Evaluation of supply chain coordination index in context to Industry 4.0 environment

Supplier selection in the industry 4.0 era by using a fuzzy cognitive map and hesitant fuzzy linguistic VIKOR methodology

Organizations will be increasingly concerned about maintaining their positions in today's changing world, the high-tech era, and the emergence of innovative technologies because of the industrial revolutions. Everyone has come to believe that to survive and continue their constructive roles, they must achieve competitive advantages by working based on the trends. It is undeniable that the introduction of Industry 4.0 has had a significant impact on enterprises, organizations, and, of course, supply chains. In the meantime, selecting a supplier is one of the main strategic decisions of the organization because choosing the right supplier leads to increasing profitability, improving market competition, better accountability, enhancing product quality, and reducing costs. While the issue of supplier evaluation has been one of the interesting topics for researchers in recent decades, its development in the fourth supply chain generation needs further consideration. In this regard, current technologies in the fourth-generation industrial revolution, methods, and criteria used in previous studies based on industry 4.0 and before that are reviewed separately. By reviewing previous articles and experts' opinions, thirteen sub-criteria considering industry 4.0 have been identified for selecting suppliers in three categories, economic, environmental, and social. The weight of each criterion has been determined using a set of fuzzy cognitive maps (FCMs) and considering the centrality of criteria in the concept of communication networks. To prioritize the suppliers, the hesitant fuzzy linguistic term sets (HFLTS) VIKOR method has been used in hesitant fuzzy linguistic terms. Finally, a case study is introduced to illustrate the effectiveness and usefulness of our integrated methodology and prioritize its four suppliers.

Enhancing Supply Chain Agility with Industry 4.0 Enablers to Mitigate Ripple Effects Based on Integrated QFD-MCDM: An Empirical Study of New Energy Materials Manufacturers

Given the increasing complexity of the global supply chain, it is an important issue to enhance the agilities of enterprises that manufacture new energy materials to reduce the ripple effects of supply chains. Quality function deployment (QFD) has been applied in many areas to solve multi-criteria decision making (MCDM) problems successfully. However, there is still lack of sufficient research on the use of MCDM to develop two house-of-quality systems in the supply chain of new energy materials manufacturing enterprises to determine ripple effect factors (REFs), supply chain agility indicators (SCAIs), and industry 4.0 enablers (I4Es). This study aimed to develop a valuable decision framework by integrating MCDM and QFD; using key I4Es to enhance the agility of supply chain and reduce or mitigate its ripple effects ultimately, this study provides an effective method for new energy materials manufacturers to develop supply chains that can rapidly respond to change and uncertainty. The case study considered China’s largest new energy materials manufacturing enterprise as the object and obtained important management insights, as well as practical significance, from implementing the proposed research framework. The study found the following to be the most urgent I4Es required to strengthen the agility of supply chain and reduce the key REFs: ensuring data privacy and security, guarding against legal risks, adopting digital transformation investment to improve economic efficiency, ramming IT infrastructure for big data management, and investing and using the new equipment of Industry 4.0. When these measures are improved, the agility of the supply chain can be improved, such as long-term cooperation with partners to strengthen trust relationships, supply chain information transparency and visualization to quickly respond to customer needs, and improving customer service levels and satisfaction. Finally, REFs, such as the bullwhip effect caused by inaccurate prediction, facility failure, and poor strain capacity caused by supply chain disruption, can be alleviated or eliminated. The proposed framework provides an effective strategy for formulating I4Es to strengthen supply chain agility (SCA) and mitigate ripple effects, as well as provides a reference for supply chain management of other manufacturing enterprises in the field of cleaner production.

Digitalization of the supply chain: transformation factors

Purpose

There is an increasing interest in the supply chain’s digitalization, yet the topic is still in the preliminary stages of academic research. The academic literature has no consensus and is still limited to research assessing the supply chain’s digitalization of organizations. This study aims to explore the supply chain digitalization drivers to understand the emerging phenomena. More specifically, the authors devised from the literature the most common factors in assessing the readiness in scaling supply chain digitalization.

Design/methodology/approach

This study followed a five-phased systematic literature review (SLR) methodology in this research: designing, analyzing, conducting, writing and assessing the quality of the review. The SLR is beneficial for justifying future research regardless of the complex process that requires dealing with high-level databases, information filtering and relevancies of the content. Through analysis of 347 titles and abstracts and 40 full papers, the authors showed and discussed the supply chain digitalization: transformation factors.

Findings

The results generated three main themes: technology, people and processes. The study also generated ten subthemes/primary drivers for assessing the readiness for supply chain digitalization in organizations: IT infrastructure, cybersecurity systems, digitalization reskilling and upskilling, digitalization culture, top management support, digitalization and innovation strategy, integrated supply chain, digital innovation management, big data management and data analytics and government regulations. The importance of each factor was discussed, and future research agenda was presented.

Research limitations/implications

While the key drivers of the supply chain digitalization were identified, there is still a need to study the statistical correlation to confirm the interrelationships among factors. This study is also limited by the articles available in the databases and content extraction.

Practical implications

This study supports decision-makers in understanding the critical drivers in digitalizing the supply chain. Once these factors are studied and comprehended, managers and decision-makers could better anticipate and allocate the proper resources to embark on the digitalization journey and make informed decisions.

Originality/value

The digitalization of the supply chain is more critical nowadays due to the global disruptions caused by the Coronavirus (COVID-19) pandemic and the surge of organizations moving toward the digital economy. There is a gap between the digital transformation pilot studies and implementation. The themes and factors unearthed in this study will serve as a foundation and guidelines for further theoretical research and practical implications.

Adoption of innovative strategies to mitigate supply chain disruption: COVID-19 pandemic

COVID-19 pandemic outbreak caused supply chain (SC) disruption and threatened human life across the world, which could be mitigated through innovative strategies. Based on this scenario, this study examines the impact of COVID-19 on green practices, SC crisis mitigation strategies, smart technologies, and sustainable supply chain performance in the Pakistani manufacturing industry. Data was collected from Pakistani firms and employed structural equation modeling for testing hypotheses. The empirical results found that the COVID-19 pandemic is statistically related to green practices, SC crisis mitigation strategies, and smart technologies, while it harms sustainable supply chain performance. Moreover, green practices, SC crisis mitigation strategies, and smart technologies positively contribute to sustainable supply chain performance. The results of this study also confirmed the mediating role of green practices, SC crisis mitigation strategies, and smart technologies and moderating role organizational commitment in the context of a developing economy’s manufacturing industry. This study enhances awareness and understanding and contributes to the existing literature on verifying the link between COVID-19 pandemic and green practices, SC crisis mitigation strategies, and smart technologies to increase sustainable supply chain performance during a pandemic disruption in the Pakistani context. This study supports the managers of supply chain and manufacturing firms in adopting green practices and smart technologies. Also, it helps in the formation and successful implementation of SC crisis mitigation strategies during the crisis.

An ISM-MICMAC approach for analyzing dependencies among barriers of supply chain digitalization

Purpose

Supply chain digitalization (SCD) facilitates a competitive advantage and is equally challenging. A literature analysis reveals that research related to SCD is available, but analysis of key barriers and their interrelations for effective SCD is limited. This paper aims to identify and find out interrelationships among the key barriers affecting SCD in the electronic supply chain (SC).

Design/methodology/approach

Interpretive structural modeling (ISM) is used to identify the contextual relationship among the SCD barriers. The model is validated using MICMAC analysis.

Findings

The findings of this study have implications at both theoretical and practical levels. The proposed ISM model can help organizations analyze and interpret interrelationships among barriers to SCD. It can lead to better insights and understanding for minimizing the dominant barriers to effective SCD.

Originality/value

This study tries to bridge the gap in identifying and finding the interrelationships among the key barriers to effective SCD in an electronic SC. The result assists practicing managers and academicians in effective decision-making on the SCD process.

Assessing the role of industry 4.0 for enhancing swift trust and coordination in humanitarian supply chain

Unpredictable natural and man-made disasters highlight importance of humanitarian supply chain (HSC) to serve people and affected areas. The main challenges of applying effective relief operations are creating "swift trust" and "coordination" between aid organizations. Implementation of Industry 4.0 facilitates coordination and swift trust within HSC performance. The study intends to assess the readiness status of swift trust and coordination between stakeholders as well as to recommend the most suitable Industry 4.0 tools for improving relief operations. Firstly, a comprehensive set of critical success factors for implementing Industry 4.0 tools are introduced. The factors are categorized into limited groups using Exploratory Factor Analysis. In the next step, hierarchy fuzzy expert system is designed for assessing the readiness status of swift trust and coordination as well as to suggest the most suitable Industry 4.0 tool for enhancing HSC performance within given case study. The framework was applied for three aid organizations to address the pandemic disease in Iran. The outcome denotes that the organization has the highest readiness in logistic and transparency while information quality received the lowest readiness value. In addition to that, the organization should invest on the development of Industry 4.0 enablers including "Internet of Things and Big Data Analytics". The study extends organizational information process theory within HSC for reaching competitive advantage by information processing. The study suggests theoretical and practical implications by introducing a comprehensive set of critical success factors for implementation of Industry 4.0 and providing practical advice for enhancing HSC performance.

A Graph-Theoretic Approach to Evaluate the Intensity of Barriers in the Implementation of Industry 4.0

Industry 4.0 is seen as a relatively new concept with regard to developing nations like India. It is, however, recognized as an innovative approach for ensuring competitiveness and sustainability in manufacturing according to the Triple Bottom Line (TBL) perspective. But the practitioners are not endorsing the concept with much enthusiasm due to numerous barriers across the different segments of the manufacturing sector. Therefore, determining the essence and impact of these barriers is essential so that practitioners can devise appropriate mitigation strategies. In this direction, an attempt has been made to evaluate the intensity of barriers in the implementation of Industry 4.0 by using a graph-theoretic approach (GTA). Based on this methodology, a single numerical index value (i.e. I4.0BII) (Industry 4.0 Barrier Intensity Index) has been calculated to evaluate the intensity (or overall impact) of the barriers with respect to the considered case company. The GTA results revealed that the case company is most significantly impacted by organization-related barriers, strategic barriers, and technology-oriented barriers. In contrast, it is least affected by ethical and regulatory barriers and socio-cultural barriers. Furthermore, the scenario analysis was conducted to develop a scale that would assist practitioners in evaluating and benchmarking the implementation of Industry 4.0. It was observed from the developed scale that the case company was placed under the category “partially ready to meet the expectations of Industry 4.0” with a normalized I4.0BII value proportional to 0.78. The case company practitioners need to concentrate on those barriers which have a high I4.0BII value, and accordingly, strategies can be developed to mitigate their hindering impacts.

How does performance vary between early and late adopters of Industry 4.0? A qualitative viewpoint

Purpose

Industry 4.0 is a new trend among organizations. Some organizations have been early adopters or later adopters of Industry 4.0. The purpose of this paper is to investigate how performance effects vary between early and late adopters of Industry 4.0.

Design/methodology/approach

This study applies a qualitative research methodology using grounded theory. 14 senior management professionals who have implemented Industry 4.0 participated in this study through a theoretical and snowball sampling approach. These professionals were from manufacturing and service sectors, from North America, Europe and Asia. The study used semi structured open-ended interviews to capture the organizational performance on operational, financial, environmental and social dimensions.

Findings

The findings were analyzed in terms of four broad themes which emerged from the interviews. In operational performance the operational and implementation cost will be higher for early adopters. The late adopters may enjoy the advantage in terms of improved business models. In terms of financial performance, the early adopters may see a marginal increase in profit and increased stock price compared to late adopters. The performance on the environmental dimension will see early adopters enjoying material efficiency, energy savings and an improved image of the company compared to late adopters. In social performance, the early adopters will provide a better quality of work life, safer manufacturing environment. However, the resistance from labor unions will be higher for early adopters compared to late adopters.

Practical implications

Organizations must decide the timing of implementation of Industry 4.0. This study will act as a guide wherein they can decide to be an early adopter or late adopter based on knowledge of the resulting performance consequences.

Originality/value

This is the first paper that studies the performance effects of early versus late adopters of Industry 4.0.

Cyber security risks in globalized supply chains: conceptual framework

Purpose

The purpose of this study is to examine cyber security risks in globalized supply chains (SCs). It has been seen to have a greater impact on the performance of SCs. The information and communication technology of a firm, which enhances the efficiency and effectiveness in the SC, could simultaneously be the cause of vulnerabilities and exposure to security threats. Researchers have primarily focussed on the cyber-physical system (CPS) vulnerabilities impacting SC. This paper tries to categorize the cyber security risks occurring because of the SCs operating in CPS.

Design/methodology/approach

Based on the flow of information along the upstream and downstream SC, this paper tries to identify cyber security risks in the global SCs. It has further tried to categorize these cyber security risks from a strategic point of view.

Findings

This paper tries to identify the various cyber security risk and cyber-attacks in globalized SC for improving the performance. The 16 cyber security risks have been categorized into three categories, namely, supply risk, operational risk and demand risk. The paper proposes a framework consisting of different cyber-attacks across the information that flows in global SCs along-with suitable mitigation strategies.

Research limitations/implications

The paper presents the conceptual model of cyber security risks and cyber-attacks in globalized SCs based on literature review and industry experts. Further validation and scale development of these risks can be done through empirical study.

Practical implications

This paper provides significant managerial insights by developing a framework for understanding the cyber security risks in terms of the drivers of these risks and how to deal with them. From a managerial perspective, this framework can be used as a decision-making process while considering different cyber security risks across the stages of globalized SCs.

Originality/value

The major contribution of this study is the identification and categorization of cyber security risks across the global SCs in the digital age. Thus, this paper introduces a new phenomenon to the field of management that has the potential to investigate new areas of future research. Based on the categorization, the paper provides insights on how cyber security risks impact the continuity of SC operations.

A collaborative scenario-based decision model for a disrupted dual-channel supply chain

Purpose

Distribution systems usually utilize both traditional retailing channels in conjunction with e-channels. The purpose of this paper is to investigate a dual-channel supply chain, comprising a traditional retailing channel and an e-channel under disruption. By benchmarking against the centralized decision structure, the authors intend to propose a collaboration model to achieve channel coordination as well as more reliable decisions.

Design/methodology/approach

Four different channel disruption scenarios, with customers’ reaction toward disruptions, are examined, and then, optimal pricing decisions for both centralized and decentralized decision-making structures are extracted. Next, a collaboration mechanism based on the dominancy power of channel members is developed to entice all channel members to participate in channel coordination. By benchmarking the proposed collaboration model against both the decentralized/centralized structures a win–win solution is guaranteed for all channel members. In addition, the proposed model ensures more reliable decisions than the centralized structure, as it guarantees less fluctuated income levels.

Findings

This study shows, as the disruption probability grows, the channel profit decreases while the channel-retailing price increases. Furthermore, the exact alignment of the centralized decision-making approach and the proposed collaboration model is not achievable due to the problem infeasibility. Numerical experiments and sensitivity analyses benchmark the performance of the proposed collaboration mechanism against the centralized structure for the full alignment with centralized decision-making approach.

Originality/value

This study contributes to the channel conflict literature as jointly considers pricing decisions, disruptions and coordination. Further, consumers’ reaction toward disruption is analyzed through a transshipment agreement.

Identification and causal assessment of supply chain flexibility

Purpose

The purpose of this paper is to map the causal relations among various supply chain flexibility (SCF) dimensions having significant impact on the Indian personal hygiene industry.

Design/methodology/approach

The author(s) have gone through extensive literature review and extracted 22 SCF dimensions. After conducting field visits and expert interaction in the firm related to case industry, 11 major SCF dimensions that seem to have a significant amount of influence on supply chain performance of the firms were retained for further consideration. The author(s) have used decision making trial and evaluation laboratory (DEMATEL) to establish initial causality and structural equation model (SEM) to investigate the contribution of different flexibility dimensions on overall SCF.

Findings

After DEMATEL analysis, three major SCF dimensions were considered for SEM modeling. The result shows that product flexibility and physical distribution flexibility have favorable influence on the SCF, while the demand management flexibility adversely impacts overall SCF.

Practical implications

The approach adopted in the study can help firms to determine and exercise the flexibility dimensions of a particular supply chain. The DEMATEL and SEM offer a facilitation to explain the causal relationship between the different dimensions to take long-term decisions and address the uncertainty in the demand and supply side.

Originality/value

This paper has made an attempt to evaluate the supply chain flexibilities, prioritize them and evaluate the relationship amongst these flexibilities and the degree to which they affect or are affected by one another in the Indian personal hygiene industry.