A Study on Supply Chain 4.0 Value Drivers With Respect to Automobile Manufacturing Industry in India

Journal: GRENZE International Journal of Engineering and Technology
Authors: Jinu Kurian, Nishita Parekh
Volume: 10 Issue: 2
Grenze ID: 01.GIJET.10.2.941 Pages: 2446-2454

Abstract

Traditional supply chains consist of linear models where information flows from suppliers to producers to distributors to customers and back whereas supply chain 4.0 is a model which uses fully automated technologies that includes Internet of Things, modern robotics, 3-D manufacturing, blockchain, advanced analytics and others. (Ali, 2022). In today’s globalised and complex ecosystem, the linear models often cause delays in information or material flow in both upstream and downstream in the chain. Hence, themodern world supply chain ecosystem must shift towards the digital supply chain, supply chain 4.0, by creating circular models that can improve information sharing and visibility thereby leading to improved strategic outcomes. It must start by identifying the essential building blocks of the digital supply chain, and then using them according to the desired supply chain model. Some dimensions like strategic, legal, ethical, technological and organisational, affecting industry 4.0 implementation in supply chains which triggered competitiveness and impacted the strategic business decisions, were identified by researchers (Ghadge et. al 2020). The present study is an attempt to test the impact of some of these dimensions in the Indian automobile sector. This paper focuses on identifying the value drivers for the strategic outcome of supply chain 4.0. It considers Technological support, Leadership Support, Data-Driven Services, Supply Chain Collaboration, Strategy, and Process as value drivers for supply chain 4.0. The paper is based on a survey conducted on managers of the automobile manufacturing industry in Maharashtra, India. A questionnaire designed for the study was administered to 200 managers, from which 167 valid responses were analysed using structural equation modelling. The findings of the study reveals that the proposed model satisfies all the validity and reliability tests and the results indicate that Technological support, Leadership Support, Data-Driven Services, Supply Chain Collaboration, Strategy, and Planning are significant value drivers for assessing the strategic outcome of Supply Chain 4.0. The findings and suggestions will help in improving the strategic outcomes of Supply chain 4.0 in the automobile manufacturing industry.

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