Xây dựng mô hình chuỗi cung ứng tích hợp 4.0 trong ngành công nghiệp 4.0: Ba điển hình nghiên cứu trong các ngành công nghiệp Nhật Bản

Nội dung text: Xây dựng mô hình chuỗi cung ứng tích hợp 4.0 trong ngành công nghiệp 4.0: Ba điển hình nghiên cứu trong các ngành công nghiệp Nhật Bản

1. CONSTRUCTING AN INTEGRATED MODEL OF SUPPLY CHAIN 4.0 UNDER INDUSTRY 4.0: THREE CASE STUDIES OF JAPANESE INDUSTRIES XÂY DỰNG MÔ HÌNH CHUỖI CUNG ỨNG TÍCH HỢP 4.0 TRONG NGÀNH CÔNG NGHIỆP 4.0: BA ĐIỂN HÌNH NGHIÊN CỨU TRONG CÁC NGÀNH CÔNG NGHIỆP NHẬT BẢN Te Fu Chen Lunghwa University of Science and Technology, Taiwan Abstract Objectives of the study are to explore the evolution of supply chain management (SCM) 1.0 to 4.0 via integrated views, analyze how will industry 4.0 affect the supply chain? Furthermore, this study constructs an integrated model of supply chain 4.0 to assess challenges and potentials of the supply chain management arising from the fourth industrial revolution (Industry 4.0). Finally, the study analyzes three case studies of industry 4.0 in Japanese industries and how they will successfully integrate SCM and Industry 4.0. Keywords: Supply chain management, industry 4.0, SCM 4.0, integrated model Tóm tắt Mục tiêu nghiên cứu là xác định quá trình phát triển của quản trị chuỗi cung ứng (SCM) 1.0 tới 4.0 với quan điểm tích hợp, phân tích tác động của ngành 4.0 tới chuỗi cung ứng. Ngoài ra, nghiên cứu này cũng xây dựng một mô hình chuỗi cung ứng tích hợp 4.0 để đánh giá những khó khăn và tiềm năng của quản trị chuỗi cung ứng mà cuộc cách mạng công nghiệp lần thứ tư (Ngành công nghiệp 4.0) mang lại. Cuối cùng, nghiên cứu phân tích ba điển hình của ngành công nghiệp 4.0 của Nhật Bản và phương thức họ sẽ hội nhập thành công vào SCM và Ngành công nghiệp 4.0. Keywords: Quản lý chuỗi cung ứng, ngành công nghiệp 4.0, SCM 4.0, mô hình tích hợp 1. Introduction 1.1 Background and motivations Some authors such as Halldorsson et al. (2003), Ketchen and Hult (2006), and Lavassani et al. (2009), have tried to provide theoretical foundations for different areas related to supply chain by employing organizational theories, which may include the following: Resource-based view (RBV) (Kozlenkova et al., 2014), Transaction cost analysis (TCA), Knowledge-based view (KBV), Strategic choice theory (SCT), Agency theory (AT), Channel coordination, Institutional theory (InT), Systems theory (ST), Network perspective (NP), Materials logistics management (MLM), Just-in-time (JIT), Material requirements planning (MRP), Theory of constraints (TOC), Total quality management (TQM), Agile manufacturing, Time-based competition (TBC), Quick response manufacturing (QRM), Customer relationship management (CRM), Requirements chain management (RCM), Dynamic Capabilities Theory, Dynamic Management Theory, 637
2. Available-to-promise (ATP), Supply Chain Roadmap (Hernán David Perez, 2013). However, the unit of analysis of most of these theories is not the supply chain but rather another system, such as the firm or the supplier-buyer relationship. Among the few exceptions is the relational view, which outlines a theory for considering dyads and networks of firms as a key unit of analysis for explaining superior individual firm performance (Dyer and Singh, 1998). Therefore, the gaps in the literature on supply chain management studies at present (2017) are no theoretical support for explaining the existence, boundaries or the evolution of supply chain management. If supply chain 1.0 was a handshake and supply chain 2.0 cemented relationships with rock-solid written communication, then you might say supply chain 3.0 is about using social media for business communication (Dave Mace, March 2016). In a nutshell, Supply Chain 3.0 is the stage where supply chain management is based on the power of business networks. Supply Chain 3.0 is the result of the supply chain evolution from Supply Chain 0.0 over decades. It is a sound proof that today companies collaborate in robust business networks. The evolution of Industry 4.0 is being driven by new information technologies, including Big Data, cloud computing, the Internet of Things (IoT), radio frequency identification (RFID), 3-D printing, robotics, global digital networks, artificial intelligence, and augmented reality. Based on Industry 4.0, SCM 4.0 was born. 1.2 Objectives of the study According to the above background and motivations, objectives of the study are to: (1) Explore the evolution of supply chain management 1.0 to 4.0 via integrated views. (2) Analyze how will industry 4.0 affect the supply chain? (3) Construct an integrated model of supply chain 4.0 under Industry 4.0. (4) Analyze three case studies of industry 4.0. and how they will successfully integrate SCM and Industry 4.0 2. The evolution of supply chain management Six major movements can be observed in the evolution of supply chain management studies: creation, integration, and globalization (Movahedi et al., 2009), specialization phases one and two, and Supply chain management 2.0 (SCM 2.0). However, nowadays, the evolution of supply chain management has developed into SCM 3.0 and SCM 4.0, the study reviews the eight movements as the table 1: Table 1: The evolution of supply chain management The Contents evolution SCM 1.0 Creation era: The term "supply chain management" was first coined by Keith Oliver in 1982. However, the concept of a supply chain in management was of great importance long before, in the early 20th century, especially with the creation of the assembly line. The characteristics of this era of supply chain management include the need for large-scale changes, re-engineering, 638
3. downsizing driven by cost reduction programs, and widespread attention to Japanese management practices. However, the term became widely adopted after the publication of the seminal book Introduction to Supply Chain Management in 1999 by Robert B. Handfield and Ernest L. Nichols, Jr.,( Robert & Ernest, 1999), which published over 25,000 copies and was translated into Japanese, Korean, Chinese, and Russian (Pawan, 2009). Integration era: This era of supply chain management studies was highlighted with the development of electronic data interchange (EDI) systems in the 1960s, and developed through the 1990s by the introduction of enterprise resource planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of Internet-based collaborative systems. This era of supply chain evolution is characterized by both increasing value added and cost reductions through integration. A supply chain can be classified as a stage 1, 2 or 3 network. In a stage 1-type supply chain, systems such as production, storage, distribution, and material control are not linked and are independent of each other. In a stage 2 supply chain, these are integrated under one plan and is ERP enabled. A stage 3 supply chain is one that achieves vertical integration with upstream suppliers and downstream customers. An example of this kind of supply chain is Tesco (Pawan, 2009). Table 1: The evolution of supply chain management (Continued) SCM 1.0 Globalization era: The third movement of supply chain management development, the globalization era, can be characterized by the attention given to global systems of supplier relationships and the expansion of supply chains beyond national boundaries and into other continents. Although the use of global sources in organisations' supply chains can be traced back several decades (e.g., in the oil industry), it was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business. This era is characterized by the globalization of supply chain management in organizations with the goal of increasing their competitive advantage, adding value, and reducing costs through global sourcing (Pawan, 2009). SCM 1.0 Specialization era (phase I): outsourced manufacturing and distribution In the 1990s, companies began to focus on "core competencies" and specialization. They abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements, by extending the supply chain beyond the company walls and distributing management across specialized supply chain partnerships. This transition also refocused the fundamental perspectives of each organization. Original equipment manufacturers (OEMs) became brand owners that required visibility deep into their supply base. They had to control the entire supply chain from above, instead of from within. Contract manufacturers had to manage bills of material with different part-numbering schemes from multiple OEMs and support customer requests for work-in-process visibility and vendor- managed inventory (VMI). The specialization model creates manufacturing and distribution networks composed of several individual supply chains specific to producers, suppliers, and customers that work together to design, manufacture, distribute, market, sell, and service a product. This set of partners may change according to a given market, region, or channel, resulting in a proliferation of trading partner environments, each with its own unique characteristics and demands (Pawan, 2009). SCM 1.0 Specialization era (phase II): supply chain management as a service 639
4. Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management (storage and inventory), and non-asset-based carriers, and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution, and performance management. Market forces sometimes demand rapid changes from suppliers, logistics providers, locations, or customers in their role as components of supply chain networks. This variability has significant effects on supply chain infrastructure, from the foundation layers of establishing and managing electronic communication between trading partners, to more complex requirements such as the configuration of processes and work flows that are essential to the management of the network itself (Pawan, 2009). Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done; it allows them to focus on their core competencies and assemble networks of specific, best-in-class partners to contribute to the overall value chain itself, thereby increasing overall performance and efficiency. The ability to quickly obtain and deploy this domain-specific supply chain expertise without developing and maintaining an entirely unique and complex competency in house is a leading reason why supply chain specialization is gaining popularity. Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has taken root primarily in transportation and collaboration categories. This has progressed from the application service provider (ASP) model from roughly 1998 through 2003, to the on-demand model from approximately 2003 through 2006, to the software as a service (SaaS) model currently in focus today (Pawan, 2009). SCM 2.0 Building on globalization and specialization, the term "SCM 2.0" has been coined to describe both changes within supply chains themselves as well as the evolution of processes, methods, and tools to manage them in this new "era". The growing popularity of collaborative platforms is highlighted by the rise of TradeCard's supply chain collaboration platform, which connects multiple buyers and suppliers with financial institutions, enabling them to conduct automated supply-chain finance transactions (Global Trade Review, Sep./ Oct 2009). Web 2.0 is a trend in the use of the World Wide Web that is meant to increase creativity, information sharing, and collaboration among users. At its core, the common attribute of Web 2.0 is to help navigate the vast information available on the Web in order to find what is being bought. It is the notion of a usable pathway. SCM 2.0 replicates this notion in supply chain operations. It is the pathway to SCM results, a combination of processes, methodologies, tools, and delivery options to guide companies to their results quickly as the complexity and speed of the supply chain increase due to global competition; rapid price fluctuations; changing oil prices; short product life cycles; expanded specialization; near-, far-, and off-shoring; and talent scarcity (Pawan, 2009). SCM 2.0 leverages solutions designed to rapidly deliver results with the agility to quickly manage future change for continuous flexibility, value, and success. This is delivered through competency networks composed of best-of-breed supply chain expertise to understand which elements, both operationally and organizationally, deliver results, as well as through intimate understanding of how to manage these elements to achieve the desired results. The solutions are delivered in a variety of options, such as no-touch via business process outsourcing, mid-touch via managed services and software as a service (SaaS), or high-touch in the traditional software deployment model (Pawan, 2009). 640
5. Table 1: The evolution of supply chain management (Continued) SCM 3.0 If supply chain 1.0 was a handshake and supply chain 2.0 cemented relationships with rock-solid written communication, then you might say supply chain 3.0 is about using social media for business communication (Dave Mace, March 2016). In a nutshell, Supply Chain 3.0 is the stage where supply chain management is based on the power of business networks. And this is not just any network, this is an era of 5-star business networks. Supply Chain 3.0 is the result of the supply chain evolution from Supply Chain 0.0 over decades. It is a sound proof that today companies collaborate in robust business networks. Some characteristics of Supply Chain 3.0 (Global Supply Chain Group, 2015): 1. Putting your customers at the heart of supply chain 2. Everything you do, whether it is product development, research and development or even marketing is done with the final customer in mind and you work very closely with your final customers to create products demanded in the market place. 3. Achieving alignment in end-to-end supply chain across all the functional silos of an organisation SCM 4.0 The evolution of Industry 4.0 is being driven by new information technologies, including Big Data, cloud computing, the Internet of Things (IoT), radio frequency identification (RFID), 3-D printing, robotics, global digital networks, artificial intelligence, and augmented reality. An early vision statement could read: "With the confluence of trends and technologies related to Industry 4.0, global supply chain flows will become increasingly digital and integrated, and end-to-end data will be driven in real time, exponentially increasing upstream information flows." This new paradigm calls for a new management culture. We call this management culture "Supply Chain Management 4.0" ( Michiya et al., 2016). 3. Industry 4.0 and the Supply Chain 4.0 (1) Industry 4.0: The evolution of the digital supply chain Stefan, Philipp (September, 2016) indicated if the vision of Industry 4.0 is to be realized, most enterprise processes must become more digitized. A critical element will be the evolution of traditional supply chains toward a connected, smart, and highly efficient 641
6. supply chain ecosystem. Behind the great potential of the digital supply chain (DSC) lies Industry 4.0, the fourth industrial revolution. A transformation in production and automation was brought on first by steam and water power (Industry 1.0), then by electrification (2.0), and more recently by the digital computer (3.0). Industry 4.0, digitization, is about companies orienting themselves to the customer through e-commerce, digital marketing, social media, and the customer experience. Ultimately, virtually every aspect of business will be transformed through the vertical integration of research and development, manufacturing, marketing and sales, and other internal operations, and new business models based on these advances. (2) Four key aspects of how Industry 4.0 will impact the supply chain Simon Jacobson, research vice president at analyst firm Gartner, has outlined four key aspects of how Industry 4.0 will impact the supply chain (MH&L Staff, Sep, 2015): A. Smart factories - Automated and flexible manufacturing processes that are integrated with customers and business partners in support of product lifecycle changes - will impact current factory layouts. B. The Internet of Services - Connecting production facilities across geographies and company boundaries to create virtual production capabilities will create new business models and disrupt current supply chain designs. C. Advanced analytics - Capitalizing on big data and predictive analytics - to drive flexibility at the process level, not just production lines or factories - will put more pressure on organizations to use production data to its fullest. D. Focus on the knowledge worker - The rise of smart machines will not see the demise of the knowledge worker - rather, this increasing complexity demands supply chain professionals expand their problem solving and systems engineering skills. (3) Supply chain management trends in industry 4.0 According to The Lean Manufacturing Journal (2015), “The fourth industrial revolution can enable the true lean enterprise.” Lean is about doing more with less. That’s the notion behind the popularity of these four supply chain management trends (table 2). Table 2: Supply chain management trends in industry 4.0 Trend Contents Augmented reality overlays digital information on the real world. Supply chain Think The Terminator from the T800’s perspective (not real). Or watch this cool management trend 1: Magic Leap demo (very real): In supply chain management, augmented reality is augmented reality being used for equipment repair, safety and quality monitoring, and order picking. SAP and DHL already use it for order picking. Supply chain With a working artificial intelligence (AI) definition of “the ability of 642
7. a machine to perform human intelligence tasks equal to or better than management trend 2: humans,” River Logic cites multiple use cases for AI in supply chain management, artificial intelligence including: 1. Inventory Control & Management: Determine optimal inventory levels 2.Purchasing & Supply Management: Eliminate repetitive purchasing tasks involved in the make-or-buy decision process 3.Demand Shaping, Planning and Forecasting: Base decisions on a level of visibility and understanding of supply-and-demand information not possible by the human mind According to Optimum Procurement (in an article that deftly weaves Supply chain in a “Spinal Tap” metaphor) the “Future State” of procurement in Industry management trend 3: 4.0 includes procurement the following: 1.Think Supply “Network” Management: Supply integration “chain” is too linear. The global interconnected nature of suppliers, markets and competitors requires new thinking to compensate for vertical and horizontal integration. 2.Co-create Value: Collaborating with suppliers from idea “through to the product development process seems to be procurement Nirvana.” 3.Improve User Experience: Look for applications to have more user-friendly interfaces based on consumer-level products. 4. Lead, Don’t Follow: Global partnerships are there for the taking so there’s no need to rely on the status quo. robotics-in-supply-chain-management More than half of supply chain managers expect robotics to have a significant impact on their business. - Source WSJ.com Robots have sensors and vision that make them more efficient at Supply chain supply chain management tasks such as materials handling and assembly. They’re management trend 4: also being robotics designed to safely work alongside humans, not necessarily in place of 643
8. humans. Robot automation helps companies lower fulfillment times and costs. In a recent MHI and Deloitte survey cited by the Wall Street Journal, 35 percent of respondents have already adopted robotics into their supply chains. The same article claims, “Amazon.com Inc., for example, designs new fulfillment centers with robotics incorporated in the design.” Source: The Lean Manufacturing Journal (2015)\ Robinson Adam (2016 a) indicated 2016 supply chain trends: 7 of 12 trends that will drive supply chain management in 2016: A. Trend #1: Supply Chains will Look to Go Digital B. Trend #2: Responding to Innovation & Change But with An Eye On Fundamentals C. Trend #3: Augmented Reality (AR) D. Trend #4: Artificial Intelligence on Steroids E. Trend #5: Agile = The New Lean F. Trend #6: Procurement’s New (read Bigger) Role in the Supply Chain G. Trend #7: Collaboration Continues to Take Center Stage for Efficient Supply Chain Management Moreover, Robinson Adam (2016 b) proposed 5 additional more areas of focus in 2016 supply chain trends to watch out for: A. A Bigger Focus On Supply Chain Risk Management, Especially Resiliency B. Making the Supply Chain Circular Vs. Linear C. Cloud Computing Continues to Increase In Use D. Wearables are the New Hot Trend on the Supply Chain Block E. A Continued, Renewed (Or New) Focus on Data Analysis for Continual Improvement & Better Supply Chain Visibility Supply chain management is undergoing a sea change in the early days of Industry 4.0. All technologies linked to Industry 4.0—which, according to The Boston Consulting Group, include the Internet of Things (IoT), cybersecurity, cloud, data analytics, simulation, 3D printing, augmented reality, and robots—are trending in supply chain management (Julie Steding, 2017). (4) Definition and characterizing features of industry 4.0 and Supply Management 4.0 Industry 4.0 is essentially a blueprint for digitalizing the value chain from factory to 644
9. customer. It combines logistics, production, IT, engineering, production to digitize business operations. Technologies included are the Internet of Things (IoT) and the Internet of Services, which in turn create the Smart Factory (MH&L Staff, Sep, 2015). Definition of Industry 4.0 and related concepts are summarized in Table 3. According to table 3, it is most important to state that Industry 4.0 is not limited to the technical dimension of digitalizing modern businesses (Felser, 2015), as it is rather the complete new organization and network coordination of value and supply chains (Platform I4.0, 2015). As such Industry 4.0 can be understood following three key paradigms or perspectives (Felser, 2015; Schuh et al., 2014): A. Smart technical and engineering perspective: “Industry 4.0” is the usage of smart products and services within an appropriate technical environment (industrial internet of things; smart home; smart factory). B. Organizational and transformational perspective: “Industry 4.0” is the ability to dynamically create and rapidly use organizational interfaces for competence and capability networking. C. Economic, value-oriented perspective: “Industry 4.0” realizes collaboration productivity. As such, “Supply Management 4.0” is a fundamental conceptual element of Industry 4.0 as it connects the different supply chain partners and enables a dynamic and rapid cooperation and coordination beyond organizational boundaries. In other words “without the procurement and supply chain management functions, Industry 4.0 is not to be successful in Germany” (Feldmann, 2015). 645
10. Table 3: Definition of Industry 4.0 and related concepts 646
11. Hans-Christian et al., (2015) defined the following definition: Industry 4.0 is the sum of all disruptive innovations derived and implemented in a value chain to address the trends of digitalization, autonomization, transparency, mobility, modularization, network- collaboration and socializing of products and processes. In the following, the seven characterizing features are reflected and described in detail. A. Digitalization: The companies’ internal processes, product components, communication channels and all other key aspects of the supply chain are undergoing an accelerated digitalization process (Geisberger and Broy, 2012). According to the conceptual analysis visualized in figure 3, the digitalization process itself is the most important characteristic feature and enables all other characterizing features. B. Autonomization: “Industry 4.0” technologies and concepts are enabling machines and algorithms of future companies to make decisions and per-form learning-activities autonomously. This autonomous decision-making and learning is based on man-made algorithms and enables whole factories and manufacturing facilities to work with minimum human-machine-interaction (Angelov, 2012). C. Transparency: While global supply chains are characterized by highly complex structures, the available “Industry 4.0” technologies are increasing the transparency of the whole value creation process. Through this in-crease in transparency, decision-making in the company will be more collaborative and efficient. Not only the supply chain processes, but also the behavior of corporate partners and customers will be more transparent to the company (Wang, Heng and Chau, 2007). D. Mobility: The dissemination of mobile devices makes communication, data sharing and generation of values possible from all over the world. The mobility of devices is changing the way customers are interacting with companies, and the communication and interaction of machines in the production process (Schweiger, 2011). E. Modularization: “Industry 4.0”-technologies are enabling the modularization of products and the whole value creation process, e.g. manufacturing facilities. Modular production facilities can be adjusted in their quantity autonomously, which is increasing the flexibility of the production processes (Koren, et al., 1999; Putnik, et al., 2013). F. Network-Collaboration: Just as human beings in our society are inter-acting in social networks, the companies’ processes will be defined and activities will be decided through the interaction of machines and human beings within specific networks in and out of the companies organizational borders (Bauer, et al., 2014). G. Socializing: The collaboration in networks is enabling machines (not only smartphones) to start communicating and interacting with other machines and/ or humans in a socialized manner. Herewith, the collaboration with machines is socialized, since humans are able to get into a conversation with the machines (Oswald, 2014). (5) The supply chain ecosystem According to PwC, the digital supply chain ecosystem shown as Figure 1: 647
12. Figure 1: The long road to Industry 4.0, the digitization of every aspect of business The digital supply chain ecosystem consists of eight key elements: integrated planning and execution, logistics visibility, Procurement 4.0, smart warehousing, efficient spare parts management, autonomous and B2C logistics, prescriptive supply chain analytics, and digital supply chain enablers. All of these elements are interrelated, and they build on one another. Consequently, a digital supply chain strategy needs to consider all of them to leverage the full benefits of digitization. This ecosystem will be based on full implementation of a wide range of digital technologies — the cloud, big data, the Internet of Things, 3D printing, augmented reality, and others. Together, they are enabling new business models, the digitization of products and services, and the digitization and integration of every link in a company’s value chain: the digital workplace, product development and innovation, engineering and manufacturing, distribution, and digital sales channels and customer relationship management (Stefan, Philipp, September, 2016). (6) Smart supply chain enablers — success factors Stefan, Philipp (September, 2016) indicated companies must put into place several key capabilities needed to carry it out, in addition to the supply chain applications. These key capabilities include the following: A. Processes. B. Organization and skills. C. Performance management. D. Partnering. E. Technology. (7) Integrated planning and execution — the horizontal axis According to PwC, the business goal of the digital supply chain is to deliver the right product into the customer’s hands as quickly as possible — but also to do so responsively and reliably, while increasing efficiency and cutting costs through automation. This goal cannot be achieved unless the supply chain is fully integrated, seamlessly connecting suppliers, manufacturing, logistics, warehousing, and customers, and driven through a central cloud-based command center (see Figure 2). 648
13. Figure 2: The integrated planning and execution platform in the supply chain With this level of integration, signals that trigger events in the supply chain can emanate from anywhere in the network and alert all to issues affecting supply or demand, such as shortages of raw materials, components, finished goods, or spare parts. In a world in which customized manufacturing is fast becoming the norm, and customers are becoming ever more demanding, the fully responsive supply chain is a huge competitive advantage and fast becoming a must-have (Stefan, Philipp, September, 2016). (8) Four stages of maturity To complete maturity in their efforts to put together the fully digital supply chain. The process leads through four stages of maturity (Stefan, Philipp, September, 2016): A. Digital novice. B. Vertical integrator. C. Horizontal collaborator. D. Digital champion. 4. Constructing the integrated model of Supply Chain 4.0 649
14. Based on the above comprehensive literature review, the study constructs an integrated model of Supply Chain 4.0 as figure 3: Supply chain management trend 1. augmented reality 2. artificial intelligence 3. procurement integration 4. robotics 5. Internet of Things (IoT), 6. cybersecurity, 7. cloud, 8. data analytics, 9.simulation, 10. 3D printing Industry 4.0: the sum of all disruptive innovations derived and implemented in a value chain to address the trends of digitalization, autonomization, transparency, mobility, modularization, network-collaboration and socializing of products and processes. The complete digital ecosystem: based on full implementation of a wide range of digital technologies — the cloud, big data, the Internet of Things, 3D printing, augmented reality, and others. New business models: the digitization of products and services and the digitization and integration of every link in a company’s value chain: the digital workplace, product development and innovation, engineering and manufacturing, distribution, and digital sales channels and customer relationship management. Eight key areas: integrated planning and execution, logistics visibility, Procurement 4.0, smart warehousing, efficient spare parts management, autonomous and B2C logistics, prescriptive supply chain analytics, and smart supply chain enablers. The integrated planning and execution platform in the supply chain: the supply chain is fully integrated, seamlessly connecting suppliers, manufacturing, logistics, warehousing, and customers, and driven through a central cloud-based command center The four stages of supply chain maturity: 1. Digital novice. 2. Vertical integrator. 3. Horizontal collaborator. 4. Digital champion. Figure 3: An integrated model of Supply Chain 4.0 5. Three case studies of Industry 4.0 in Japanese industries (1) The survey Michiya et al., (2016) conducted a survey on the implementation of Industry 4.0 in three Japanese industries: electronics, machinery, and vehicles. They chose those industries because they are subject to intense global competition and the companies in those industries are sensitive to the influence of Industry 4.0. The surveyed companies are all listed on the Tokyo Stock Exchange. One manager in charge of the supply chain or manufacturing responded for each company, with the number of respondents being 30, 23, 650
15. and 16, respectively. The survey was conducted using the online survey tool SurveyMonkey from August to December 2015. (2) The principal findings To reflect the management culture, they picked five managerial practices: lead-time reduction, quality conformance, product performance (a surrogate for the reduction of demand variability), reduction of process inventory, and reduction of finished inventory— all typical aims of JIT. The respondents evaluated perceptually their companies' performance in regard to the questionnaire items, such as the current and planned levels of implementing specific practices or technologies related to Industry 4.0. They used the average score of these practices as a measure of the intensity of the management culture; that is, the absolute supply chain orientation described above. They judged that applying statistical tests to these practices would form a scale that could be used as a surrogate for the absolute supply chain orientation. The following are some of their principal findings (Michiya et al., 2016): A. Japanese industrial companies are product- and production-oriented in regard to Industry 4.0. B. The levels of implementation of Industry 4.0 are relatively low, but we can see that the level of the management culture measured by the absolute supply chain orientation has a significant influence on the implementation of Industry 4.0. C. However, an interesting finding is that the group of below-average companies is more interested in downstream supply chain flows, as indicated by the smaller difference between the two groups and, as such, is their third priority. D. The high-profile group places more emphasis on the involvement of Industry 4.0 in those two areas than the low-profile group does. E. Japanese industrial companies like automation but are afraid of the risks inherent to the Internet. There are significant differences at the 5 percent level in the use of autonomous robots, simulation, cybersecurity, and augmented reality. F. There is a consistent focus on production management. The results show a clear emphasis on the application of emerging IT technologies to improve operations, with autonomous robots and simulation being the top two priorities and additive manufacturing (3-D printing) the fourth. Cybersecurity is their third priority, above IoT, cloud computing, and Big Data analysis. G. Enhancement of competitiveness and supply chain stakeholders' satisfaction are key expected benefits from Industry 4.0. When it comes to the anticipated outcomes of Industry 4.0, there are clear differences between the two groups. H. The values for the top three outcomes are quite similar to each other. Starting with faster response to demand, flexibility is one of the trade-offs and challenges of JIT, and Japanese manufacturing companies expect to cover this gap with Industry 4.0 technologies. 651
16. The values of the low-profile group approach those of the high-profile group for flexible production systems, shorter product-development process (time to market), and enhancement of supplier satisfaction. J. It may surprise readers outside Japan that enhancement of supplier satisfaction lies slightly above employee satisfaction. Japanese supplier relations are characterized by long-term partnership commitment, including the sharing of investments in plants, resources, and knowledge (Kenji,1998). K. Some Japanese companies see Industry 4.0 as the link between people and processes that enables completely new strategic scenarios and business models with more opportunities than risks. L. Finally, how Japanese companies view Industry 4.0? Overall, the high-profile group values Industry 4.0 more positively than does the low-profile group. 6. Conclusions and Recommendations According to Juanqiong et al, (2007), successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. Information shared between supply chain partners can only be fully leveraged through process integration. Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems, and shared information. According to Lambert and Cooper (2000), operating an integrated supply chain requires a continuous information flow. This study intends to reveal the challenges that firm come across on attempting to integrate business functions along the supply chain 4.0. The global fleet of commercial aircrafts will grow by 10.000 until 2026. At the same time a hard competition takes place. The next generation of Supply Chain Management (SCM 4.0) may for many companies be the solution to survive or even to strengthen their competitive position (AIRTEC, 2016). The study explores the evolution of supply chain management (SCM) 1.0 to 4.0 via integrated views, analyze how will industry 4.0 affect the supply chain? Furthermore, this study constructs an integrated model of supply chain 4.0 to assess challenges and potentials of the supply chain management arising from the fourth industrial revolution (Industry 4.0). Finally, the study analyzes three case studies of industry 4.0 in Japanese industries and how they will successfully integrate SCM and Industry 4.0. These case studies discuss how to gain Industry 4.0 leverage based on a range of high-value-added processes. All companies have the possibility of gaining such leverage; only those companies that possess a certain management culture will be capable of creating this leverage and achieving real competitive advantage. The most important factor is whether the company is able to exploit such technologies through an evolutionary "learning-by-doing" approach. This ability is nurtured by accumulating meaningful experiences under the appropriate focus on cross-functional SCM activities. Now, with the 652
17. advent of Industry 4.0, the time has come for a more credible management culture that would allow companies to direct their efforts toward desirable practices and deploy processes designed to create competitive value in the future with less risk than otherwise. If a company wants to remain a high performer, it must seek a management culture that strengthens the whole process of value creation (Michiya et al., 2016). Moreover, through the evolutionary process of learning by doing, the company that implements some of these emerging technologies will gradually acquire the necessary digital know-how and market responsiveness to achieve a highly competitive position in a global environment that is characterized by exponentially increasing complexity and large, rapid changes. These companies will become true order-winners by putting into practice Supply Chain Management 4.0: the high-profile management culture that will successfully integrate SCM and Industry 4.0 (Michiya et al., 2016). A quantitative analysis to validate the results must be performed in future research and to confirm the model as this study was performed based purely on the results of the comprehensive literature review and case studies. Furthermore, the integrated model does not weigh the factors with which the specific challenges or potentials are operationalized in the model. In future research, the importance of specific challenges and potentials has to be analyzed and validated in conjunction with experts in respective interviews. REFERENCE AIRTEC (2016), Supply Chain Management 4.0: How to survive as the fittest? Angelov, P., (2012). Autonomous Learning Systems: From Data Streams to Knowledge in Real-time. John Wiley & Sons. Bauer, W., et al., (2014). Industrie 4.0 - Volkswirtschaftliches Potenzial für Deutsch-land. Berlin: BITKOM. Carlos Cordon (FEB. 2017), Supply Chain 4.0, Dave Mace (March, 2016), Supply Chain 3.0: Welcome, farmers, to social media, Dyer Jeffrey H. and Singh Harbir (Oct., 1998), The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage, The Academy of Management Review, Vol. 23, No. 4, pp. 660-679 Feldmann, C. (2015). Ohne den Einkauf findet Industrie 4.0 nicht statt, available at (accessed 25 August 2015. Felser M (2005). Real-Time ethernet —industry prospective. Proc IEEE 93(6):1118-1129 Geisberger, E., Broy, M., (2012), agenda CPS - Integrierte Forschungsagenda Cyber- Physical Systems. Berlin, et al.: Springer. 653
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