Improving Supply Chain Resilience under COVID-19 Outbreak through Industry 4.0

Abstract

The shift of focus on Industry 4.0 tools by industrialists to improve the overall performance of their industry is a clear indication that supply chain performances can also be improved by adopting these tools. The breakout of pandemic COVID-19 has necessitated researchers to ponder over the avenues of this adoption on a priority basis. This chapter aims to highlight the potential ways of integrating Industry 4.0 tools in supply chain activities to resolve the issues and challenges stimulated by the pandemic. The relevant tools of Industry 4.0, such as cloud computing, Internet of Things, augmented/virtual reality, big data analytics, artificial intelligence, and blockchain architecture, have been examined for comprehending their potential application in supply chain management. It also analyzes the role of these technologies in improving flexibility, supported by agility, transparency, and autonomous decision-making capabilities (smartness) in a supply chain, which helps in facing the challenges that arose in demand, supply, logistics, and production due to COVID-19. Moreover, the ever-changing customer preferences and volatile demand have made the industrialists focus on the flexibility of the supply chain to adjust under such scenarios. In response to the need for flexibility and especially in times of disruptions, such as the current one caused by the COVID-19 pandemic, the supply chain needs to be empowered by new technologies capable of mitigating risk in real-time scenarios. Therefore, this chapter elaborates on the importance of flexibility in supply chain management and gives insight into the challenges produced in the supply chain by COVID-19 and the solutions that Industry 4.0 can provide. Furthermore, some technological limitations have also been discussed. The present study concludes that the new technologies may contribute to developing an efficient and more flexible supply chain, to face any disruptive challenges, resulting in increased global competitiveness.