Whitepaper

SMART SUPPLY CHAIN

Necessity for Post-COVID & A Proposed Conceptual Framework

Author: RIZWAN YASEEN BORA

 EXECUTIVE SUMMARY

Supply Chains are the essence of any business, impacting the entire value chain from the procurement,
manufacturing, quality, delivery, mobility, and costs of a business’s products and services to ultimately
profitability and return on assets.

To avoid disruption, and become resilient - which is the utmost necessity of the hour, businesses need
to digitally transform immediately. The rapid rise of innovations and operational evolutions such as
Industry 4.0 and the upcoming Industry 5.0 is ushering in a profound new era of the integrated digital
supply chain. Industry 4.0 creates a disruption and requires companies to rethink the way they design
their supply chain. Supply Chains have been evolving ever since, from a linear analog supply chain to
a dynamic inter-connected smart supply chain. Some of the other trends of Supply Chain such as Lean
Supply Chain, Agile Supply Chain & Green Supply Chain are also gaining a significant amount of
importance although they have a lot of similarities among them and are inter-connected.

All great businesses want to invent a new product or a service, and want to deliver it to the customers
in the most efficient manner. But to make this product a successful one, that’s really in the hands of the
Supply Chain. In the Supply Chain, we need to figure out what materials we need, the suppliers, how
are we going to build this product, how are we going to deliver it on time, at the right location, into the
truthful hands of our customers. All these needs to be orchestrated and working together in a fiscally
responsible way, based on an intelligent suite infused with Industry 4.0 enablers - Artificial intelligence,
Internet of Things (IoT), Machine Learning, Blockchain, 3D Printing, Robotic Process Automation
(RPA) and Cloud Computing based on a common data platform.

Moreover, the biggest disruption in the history of mankind, caused by the Black Swan event - COVID
– 19, rattling the supply chains all over the world, making it hard for businesses to come back with
unpredictable demand and supply. COVID – 19 has also pointed out the gaps that were present in the
existing supply chains and it has compelled the businesses to transform their supply chain to a digital
one, to sustain and increase the resilience of their supply chains. In the present context, with the ever-
growing demand and expectations of the customers, the supply chains need more visibility and
transparency from end to end in real-time. This can only be achieved with collaboration all across the
value chain and integration of Industry 4.0 enablers into the supply chain.

Change is often hard, but the digitization of information and the application of advanced innovative
technologies presents the opportunity to drive business value throughout the entities in the supply chain
and thereby improving the resilience of the supply chains. This paper aims to evaluate the sense of the
transformation of the Supply Chain, confronting them on potential disruptive digital technologies that
promise to fundamentally change the practice of supply chain management. This research project covers

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five aspects through extensive literature review and develops a conceptual framework of DSC, viz.,
Integration of Industry 4.0 with Supply Chain; Conceptual models of Smart Supply Chain; Digital SC
in Lean SC/Agile SC/Green SC; Necessity of Digital Supply Chain for Make in India; Impact of COVID
- 19 on Supply. Also, suggesting a conceptual framework of the DSC to better understand the
dimensions of DSC and the process of integration.

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 1. INTRODUCTION

Supply chains used to be about coordinating operations and managing transactions, and much of this
was manual but the increase in technologies and the digital economy, has changed this irreversibly.
Today transactions are automated, and supply chain management is about aggregating and analyzing
data end-to-end to drive operational efficiencies and create intelligence about markets and players
(DSCI, 2019). The Internet has become a key element in molding and propelling the business into new
directions in the traditional marketplace and emerging market space (Graham, 2000). Digitization will
help to improve how we collaborate with trading partners in a traditional sense, especially in terms of
facilitating supply chain visibility and traceability (GSCI, 2018). Sophisticated DSC data analytics
programs, implemented with good quality, and accessible data, will uncover new sources of customer
value previously hidden from traditional views (DSCI, 2019). In the context of Industry 4.0, supply
chains are characterized
by a high degree of cyber-physical interconnection, enabled by sensors that
collect big data for large-scale, real-time decisions to optimize supply chain performance. The large-
scale deployment of IoT sensors and big data analytics enables preventive maintenance, avoiding
disruptions from unexpected failures. Also, the use of IoT sensors together with artificial intelligence
enables automated inventory management, thus diminishing human error,
input shortages, and the high
cost of unnecessary inventory carrying (WEF, 2019). Instead of being a back-office function and
separate entity, the supply chain has moved into an integrated role alongside sales, marketing, finance,
and product development in demand planning. This will require an increase in collaboration both
internally and with key supply chain partners all along the value chain. Data analytics and advanced
technologies like Big Data, Blockchain will enable companies to have greater visibility into supply
chain risks and better prevent or mitigate negative impacts with the help of real-time flow of information
(DSCI, 2019). Highly automated end-to-end processes, flexible bundling of activities, and improved
visibility are the hallmarks of a fully digital supply chain. It is more about aligning digital initiatives
with supply chain goals and adopting a Digital Operating Model to realize the untapped potential of
existing resources and capabilities resulting in a higher level of performance (Capgemini, 2011).

1.1. SUPPLY CHAIN

Supply chain management is a vital subject between companies. The proper management of the supply
chain means that the entire set of activities must be viewed as a single system. The objective is to
guarantee a continuous flow between businesses, to satisfy the customer needs with the right product
or service, in the right quantities, at the right time, and in the right place at the lowest possible cost. A
well-architected supply chain model is anchored in four key pillars – namely predictability, agility,
traceability, and sustainability – which serve as critical enablers that more and more organizations are
striving for as they reinvent their ecosystems (Infosys, 2018). Supply chain management also involves

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managing a connected series of activities that are concerned with planning, coordinating, and
controlling the movement of materials, parts, and finished goods from the supplier to the customer
(SAP, 2020).

1.2. DIGITAL SUPPLY CHAIN

Supply Chains traditionally were linear, with a discrete progression of design, plan, source, make, and
deliver but today, many supply chains are transforming from a staid sequence to a dynamic,
interconnected system that can more readily incorporate ecosystem partners and evolve to a more
optimal state over time (Deloitte, 2017). Supply Chain 4.0 is the highest maturity level, leveraging all
data available for improved, faster, and more granular support of decision making (McKinsey, 2016).
A Digital Supply Chain is defined as a customer-centric model that captures and maximizes the
utilization of real-time data to its actual potential, coming from a variety of sources. It enables demand
stimulation, matching, sensing, and management to optimize performance and minimize risk. There are
several key considerations in transforming the traditional linear Supply Chain to a more dynamic Digital
Supply Chain. For a sustainable and efficient Supply Chain, first and foremost is understanding the
direct customer and the end consumer in a more sophisticated way by utilizing data analytics,
algorithms, and advanced technologies (DSCI, 2019). Production will be driven by consumer demand,
personalization of products and services, and not manufacturing efficiencies. This will lead to improved
inventory management, better demand planning while better fulfilling consumer needs. DSC
transformation starts with developing a strategy for collecting new data, using AI and ML to analyze it,
and creating algorithms that capture the wisdom of the marketplace (DSCI, 2019).

1.3. INDUSTRY 4.0 & ITS CUTTING-EDGE TECHNOLOGIES THAT

LEVERAGE CONNECTIVITY
Industry 4.0, or the fourth industrial revolution, is characterized by new technologies that blur the lines
between physical and digital worlds—driving real-time access to new and existing data sources
(Deloitte, 2017). I4.0 can help an organization in gathering data from its whole supply chain or its
complete life cycle of the products (Forero, 2018). Industry 4.0 makes it possible to gather and analyze
data across machines and business systems, enabling faster, more flexible, and more efficient processes
to produce higher – quality individualized goods. In contrast to conventional forecast based production
planning, Industry 4.0 enables real-time planning of production plans, along with dynamic self-
optimization. The existence of a complete digital product model, together with the methods of its
manufacture, model, intelligent factory with its real representation in networked Cyber-Physical
Systems are key conditions for the success of the “Fourth Revolution” (Witkowski, 2017).

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 TABLE 1. INDUSTRY 4.0 TECHNOLOGIES AND THEIR APPLICATION

1.4. LEAN SUPPLY CHAIN

The lean supply chain is the traditional “factory” chain, which focuses on high production at a relatively
low cost. The goal is to add value to customers by reducing the cost of goods, process optimization, and
lowering waste. This sort of supply chain primarily focuses on reliability and predictability rather than
on flexibility and adaptability. Production is planned months or even years based on previous sales and
demand rather than adapting to a changing market and real-time demand planning. This pre-planning is
aimed to identify the lowest possible cost for large volumes of goods. The lean supply chain has
traditionally been the most popular form of production because it focuses on reducing costs—as all
consumers like to pay less for the same quality of product or service. However, more and more
companies are moving away from a rigid lean model to a more dynamic supply chain since today’s
markets can change overnight.

1.5. AGILE SUPPLY CHAIN

From Lean Supply Chain, we have moved towards the Agile Supply Chain which is built to be highly
flexible to be able to quickly adapt to changing situations. This methodology is considered important
for organizations to increase their resilience in a disruptive environment. Lean supply chain processes
improved efficiency, but they limited the variability and adaptability within a company and most

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importantly, agile methods allowed for faster decision making across a virtually limitless stream of
issues, and this trend held throughout the year (Cerasis, 2016).

1.6. DIGITIZATION vs DIGITALIZATION vs DIGITAL TRANSFORMATION

Accuracy in communication is one of the most critical communication skills. It sounds so obvious and
simple, yet this essential aspect of communication is often overlooked. Many people have begun to
conflate terminology either out of ignorance or for their benefit, which creates confusion, because
suddenly we’re talking about different things but calling them the same. Some have begun labeling
digitalization as a digital transformation to appease management, to get a project approved, or to make
a sale.

Digitization refers to creating a digital representation of physical objects or attributes. In other words,
digitization is about converting something non-digital into a digital representation or artifact.

Digital
Transformation

Digitalisation

Digitisation

FIGURE 1. DIGITAL TRANSFORMATION PYRAMID

Digitization is foundational. This is the connection between the physical world and the software. This
is what we have been doing since the 1960s. It is an enabler for all the processes that provide business
value because of the need for consumable data.

Digitalization refers to enabling or improving processes by leveraging digital technologies and

digitized data. Therefore, digitalization presumes digitization. Digitalization increases productivity
and efficiency while reducing costs. Digitalization improves an existing business process or processes
but doesn’t change or transform them. That is to say, it takes a process from a human-driven event or
series of events to a software-driven.

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Digital Transformation is a business transformation enabled by digitalization. The “digital” moniker
is a little bit of a misnomer because the essence of digital transformation is the changing of business
processes enabled or forced by digitalization technologies.

Digitization refers to creating a digital representation of physical objects or

attributes. Digitalization refers to enabling or improving processes by leveraging digital technologies
and digitized data. Digital Transformation is a business transformation enabled by
digitalization. And, Industry 4.0 is the combination of Digital Transformation and Digitalization.

1.7. QUALITY 4.0

Quality 4.0 is a concept related to this fourth industrial revolution which is the driving force towards it.
Quality 4.0 is an integral part of Industry 4.0, mostly a result, and could be defined as the digitalization
of TQM and its impact on quality technology, processes, and people. Quality in the context of Industry
4.0 is more related to value creation, organizational learning, organizational innovation, sustainability,
and the discovery of data that brings new insights (Forero, 2020). Quality 4.0 is among the many
developments that are giving rise to the “factory of the future,” in which digitally enhanced plant
structures and processes increase productivity and flexibility in the factory and throughout the supply
chain (BCG, 2019). Quality 4.0 makes a culture of quality more attainable through better connectivity,
visibility, insights, and collaboration (SAS, 2020). Quality 4.0 doesn’t replace traditional quality
methods, but rather builds and improves upon them. Today Quality 4.0 is a competitive differentiator,
but tomorrow it will be table stakes (LNS Research, 2017).

1.8. IMPACT OF COVID-19 ON SUPPLY CHAIN

COVID-19 – the black swan event has finally forced many companies, and entire industries, to rethink
and transform their global supply chain model. Covid-19 has rattled the entire supply chain industry
globally (Deloitte, 2020). The COVID-19 pandemic has upended nearly every aspect of life, from the
personal (how people live and work) to the professional (how companies interact with their customers,
how customers choose and purchase products and services, how supply chains deliver them) (Roth, et
al. 2020). It has slowed down the production of products and this has an intense global impact. A lot of
companies rely on overseas manufacturers to produce their products and when hit by a global pandemic,
the system of rolling out goods and services is put to a stop. The supply chain focused on manufacturing
and exporting PPE in an attempt to meet demand. Even companies like Apple and Ferrari stopped main
productions and turned to produce PPE and ventilators (Cook, 2020). Visibility and agility could not be
more important during these uncertain times, and procurement leaders are center stage for making them
happen (Pace, 2020).

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1.9. GREEN SUPPLY CHAIN

The term 'Green supply chain management' (GSCM) refers to the concept of integrating sustainable

environment processes into supply chain management. GSCM involves driving value creation
throughout the supply chain organizations to reduce the total environmental impact. The Green Supply
chain when augmented with Industry 4.0 and Lean, it leads to a mutual benefit for the organization and

all the stakeholders with considerable focus on the impact made on the environment.

1.10. INDUSTRY 4.0 AND DSC AND SUSTAINABILITY

Industry 4.0 plays a role in reaching the 17 sustainable development goals set by the United Nations
(2015) and went into effect starting the 1st of January 2016, with a timeframe up to 2030. According to
Zaman (2018) some of the goals which are met by the Industry 4.0 and the Digital Supply Chain are:

➢ Goal 7—Modern energy

Starting from energy efficiency improvement to production of energy from wind and solar,
and connecting them to the smart grid as well as storage, diverse opportunities are there for
the modern energy agenda to benefit from Industry 4.0 technology portfolio.
➢ Goal 8—sustained economic growth and productive employment

With the innovations supported by related technologies like sensors, software, AI, and 3D
printing, wastage could be reduced, and emission could be lowered—thereby increasing
the quality and reducing the cost. Industry 4.0 also offers a new technology core to drive
entrepreneurship.
➢ Goal 9—sustainable industrialization, infrastructure, and innovation
The technology portfolio of Industry 4.0 also offers the opportunity of creating new jobs.
Moreover, pollution created by conventional industrial activities is limiting the
sustainability of the industrial economy. The integration of intelligence in production
machinery and across the supply and distribution chain has enormous potential to reduce
pollution, wastage, and emission—contributing to sustainable industrialization through
innovation.
➢ Goal 12—sustainable consumption and production
Food loss and waste also amount to a major squandering of resources. The use of smart
technologies in food harvesting, preservation, processing, and distribution has significant
potential to reduce this wastage. Creating the market of innovation around sensors, data
analytics, smart vehicles, and advanced robotics for strengthening the supply chain,
improving the prediction of demand. in supermarkets, hotels, and restaurants, and

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 expanding the food packaging industry could help to reduce the amount of food loss and
waste.

➢ Goal 13—combat climate change

Greenhouse gas emission from our productive activities is a major cause of global warming
and climate change. Technologies behind Industry 4.0 is opening the opportunity to power
cars, trucks, ships, and trains with electric battery and hydrogen, consequentially reducing
the emission from transportation. Industry 4.0 technology portfolio is opening the
opportunity to intensify completion in adopting clean production methods to reduce
emissions and increase profit simultaneously.

➢ Goal 15—increase the sustainability of the ecosystem, and biodiversity

Data analytics and simulation tools are going to play an important role to understand the likely
implications of the change of ecosystem and biodiversity. On one hand, such analysis will provide
better insights to scientists to recommend appropriate policy interventions. On the other hand, such
tools could be used to increase social awareness to support the protection restoration and promotion
of sustainable use of ecosystems, land, and forests. Moreover, tools like drones based surveillance
will also provide real-time data to support the management of forests, including halting
deforestation and increasing afforestation as well as reforestation.

➢ Goal 17—foster global partnerships for sustainable development

Many of the global issues like pollution, climate change, and migration could be addressed through
cooperation among countries in expanding cooperation on and access to science, technology, and
innovation. The technology portfolio of Industry 4.0 appears to be highly potential to support such
cooperation through innovations in addressing issues for mutual benefits.

2. REVIEW OF LITERATURE

The present work exhibits a conceptual approach and review of the key literature from 1989 to 2020
and articles published by the MNCs, with reference to the evolution and transformation of the key actors
in Supply Chain Management (SCM) by means of examining different conceptual models and a state-

of-the-art review of Industry 4.0’s concepts and elements, with a key focus on digitization in supply

chain (SC) processes.

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 FIGURE 2. METHODOLOGY FOR SELECTION OF RESEARCH PAPERS AND ARTICLES.

Having been reviewed the papers and publications from various MNCs, the conceptual models and
impact of various Digital Supply Chain, a detailed analysis will be presented to better understand the
emerging trends of SC and its implementation, also a conceptual framework model of Smart Supply

Chain will be developed based on the secondary research (meta-analysis).

Digital supply chains have
the capability for extensive information availability and superior
collaboration that result in improved reliability, agility, and effectiveness (Capgemini, 2011). A key
integration mechanism is via dynamic information. Information flows affect a firm's ability to integrate
value-adding operations and improve innovativeness. (Graham, 2000). Through integrated information
and communication systems, the shortcomings of conventional practices can be overcome to improve
productivity and eliminate wastes. It implies that industries now have the combined benefits of real-
time integration of the entire value chain along with the assurance of minimal waste generation
(Sanders, et al. 2016). The exchange of high-quality information between partners improves the
coordination and responsiveness of the partnership and ultimately market performance (Nimeh, et al.
2018). Moreover, the deployment of advanced robotics and artificial intelligence allows for decisions
and supply chain processes to be highly automated, while the length of supply chains is shortened
through 3D printing (WEF, 2019). As the Internet of Things (IoT) expands and companies’ analytics

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become more sophisticated, predictive supply decision-making will increasingly become automated.
Sensors signaling disruptions or unexpected activity in remote corners of the world will trigger
appropriate adjustments in the flows of materials (Deloitte, 2017). By adopting blockchain in an IoT-
enabled supply chain network, a billion-dollar manufacturer could save many millions of dollars each
year—a determination that’s based on an examination that was limited to supply chain logistics and
storage and excluded other elements of the traditional supply chain (Yusuf, et al. 2018). The DSC offers
the potential to efficiently incorporate new information, and thereby, improve forecast accuracy and
reduce information latency. AI/ML and the development and continuous improvement of algorithms
will unlock the true power of the DSC and the timing of data collection and interpretation is now
approaching the possibility of near-real-time (DSCI, 2019). With a digital supply chain and the resulting
closer cooperation, material lead times can be reduced, replenishment techniques streamlined, inventory
planning improved and visibility increased (Wolff, 2019). Unlike lean practices, which are mainly
aimed at operational and financial aspects, and green practices, which are mainly aimed at
environmental aspects, the lean-green approach has been born to address the three pillars of
sustainability, viz., economic, environmental, and social ones, simultaneously. In this sense, there is a
tight relationship between the lean-green concept and sustainability, being sustainability one of the main
objectives of the lean-green manufacturing approach (Abualfaraa, et al 2020). It is important to integrate
the different supply chain functions such as product development, procurement, production,
maintenance, and logistics across locations to minimize “waste” or non-value-added activities
(Capgemini, 2011). A cognitive supply chain is digitally-led, but it must also be process-centric — and
processes are best decided by humans. By combining predictive AI with smart human oversight and
decision-making, cognitive-era technologies can transform the supply chain and day-to-day distribution
operations. The Cognitive IoT (CIoT) can connect more than just IT systems. Entire supply chains —
involving technology, people, and disparate organizations — can now interconnect and make decisions
together (Supply Chain Brain, 20019). With the use of the latest technologies of Industry 4.0, it gave
birth to the next generation of quality – Quality 4.0. The core concept of Quality 4.0 is about aligning
the practice of quality management with the emerging capabilities of Industry 4.0 which helps the
organizations to drive towards operational excellence (Forero, 2018). COVID-19 calls for a deeper
understanding of both known and unknown risks to the supply base, including taking precautionary
measures in support of small and medium-sized businesses and local ecosystems. It also amplifies the
importance of predictive modeling and applied intelligence. Disruptions intensify the need for visibility
and rapid response. Digital twins of the end-to-end supply chain allow companies to mirror operations
digitally across the entire supply network—at any level of detail—and uncover risks that were
previously hidden (Accenture, 2020).

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 3. AIM OF THE RESEARCH

The Research Project will help in understanding the Smart Supply Chain by demonstrating the transition

of Traditional Linear Supply Chain to Smart Supply Chain and its Impact on decision making. The
research will develop a conceptual model for the new age Smart Supply Chain (SSC). The proposed
model will help decision-makers to integrate Industry 4.0 enablers into their Supply Chain. The

recommended framework of DSC 4.0 is expected to assist in competitive advantages and would help in

better considering the key Industry 4.0 factors before deciding on an effective value chain.

4. OBJECTIVES

• To assess the Traditional Supply Chain and its Transition. 


• To establish the Integration of Industry 4.0 with Supply Chain leading to Smart Supply Chain (SSC)
or Digital Supply Chain 4.0 (DSC 4.0).

• To evaluate the Conceptual models of Smart Supply Chain from secondary research. 


• To identify the impact of Digital Supply Chain on Lean Operations and its Value Chain

• To develop a conceptual framework by augmenting the Digital Supply Chain with Industry
4.0 leading to a new age Smart SC (or) Supply Chain 4.0.

5. SCOPE

• To understand the working and benefits of a Smart Supply Chain

• To identify the potential of Industry 4.0 enablers in the digital transformation.
• To develop a conceptual framework of Smart Supply Chain for better decision making and
enhanced resilience with collaboration all across the virtual value chain.

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 6. SIGNIFICANCE OF THE RESEARCH:

As the customers are becoming more and more demanding at an unprecedented level, they just don’t
want to have their products delivered, but they want to know that they are working with companies who
are working within a circular economy with a sustainable Supply Chain and also with transparency and
end to end visibility across the value chain. Industry 4.0 enablers such as Big Data, with the ability to
process massive data into the intelligent analysis. Now we can move from a responsive supply chain
that can be tremendously stressful into a predictive supply chain that predicts issues before they come
up.

The Supply Chain must move from a linear system to an Agile ecosystem with increased
responsiveness. The companies must change their view from mass production to mass customization,
to meet the ever-increasing demand of the customers. The companies need to stop selling products and
instead start delivering holistic service.

All these can be achieved with a streamlined Supply Chain to reduce cost, increased revenue, and the
ability to offer new solutions to the customer. The businesses must integrate the Supply Chain into their
key operations rather than looking at it as a cost center to sustain from the disruptive environment and
keep evolving based on the new-age technologies. It is high time for companies to realize that the
Supply Chain is an internal part of the company rather than a separate entity. The businesses must
integrate their Supply Chain with the latest technologies of the 4th Industry Revolution. Many
companies having complex international supply chains are using IoT, Blockchain, 3D printing, Cloud
Computing, Big Data to create transparency, visibility, and quick decision making. This research will
help to better explain and understand the latest trends and application of the Supply Chain, the impact
of the black swan event – COVID – 19, along with a proposed conceptual model.

7. RESEARCH METHODOLOGY

7.1. RESEARCH PROCESS

This chapter explains how the study has been conducted in terms of research strategy, design, and
methods. The statement of the problem, objectives, and the scope of the research was defined in the
first place. After this, the research was designed to define the research objectives and to structure a way
to gather the secondary data. Then a systemic literature review is conducted with previously published
conceptual SC models, Digital Supply Chain Models, its sustainability, and the impact of COVID -19.
Also, a conceptual model of Smart Supply Chain is proposed with an intent to facilitate better

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understanding and decision making related to supply chain management.

• DEFINING THE STATEMENT OF PROBLEM, OBJECTIVES

AND THE SCOPE OF THE RESEARCH

• LITEARATURE REVIEW (SECONDARY RESEARCH & META

ANALYSIS)

• DESIGNING THE RESEARCH

• TRADITIONAL SUPPLY CHAIN TO DIGITAL SUPPLY CHAIN

& IMPACT OF COVID - 19

• ANALYSING AND INTERPRETING THE DATA

• DEVELOP A CONCEPTUAL SMART SUPPLY CHAIN MODEL

• DRAWING CONCLUSION AND THE FINAL REMARKS

FIGURE 3. RESEARCH PROCESS FOR THE PROJECT.

7.2. RESEARCH DESIGN

This study has been realized under a qualitative research strategy with a research project design and an
abductive approach in context to the state of the problem and the objective of the research.

The starting point was a practical need from an academic’s point of view and businesses’ in the sense
of the disruptions caused by Industry 4.0 and the COVID -19. Also, the transition from the traditional
linear supply chain to a more dynamic and inter-connected network throughout the value chain, and
how to make the change in the context of Industry 4.0. Since there is not much-published research about
the impact of digital supply chain and its clear benefits in the organizations and neither much theory
about how the organization should transition to Supply Chain 4.0, a qualitative research design was
chosen. Astalin (2013) argues that a qualitative research design covers a wide variety of methods and
is highly flexible compared to other techniques.

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The design of qualitative research is probably the most flexible of the various experimental techniques,
encompassing a variety of accepted methods and structures (Astalin, 2013).

The abductive approach was a suitable strategy for this project because it refers to the researcher’s
understanding and description of the topic from the perspective of the businesses used in the study.
Dubois and Gadde (2002) argue that by this approach there is a simultaneous evolution of a theoretical
framework, empirical fieldwork, and case analysis. For this work, the abductive approach helped in
formulating the problem statement and developing the research objectives, based on the ongoing
business transition due to disruptions.

8. ANALYSIS AND INTERPRETATION

8.1. INDUSTRY 4.0 AND THE DIGITAL SUPPLY CHAIN

Industry 4.0 brings an era of supply chain revolution through digitalization and smart technologies (Bag,
et al. 2018). The evolution of the SCs is not only due to the implementation of physical and virtual
digitalization in network structures or the information and communication technology systems of
traditional SCs (e.g. having invested and installed a brand-new 3D printer, or implemented IoT in a
work area); instead, the transformation requires special attention in the embodiment of new forms of
administration to generate a culture of change with a focus on digitalization, creating a proper
environment for the evolution of each one of the components already studied in traditional SCs. (Garay,
et al. 2020).

AI/ML and the increased visibility from data sources will enable companies to shift to
a mode where
risk exposure can be minimized and risk mitigation improved. Value-chain visibility helps maintain
control of highly regulated products from inbound order to customer receipt. It can identify risks and
react to developing global supply disruptions. It also helps collate information from key supply-chain
nodes and makes it available for reporting, real-time decision making, and collaborative-exception
handling (IBM, 2020). Using predictive analytics, companies will be able to anticipate possible risks in
meeting demand and take earlier actions (DSCI, 2019).

To achieve a superior SC performance (cost, quality, flexibility, and time performance) requires multi-
lateral integration: internal/external integration; functional integration; geographical integration;
integration in chains and networks; and integration through IT (Garay, et al. 2019). Those companies
that consider the supply chain during the strategic debate, manage it as a single entity, and ensure the
appropriate use of tools and techniques to meet the needs of the market, will obtain real benefits

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resulting from the double-edged impact of increased market share on a lower asset base (Stevens, et al.
2007).

Technologies from Industry 4.0 enable the autonomous automating of entire procurement processes and
the autonomous cooperation of goods and services across organizational borders. This exceeds the
content of the eProcurement approach and justifies distinguishing eProcurement from a new concept
“Procurement 4.0” or “Supply Management 4.0” respectively (Glas and Kleeman, et al. 2016). To cope
with frequent changes and disturbances, discrete manufacturing systems require a high level of
integration between production and logistics (Liu, et al. 2018).

Key challenges and trends regarding current and future SCM tasks (supply chain visibility, new demand
channels, new business models, supply chain complexity, etc.) across different industry groups show
the need for a “Digital SCM Vision” and technologies with significant impact on current and future
SCM tasks are big and smart data, Cloud computing, social media, predictive and prescriptive analytics,
IoT, robotics, 3D Printing, and mobile technology (Farahani, et al. 2015).

Industry 4.0 has some dark side which impacts the supply chain of a company during pre and post-
implementation stages, some of the major issues are job losses of workers; low morale of employees;
lack of Industry 4.0 knowledge among suppliers in the network; lack of funding for technological up-
gradation; lack of specialized suppliers suitable for Industry 4.0 projects; and lack of IT security
standards and policies which affect both the customer and suppliers in the supply chain network (Bag,
et al. 2018). Firms must not only focus on process automation, quality systems, and customers for better
results but should also focus on human capital development and change management to bring social
sustainability (Bag, et al. 2018).

The rapidly developing blockchain technology is a new document exchange solution, its ledger,
security, and smart contract platforms, as well as software connectors, offer tools to build a cost-
effective and flexible DSC network (Korpela, et al. 2017). The preservation of supply chain
transactional data will become an important component for tracking and auditing supply chains, and
will also play an important part in the chain of custody of supply chains, and understanding the origins
of many products and services (Handfield, 2016).

Industry 4.0 in general and digital technology, in particular, give rise to data analytics applications to
achieve a new quality of decision-making support when managing severe disruptions (Ivanov, et al.
2020). Customer demand and supplier performance data become more transparent and acquirable
through collaborations across the end-to-end supply chain. Thus, the information is no longer blocked
upstream. Information flows further enable more timely and intelligent decision-making by supply
chain alliances (Zhao, et al. 2020). To optimize the information and physical flows the boundaries or

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borders, between and within firms have to be managed – boundaries between buyers and suppliers or
between different departments within the same firm or between different zones in the same warehouse,
for flows of goods and information to operate efficiently, boundaries have to be almost invisible or
frictionless, soft rather than hard (Kersten, et al. 2018). COOs and CSCOs are looking to AI and
cognitive computing to resolve many of their end-to-end supply chain process challenges (IBM, 2017).

8.2. LEAN AND GREEN SUPPLY CHAIN TURNS TO DIGITAL

WITH INDUSTRY 4.0
Industry 4.0 is based on characteristics that lean and green are already focused and in a general view,
the lean and green approach will improve with the advent of Industry 4.0 (Duarte, et al. 2017). Industry
4.0 initiative is to integrate the IoT into the manufacturing system, i.e. the next generation of supply
chain management SCM with physical shop floor scheduling forming a sort of Cyber-Physical
Production System (CPPS) (Ruttimann, 2016). Industry 4.0 is the topping on that cake, as it makes Lean
Production more flexible. Since lean and green practices can be implemented using a similar structure,
they can generate a synergetic environment, either working sequentially or in parallel, optimizing waste,
energy, material, time, and supply chain management. To get the maximum benefit from lean
implementation, it should go beyond the internal activities of the focal organization to suppliers and
distributors (Langstrand, 2012).

8.3. DSC IN AUTOMOTIVE INDUSTRY

Key focus topics in automotive OEMs and suppliers include revising and improving processes and IT
systems to deal with globalization and the respective complexity of international supply chains. For this
purpose, the use of integrated supply chain planning and execution platforms supported with big and
smart data and analytics are of high importance. Of high value are, furthermore, the use of Cloud for
improving collaboration on both supply and demand sides, IoT and robotics for automation of
processes, such as assembly, and advanced analytics for driving successful supply chain strategies based
on visibility over the end-to-end supply chain KPIs (Farahani, et al. 2015).

8.3.1. TOYOTA DIGITAL SUPPLY CHAIN

Several components of Toyota’s production system extend beyond its manufacturing walls into every
link of its supply chain. For instance, Toyota extends its practice of just-in-time manufacturing
principles to its suppliers. Therefore, every member of the Toyota supply chain decreases
overproduction, stock on hand, and work in process. As a result, the cost is reduced throughout the
entire supply chain. Toyota pressures suppliers to share information (vertically and horizontally) so that
Muda is reduced throughout the supply chain to lower cost and can add value to every member of its
supply chain (Brown, 2003). Toyota set out to transform its supply chain in ways that would make it

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possible to recover from future large-scale disruptions in two weeks or less (Deloitte, 2017).

8.3.2. BMW DIGITAL SUPPLY CHAIN

BMW Group uses Blockchain to drive supply chain transparency - traceability of parts and
critical raw materials in complex international supply chains and BMW Group “PartChain”
project is to target industry-wide solution for secure data sharing (BMW, 2020). PartChain
enables tamper-proof and consistently verifiable collection and transaction of data in the supply
chain (BMW, 2020). BMW recognizes the supply chain as a critical enabler of the company’s
product differentiation strategy. Supply chain flexibility enables BMW to
offer customers
choice and respond to changing market situations and regional demand. More than 20,000
interior variants are possible with the BMW 3 Series (Gartner, 2020). BMW Connected Supply
Chain (CSC) has been introduced to squeeze out even micro-inefficiencies from the system
that offers significant returns. Since the CSC program began, more and more suppliers and
transportation providers have gradually been brought into the system. Each car is fitted with
trackers that allow dealers to know precisely where their customer’s car is at any time on its
journey from plant to forecourt (with a firm promise this tracker will be switched off for good
on arrival). It will even extend to fitting each car with a limited autonomous module that means
it will drive itself from the final inspection bay to the car park to await loading onto a transporter
(Williamson, 2019).

8.3.3. MERCEDES - BENZ DIGITAL SUPPLY CHAIN

Mercedes-Benz Cars are testing a prototype blockchain project with strategic partner Icertis focusing
on consistent documentation of contracts in the supply chain (Highland, 2019). According to Wilko
Stark, Mercedes-Benz Cars, procurement, and supplier quality said: “Blockchain technology has the
potential to fundamentally revolutionize our procurement processes, and could affect nearly the entire
value chain. Global supply chains are becoming increasingly complex. With our Blockchain prototype,
we are in the first step testing one of the diverse possible applications to increase transparency beyond
our direct suppliers.” Mercedes-Benz has begun to conduct pilot projects with Blockchain to achieve
CO transparency within its cobalt supply chain. The two companies will use a blockchain-based system
to map the production flow of materials, CO2 emissions, and the number of recycled materials used in
the supply chain (Wilson, 2020).

8.4. QUALITY 4.0 AND THE SUPPLY CHAIN

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Quality 4.0 doesn’t replace traditional quality methods, but rather builds and improves upon them (SAS,
2020). Digital tools, coupled with more advanced practices and smarter processes, can now enable
quality teams to deliver high-performing products consistently to customers (Nurmimaki, 2020).
Quality 4.0 is much more than technology. It is a new way of managing quality in which digital tools
enhance the organization’s ability to consistently give customers high-performing products
(BCG,2020). According to the BCG (2020) value propositions for Quality 4.0 initiatives fall into six
categories, listed in order of significance - Augment (or improve upon) human intelligence; Increase
the speed and quality of decision making; Improve transparency, traceability, and auditability;
Anticipate changes, reveal biases, and adapt to new circumstances and knowledge; Evolve
relationships, organizational boundaries, and concept of trust to reveal opportunities for continuous
improvement and new business models; Learn how to learn by cultivating self-awareness and other-
awareness as skills.

8.5. COVID – 19 ON SUPPLY CHAIN

COVID-19 calls for a deeper understanding of both known and unknown risks to the supply base,
including taking precautionary measures in support of small and medium-sized businesses and local
ecosystems. It also amplifies the importance of predictive modeling and applied intelligence
(Accenture, 2020). COVID-19 illustrates that many companies are not fully aware of the vulnerability
of their supply chain relationships to global shocks (Deloitte, 2020). This global disruption is exposing
weaknesses that can be addressed. Temporary fixes can be converted into lasting capabilities that
provide greater agility, responsibility, and resilience, transforming the supply chain into a competitive
enabler of growth (Accenture, 2020). COVID-19, in all its volatility and stress, has opened up
opportunities to take a hard look at the entire supply chain and reimagine it for tomorrow’s needs
(KPMG, 2020). Tomorrow’s leading companies will be those that continue optimizing their
increasingly global supply chain networks, while also positioning themselves to effectively respond to
the next black swan disruption (IBM, 2020).

8.6. POTENTIAL RISKS AND CHALLENGES IN DIGITAL SUPPLY

CHAIN

Many of the core Supply Chain 4.0 concepts, such as big and open data, the Internet of Things,
intelligent automation, virtual and augmented reality, remain mysterious to today’s supply chain
professionals. But experimenting with these new technologies can expand people’s horizons, increase
learning retention, and inspire innovation (McKinsey, 2017). The fact of increased data volume and
availability in real-time requires new infrastructures and adapted handling of information. Supply
chain management will be increasingly faced with new challenges because new handling fields will

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arise, great autonomy is given to the production, and decision-making competencies will be
transferred (Indorf, et al. 2014). The availability of information in Smart SC cannot provide a direct
competitive advantage in supply chain sustainability; nevertheless, sharing and collaborative
management can achieve such an outcome. It means that information only can be used to facilitate
supply chain sustainability via supply chain collaboration. Because of the higher probability for supply
chains to be exposed to risk, risk potentiality and occurrence could have a significant negative effect on
SSC sustainability (Zhao, et al. 2020). The implementation of certain technologies, such as virtual and
augmented realities, 3D-Printing, and simulation, results will all result in opportunities. On the other
hand, big data analytics, cloud technology, cybersecurity, the IoT, miniaturization of electronics, AIDC,
RFID, robotics, drones and nanotechnology, M2M, and BI could be opportunities or threats for the
organizations. The fact that some technologies can result in both opportunities and threats is because
all the different areas are interconnected, with no clear boundaries between them, depending on
where it was analyzed, it could have a positive or negative connotation (Enrique, et al. 2017). If
businesses are to fully reap the benefits, they will need to balance openness and transparency with robust
and consistent information security right across the supply chain (Infosys, 2018).

8.7. DIGITAL SUPPLY CHAIN FRAMEWORKS

The transformation of the supply chain is driven by the combined undertakings of many stakeholders,
including technology developers, logistics service providers, large manufacturers, small and medium-
sized manufacturers, tier 1 and 2 suppliers, infrastructure and gateway operators, carriers, and
governments, who exercise their influence through public policies and regulations (WEF, 2019). In
traditional supply chains, information travels linearly, with each step dependent on the one before it.
This chain of events is linked in a very structured way: develop, plan, source, make, deliver, support
and as a result inefficiencies in one step can result in a cascade of similar inefficiencies in subsequent
stages (Deloitte. 2017).

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 FIGURE 4. SHIFT FROM TRADITIONAL SUPPLY CHAIN TO DYNAMIC DIGITAL SUPPLY CHAIN
Real-time access to data and intelligence is fundamentally driven by the continuous and cyclical flow
of information and actions between the physical and digital worlds. This flow occurs through an
iterative series of three steps, collectively known as the physical-to-digital-to-physical loop:

▪ Physical to digital—Capture information from the physical world and create a digital
record from physical data.
▪ Digital to digital—Share information and un-cover meaningful insights using advanced
analytics, scenario analysis, and artificial intelligence.
▪ Digital to physical—Apply algorithms to translate digital-world decisions to effective
data, to spur action and change in the physical world (Deloitte, 2017).

FIGURE 5. PHYSICAL-TO-DIGITAL-TO-PHYSICAL LOOP (DELOITTE, 2017)

While the linear supply chain models have discrete, sequential, and event-driven processes, a digital
model can deliver end-to-end, orchestrated, and insight-driven processes. A digital supply chain can
lead to a 20 percent reduction of procurement costs, a 50 percent savings in supply-chain expenses, and
an increase in revenue of 10 percent. It includes three capabilities: integrated planning, value chain
visibility, and intelligent assets (IBM, 2020).

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 FIGURE 6. TRADITIONAL TO DYNAMIC DIGITAL SUPPLY CHAIN (IBM, 2020)
A digital supply chain strategy must be an integral part of the overall business model and organizational
structure of a company. Transforming the entire organization to a Digital Operating Model has the
highest potential, but also bears the highest complexity and risk (Capgemini, 2020).

FIGURE 7. DIGITAL SUPPLY CHAIN STRATEGY

In the digital SC twin, model-based decision-making support enables simulation of SC’s dynamic
behavior in the event of a disruption. Data analytics is used at the proactive stage for building realistic
disruption scenarios based on risk data about historical disruptions and other data (e.g. supplier
reliability data from ERP systems) during the SC design phase. At the reactive stage, data analytics is
used for disruption identification in real-time using process feedback data, e.g. from sensors, T&T, and
RFID.

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 FIGURE 8. DIGITAL SUPPLY CHAIN TWIN FOR MANAGING DISRUPTION RISKS.
According to Ivanov and Dolgui (2020), data-driven disruption modeling provides a basis for proactive,
resilient SC design in anticipation of disruptions and structural-parametrical adaptation in the event of
disruptions. The modeling combines simulation, optimization, and data analytics to create a digital SC
twin and thereby manage disruption risks.

FIGURE 9. THE DATA STRUCTURE IN THE SUPPLY CHAIN DISRUPTION RISK MODELING FRAMEWORK.

According to WEF (2019) Governments in advanced economies have launched multiple

plans and programs that contribute to the 4IR transformation of the supply chain.
However, each policy tends to focus on enhancing the digital transformation of only
one specific supply chain node or enabler (Figure 4).

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 FIGURE 10. DIGITAL SUPPLY CHAIN WITH INDUSTRY 4.0. (WEF, 2019)

9. PROPOSED CONCEPTUAL FRAMEWORK

9.1. SMART SUPPLY CHAIN MODEL
The proposed conceptual model of Smart Supply Chain (SSC) in Industry 4.0 consists of five
continuously interconnected dimensions. The five dimensions are (shown in Fig.11)-

1. Supply Chain Components (SCC)

2. Supply Chain Management Processes (SCMP)
3. Supply Chain Network (SCN)
4. Information Flow
5. Industry 4.0

These dimensions interact constantly among each of them with the help of CPS and the technologies of
Industry 4.0. Although Industry 4.0 is considered here as a separate dimension, it the facilitator in each
of the dimensions in an SSC.

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 Powered by
Industry 4.0
Information
Flow

SSC Network

SSC
Processes

SSC
Components

FIGURE 11. SMART SUPPLY CHAIN DIMENSIONS

The main intention of the SSC model is to present a conceptual framework with possible
interconnections and integration of the new digitalized SCs with Industry 4.0. The disruptions caused
by the technological advancements have compelled the businesses to redesign their supply chain model
and made the shift from the linear structure of the supply chains to a more collaborative one which ends
to end transparency.

9.2. DIMENSION 1
The first dimension at the center of the model (as shown in Figure 12.) - SC Components, acting as the
core and these components are explicitly facilitated by cloud computing (CC) and cognitive intelligence
(CI) that allows the effective handling of the digital and physical SC management components. In the
digitized supply chains, the cloud is the actual core that allows for the creating of the virtual value chain.
With the deployment and integration of systems through CC and CI with the help of AI and ML, it is
possible to establish a macro-interconnectivity between every component, process, network, flow,
technology, and so on within the SSC model. The SC Components which are taken into consideration
are – Planning; Sourcing; Production; Facility; Transportation; Storage; Information Technology;
Support.

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 Digital – Physical – Digital

INDUSTRY 4.0
RPA VR & AR

BIG DATA IoT & IoS

Smart Firm

Warehouse Service Providers

INFORMATION FLOW

INFORMATION FLOW
2nd PL
SCC 3rd PL
Distributor
4th PL

5th PL
Retailers SCMP Final consumer

SCN

Suppliers Customers
Tier 1

Tier 2

Tier 3

3D PRINTING Cloud Computing

AI & ML CPS
INDUSTRY 4.0

Virtual Value Chain

FIGURE 12. PROPOSED CONCEPTUAL MODEL OF SMART SUPPLY CHAIN

9.3. DIMENSION 2
The second dimension in the model is the SC Processes, which is again a key aspect when we consider
the interlinked relationship between the physical – digital-physical system. The elements which are
being considered in the SC Management processes are - Customer Relationship Management; Supplier
Relationship Management; Demand Planning Management; Customer Service Management;
Cybersecurity and risk management and Disruption Management. Out of these disruptions,
Management is something new that is being considered as an integral part when it comes to the SC
Management Processes. Although Industry 4.0 is considered to be a disruption still it didn’t create panic
amongst the businesses as it is created by the COVID – 19 pandemic. COVID – 19 has made the
businesses to re-model their supply chain network to increase resilience and to better predict the

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forthcoming disruptions. Another element in the Management Process which is of paramount
importance is cybersecurity and risk management. With the increased usage of technology to share the
data and everything present in the cloud, it makes the data very vulnerable. The value chain must have
strong cybersecurity in each level of the dimensions.

9.4. DIMENSION 3
The third dimension, as shown in Figure 12, is describing the interconnected SC Network which
consists of both physical and digital networks, and these are interconnected to the SC Components and
the SC Management Processes. The enablers who permit this connection are the Industry 4.0
technologies such as the Cyber-Physical Systems (CPS); IoT, AI; ML and the information gathered
from this network structure is being stored in the common platform facilitated by cloud computing.

The proposed model suggests the following elements as the network: upstream suppliers or Tier 1, 2, 3
suppliers; the second and third part logistics; the main company, a focal firm or smart firm; the fourth
and fifth part logistics; the customer, wholesaler or distributor; the retailer; and finally, the last
consumer. Triggered by CC, the entire physical and digital SC network structure can interact and be
interconnected with Industry 4.0. This site is represented within this framework as Dimension 3: Supply
Chain Network, which allows and gives rise to the functionality and integration of all the traditional SC
networks previously found by the literature review.

9.5. DIMENSION 4
The four dimension that is presented in the model is the end to end the flow of information which is
intended to create transparency and traceability across the value chain. The significant flows that are
being taken into consideration (as shown in Figure 12) are information regarding the – material flow
(inbound), finished products/goods flow (outbound), services flow, knowledge flow, financial resources
flow (money/profit), risk and return flow of goods/services.

To create a long-lasting and real-time flow within the SSC network structure, it requires the use of
Industry 4.0 technologies such as the Blockchain to create visibility across the supply chain partners.
Based on this flow of information the SC Management Processes plans and designs the supply chain to
ultimately meet the customer demand in a more agile manner. Moreover, the real-time flow of this
information is very crucial for predicting any unprecedented disruptions and identifying the ways to
create value and service amidst such situations.

9.6. DIMENSION 5
The convergence point of all the dimensions presented in the DSC proposal model is the technology
implementation and digital transformation using Industry 4.0 concepts, enablers, and features. These
technologies of Industry 4.0 are the medium that facilitates the transformation and it acts as the

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connector between each of the dimensions and also all the elements within the dimensions. The Industry
4.0 technologies to be used in the SSC are – Blockchain, CPS, IoT, 3D Manufacturing, AI; ML; Big
Data; Cloud Computing; Cognitive Intelligence, IoS. Implementing these technologies into the entire
value chain creates the virtual value chain and most importantly it gives rise to the next generation of
quality – Quality 4.0. The proposed SSC model, also makes it a real pull system as it enables real-time
demand planning with a focus on mass customization, due to the interconnectivity of the SSC
dimensions explained previously. In this pull system, all the information has been received and stored
in the cloud computing (the core of Dimension 1 and 2), thus extracting and bringing in real-time data
into the dimensions shown in the SSC model, to accomplish virtual value creation, also to drive
sustainability.

FIGURE 13. VALUE CHAIN OF A SMART SUPPLY CHAIN (DESIGNED BY ME)

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9.7. KEY SUCCESS FACTORS

The Digital Transformation of the linear supply chain to a smart supply chain is not just about
implementing the Industry 4.0 technologies, it is much more than that. It requires a holistic approach of
operations at every single point in the value chain, viz. –

1. Customer centricity – customer first.

2. Visibility – total transparency and intelligence in the value chain.
3. Productivity – Industry 4.0 enablers to predict, automate, and innovate.
4. Sustainability – sustainable and safeguard our planet.

10. CONCLUSION AND RECOMMENDATION

10.1. SUPPLY CHAIN DIGITIZATION – NO LONGER AN OPTION!

In recent times, there has been a shift in perception, people are no longer looking at the supply chain to
be a cost center, now it is either a bare essential to survive or it becomes a competitive advantage for
an enterprise to service the demand better. Everyone was in the direction of going digital, but the
COVID- 19 disruptions have sped it up by a couple of years, it’s extremely evident. One of the things
which most of the companies realized in the disruption was that their effort-intensive manual driven
processes are going to be very hard to sustain when cost and service become of paramount importance.
So, lots of these processes which were inefficient and unsustainable are still being put up with many
questions because they weren’t sure about the time which is right for a large transformation. Questions
like what value is to be created? Is it going to be worthwhile? All of these questions were up in the air
and there wasn’t this decisive push or will to explore in that direction. So, what COVID – 19 has done
is in many ways it has highlighted those gaps in the prevailing systems and encouraged the people in a
way to look towards digital transformation to get those solutions. Another thing that is clear from the
disruption is that there is a need for greater collaboration across the value chain so like simplifying
processes, automation, building resilience, all of these needs have come up and digital has always been
the answer to this. Today there is a greater realization that digital technologies can be the solution to
this and there is more importantly the will to explore it in a small way because of the COVID disruption.

As we see the need for expediting the change to digital SC in the B2B customer space the customers
are requiring more B2C kind of experience and we notice that when our customers' customer says that
when they order something in Swiggy for say like 20 – 30 rupees there is the end to end visibility but
in B2B when businesses order something worth crores, there’s lack of visibility for them to know what’s
happening with their order. And as the technology penetration is going up people are bringing in their
B2C experience into their B2B Supply Chain. So they are more and more demanding in terms of having

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that end to end visibility. Reducing the cost of logistics has become more important and not having
digitization in place almost makes it impossible to even baseline the performance and identify the
improvement ideas to reduce the cost of logistics.

There is a huge change in the way the demand is flowing in, all of a sudden the demand goes up and
down, the demand is dependent on so many other variables. Forecasting the demand from the previous
sales is no longer possible, we don’t know what’s there in the corner, it's truly a black swan. On the
other hand, the supply is even more dynamic with the labor situation, with the shortages on one side to
excess inventory on the other side. To match these is simply not possible to do with good old
spreadsheets. To achieve equilibrium we need far more advanced tools, we need far more insights, far
more computational power to get the balance of demand and supply. Digitalization is driving the
transparency and the agility of the SCs to function efficiently.

Secondly, the COVID disruption is one of the most unique black swans even in history. The complete
paradox has changed. Although the digital transformation has been there for many years it was at a very
low pace. Now, the COVID factor is driving the digital transformation with this urgency. It is a
combination of the foundational building blocks already being in place, customer expectation and
demands, supply chains becoming a competitive advantage and the will to do this is driving it towards
the transformation. Earlier the conversation was about how deep is the solution for digitization, how
accurately it can predict based on past sales history. But now conversation is centered more on
collaboration. New business models are to be introduced to sustain and work efficiently in the new
normal. SC is no longer working in isolation, now it takes feedback from all other departments to
become a holistic process in the organization. From a deep siloed process it has become more
collaborative, encompassing all functions.

10.2. UNDERLYING TECHNOLOGIES THAT ARE SUPPORTING DIGITAL

TRANSFORMATION.

We need to connect the demand with supply – businesses have to understand the customers in real-time
and should be able to do things in real-time to the extent possible. Also, procurement has changed
rapidly which also requires collaboration. This collaboration can be achieved with the use of Industry
4.0 enabling technologies such as AI, ML, Big Data, Cognitive Computing, Blockchain, CPS, IoT.
Cloud is the need of the hour. Technologies that will thrive in this kind of era are the ones that bring
collaboration to the users, they should be accessible and friendly with users, should be agile. Moreover,
the extensive use of the Industry 4.0 technologies, will increase in Quality of the products and services
as well, leading to Quality 4.0. Quality 4.0 will create substantial value for the stakeholders and also
drive the businesses to the next level of quality standards. Cloud is the major technological change and
the ability to connect the landscapes with the APIs. API economy will be extremely important because

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everything in the cloud is integrated through API. Moreover, analytics, is no longer an afterthought it
is the first thought of the way you design the system. Critical success factors for a successful digital
transformation would be - Collaboration, Analytics, Cloud, and API coming together.

10.3. USE OF TECHNOLOGY TO ENHANCE THE RESILIENCE

With the ever-increasing expectations of the customers and disruptions, the businesses should improve
their responsiveness, by increasing the resilience of their supply chain. It would be getting the basics
and the building blocks right. The previous SCs were less resilient and that needs to be fixed. Most of
the companies are in the early stage of their digital supply chain journey, for the AI and ML will come
later. The collaboration has to be there for the entire value chain starting from the supplier to the
customers. Secondly, data management should be put right. Today the data is present but they are not
present in the way the companies need it, nobody could use it to its real potential. Data should be
intelligent which can be done by codifying the data – UNSPSC. To get the resilience we have to get the
fundamentals right. Once this happens, we’ll see the real value is unlocked. Just by getting the
fundamentals right, we’ll be getting the visibility value to unlock, better inventory planning, better cost
allocation, automation, and efficiencies would come through. All these will contribute towards
resilience. The major impact of the digital transformation will be that more data will be captured in the
right manner and analyzed. Then only AI and ML will come into real play which is now a kind of fancy
terminologies. Digitization is also bringing in risk to the system in the sense that anybody (Omar
Caballero 2020)can hack into the system. Cybersecurity should be of utmost priority.

10.4. CONCEPTUAL MODEL OF SSC

The proposed DSC model provides a framework for the adoption and incorporation of the nascent
Industry 4.0 technology enablers and features within the traditional SC to evolve into a digitalized SCM.
This approach is shown within a multi-dimensional and interconnected framework within all the
dimensions which previously were functioning as a single entity. The SSC model in Industry 4.0
proposes a focal point and innovatively depicts the supply chain network, with CC and CI as core
elements to achieve virtual value creation along with Industry 4.0 because they enable interconnection
in real-time concerning the physical and the digital systems and across all the presented dimensions.

To achieve a superior SC performance (cost, quality, flexibility, and time performance) requires multi-
lateral integration: internal/external integration; functional integration; geographical integration;
integration in chains and networks, and this interconnection is possible only through Industry 4.o
technologies. In the proposed model, efforts have been made to achieve this connection throughout the
value chain. Each of the elements involved in the value chain are will stop thinking about the

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connectivity between each actor and the structure of the SC in a linear way, and start developing as a
multi-dimensional interconnected organizational strategy to achieve the ultimate goal of a DSC:
transparency, communication, collaboration, real-time responsiveness, accuracy, enhanced resilience,
and flexibility.

11. LIMITATIONS AND FUTURE RESEARCH DIRECTIONS

The limitations of this study refer to the exclusion criteria that were used to perform the literature
review, which eliminated papers not written in English and which may also have ignored research in
other languages. This study provided an idea of the Digital Supply Chain and its transition to Industry
4.0 technologies, but these proposed model and views have not been validated in a business setting, due
to time concerns and limited exposure to the organizations for any interview or primary data. This study
provided some ground for handling digital transformation from a digital supply chain perspective while
only approached some concepts related to sustainability. Applying the roadmap in service or
manufacturing organizations would give valuable insights into its strengths and weaknesses for further
development.

These future studies could focus on the integration of these emerging components and stages in the on-
going implementation of Industry 4.0 in diverse Digital Supply Chains. This study puts some emphasis
on the disruption or risk management of the supply chain, it could be a good idea to expand the
disruption management aspect further. An assessment of the competencies required for the different
levels of the organization when transitioning to Supply Chain 4.0 should be done when implementing
the Industry 4.0 strategy. It is also recommended to do research in defining what kind of knowledge
and key competency skills that will be needed for the current functions as well as the employees in the
organization to make themselves ready for the new business models in digital development. This work
is also expected to increase interest among academics with regard to the development of better roadmaps
for DSC models for diverse manufacturing and specialized service industries.

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 APPENDIX

ANNEXURE A (FROM REPORT)

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 ANNEXURE B - ET SUMMIT

THE ECONOMIC TIMES

SUPPLY CHAIN MANAGEMENT

&
LOGISTICS
http://www.et-edge.com/conferences/scm/live-webcast/

https://etunwired.et-edge.com/virtual/scm/vod/

ANNEXURE C (SSC MODEL)

Powered by
Industry 4.0
Information
Flow
SSC
Network
SSC
Processe
s
SSC
Compone
nts

FIGURE 11 . SMART SUPPLY CHAIN DIMENSIONS

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FIGURE13. VALUE CHAIN OF A SMART SUPPLY CHAIN (DESIGNED BY ME)

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 ANNEXURE D – QUALITY 4.0

ANNEXURE E – DIGITAL CORE STRUCTURE OF DSC

2020, TruckNet Digital Technologies.

ANNEXURE F – LEAN AND GREEN SC IN INDUSTRY 4.0

ANNEXURE E – DSC MODEL

2020, TruckNet Digital Technologies.

About the Author:

Rizwan Yaseen Bora is a second-year student at XIME (Xavier

Institute of Management & Entrepreneurship) pursuing PGDM
in Operations Management & Analytics. He has a short span of
work-experience at Oil & Gas Industry after completing B.E in
Mechanical & Production Engineering. He is well versed with
Supply Chain, Lean Management, Industry 4.0 enablers and
Analytics. In addition to this he also holds notable academic
projects under his name.

LinkedIn - https://www.linkedin.com/in/rizwan-07/

“DIGITAL SUPPLY CHAIN IS NO LONGER AN OPTION, IT’S A NECESSITY”

Published By:

TruckNet Digital Technologies

Koramangala, Bangalore

www.trucknet.digital

2020, TruckNet Digital Technologies.