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.