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Functional Requirements and Supply Chain Digitalization in Industry 4.0

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Abstract

Industry 4.0 aims to automate traditional manufacturing and industrial practices with the aids of recently developed information technologies such as cyber-physical systems, Internet of things, big data analytics, and cloud computing. Implementation of industry 4.0 in manufacturing leads to the digitization of all manufacturing businesses including computer aided design and manufacturing, enterprise resource planning, and supply chain management (SCM). This paper focuses on the challenges and solutions in digitizing supply chains in dynamic, distributed, and decentralized business environments. The complexity and dynamics of supply chains in industry 4.0 are discussed, the performance of a supply chain is evaluated from the perspectives of costs and quality of services, and supply chain management is formulated as an optimization problem for higher requirements of quality of services, efficiency, and timeliness. The challenges of developing digitization solutions to data acquisition, data fusion, and data-driven decision-making supports are discussed in detail. The potential solutions to these challenges are proposed and the impacts on supply chain management are assessed using the data from in a list of automotive manufacturers in China. It has been found the proposed solutions will make positive and significant impact on the digitation of supply chains.

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Funding

This research was funded by National Key R&D Plan of China under Grant No. 2016YFC0803207 and Chinese National Foundation for Post-doctoral Scientists under Grant No. 2019M650455.

Author information

Authors and Affiliations

  1. School of Economics and Management, Beijing Jiaotong University, Beijing, 100044, China

    Lu Han, Hanping Hou & Xiaoxiao Zheng

  2. Department of Civil and Mechanical Engineering, Purdue University Fort Wayne, Fort Wayne, IN, 46805, USA

    Z. M. Bi

  3. School of Economics and Management, Beijing University of Chemical Technology, Beijing, 100029, China

    Jianliang Yang

Authors
  1. Lu Han
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  2. Hanping Hou
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  3. Z. M. Bi
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  4. Jianliang Yang
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  5. Xiaoxiao Zheng
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Contributions

Conceptualization, L.H. and H.H.; methodology, J.Y.; software, X.Z.; validation, L.H. and H.H.; formal analysis, investigation, L.H.; resources, L.H.; writing—original draft preparation, L.H.; writing—review and editing, L.H.; supervision, H.H.; project administration, L.H.; funding acquisition, H.H; re-organizing, editing and polishing, Z.B. All authors have read and agreed to the published version of the manuscript.

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Correspondence to Lu Han.

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Han, L., Hou, H., Bi, Z.M. et al. Functional Requirements and Supply Chain Digitalization in Industry 4.0. Inf Syst Front (2021). https://doi.org/10.1007/s10796-021-10173-1

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