Over the last three decades,Information Technology (IT) systems have undergone a significant revolutionaryprogress that subsequently impacted every aspect of daily life. One of the mostradical changes is the shift from computers to smart devices utilizing theinfrastructure services based on cloud computing. This new beginning of theInternet era, marked by an integrated computer-based automation and ubiquitouscomputing systems, is moreover being connected to the wireless network by theInternet. These recent developments have enabled not only the virtually endlesspossibilities of interconnecting human beings and machines in a cyber-physicalsystem context using information obtained from different sources but alsodirect communications between machines. The implementation of this kind ofnetwork within the production and operations environment is termed Industry 4.0.
The introduction of Industry 4.0 into manufacturing hasmany impacts on the whole supply chain. A collaboration between suppliers,manufacturers and customers is crucial to increase the transparency of all thesteps from when the order is dispatched until the end-of-life of the product.Furthermore, due to the introduction of digitization and automation ofprocesses, the whole supply chain management (SCM) structure.
In order tounderstand the opportunities and possible threats from the introduction ofthese new technologies, therefore it is necessary to analyze the impact ofIndustry 4.0 on the supply chain as a whole. This research presents a preliminary analysis ofthe impact of Industry 4.0 on SCM and aims to provide a thought towards SupplyChain 4.
0. The scope of the analysis has been intentionally limited to, includeonly four functions within a supply chain, i.e. procurement, transportlogistics, warehouse and order fulfillment. This is presented with respect tothe Key Performance Indicators (KPIs) of the SCM. It is hoped that the outcomeswill open up future pathways to draw the bigger picture and thus conduct afuller analysis of these impacts.