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Impact of industry 4.0 on supply chain in made to order industries

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Abstract

This study explores the disruption that Industry 4.0 has on the supply chain of industries and organizations operating in custom-made or made-to-order products and services. While most industries focus on reducing costs via effective processes and employing efficiency-enhancing tools in production, not many organizations focus on the supply chain and its impact on it using Cyber-Physical Systems (CPS) and the use of real-time connection and computation and tools of Industry 4.0 in order to create value across their supply chain ecosystem. To understand this, the authors have used a case study-based design of an Indian made-to-order (custom-made) industrial organization and its logistic partners who together comprise a total supply chain ecosystem. The authors have attempted to find the challenges, opportunities, and recommendations for made-to-order in integrating Industry 4.0 tools into their process.

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Funding

This study is not funded by anyone.

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Correspondence to Ramakrishnan Raman.

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Authors Ramakrishnan Raman, Pranav Vyas and Hardik Vachharajani declare that they have no conflict of interest.

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Appendix

Appendix

Annexure-A: Semi structured interview questionnaire used for the research

  1. 1.

    How has Industry 4.0 impacted the flexibility of your organization's supply chain? What measures have you taken to adapt to the increased demand for flexibility?

  2. 2.

    In what ways has Industry 4.0 decreased documentation efforts in your organization's supply chain, and how has this improved overall efficiency?

  3. 3.

    How has Industry 4.0 enhanced the usability of data in your organization's supply chain, and what benefits have you seen as a result?

  4. 4.

    What cost savings have you achieved by implementing Industry 4.0 in your organization's supply chain, and how have you measured these savings?

  5. 5.

    How has Industry 4.0 improved the traceability of products in your organization's supply chain, and what benefits have you seen as a result?

  6. 6.

    How has Industry 4.0 helped your organization with load balancing in the supply chain process, and what benefits have you seen as a result?

  7. 7.

    In what ways has Industry 4.0 reduced human labor costs in your organization's supply chain, and what benefits have you seen as a result?

  8. 8.

    What challenges have you faced in implementing Industry 4.0 in your supply chain, and how have you addressed these challenges?

  9. 9.

    What further improvements do you envision Industry 4.0 bringing to your supply chain in terms of flexibility, documentation, data usability, cost-saving, product traceability, load balancing, and reduction of human labor cost?

  10. 10.

    How do you see the future of the made-to-order industry being impacted by Industry 4.0, and what actions are you taking to stay ahead of the curve?

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Raman, R., Vyas, P. & Vachharajani, H. Impact of industry 4.0 on supply chain in made to order industries. Ann Oper Res (2023). https://doi.org/10.1007/s10479-023-05435-x

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