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Enabling Factors of Digital Manufacturing Supply Chains: A Systematic

Literature Review

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 Enabling Factors of Digital Manufacturing Supply Chains: A Systematic
Literature Review
W.M. S.K. Weerabahu1,*, Premaratne Samaranayake1, Dilupa Nakandala1, Hilal Hurriyet1
1
School of Business, Western Sydney University, New South Wales, Australia
(S.Weerabahu@westernsydney.edu.au)

Abstract - Organisations are increasingly being providing a holistic view of the I4 adoption in the supply
compelled to adopt Industry 4.0 (I4) technologies and chain domain. Researchers and practitioners can prioritise
sustainability practices to achieve higher supply chain and use these factors when adopting and implementing I4
performance. The digital manufacturing supply chain in the supply chain domain to enhance supply chains’
(DMSC) is still in its infancy stage. Therefore, exploring strategic and operational performances.
enabling factors from technological, organisational, legal, and
sustainable perspectives is pursued. This study aims to
identify and categorise the enabling factors of digital II. METHODOLOGY
manufacturing supply chains while providing a holistic view
of the I4 adoption in the supply chain context. A systematic A systematic literature review (SLR) was performed to
literature review (SLR) on the supply chain digitalisation study a broader supply chain digitalisation perspective [4].
perspective is carried out by analysing journal articles Systematic literature aims to collect, analyse, and
published between 2015 to 2020. Each perspective is synthesise recently published articles in multidisciplinary
supported by well-established enablers, suggesting the need domains to identify new research avenues and understand
for prioritising each dimension for continuous improvement broader concepts [5]. The research articles available on
of SC performance. A digital manufacturing supply chain google scholar and Scopus databases, mainly in the
maturity model guided by enabling factors is proposed as a operations management and supply chain management
framework of DMSC adoption across firm-level, supply
domain from 2015 to 2020, were considered in this
chain/industry, and ecosystem levels.
analysis. Initially, key search strings such as “Smart Supply
Keywords - Industry 4.0, Digital Manufacturing Supply Chain Management” OR “Supply Chain 4.0” OR “Digital
Chain, Enabling Factors Supply Chain Management” OR “Industry 4.0 AND
“Enabling Factors” OR “Drivers” OR “Enablers” AND
I. INTRODUCTION “Supply chain performance” were used to select the studies
with the scope of the research. Duplicate articles were
In the era of I4, most organisations are subjected to removed in the next step of the article screening process,
increasing competitive pressures and are trying to make which excluded 132 articles due to diversion for the study.
their supply chain smarter than competitors. I4 concept In the following step, 86 full-text articles were assessed for
adoption and digital transformation create a need for eligibility. The content analysis approach was adopted to
organisations to understand the key factors and parameters explore the selected 44 articles. Fig. 1 illustrates the
of smartness. Many organisations are in the process of procedure of the SLR [4].
identifying and analysing the future smart transformation
process. Digital supply chains are engineered to be agile
and customised to adapt to face disruption in the dynamic
environment [1]. Identification Database search results (n=780)
The literature indicates that close integration of
blockchain, IoT, smart factory, and industrial internet
embedded in physical supply chains creates more potential Screening
After removing duplicates (n=345)
for digital supply chain transformation than the traditional
supply chain. However, there is a general lack of
understanding about what factors enable DMSC adoption Title and abstract screened (n=218)
[1]. DMSC is still in its infancy stage. Therefore, exploring
enabling factors from technological, organisational, legal, Eligibility
and sustainable perspectives is required [2, 3]. To address Full text articles reviewed (n=86)
this research gap, this study aims to identify various digital
manufacturing supply chain enabling factors leading to
Included
high-level supply chain performance based on a thorough Final selection (n=44)
literature review of manufacturing supply chains. This
study analyses research articles from supply chain Fig. 1. The procedure of the SLR process.
management published during 2015-2020 and available in
Google Scholar and Scopus databases. The main
contribution of this study is the identification and
categorisation of the DMSC enabling factors while
 III. LITERATURE REVIEW eradicate the potential challenges to diffuse I4
sustainability-oriented practices [7].
I4 technologies and digital manufacturing supply Since the transition to I4 (I4 adoption) is a very
chains were identified as the key concepts relevant for this challenging and complex undertaking for any organisation,
literature review. Reviews of these concepts are presented it requires careful planning at the firm level, including
below. readiness assessment at the start and gauging maturity at
A. Industry 4.0 Technologies different stages of I4 adoption [27]. I4 maturity models are
used to measure, compare, describe, or determine the
Technology innovation has been intensified due to current and desired situation and obtain the organisation's
sophisticated technologies such as big data, cloud possible evolution path [14]. Maturity models enable
computing, the Internet of Things (IoT), and cyber- internal and external benchmarking while offering
physical systems (CPS), which connect industrial activities guidelines through organisational development and growth
outwardly and inside the supply chain network. I4 concepts [11]. Therefore, this research pursued identifying key
and technologies are promptly being accepted and enabling factors of DMSC as a vital foundation for the
expanded in the manufacturing context; however, the gaps DMSC maturity model development. Enabling factors
in the process of digitalisation among individual firms, categorised into key areas and the proposed maturity model
industries, and countries are yet to be addressed [2, 7]. The could enhance organisational level capabilities and
I4 adoption process is complex, and therefore the lack of a facilitate an effective and efficient digital transformation
strategic roadmap or guidance may mean firms fail to process.
evaluate their capabilities, the benefits, and outcomes of
implementing I4.0 [8]. Sony and Naik [9] emphasise new IV. RESULT AND DISCUSSION
strategies to manage supply chains in smart factories where
structures change according to customers’ needs. This section presents the analysis of enabling factors
of digital manufacturing supply chains identified through
B. Digital Manufacturing Supply Chains the SLR. Five main categories are focused on this study,
which is vital in implementing DMSC in the context of I4
Supply chains must become smarter to deal with the [2, 6, 14]. All the enabling factors identified in this study
increasing challenge in the manufacturing sphere under each consideration are validated using different
effectively. However, this will not happen simply because studies, in which many research papers discuss these
technology is getting better. Digital supply chains or factors in relatively high frequency. Five main perspectives
Supply Chain 4.0 must emerge to respond to the challenges identified in this study based on the content analysis are the
of the supply chain agenda [3]. The future supply chains “I4 enabled integrated processes”, “Technological
must be more robust and responsive by having the right innovation”, “Stakeholder/ legal and regulatory
human capital, processes, and tools to drive effectiveness conditions/requirements”, “Sustainable practices”, and
and efficiency in the entire supply chain [5]. As stated by “Human capital”.
Capgemini consulting [10], the future of the Supply Chain
is determined by the intelligent application of new A. Industry 4.0 enabled integrated processes
technologies to benefit end-users and increase
productivity. The manufacturing industry of the 21st century is
Furthermore, they have defined Digital Supply Chain; faster, more interconnected, and requires sharing a more
DSC is leveraging the ability of Digital Technology and incredible amount of data. The I4 concept in the
Data to attain outstanding performance in terms of costs manufacturing or digital manufacturing supply chains can
reduction, quality improvement and customer satisfaction, be specified as an integrated and collaborative network of
making competitive advantage and grasping new business systems that respond in real-time to meet the conditions
opportunities [10]. A Digital supply chain is instrumented and demand of the dynamic supply networks from product
and interconnected among various stakeholders and design to logistics processes [15]. Collaboration with
products/services at different levels. The digital supply supply chain stakeholders to make a joint decision and
chain is smart enough to analyse extremely complex and information sharing enable an integrated and
vibrant business scenarios [11]. interconnected supply chain [1]. Cui, et al. [16] stated that
The scope of digital supply chains goes beyond an I4 enables a high level of supply chain collaboration by
isolated manufacturing system and extends to customer facilitating: high-resolution real-time communication,
segmentation, omnichannel, and time-to-market [10, 12]. large scale simulation, self-forming system-of system, end-
Wu, et al. [3] argue that apart from technical challenges, to-end standardisation of reporting, virtual representation
managerial challenges need to be overcome in digital of physical objects, automatic control and pre-processing
supply chains. Therefore, there are several possible of data. Sharing information is the basic factor of exchange
research avenues within the digital supply chain yet to be in capturing, sharing, applying, and creating knowledge.
discovered. Organisations should develop their capabilities Technological advances redefine the relationship, share the
in terms of strategic organisational policies, workforce process and collaborate among supply chain members [17].
knowledge, friendly business culture and leadership to In addition, real-time information sharing will bring greater
customer service, enhance revenue, and understand and in the I4 era. Lichtblau [27] stated that organisations use
increase customers’ buying patterns [18]. sensor-generated data that are more transparent in
It is imperative for an organisation to gather operations and planning processes. Modular and flexible
knowledge about suppliers, customers, and various other smart devices connect through cyber-physical systems
stakeholders in its supply chains. Therefore, learning in the associated with the physical world and operational
supply chain or network, called supply chain learning functions [28]. The future supply chain will become more
(SCL), has interesting implications [19]. Even though and more self-aware, self-thinking and require minimum
learning in the supply chain produces many positive human intervention [29]. An intelligent supply chain takes
outcomes, most of the literature limits learning to the first- its own decision in disruptive conditions and uses both the
tier supplier or customer; this does not disseminate physical and digital infrastructure with minimum or no
essential knowledge to the entire supply chain. Moreover, human intervention [30]. Artificial intelligent solutions
impact the next generation industrial system as a powerful
among the many positive outcomes of SCL, a joint new
tool in the manufacturing ecosystem [31]. Cloud
product development approach can be considered the main
computing eliminates traditional boundaries between
consideration, which leads to supply chain innovations
businesses. Frank et al. [2] stated cloud-based systems are
[20]. able to give real-time visibility and timely connectivity
Implementing the cross-organisational enterprise along with multiple supply chain participants. Companies
resource planning system (ERP) is the backbone for the I4 are offering ‘software as a service’ (cloud-based) solutions
implementation. ERP systems are considered [2] along with their supply chain management (SCM)
technologically and operationally ready for digital SC software applications.
adoption; however, perceived challenges occur to the Big data analytics (BDA) is considered vital
machine to machine (M2M) and machine to ERP technology that will enrich more insights about future
interaction as there are no unified standards and protocols supply chain design and operation [32]. Big data-driven
[21]. supply chain analytics capability (SCAC) is a ‘game
Raj et al. [22] studied prominent, influencing and changer’ in the supply chain [33, 34]. A large volume of
resulting barriers that impact the implementation of I4 in data collected by numerous sensors and digital equipment
developed and developing countries. According to their utilised in production lines and factories has overwhelmed
study, “lack of digital strategy alongside resource scarcity” the manufacturing industry [35]. Therefore, organisations
is the most prominent aspect hindering efficient adoption need to see big data as a strategic asset that should give rise
of I4. Santos et al. [23] stated that the prevailing technology to holistic analytics and intelligent decision making in the
roadmaps for implementing I4.0 are unclear and making it business environment.
complex for organisations to understand the implications
of disruptive technologies and concepts. As a result, C. Stakeholder/ legal and regulatory
organisations demonstrate increased readiness to invest in conditions/requirements
digital transformation. However, they lack knowledge
regarding their current level in I4 and strategic guidance The evolvement of cloud-based systems, big data, IoT
towards its realisation [24]. Therefore, roadmapping and other I4 technological solutions always carry security
towards digital supply chains based on an I4.0 maturity is vulnerabilities for conducting successful business [36].
key in the digitalisation process. The data security and information privacy within and
external to the organisations will enable I4 initiatives and
B. Technological Innovations smart supply chains [37].
Government policies and strategic direction are key
The availability of information and communication enablers for supply chain-wide I4 implementation. Luthra
technology intended to facilitate I4 implementation is a key and Mangla [7] elaborate on the lack of government
enabler of DMSC adoption [25]. IT infrastructure supports policies and directions as the main challenge to I4
efficient storage, retrieval, and transfer mechanisms to initiatives for sustainable supply chains in emerging
implement I4 technologies such as IoT, cloud computing, economies. Therefore, supportive government policies at
and robotics. Availability and efficient usage of IT the micro and macro level influence the success of DMSC
infrastructure act as an enabler in I4 transformation in the adoption.
manufacturing sector. Since I4 is a reasonably new concept, the standards and
Technical, operational and cultural compatibility is an reference architecture are identified as key factors for
important consideration for integrating physical, financial successful implementation [38]. Schumacher et al. [14]
and information flows with supply chains [26]. I4 creates stated that the adequacy of technological standards and
various technology solutions and devices to strengthen protection of intellectual property rights are essential
supply chain process integration. Compatibility among considerations in I4 maturity.
these devices and technology solutions leading to
interconnected and integrated supply chains.
The production and distribution systems with I4
technologies will coordinate with less human intervention
D. Sustainable practices by articulating the I4 vision and mission in the
organisation.
Sustainability in manufacturing (economic benefits, Innovation oriented culture is the main factor of people
environmental conditions, and social factors) involves aspect for the digitisation journey of organisations. In
complex decision-making processes in the DMSC. Due to addition, knowledge sharing and open innovation are key
the lack of clearly specified return on investment and to the success of DMSC adoption [24]. Table 1 presents a
economic benefits, many industry practitioners are summary of all identified enabling factors. Findings from
ambiguous about the investment towards I4 the content analysis show that strategic DMSC planning
implementation [1, 7, 39]. To upgrade existing equipment and roadmapping clearly define economic benefits,
and machines and facilities, innovate products and combining lean, green and Industry 4.0 practice, cloud
processes, proper investment and funding support are computing and cloud infrastructure, implementing big data
critical considerations in the I4 technology adoption. and predictive analytics, properly skilled/trained
Product and process innovation through sustainable workforce and top management support for digitalisation
product development, cleaner production, and energy- are the key enabling factors which discuss in the majority
efficient manufacturing system, enforcing health and of the previous studies.
safety practices [40, 41] are firm-level best environmental
and social practices for sustainable development. TABLE 1
Supply chains have experienced series of shocks SUMMARY OF THE DMSC ENABLING FACTORS
caused by major disruptions and the recent global
pandemic. Ivanov [42] theorise the concept of viable Main Enabling Factors Sources
Aspects
supply chains, considering the three perspectives: leagility,
I4 complexity handing through [1, 15, 16]
resilience, and sustainability. To better understand the Industry 4.0 enabled
integration and coordination of SMSC
integrated processes
opportunities that DMSC may offer for the intended processes.
sustainability functions in the supply chains, insights about Information sharing across value chain [17, 18]
the interrelationship between digital technologies and Joint new product development [19, 20]
approach via SCL
sustainability is vital. Kamble et al. [43] identify the I4 Implementing the cross-organisation [2, 21]
technologies utilised across manufacturing industries to enterprise resource planning systems
attain process integration leading to sustainability. The Strategic DMSC planning and road [2, 5, 12, 22-
circular, smart production systems impact a new culture of mapping 24]
reuse and recycling techniques of waste using additive ICT Infrastructure [2, 6, 24, 25]
Compatibility of technology devices [26]
manufacturing concepts to increase production and Cloud computing and cloud [2, 6, 24, 28]
Technological
innovations

manufacturing performance [44]. The joint infrastructure facility

implementation of I4 principles and circular economy Modular and flexible smart devices, [26-28]
approaches represent a real-time decision model for sensor network
sustainable reverse logistics systems [44]. Overall, Intelligent decision-making using AI [28, 29, 31]
Implementing big data and predictive [11, 30, 33,
integration of leagility, resilience, sustainability and analytics 34]
digitalisation into supply chain practices substantially Government support via digitalisation [7, 22]
r/ legal and
Stakeholde

regulatory
conditions

contributes to the manufacturing ecosystem performance policy framework

improvement and sustainability [42, 44]. Industry-wide accepted standards for I4 [24, 38]
Data security and information privacy [12, 36, 37]
E. Human capital Sustainable product development [40]
Energy-efficient manufacturing systems [40, 41]
I4 replaces traditional skills with higher-order new Cleaner production tool usage [40, 41]
Sustainable practices

skills [9]. Production workers need to have Enforce health and safety practices [41]
skills/competence such as IT and critical thinking in the Leagility practices [42]
Investment and funding support for the [1, 7, 39]
manufacturing environment. Technical skills such as data Industry 4.0 implementation
analytics, automation technology, data security, Clearly defined economic benefits [1, 2, 22]
collaborative software and non-technical skills such as Circular economy practices [43, 44]
problem-solving, systems thinking, process mapping are Greening DMSC sourcing [44]
important for I4 implementation [6]. I4 related training and Combining lean,agile and green [42, 43]
practices with Industry 4.0
knowledge sharing is essential to familiarise employees Properly skilled/trained/qualified [9,5, 6, 24]
with new digital transformation and increase their workforce
Human
Capital

adaptability in the smart supply chain network. Innovation oriented culture to adopt I4 [7, 11, 24]
Continuous managerial support will be one of the most technologies
Top management support to absorb I4 [7, 9]
important factors that drive organisational resources to technology capabilities.
successfully implement I4 [6]. In addition, the top
management influence within the organisation will
motivate other employees to sustain the new I4 initiatives
and help overcome the resistance to adapt to new changes
 V. CONCLUSION The study’s findings could be useful for industry
practitioners to develop guidelines when adopting and
This study identifies and classifies the key enabling transiting to the I4 setting by prioritising enabling factors
factors of digital manufacturing supply chains while in each category/aspect, depending on the level of
providing a holistic view of the I4 adoption in the supply readiness and the importance of each aspect from the
chain context based on SLR. Further, this study presented supply chain performance improvement perspective.
a DMSC maturity model to illustrate how the digital supply Researchers can base their future work on I4 adoption by
chain enabling factors and different supply chain levels can exploring potential inter-dependencies of enabling factors
be integrated to enhance digital supply chain performance across each category/aspect, considering current maturity
(Fig. 2). The multi-levelled framework proposed in Fig. 2 levels from firm-level to eco-system level.
provides firm-level, supply chain/industry level, and Although the proposed DMSC maturity model is
ecosystem-level DMSC enabling factors to adopt digital developed based on the critical review of literature, it was
manufacturing supply chains successfully. not validated using empirical data. Further research is
On the first level, individual organisations respond to needed to validate the model based on the empirical result.
an I4 disruption by developing internal resources and Furthermore, the DMSC maturity model can be further
capabilities. In the second level, organisations try to engage examined in other supply chain functions since only five
with supply chain partners and developed more key categories have been dealt with in this study.
collaboration and industry-wise accepted standards while Moreover, this research can be expanded to identify and
practising sustainable strategies. Finally, in the third level prioritise implementing the I4 concept specific to the
supply chain ecosystem, the entire supply chain, manufacturing industry.
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