Modeling of trade and production hub in the conditions of Industry 4.0

Abstract

The article is dedicated to the current issues of researching digital transformation in accordance with global standards, global competition, and social aspects. The previous transformation practices of food enterprises in line with the requirements of Industry 4.0 have been analyzed. A physical concept of a digitized trade and production hub has been designed in accordance with Industry 4.0, encompassing both production and trade complexes. It represents an innovative and promising initiative that addresses a range of current problems on a national and regional scale. To ensure the effective functioning of the digitized trade and production hub concept in line with Industry 4.0, a mechanism for an automated system for receiving raw materials and finished products from suppliers, accounting, production, and acceptance of finished products, control of supplier raw material and product stocks, operation of the trading floor and digital stand, traceability of the movement of goods and material values for the formation of preliminary orders to the supplier of raw materials and finished products, the functioning of the value creation logistics chain for the supplier and the trade and production hub, and the distribution of material resources between suppliers and the Industry 4.0 trade and production hub have been developed. A concept of a digitized trade and production hub in accordance with Industry 4.0 and mechanisms of its functioning, which are automated, have been designed. The proposed concept aims to increase the efficiency of production and logistic processes, inventory control, automatic order generation, and raw material distribution. It is worth noting that the developed model in accordance with Industry 4.0 is aimed at optimizing resources, reducing operational costs, improving the quality of manufactured products, supporting local manufacturers, providing an opportunity for small local manufacturers to collectively use modern digital technologies, and increasing employment at both the local and regional levels. The franchising model serves as an additional scaling tool for Industry 4.0 trade and production hubs, allowing the integration of innovative enterprises into a unified production-digitalized ecosystem.