1. Introduction
The SDGs were adopted on 25 September 2015, at a meeting of global leaders held at the United Nations (UN) in New York. These 17 goals lay out a plan for the sustainable development of all countries that emphasizes social inclusion, economic prosperity, and environmental conservation [
1]. The 17 SDGs are interconnected, with actions in one area influencing results in another, and the sustainability of social, economic, and environmental systems must be sustained throughout the development phase [
2]. Everyone, including governments, businesses, civil organizations, and the general public, must contribute to the SDGs [
3]. To some extent, the goal of economic, social, and environmental sustainability can be realized in the field of manufacturing, where manufacturing includes a variety of actions that contribute to the creation of an end product from raw materials. SCM is a field in which various manufacturing activities are regularly monitored and economic, social, and environmental factors are adequately implemented. The balancing of these factors leads to the growth of a manufacturing organization in connection with the contemporary world.
As demonstrated [
4], a fully digital supply chain can be established through Industry 4.0 and digital transformation by expanding transparency in terms of activity centralization. Additionally, Ref. [
5] indicates that Industry 4.0 can greatly impact all other sustainability-related features and supply chains in an organized approach. Ref. [
6] identifies all ongoing challenges that must be addressed methodically, such as categorizing appropriate Industry 4.0 technologies for the adoption of sustainable operations management decisions, fostering supply chain collaboration, and establishing performance enablers for small, attainable targets. According to [
7], Industry 4.0 is mainly based on the foundation of production; however, the assimilation of SCM from the perspective of Industry 4.0 is still lacking. Furthermore, Ref. [
8] discovered that research on the fourth industrial revolution’s supply chain is still in its early stages. Traditional supply chains must shift quickly to effectively and efficiently adopt the principles of Industry 4.0 technologies to remain competitive in ever-changing and evolving markets, while organizations are constantly looking for ways to adapt to these new technologies [
9]. Correspondingly, Ref. [
10] asserted that there is a lack of evidence regarding collaboration through the notion of the digital transition.
According to previous studies, supply chain performance is measured by examining dependability, flexibility, quality, responsiveness, and asset management. Organizations are currently leveraging technological innovations to create effective communication channels and collaboration mechanisms to improve supply chain performance through increased information sharing. Since supply chain activities span functional boundaries, it has been challenging to address the issues and improve performance. To improve their process integration and analytical capacities, organizations have explored the adoption of unique and creative technologies. A new stage of SCM development known as Sustainable SCM 4.0 sees a considerable degree of automation and the integration of digital technology in the coordination of material, information, and financial flows inside business networks.
Recent advancements in information and communication technology (ICT) have demonstrated that using ICT to improve SC procedures is a promising strategy [
11]. Supply chains gradually transform into supply chain ecosystems as they become more digitalized through the adoption of the Industry 4.0 strategy [
12]. For the efficient adoption of supply chain practices, future supply chains should concentrate on advancing and integrating technologies such as the IoT, Cyber-Physical Systems (CPS), and blockchain. Disruptive technologies have a significant impact on supply chain practices. Organizations will benefit from making evidence-based decisions for increased sustainability performance by identifying and linking important Industry 4.0 technologies with supply chain practices [
13]. These digital technologies have had a significant impact in numerous research areas due to their cutting-edge features and qualities in the process of achieving sustainability [
14]. The primary areas in SCM where sustainability must be realized are economic growth, energy reduction, employment creation, pollution reduction, and living standard improvement [
15,
16,
17].
Based on the above motivation, this study reviews a few recent studies that have focused on SCM and Industry 4.0 technologies. A few of the studies are as follows. The first is a study that proposes a multistage implementation framework that highlights the organizational enablers, such as culture, a cross-functional approach, and continuous improvement activities [
18]. The purpose of [
19] was to investigate the impact of Industry 4.0-enabling technologies such as IoT, cloud computing, big data analytics, and CPS on SC performance in procurement, production, inventory management, and retailing by enabling process integration, digitization, and automation. Along with the Industry 4.0-enabling technologies in the previous study, the next study [
20] has discussed the role of Industry 4.0-enabling technologies with blockchain technology. The study elaborates on a holistic perspective on the potential of Industry 4.0 for supply chain management concerning the triple bottom line. The interrelations between the dimensions of the triple bottom line are analyzed concerning potential conflicts and enabling technologies [
21,
22]. Another study implemented a framework for comprehending the mediating role of transparency in the relationship between new technologies and long-term sustainability [
23].
From the above studies, it has been concluded that the author shave discussed the significance of Industry 4.0 technologies for enhancing supply chain performance. However, there are limited studies that have discussed all the Industry 4.0 technologies from the perspective of achieving sustainability with digitalization. This study aims to present the significance and application of a multitude of digital technologies’ roles in sustainable SCM for diverse applications, as well as a prospective upgrade of SCM for the attainment of sustainability. The main contributions of the study areas follows:
We discuss the implication of SCM in manufacturing and also address the role of Industry 4.0 digital technologies in SCM.
We address the significance and application of IoT, cloud computing, AI, big data, blockchain, and digital twin in SCM.
The study presents a comparative analysis, practical implications, recommendations, and future directions.
The study is structured as follows.
Section 2 presents the methodology of the study;
Section 3 covers the overview of SC management 4.0;
Section 4 discusses the enabling technologies’ assimilation for sustainable SCM;
Section 5 presents the results, and
Section 6 presents practical implications and suggested recommendations for future work.
2. Methodology
The present study is focused on studying the significance and application of Industry 4.0-enabling technologies for the supply chain management of an industry. In order to analyze this, this study follows the PRISM framework. To implement the PRISM framework, we framed the research questions, to collect the distinct research articles for analysis [
24]. The research questions framed in this study are as follows:
What is the progress of Industry 4.0-enabling technologies in supply chain management? (Answered in
Section 3).
What is the role of Industry 4.0 technologies in achieving sustainability in the field of supply chain management with digitalization? (Answered in
Section 4).
What future research directions can be identified based on the gaps detected? (Answered in
Section 6).
After the formulation of the research questions, in the study, we searched and located studies that answer the questions. The studies were searched from high-quality and relevant research databases such as Web of Science, and Scopus. In the study, the keywords were applied along with Boolean logical operators (“AND” and “OR” for searching the articles in the research databases). The Boolean combinations are “Keyword of A AND and Keyword of B”. This pattern was followed in search strings such as “industry 4.0” OR “business to business” OR “internet of things” OR “artificial intelligence” OR “blockchain” OR “digital twin” OR “digitalization” OR “digital technologies” OR “supply chain” OR “cloud computing” OR “bigdata” OR “sustainability” OR “sustainable management” OR “supply chain management” OR “sustainable development goals”. After obtaining the research articles, the next stage was to filter the articles based on certain criteria, as discussed in the following.
- (a)
Articles such as research, reviews, and case studies that are published in the English language are included.
- (b)
Articles that do not have full texts and studies that do not include conducted experiments or any validation are excluded.
- (c)
Articles that are duplicates and also non-peer-reviewed articles are excluded.
- (d)
All book chapters, patents, and conferences are excluded so as to maintain quality research.
In the final phase, the complete article was reviewed by considering the framed research questions. Finally, a total of 117 papers were considered in this study for the analysis of Industry 4.0’s impact on the management of finance in firms.
Figure 1 illustrates the PRISM diagram of the literature considered in this study. After obtaining 117 articles, the study was categorized into four sections, in which the third section discusses the significance of sustainable SCM from the perspective of Industry 4.0. After the discussion of this aspect, in the study, the various Industry 4.0 technologies are presented for sustainable SCM in a tabular form for better readability (
Section 4). Based on the discussion in
Section 4, results are presented in
Section 5. In
Section 6, comparison and contrast of previous studies with the proposed study, practical implications, and recommendations for future work will be presented.
Figure 2 illustrates the number of articles that have been obtained after applying the PRISM framework. Here, it represents the number of articles that have been selected year-wise, such as 2014–2022. There are 9 articles from the years 2001, 2008, 2009, 2012, and 2013, and one reference is a web link. Of the remaining articles, 108 are from the years 2014–2022. The details of articles year-wise are presented: 2014 (5%), 2015 (4%), 2016 (4%), 2017 (11%), 2018 (7%), 2019 (9%), 2020 (17%), 2021 (19%), and 2022 (14%).
3. Overview of Sustainable SCM 4.0
Industry 4.0 is transforming the way in which companies achieve, improve, and distribute their products. Manufacturers are incorporating new technologies into their manufacturing facilities and processes. Organizations are required to embrace this impending change in their operations, as well as in the larger supply, due to the shifting business trends in network chains [
25]. Industry 4.0 seeks to deliver real-time information on production, machines, and component flow by combining smart manufacturing, smart goods, and the IoT. These data are combined to help managers to make decisions, track performance, and track materials in real time [
26].
Figure 3 illustrates the Industry 4.0-enabling technologies that have already shown an impact in the various study areas for digitalization and sustainability.
SCM, which is now more complex than ever, will gain a great deal from becoming digital. According to studies, an interconnected, digital SC can increase business speed, agility, granularity, accuracy, and efficiency while reducing operational costs by more than 30%, reducing the chances of missing sales by more than 60%, and even reducing the amount of inventory needed by more than 70%. Furthermore, SCM has a significant environmental impact, emitting 33 billion tons of CO
2 into the atmosphere. According to McKinsey, consumer-packaged goods businesses’ supply chains account for more than 80% of greenhouse gas emissions and more than 90% of the impact on air, land, water, biodiversity, and geological resources [
27].
Figure 4 illustrates the mapping of SDGs concerning the activities involved in SCM. In SCM activities, the SDG goals are mapped for suppliers (SDG 6), inbound logistics and distribution (SDG 11), company operations (SDG 8), product use (SDG 12), and product end life (SDG 13). These goals empower SCM to support sustainability in terms of social, economic, and environmental perspectives. In order to achieve the SDGs, Industry 4.0 has a significant impact because it enables the monitoring, analyzing, predicting, securing, and transmitting of every activity of SCM with its enabling technologies. The benefits of moving to a completely automated, digital, and networked supply chain are enormous, even if it will take a lot of work and time. Supply chain optimization can help businesses to achieve a higher level of operational excellence and experience in the reduction of costs. The industries of the future will enable connectivity between machines and people in CPS in the context of Industry 4.0. These new systems concentrate their efforts on the development of intelligent goods and industrial procedures that will enable the sector to adapt to quick changes in consumer behavior [
28].
Acceleration through exponential technologies: employing cutting-edge technologies gives businesses the ability to lower costs, enhance flexibility, and customize their products. AI, drones, nanotechnologies, and a range of inputs are automated systems that facilitate customization, quick production, and flexibility [
29]. To apply the CPSs within the smart factory, strategies, networks, and business models must be put in place. This horizontal integration achieves high levels of flexibility, allowing the corporation to react more quickly [
30]. The manufacturer can recognize changes in clients’ demand and account for them in all production processes, from development to distribution, thanks to the transparency inside the value chain [
31].
6. Discussion
In this section, we present the comparison and contrast of previous studies with the current study. Along with this, the practical implications and future directions are discussed.
- (a)
Comparison and contrast of studies
The current study is focused on analyzing the role of Industry 4.0-enabling technologies with digitalization for achieving sustainable SCM. To validate the novelty of the current study, a comparison with previous studies is detailed and presented in
Table 6. From
Table 1, it is concluded that a few recent studies have been carried out on the concept of sustainable SCM, in which they have presented a systematic literature review. In these studies, the concepts of different Industry 4.0-enabling technologies that are significant in paving a path toward achieving sustainability in the supply chain with digitalization are lacking. However, this study presents the significance of different Industry 4.0-enabling technologies for the achievement of sustainable SCM in detail. Along with this, the study presents future directions that can assist researchers in enhancing the performance of SCM.
- (b)
Practical Implications
This study provides managers with an overview of Industry 4.0 and its enabling technologies’ implications for sustainable SCM from a practical perspective. By 2030, every nation, business, and the individual must work toward sustainability to ensure a safe and sustainable environment for future generations. This study empowers managers to identify which Industry 4.0-enabling technologies are appropriate for meeting the goal of sustainable SCM. It has already been concluded by different researchers in their studies of different fields that Industry 4.0-enabling technologies can achieve sustainability. This study assists managers in obtaining insights about the current advanced and emerging Industry 4.0-enabling technologies, such as IoT, AI, big data, cloud computing, and blockchain, which have the power to transform SCM into sustainable SCM with their unique and innovative characteristics.
The amalgamation of two or three different Industry 4.0-enabling technologies has an impact on sustainable SCM and, from this study, managers may be able to identify which combination of technologies can assist them to achieve different targets in sustainable SCM. In the present scenario, the amalgamation of AI, blockchain, and digital twin would empower the creation of an intelligent system to process complex activity in global supply chains. Furthermore, the combination of these technologies allows organizations to create a road map for good performance in ESG and enables them to meet social targets by combining new data types with conventional operation data to monitor contemporary social metrics. The amalgamation of AI and IoT has shown an impact in the present scenario. IoT-assisted edge-based devices with AI can be incorporated into the SCM to generate predictions and analytics based on real-time data. This indeed empowers us to take immediate decisions in SCM stages such as raw materials, suppliers, inbound logistics, company operation, and the product use cycle.
- (c)
Recommendations
Many organizations that are working towards environmental sustainability are currently issuing green bonds. In the context of the supply chain, the organization is issuing green bonds; however, they are many challenges in verifying that the particular organization is following environmental sustainability in its SCM. Thus, there is scope for implementing Industry 4.0 technologies to measure the environmental sustainability achieved by a particular organization.
Digital twin implementation in the manufacturing industries allows the creation of a virtual SCM model [
107,
108,
109]. The process of every stage of SCM will be experienced in real-time from the virtual representation. If manufacturing develops a digital twin model of SCM, then it will be beneficial for education institutes to teach students to understand the activities involved in it [
110,
111,
112]. Moreover, a digital twin model of the manufacturing industry can be created to check the possibility of risks and impact on the environment and support society.
The real-time implementation of IoT hardware in SC is still in the early stages. Industries need to speed up the implementation of IoT hardware, as it can assist in integrating blockchain for the visualization of real-time data in a peer-to-peer network with high transparency, security, and immutability. Moreover, the integration of 5G communication in the IoT hardware minimizes the latency in transmitting critical real-time data to the destination. Moreover, 5G communication enables us to effectively implement AI-assisted edge devices based on edge computing for better predictive analytics and real-time analytics, which can boost the performance of SCM related to the current context [
113].
Moreover, 6G envisions AI-powered methods to enhance the connectivity quality of service (QoS) and optimize resource usage. For agricultural supply chain management, an architecture utilizing a combination of unmanned aerial vehicles (UAVs), artificial intelligence (AI), and blockchain is suggested, to guarantee the tracking of inventories, traceability and transparency, and contracts [
114]. Similarly, the combination of these technologies can be implemented in the supply chain management of manufacturing, strengthening its infrastructure and achieving sustainability.
Fundamentally, the implementation of edge intelligence in IoT applications consumes high energy during the computational process. In aprevious study, a deep reinforcement learning (DRL) model that could reduce the CNN model dynamically depending on the energy determined by the accuracy prerequisites and energy management policy for IoT applications is proposed [
115]. The proposed energy policy makes predictions about how much energy will be harvested and limits how much energy the edge device can use for deep learning inference.
- (d)
Future directions
The current study presents the significance of Industry 4.0-enabling technologies from the perspective of sustainable SCM. The current study can be further extended to discuss the remaining Industry 4.0-enabling technologies that are not discussed in this study. Currently, the performance of sustainability in any organization is measured with ESG metrics [
116,
117]. Thus, future studies need to discuss the ESG metrics about SCM and present how different Industry 4.0-enabling technologies support the acquisition of the data that are required in analyzing the ESG of an organization.
7. Conclusions
Sustainable SCM is a significant area that is progressing towards sustainability, emphasized by the United Nations as a requirement for the future. Industry 4.0-enabling technologies have played a crucial role in meeting sustainability goals in various fields. In this study, we have presented the significance and application of Industry 4.0-enabling technologies such as IoT, AI, cloud computing, blockchain, big data, and digital twin for achieving sustainable SCM. The study identified that these technologies are integrated for real-time tracking, inventory optimization, digital trading, demand analysis, and the optimization of operational management. This study suggests the amalgamation of technologies such as blockchain, AI, and digital twin for social sustainability in SCM. In addition to this, the study also discussed its limitations and also presented future directions for further research in sustainable SCM.