial technologies for the creation of SSC are then covered in section 1.3. The methods used to conduct a systematic literature review are presented in section 1.4. Section 1.5 analyzes the literature and presents its findings. The debate and potential research directions are presented in section 1.6. Section 1.7 concludes the chapter.

1.2. Smart supply chain

1.2.1. Definition

Today, creating and managing an SSC is difficult. This entails a supply chain that is outfitted with cutting-edge technology that enable process automation, real-time inventory tracking and ongoing supervision (Tripathi and Gupta 2020). It also makes it possible for customers, supply chain participants and the technology itself to interact. Applications for SSCs undoubtedly offer several benefits that would otherwise be unattainable. For instance, they allow us to track the position of a product along the value chain. Additionally, understanding customer needs helps to optimize production and reduce costs. Using emerging technologies for in-depth analysis can steer decision-making upstream in the production process, allowing for the evaluation or exclusion of specific stakeholders (Xie et al. 2020). This wealth of information can be leveraged to enhance overall business decision-making. Enhanced corporate procedures are being developed to enhance efficiency and enable quicker responses.

SSCs have the potential to eliminate numerous recurring inefficiencies, as the human capacity to identify and resolve many system issues has been surpassed by the dynamic complexity. Consequently, it has become more challenging to enhance performance using traditional methods, leading companies to recognize the urgent need for innovative solutions driven by technological advancements and changes in business models. Furthermore, smart devices are being used everywhere, and instrumentation prices have dropped significantly in recent years (Zhu et al. 2012). Nowadays, instrumentation, monitoring and analytics can be supported widely by computing and information technology (Xie et al. 2020).

1.2.2. Characteristics of smart supply chain

Using these criteria as a foundation, Abdel-Basset et al. (2018) offered the six most important SSC traits, which are in line with the suggestions in IBM’s study on its Future of Supply Chain survey from 2017 (IBM 2017). The following is our informational summary:

• Instrumented: it includes use of sensors, actuators, intelligent devices to automate transaction, along with RFID technology, which stands for radio frequency identification and is a low-cost, low power wireless communication system that is fully passive or battery-assisted passive (BAP) (Witkowski 2017 and Lee 2015). For example, smart devices collect and integrate data in real time and with transparency from point of sale to manufacturing to row material. It also includes the use of sensors to predict and act.
• Interconnected: every element within the supply chain must be interconnected, encompassing components, products and various smart devices used for supply chain monitoring, along with customers, suppliers and information systems. The extensive connectivity within global supply chain networks enables collaborative planning and decision-making.
• Intelligence: it is anticipated that making big decisions will make it easier for the SSC to achieve its ideal overall performance. It is important to note that the supply chain makes decisions on its own, independent of any outside factors. For instance, the supply chain network reconfigures itself after a disruption. Comprehensive modeling, simulation and the ability to make wise decisions all contribute to the perfect prediction-response paradigm, which is used to predict future events.
• Automated: it will develop the ability to assign responsibility for decisions by placing orders for the raw materials needed in accordance with the production schedule created, or by rearranging the networks in response to disruptions. Machines and robots will replace low efficiency and unskilled labor in the (manual) processes.
• Integrated: the wide interconnectedness will make global collaboration and supply chain stage coordination easier. By becoming socially responsible, innovative and smart, collaboration is quickly becoming recognized as being fundamental to successful companies.
• Innovated: along with self-learning and the exploration of novel techniques to incorporate ongoing developments for better meeting needs, continuous improvement is a crucial element of the rapidly evolving SSC.

1.3. The essential technologies for the development of the smart supply chain

1.3.1. Internet of Things

Traditional supply chain management methods pose a number of problems, such as overstocking, lengthy deliveries and stock-outs. These problems are due to the various complexities and uncertainties that exist in real-life supply chains (Azizi et al. 2021). We need to make supply chain management systems smarter in order to solve these problems, so we have used IoT in supply chain systems (Sharma et al. 2020). IoT is described in a variety of ways; some academics define it as a network of cooperative and connected software, hardware, databases, virtual and physical items, and sensors (Kumar and Sharma 2021). The IoT provides greater visibility into various enterprise processes and data. By having a better control of these different aspects and statistics, organizations will be able to offer superior services, improve product quality and customer satisfaction, and decrease labor costs. The monitoring and analysis of collected data will also facilitate production and automation (Azizi et al. 2021).

RFIDs can be added to objects to identify materials and things, including equipment and furniture. The correct information provided by RFID use will aid in efficient management. It is also possible to track an object’s complete lifecycle (Abdel-Basset et al. 2018). In the case of storage in warehouses, intelligent shelving and pallets will support modern inventory management. Commodity tracking and tracing becomes speedier, more precise, predictable and secure (Witkowski 2017). Analysis relating to the development of a “connected fleet” can be used to automatically plan supply chain improvement operations and forecast failure. The effects of IOT on SC include the following (Abdel-Basset et al. 2018):

• Improving...