Industry 4.0 and Its Supply Chain Management

Summary

The industrial landscape of the 21^st century is changing under the influence of various contemporary factors. Historically, humanity’s approach to most of its activities across different sectors has aligned with the development of societal, economic, and technological aspects. Today, the third component has taken a leading position, as progress dictates a paradigm shift in industrial development. This age is characterized by the intense digitalization of most processes that occur on two levels. First, existing aspects of business see an influx of new technology that preserves the processes while altering the way in which they are executed. Second, new, previously unseen variables are introduced, modifying the landscape of supply and distribution chain management profoundly.

Therefore, today’s industrial landscape is characterized by the profound influence and use of modern technological solutions. This tendency has acquired its specific name of Industry 4.0, reflecting the scale of transformation that can be described as the fourth industrial revolution. While the concept itself has become well-established in professional literature and practical experience, its specific elements remain in the state of further elaboration. This dissertation addresses supply chain management as an integral component of Industry 4.0 in its present condition. More specifically, it aims to determine the exact nature of how digital transformation of the operational environment affects supply chain management, as perceived by academic experts and practicing managers of the field. Chapter One introduces the scope of the research, along with its primary elements, objectives, and questions to address.

Research Statement

The primary purpose of the present research is to explore the nexus between advanced technological tools characteristic of Industry 4.0 and supply chain management as its integral component. This area of knowledge is essential for the effective development of industrial relations within the current paradigm shift of profound digital transformation that occurs on all levels, from individual small business to entire industries across national borders. The practical significance of the study is considerable, as the overall discussions surrounding Industry 4.0 appear too generalized to dictate a similar paradigm shift in supply chain management (SCM). Being an integral component of the overall industrial framework, SCM retains its particular priorities and regulations that deserve additional exploration in light of the Fourth Industrial Revolutions. Spoken differently, the aspects that are highlighted for Industry 4.0 do not necessarily reflect the current state of the subject matter for supply chain management. Technological solutions that are found highly efficient for product distribution may simply be irrelevant for SCM and vice versa. As such, the core principles of supply chain management dictate the direction and priorities of the present research.

In a way, this dissertation is approached as an origin point of more profound discussions that will provide a comprehensive framework upon which further research can be based. The design of the study reflects the key synergy of theoretical findings and practical application. It is channeled through the methodological combination that is used for it. The theoretical component is ensured by a rigorous examination of the contemporary body of academic literature. Considering the novelty of the subject, the research undertakes to synthesize the relevant information that is scattered across the current body of knowledge. Through the examination of key parts present in literature, the dissertation is to provide a uniform framework of reference that is evidence-based and informed by the leading experts’ opinions.

Next, the practical component ensures the applicability of the research to the actual environment of today’s supply chain management. The design implies that the theoretical discussions are equally valuable with the views of the managers engaged in modern SCM on a daily basis. The dissertation embeds the contribution of SCM experts into its synthesized framework, drawing comparisons between theoretical perceptions and actual situations on sites. This approach to research is expected to prove its efficiency through the synergy of theory and practice, transforming overall findings into a specific, useful paradigm that will reflect the current state of supply chain management in light of the Industry 4.0 development.

The interest toward the subject matter is justified by its extreme importance for the functioning of the globalized society. In the 21^st century, markets have been growing, reaching unprecedented levels of scale and scope within the global economy. With the development of instant communication and rapid transportation, a variety of supply and distribution processes became facilitated. Thus, most businesses have grown accordingly, reaching nationwide or even international levels. In fact, it has never been as feasible to operate global supply and distribution networks across state borders and continents. In the current economic environment, most companies aspire to reach an international level, winning their shares of multiple segments of the globalized market. As a result, consumers benefit from better selection of products, while corporations see major contributions to the economic aspect of business.

However, such networks may be difficult to operate from the perspective of efficiency. On the one hand, modern technological solutions serve to improve communication, transportation, storage, and utilization of products. The overall conditions of the globalized market are easier, as many complex tasks are now being handled by technological tools with higher computing power, as well as analytics and prediction potential. On the other hand, the variety of these solutions expands along with the continuous digital progress. The mere reliance on advanced technology does not necessarily translate into a digital transformation. For this complex transition to occur, the solutions are to be used wisely and efficiently. This situation is only possible through the profound exploration of available options, analyzing them in light of specific industrial objectives faced by the particular element of the overall chain.

In this regard, the sphere of SCM appears to be lacking attention and coverage within the framework of Industry 4.0. The present discussion is generalized, and it does not focus on the details of what supply chain management needs to achieve in order to complete its digital transformation in a true sense. The present research aims to eliminate this gap in knowledge, addressing supply chain management as a specific element of the overall industrial revolution that is observed today on a global level.

Research Question and Objectives

As established within the contemporary body of literature, the efficient implementation of smart Industry 4.0 tools for supply chain management requires more profound knowledge of its attributes’ applicability in this context. Therefore, the projected research will address the following research question:

• What specific Industry 4.0 tools are applied in supply chain management?

To provide evidence-based answers to the specified research questions, the proposed study aims to accomplish several research objectives:

1. Review the current body of knowledge to understand how Industry 4.0 and supply chain management interact;
2. Synthesize a fundamental theoretical framework through the review of contemporary literature;
3. Obtain practical knowledge of the Industry 4.0 tools implementation in supply chain management;
4. Appraise the practical implementation of the Industry 4.0 tools in supply chain management in comparison to the theoretical framework of reference;
5. Synthesize practice-oriented guidelines for the Industry 4.0 tools use in supply chain management;
6. Outline the direction of further research within the specified area of knowledge.

Background of the issue

Industry 4.0 is a highly complex notion that serves to reflect the influx of innovative technology into the various spheres of human activity. Tjahjono et al. (2017) state that the term itself was coined to describe the dawn of the so-called Fourth Industrial Revolution. New solutions enable the formation of global networks that are assisted by the unparalleled computing capacity of the equipment (Ardito et al., 2019). In a way, Industry 4.0 is a unique nexus of human expertise and superior technology that complement each other, enabling smart production and supply management. In terms of the SCM, the impact of the new industrial reality is a concept that requires in-depth analysis. Tjahjono et al. (2017) note that the emphasis of modern supply chain management is laid on the transparency of all phases from the order placement to its ultimate completion. Theoretically, smart tools enabled by Industry 4.0 are to contribute to this objective through better assessment, communication, transportation, and evaluation opportunities.

On the other hand, the topic under review is highly complex and broad, which impedes the development of precise theoretical frameworks and practical guidelines. In its current understanding, it encompasses an array of industries and tools that enhance their operational efficiency. For example, the list provided by Hofmann et al. (2019) comprises IoT, Internet of Services, multi-agent CPS systems, big data, real-time algorithms, blockchain, and other solutions that can be implemented within the scope of Industry 4.0. At the same time, Shao et al. (2021) add that these principles are adequately developed for marketing and production operations today, whereas their application in supply chain management remains at the stage of “infancy” (para. 1). As such, rigorous research is required to advance the understanding of Industry 4.0 and its impact on the SCM. While the necessity of smart solutions is not questioned within the proposed research, the examination of specific tools and their contribution to supply chain management appears indispensable. Ultimately, the key problem within the field is the lack of complete understanding of which Industry 4.0 instruments are more efficient for the SCM.

Theoretical Significance

From the theoretical perspective, the contribution of the present dissertation consists of synthesizing the dispersed information that is presented within the contemporary body of academic knowledge. First of all, supply chain management is an integral component of overall industrial activities that shape the global economy. Indeed, Industry 4.0 is a complex notion that includes a variety of elements that remain interrelated within its framework. For the proper functioning of industrial processes, supply and distribution links must function in a synchronized manner that also aligns with the strategic vision and operational execution in light of external and internal variables. However, this interrelation does not imply that the understanding of Industry 4.0’s principles suffices to arrange each of its elements in the correct manner. On the contrary, a deductive approach to theory is required in order to build a resilient economy, capable of yielding profits for all parties involved. By this deductive approach, the present research implies a transition for the whole to its elements in a theoretical sense.

At present, a large part of the academic body of literature concerns Industry 4.0 as the core notion. While this approach is justified by the novelty of the overall subject matter, a paradigm shift toward its specific elements is needed to advance the field and sustain the economic growth. As long as the discussion is limited to Industry 4.0, it remains too generalized to provide a meaningful framework of reference for the field of supply chain management. In other words, a major theoretical gap is observed, since this framework leaves serious blank points for SCM specialists. Having to apply the generalized perspective on Industry 4.0 to supply chain management leads to a variety of interpretations that create inconsistencies within the field. This research aims to eliminate the gap by providing a single framework that synthesizes such dispersed experiences into a universal paradigm upon which the sphere of SCM can rely for further development. As a result, the professional area will benefit from the clarity of its theoretical component, yielding major improvements and quicker rates of its contribution to economic growth.

Practical Significance

From a practical perspective, the history of academic research has seen numerous examples of inconsistencies between theory and practice. This idea is not limited to the matter at hand, or industrial management studies at all. In fact, the inconsistencies in question occur across a variety of spheres, from healthcare to military commandership, as instilled by normal psychological and social processes. First of all, the theory-practice gaps may occur because of the novelty of the subject. In most cases, theory is the first step toward a full understanding of a notion, which creates ground for the further practical implementation of the ideas. Theorists describe new processes that may appear sporadically within the industry, they attribute meaning and order to otherwise chaotic developments.

As long as the stage of theoretical description is not completed, the domain of practice has no framework of reference to rely on, and the inconsistencies persist. Second, even the developed theoretical paradigms take time to implement. In other words, a paradigm shift in theory happens before a similar transition in practice. Finally, the inconsistencies may be caused by such a notion as feasibility. Spoken differently, the processes and principles that appear logical or efficient on paper, may not necessarily be coherent with the practical experience.

In the case of SCM, people who actually work on these tasks within Industry 4.0’s framework on a daily basis may hold different opinions on the efficacy and usability of specific solutions, as compared to the theoretical perception. The design of the present research seeks to eliminate the gap by taking into consideration both perspectives on an equal basis. The developed theoretical framework is subjected to a cross-examination with the insights provided by professional experts in a successful attempt to find common ground between the two major domains of research. As a result, the final theoretical framework is adapted to the practical environment, providing guidelines that are not only research-backed but also tested in a practical environment. Thus, further researchers and experts can rest assured of its efficiency and applicability.

Benefits of the study

As can be inferred from the presented information, this research is expected to provide an array of benefits for the understanding of supply chain management in its modern form. The primary enabler advantages consist of an effective unity of theory and practice that drives the directly of this study. The research does not view these two key components as separate entities with their own laws and principles. Instead, theory and practice are viewed as inseparable facets of the same entity within the context of supply chain management. More specifically, the research produces a single, uniform framework of reference that is theoretically grounded in the contemporary body of academic literature, while being adjusted to the practical experiences of current experts engaged in SCM procedures. This way, both facets of unity work in a combined effort to help the sphere of SCM complete its digital transformation and enter the age of Industry 4.0.

In this regard, the principles of supply chain management are not opposed to their mother-concept of industrial activities. On the contrary, SCM is viewed as an integral component of Industry 4.0 that works in sync with its other elements, ensuring the sustained economic growth that benefits all parties involved in this exchange of goods services. However, the research adapts the postulates of Industry 4.0 to the specific tasks faced by supply chain managers in order to introduce the benefits of digital transformation into the framework of contemporary economic relations. In light of the novelty of the subject and the theoretical gap currently associated with it, the present research will make a meaningful contribution to the understanding of how supply chain management should develop in the age of the fourth industrial revolution.

Validation and limitation of the study

The validity of the research will be enabled by several points. First of all, the sample of the research, in both theory and practice, will serve to reflect a diversity of perspectives and mitigate the impact of researcher and participant bias. Second, the nexus of up-to-date knowledge and current practical insights will solidify the relevant nature of the project. Third, the study will be conducted in compliance with the principles of academic integrity and research ethics. All participants of the practical phase will be informed of the objectives and expected outcomes of the project, providing their informed consent. The interviewees will remain anonymous, as well, which will simultaneously contribute to the objectivity of responses and ethics of the project. In addition, all theoretical knowledge will be properly attributed to each source of information. As for the limitations of the envisaged study, the main one is related to its qualitative design. While it is justified by the early development stage of the body of knowledge, this project will serve as the foundation for the subsequent studies required to provide detailed practical guidelines.

Literature review

Introduction

In light of the novelty of the discussed concept, namely supply chain management in the age of Industry 4.0, a strong theoretical background is required prior to embarking on the practical investigation of the subject matter. A review of the literature has been completed as an integral component of the present dissertation, aiming to assert the theoretical foundation of the discussion. Furthermore, this format accounts for one of the key components of the overall methodology of the project. More specifically, this review reflects the theoretical aspect of the prior knowledge accumulated within the framework of the present research. Preliminary investigations have revealed that this knowledge lacks particular consistency, which is explained by the overall recency of the central issue. As established prior, the core of the discussion revolves around Industry 4.0, in general, providing an overarching overview of the concept. At the same time, Industry 4.0 contains an array of specific components, among which SCM is a prominent one. Each of these components adheres to its own rules, prioritizing different benefits of the digital transformation. As such, a deductive approach, in which the body of research proceeds from generalities to particularities is required.

The review of the literature provided within the scope of the present research aims to address this situation by synthesizing otherwise scattered information within the contemporary body of knowledge. More specifically, preliminary investigations have shown that modern works contain valuable information regarding the benefits and applicability of Industry 4.0 tools for supply chain management. However, this data lacks precision and systematization, remaining an element of the overall discussion rather than SCM-specific research. In this regard, the scope of the literature selection and examination procedures has been considerable, comprising a series of queries that address different components of the overall problem. This particular chapter serves to solidify the background of the discussion, providing key information and variables for the subsequent development of the topic. The findings are categorized in accordance with their thematic groups. When combined, these thematic groups create a full image of supply chain management in light of Industry 4.0 today. Based on them, an overall theoretical framework is to be developed and applied in Chapter 4.

Industry 4.0 as a concept

The identification of Industry 4.0 as a concept is necessary to establish the general context of the discussion. The work completed by Ghobakhloo (2020) explains the logic behind this term and its understanding. More specifically, the author elaborates on the numerical part of the notion, which implies the onset of the fourth industrial revolution. As per the title, an industrial revolution implies a major shift in the understanding and process of industrial relations in all their complexity. This shift can be conditioned by a series of factors, among which the emergence of new technological solutions is one of the most prominent aspects. Ghobakhloo (2020) notes that an industrial revolution is characterized by fundamental transformations and exponential development that introduce a new reality of the business environment. With new means of production, distribution, and communication becoming more prevalent, the landscape of the economy changes drastically. As a result, companies are required to accept the new reality and adapt to it, as failing to do so will entail dire consequences for the organizational performance. The present environment meets the aforementioned criteria, making Industry 4.0 a reasonable, well-grounded notion.

Considering the importance of Industry 4.0 for the global economy, this concept is being increasingly recognized on a worldwide scale. According to Rojko, this notion has been adopted by the German government, making the new paradigm shift acknowledged and backed by the authorities. This approach reflects the general understanding of Industry 4.0, implying that scholars and governments’ perspectives align on this subject matter. As Rojko (2017) notes, Industry 4.0 as an initiative consists of a rapid and profound digitalization of the economy on a profound level that will encompass production, logistics, distribution, and customer relations. The development of the technological solutions used within industries creates new opportunities for the market players. Customization and personalization of experiences are some of the key attributes discussed within the framework of Industry 4.0. Companies no longer need to rely on a general image of the target audience. With new avenues of customer interaction and communication, bespoke experiences become the key descriptors of flexible, thriving companies of the 21^st century. The organizations that can tame this technology to build meaningful links between them and their audiences are more likely to master the environment of Industry 4.0.

According to modern researchers, the tools of Industry 4.0 respond to the elevated technological needs of today’s economic activities. Vaidya et al. (2018) specify this idea by referring to the concepts of digitalization and “intelligentization” as the prioritized outcomes of the industrial development of the 21^st century. In today’s environment, these two notions deserve additional exploration. In the case of digitalization, the situation is clearer, as the notion is widely spread in the economic discourse. It implies the introduction of new technological solutions that can be implemented to facilitate the processes that were otherwise longer or less convenient. However, this term is often confused with a related notion of technological transformation. Vaidya et al. (2018) note that the confusion is to be addressed and avoided. More specifically, digitalization is the process of adding technology to existing business processes. On the contrary, digital transformation is about the way business is done, in general. It is not limited to the modification and improvement of existing processes: it creates new ones.

Finally, the term intelligentization appears interesting for the subject matter. It highlights another key aspect of the subject matter: business processes are to be not only quick or technological, but also smart. Digitalization for the sake of digitalization is counter-productive and often detrimental to organizational performance. Instead, transformations need to be justified, pointed, and efficient in order to help the industry reach a new level that corresponds with the principles of 4.0. Thus, intelligent, reasonable solutions that actually make the work more efficient and productive.

The importance of Industry 4.0 as an actual industrial revolution was bound to attract increased attention of researchers and experts across the globe. One of such studies was completed by Oztemel and Gursev (2020) who explored the notion in all its varieties that are present in today’s economic environment. The authors acknowledge that the subject matter is not exactly recent per se. Indeed, technological advancement in the context of industrial performance has remained a topic of heated discussions since the dawn of the high-tech era in the late 20^th century. Nevertheless, the degree of the new solutions’ influence on the economy struggled to pass the revolutionary threshold until recently.

Once the progress reached a truly global status with new tools being capable of instilling lasting and profound transformations, the fourth industrial revolution became a reality. However, the discussion by Oztemel and Gursev (2020) remains centered on the means of production as the backbone of the economy. This approach reflects the imperfection of contemporary Industry 4.0 research. While production is an essential component and a vital business process, it is impossible to consider it the definitive representation of Industry 4.0. Supply chain management, customer relations, and distribution networks are equally important, which is why the deductive exploration of the subject matter is essential for advancing the knowledge on it.

The aforementioned threshold between overall progress and an industrial revolution reflects the depth of the transformations that are associated with Industry 4.0. Most works within the contemporary body of knowledge are in accord regarding the comprehensive and profound impact of Industry 4.0 on the global community. Aside from the technological and economical benefits experienced by the market players, there are social and environmental effects, as well. For example, Bai et al. (2020) review this matter as an essential enabler of sustainable economic practices that are needed for the preservation of the future of humanity. This concept maintains an active presence in today’s discourse surrounding industrial activities.

Within this context, economic practices, including SCM, aside from being efficient, profitable, and technologically enhanced, also need to be mindful of the environment and the Earth’s resources. In this regard, Bai et al. (2020) consider economic sustainability as a key benchmark for compliance with the Industry 4.0 principles. This concept is applied and observed across different contexts, including – but not limited to – “automotive, electronics, food and beverage, and textile, apparel and footwear industries” (Bai et al., 2020, para. 1). With the use of Industry 4.0, complex hybrid solutions are introduced that bring a new level of sustainable efficiency into their industries. As a result, the four components that define Industry 4.0 can be formulated as follows: efficiency, technological superiority, profitability, sustainability.

Overall, the spread of Industry 4.0 solutions remains truly global, which aligns with its perception as the fourth industrial revolution. New technology is not only revolutionary, but comprehensive, improving people’s work and personal lives on various levels. The research completed by Javaid et al. (2020) is a case in point, as it describes the application of Industry 4.0 tools in the age of the COVID-19 pandemic. The outbreak of the novel coronavirus has paralyzed economic activities, meaning that industrial entities had a strong incentive to combat this emergency on a global scale. The tools that are normally associated with the transition toward Industry 4.0 have found their application in this difficult period serving social, healthcare, trade, and communication purposes.

The Internet of Things technology that normally helps industries track their performance across the supply chain or determine their customers’ preferences have been repurposed to track the infection spread and support containment protocols. Detection and diagnosis of COVID-19 have also been facilitated with the help of high-tech solutions (Javaid et al., 2020). Through these activities, industries and society have found a positive common ground for cooperation that contributes to the formation of mutual trust. In addition, the extraordinary contribution of Industry 4.0 to the global fight against COVID has solidified its position as the next logical step of industrial evolution.

As a result, the development of Industry 4.0 aligns with the expectations in terms of their comprehensiveness and globality. As formulated by Xu et al. (2018), these rapid advances mark the transition to a brand new generation of industrial activities in production, logistics, and distribution assisted by modern technology. Their work refers to governmental initiatives that support the recognition of Industry 4.0 as a new reality. More specifically, Germany’s future-oriented High-Tech Strategy 2020 Action Plan directly embeds Industry 4.0 as one of the overarching goals of the country’s strategic development. Furthermore, China, as one of the world’s leading economies, has laid a substantial emphasis on these next-generation principles. According to Xu et al. (2018), the country’s long-term plans revolve around its status of the world’s greatest workshop through a nexus of technology and expertise. Industry 4.0 is a major enabler of this plan, providing the nation with sufficient resources to attain said level. The policy includes such smart tools as the Internet of Things, blockchain, Enterprise Architecture, cloud computing, and industrial data integration. The existence of these strategic programs reflects the key status of Industry 4.0 advancements.

As the investigation of the contemporary body of literature shows, Industry 4.0 discourse is often limited to abstract suggestions and forecasts. This idea is developed by Dalenogare et al. (2018) who mention that the body of research confirms the status of Industry 4.0 as the next stage of the global industrial development. However, aside from the philosophical reasoning that surrounds the concept, the authors acknowledge the lack of precision and specific details regarding the input of the new solutions. In other words, “little is known about how industries see the potential contribution of the Industry 4.0 related technologies for industrial performance, especially in emerging countries” (Dalenogare et al., 2018, p. 384). This idea outlines the priorities of Industry 4.0-related research, which is expected not only to describe but to prescribe, as well. It does not suffice for modern companies to know that a digital transformation is occurring and they are expected to follow the lead. They should also understand why this is happening and why there is a necessity of said transformation.

For this purpose, researchers are encouraged to look beyond definitions and descriptions, analyzing the subject matter from a perspective of its profound processes. This approach is supported by Culot et al. (2020), whose study ventures “behind the definition of Industry 4.0” (p. 1). First of all, the authors of the article establish the fact that there is no common definition of the fourth industrial revolution that would be shared and approved on a global level. Spoken differently, the contemporary body of research fails to seize the essence of Industry 4.0 and formulate its principles concisely and in a uniform manner. Culot et al. (2020) refer to a range of concepts that are perceived as synonymous to the subject matter: digital transformation and smart manufacturing. The former case is questionable as an equivalent, as Industry 4.0 appears to be more specific, reflecting the intersection of digital transformation with industrial business processes. Simultaneously, smart manufacturing is an unjustified concretization of the main principle, as Industry 4.0 comprises more than just the production of goods.

As a matter of fact, such concretizations are the primary cause of the knowledge gap that is identified within the scope of the present research. When the term Industry 4.0 is discussed, scholars and experts are prompted to consider manufacturing in all its forms and details. Nevertheless, modern industrial principles extend beyond the process of production, making supply and distribution chains equally important elements of the overall chain. Most definitions considered within this review agree upon the importance of vertical and horizontal integration of business processes as the key descriptor of Industry 4.0. Such ideas are expressed, for example, by Dalenogare et al. (2018) and Vaidya et al. (2018). Tang and Veelenturf (2019) distinguish logistics as an essential component of Industry 4.0 tools application in today’s business environment. They refer to these instruments, such as blockchain, drone technology, robotics, and AI, as the enablers of social and economic value that contribute to the adoption of Industry 4.0 principles. This discussion strengthens the position of supply chain management as an integral component of this transformation that is often disregarded in favor of manufacturing.

Digital Transformation

As established within the Industry 4.0 discussion, the subject matter is usually viewed in association with the concept of digital transformation. From one perspective, these two notions refer to a similar agenda that consists of introducing revolutionary high-tech solutions into business processes, making them efficient and economical. Industry 4.0 is all about advanced technology that has a comprehensive effect on the development of social, economic, and environmental values. Industry 4.0 creates a positive relationship between businesses and their environment, acknowledging the complexity of this interaction and contributing to the horizontal and vertical integration patterns through the application of advanced tools. Simultaneously, digital transformation creates a new business environment, in which digital solutions work toward better efficiency, convenience, and profitability of business activities. In a way, the two notions appear synonymous, referring to the revolutionary improvement of the entrepreneurial landscape. However, the degree of similarities is to be determined within this section.

In light of the prevalence of digital transformation discourse, it appears relevant to discuss this matter in terms of its definition, application, and intersection with the principles of Industry 4.0. The work provided by Crittenden et al. (2018) is devoted to this particular subject, which is presented as a definitive feature of today’s environment. The authors compare digitalization to a tsunami that swiftly covers most areas of human activity, introducing new solutions and rendering the existing paradigms obsolete. However, the velocity of this change often acts as a disruptive factor that prevents industries from fully appreciating its potential. Technology changes the way in which operations are completed and strategies are developed, but these transformations are often completed without a proper understanding of the mechanism. In this regard, digital transformation is not only about technology per se. As concluded by Crittenden et al. (2018), a true digital transformation occurs when new solutions are exposed to critical thinking, analysis, forecasting, and planning. Only through a thoughtful, informed implementation process, do digital solutions reveal their potential and instill meaningful, lasting transformations.

In fact, this discussion outlines the first core argument against the synonymity of digital transformation and Industry 4.0. For Crittenden et al. (2018), digital transformation is found everywhere, permeating most spheres of human activity. It is not limited to the work environment, production, or distribution. On the contrary, digitalization changes the way in which people not only work, but also live, think, and behave. It encompasses leisure and house chores, while becoming a major component of contemporary education. The same cannot be said about Industry 4.0, since it revolves exclusively around the patterns of economic relations, from product manufacturing to end consumer interaction through supply and distribution chains.

Of course, the global and comprehensive nature of digitalization makes its impact observable in the case of work and business environments. Balsmeier and Woerter (2019) provided an overview of digital transformation’s effect on this particular segment. These authors confirm that the rate of digitalization has attained the level of a “full swing”, introducing changes at an unprecedented pace. For production and distribution, this transformation usually consists of the extended process automation, which means that many tasks that require lower qualifications are now delegated to robots and computers. Spoken differently, this approach implies the use of artificial intelligence, robotics, blockchain technology, and other smart tools that are usually perceived as the descriptors of Industry 4.0.

Thus, there is a strong area of intersection between the two notions, which equally applies to supply chain management as an integral component of Industry 4.0. Interestingly, the impact of digitalization is not perceived as inherently positive by Balsmeier and Woerter (2019). They note that the replacement of lower-qualification labor by technology may cause a global job shortage, undermining the purpose of I.4.0 in terms of creating social value. This idea emphasizes the role of critical thinking and analysis, confirming that changes should not be introduced for the sake of a sense of progress. They need to be informed and based on actual consideration of its impact on the field. Hence, this analysis is what separates digital transformation from Industry 4.0.

At present, logic, analysis, and reasoning behind the introduction of digital solutions are not always guaranteed. This way, the social impact of the transformation is barely measured, leading to poorer outcomes in a broader, extra-industrial context. As a result, digital transformation faces reasonable concerns regarding its feasibility and impact, as described by Kwilinski et al. (2020). According to them, evidence suggests that digitalization of the European Union increases the risks of poverty and social exclusion in the region. Such an outcome is caused by the fact that many organizations and entire nations pursue digitalization without a full understanding of its essence. For some, the use of advanced tools per se suffices to create this sense of fulfillment. At the same time, when digitalization is executed correctly, it accounts for a lower risk of poverty and social inclusion, as all elements of the chain work in an integrated manner toward a common goal (Kwilinski et al., 2020). This idea aligns with the crucial role of critical thinking in digital transformation that is described earlier. Modern solutions are only efficient when applied with a full understanding of their potential and feasibility.

The presented evidence establishes digitalization as a broad concept that exists above the industrial context. It is not limited to manufacturing and supply chain management, but has a direct influence on it. Simultaneously, digitalization defines the way in which modern people work, live, and entertain themselves. Thus, it appears possible to conclude that digitalization is a broader concept the range of influence of which extends beyond the scope of Industry 4.0, as it defines the modern way of living above all. The firms that want to remain relevant in alignment with this context are prompted to pursue digitalization of their operations. This idea is expressed in the article by Bjorkdahl (2020), who concludes that “many firms are far from ready to benefit from digitalization and are mainly focused on achieving greater efficiency through digitalization rather than pursuing a growth agenda” (p. 17). Therefore, an imbalance is observed that can be formulated as the gap between Industry 4.0 and digitalization. These companies fail to appraise the differences between the two concepts, as well as the indispensable nature of careful, critical thinking-based assessment of digital initiatives.

Such inconsistencies create a situation, in which the benefits of digitalization remain unattainable due to the lack of understanding of this concept. Furthermore, Bloomberg (2018) insists that there is a fine line between digitization and digital transformation. In the contemporary body of research, the two concepts are often presented as synonymous, meaning the implementation of modern technology to assist with decision-making, production, and distribution with a higher level of efficiency. In his reasoning, Bloomberg (2018) relies on a straightforward understanding of digitalization as a term. For him, it is merely a transition from analog to digital operations. For example, the operations that were previously completed with calculators are now done with the help of computer algorithms. Digital transformation, on the other hand, is a more in-depth concept that becomes the ultimate result of an overall digitalization framework. In other words, a complex of digitization initiatives causes a paradigm shift within a firm or an industry which changes the way in which operations are completed profoundly. Digital transformation is a new level of industrial operations that not only augments current processes, but also creates new ones which were previously impossible.

As can be inferred from the presented data, digital transformation and digital are two related concepts that exist on different levels. In most cases, digitalization is observed on the operational or tactical levels. In simpler terms, a company embeds technological solutions into an existing procedure, making it quicker and more efficient. While the benefits are evident, such an approach does not guarantee lasting results in global terms. Digital transformation unites a variety of digitization efforts, creating a new paradigm. Thus, it operates on a strategic level and even has the capacity to redefine the business model, along with the image of the industry, in general. Thus, digital transformation aligns more with the concept of Industry 4.0, but the synonymy of both is still questionable.

In light of these findings, digital transformation becomes the ultimate strategic goals of the firms that wish to remain relevant in the changeable business environment. Verhoef et al. (2019) state that this agenda puts an increased pressure on managers, as its completion requires profound changes for which many companies are simply not ready. In the age of Industry 4.0, these business models are no longer defined by the organizations’ internal objectives. Instead, the complex relations within industries are brought to light, encompassing manufacturers, suppliers, distributors, and consumers. Under such circumstances, each element of the paradigm needs to function in light of the system, in general. Supply chain management cannot function only based on its objectives of efficiency and profitability, as it is part of a broader framework and contributes to the overall impact of the industry in generating value. Verhoef et al. (2019) conclude that reaching a state of digital transformation is demanding in terms of the organization’s willingness to change its patterns and comply with the external conditions of Industry 4.0. Only by venturing beyond the normal limits can a company attain this level.

In fact, the information that is presented above illustrates a research gap in the field of digital transformation studies, as well. In many cases, the contemporary body of research fails to provide a definitive description of this process, which makes it difficult to draw comparison with Industry 4.0. An attempt to amend this gap has been made by Mergel et al. (2019) who sought an empirically grounded definition of digital transformation. The authors confirm that the inconsistencies remain present due to the lack of a systematic approach to the subject matter. More specifically, policy-makers and managers continue to interpret digital transformation in the way that aligns with their specific industries, goals, and strategies. As per the findings presented by Mergel et al. (2019), digital transformation is a state in which the industry changes its strategic and tactical business models to align with the changes in economic, political, cultural, and social environments, generating value in each domain. The unnecessary concretization of the concept undermines its integrity, creating a variety of approaches that are valid for one context while being subject to misinterpretation in the case of others.

Finally, contrary to the initial perception that is formed upon the examination of the term, digital transformation does not revolve exclusively around technology. This idea is developed by Tabrizi et al. (2019) who report that digital transformation is referred to as the primary concern and a matter of the highest priority by today’s corporate managers, shareholders, and decision-makers. Nevertheless, in spite of the increased attention to the matter at hand, 70% of digital initiatives fail to complete their objectives, which translates into almost $1 trillion in losses (Tabrizi et al., 2019). The authors provide a fitting explanation as to why even extremely high investments do not guarantee a positive outcome in this regard. According to Tabrizi et al. (2019), digital technology is a tool that offers a chance to complete this transformation by attaining a new level of efficiency. In other words, technology only accounts for the possibility of success but does not ensure it. For the efforts to become fruitful, technology should be combined with other factors, and investment is not the decisive one. In fact, the key to utilizing these technology-enabled opportunities lies in the correct mindset and considerate approach to digital transformation. Change does not occur spontaneously, and the entire company or industry should be ready to instill it.

Overall, digital transformation will be the ultimate outcome of the profound paradigm shift within the market, company structure, management mindset, strategic planning, and consumer behavior. In light of the provided literary data, the synonymity of Industry 4.0 and digital transformation cannot be confirmed. While the two concepts are closely related, they remain parts of a larger system rather than different names for the same process. In summary, the process begins with setting a digitalization agenda, which ultimately leads to a level of technological paradigm shift that can be called a digital transformation. Thus, digital transformation is a process, a paradigm shift needed to augment companies and industries to a state which is defined as Industry 4.0.

Supply Chain Management and Industry 4.0

Supply chain management functions on the basis of its specific principles, values, and priorities that are not necessarily similar to other industrial operations of the 21^st century. In general, the review of contemporary sources suggests a strong inclination toward the transparency of modern SCM (Tjahjono et al, 2017). Supply chains integrate a range of steps and agents that need to interact efficiently. The aforementioned transparency is a key enabler of efficiency, as the ability to trace every link of the chain contributes to the timely identification of problems and their resolution. Tjahjono et al. (2017) mention that the principles of Industry 4.0 suggest that this process can be automated with the help of modern solutions. With the reliance on technological advancements, it is possible to ensure an autonomous, self-regulatory exchange of the vital data between the elements of the supply chain with limited human involvement. Of course, a certain degree of operator expertise remains indispensable, but the overall process becomes more efficient and transparent. The Internet of Things (IoT) is one of the tools that contributes to this transformation through detailed sensor data exchange between automated units.

This particular instrument is actively discussed within the contemporary body of literature in terms of its association with Industry 4.0 and SCM, in particular. For example, it becomes a central notion to the article by Ben-Daya et al. (2017), who explore the application of this revolutionary technology by supply chain management specialists in today’s practical environment. The array of benefits ensured by the IoT is difficult to overestimate, since it supplies managers with precise sensor data virtually in real time. This is particularly important today, as supply chains become globalized and more difficult to trace without automation procedures. In this regard, self-regulation is a tool of paramount importance that allows automation systems to detect any flaws or deviations within the supply chain and inform the responsible units before the entire process is compromised. Ben-Daya et al. (2017) concur with the views of IoT as an essential instrument of SCM, while highlighting a systemic research gap in this regard. In line with the issues identified earlier, most pieces of research focus on concrete cases, viewing the subject matter separately from the general framework.

A formation of such a framework will make a strong contribution to the development of SCM in the current environment. For Saberi et al. (2018), the main issue surrounding the current state of supply chain management consists of controlling the extended globalized network. Such networks become the new standard, as businesses aim at a global presence that transcends regional and state borders. Evidently, the ability of human-controlled supervision is limited for natural reasons, and the extension of supply chains makes them prone to errors. Industry 4.0 in SCM is a natural response to the situation, aiming to counteract this limitation through automation and efficiency. For example, the technology of blockchain is a promising digital ledger technology, which contributes to the traceability and reliability of the network. In spite of its potential, the research into blockchain’s application in supply chain management remains in its early stages. The main cause of this research gap is conditioned by the lack of practical evaluation data, which would shed light on the actual avenues of this technology’s use for tracing supply chain operations. In order to make further advancements, a comprehensive framework is needed.

Thus, all stages from the order placement to its completion are to be traceable to eliminate any stakeholder doubts and enable the resilience of the system. Furthermore, a modern supply chain needs to be versatile in terms of its value generation and compliance with the external standards. According to Tseng et al. (2019), another key element of modern SCM is related to its sustainability. In other words, not only should supply chains be efficient and beneficial, they are also expected to function in light of the environmental and societal needs of the global community. Today, there is a continuous dialogue between stakeholders and industries, the outcome of which depends on a variety of factors. Globalization of operations and supply chains is a bilateral process, meaning that it bears advantages for all parties involved.

As much as firms gain access to new, broader markets, their competitors profit from a similar situation. Ultimately, consumers have a better offer selection, and they serve as the ultimate judges of supply chain’s effectiveness. In this regard, sustainability perception is a valuable benchmark, upon which end consumers make their decisions. Koberg and Longoni (2017) concur with such ideas, emphasizing the integral nature of sustainability within the scope of SCM. This way, the principles of transparency and sustainability interact, forming the nexus of contemporary supply chain management.

However, the transition toward the specified principles is a long endeavor that requires profound transformation within the field of SCM. Wieland (2020) argues that the transformational capacity of the supply chain management system is the key instrument of the field’s development. In other words, SCM models of the 21^st century require a strong presence of adaptation to the specific needs and standards of the time. Regardless of the success of older methods in the past, they cannot retain their efficacy in the long term within the new environment. According to Wieland (2020), this path includes the more profound implementation of digital solutions that enhance the operational efficiency of the systems. Nevertheless, the arsenal of these solutions is extremely broad, which requires the in-depth analysis of specific tools’ applicability for particular tasks faced by the SCM. Thus, it is vital to examine the intersection of Industry 4.0 with supply chain management and its objectives.

Within the framework of efficient 21^st-century SCM, the principles and tools of Industry 4.0 have become a subject of intense interest for experts and researchers. Shao et al. (2021) affirm the reliance of modern supply chain management on smart tools. According to them, Industry 4.0 contributes to the formation of stable multi-stage frameworks that adhere to the principles of transparency of sustainability. For Shao et al. (2021), SCM 4.0 is the next logical step of smart factory development, which, however, is still in the early stages. Moreover, the existing body of knowledge focuses on the benefits of Industry 4.0 tools for SCM, in general. First of all, there is a certain lack of information regarding the use of specific solutions for supply chain management. Second, little or no attention is paid to the challenges associated with the Industry 4.0 impact on SCM.

Certain experts make attempts to review specific smart instruments within the scope of supply chain management. Ben-Daya et al. (2017) view the Internet of Things (IoT) as the key enabler of Industry 4.0 principles in the contemporary environment. In the context of SCM, it contributes to the efficiency of production and transportation, strengthening the connection between its multiple stages. Data obtained through the application of IoT can be used for the detailed analysis of all procedures that provide insight related to the possible improvements. Smart supply chains are, first of all, efficient, meaning that all room for improvement is actively utilized to benefit all parties involved. Managers can take advantage of the immense amount of data and variability ensured by the IoT. This way, their strategies become informed and practice-oriented, utilizing relevant information to optimize their entire supply chains.

Another prominent solution is represented by the increasing use of blockchain technology across various settings. Its application within the sphere of SCM becomes the central idea of the research conducted by Saberi et al. (2018). According to them, the globalization of supply chains makes it more challenging to supervise their functioning across all stages. As a result, the principles of transparency and traceability are compromised as it becomes physically impossible to control all details of the supply chain. The use of blockchain wields high potential in terms of compensating for these drawbacks of the global network formation. As per Esmaeilian et al. (2020), this technology is a new approach to data storage and transmission that is likely to improve the degree of control exercised by managers over their supply chains. Nevertheless, the research surrounding blockchain use in SCM remains in an early phase. Furthermore, companies face an array of inter-organizational, intra-organizational, technical, and external impediments on the path to its implementation (Saberi et al., 2018). Thus, a further examination of this topic will make a positive contribution to the overall project.

Methodology

Introduction

The methodology consists of two stages. The first stage was an extended review of the literature with the aim to determine the current state of research and derive the main theoretical framework behind the study. The next step was to be more practice-oriented in order to draw a comparison between theory and actual knowledge possessed by supply chain managers. I conducted interviews with SCM specialists from different companies and regions to examine their perspectives on Industry 4.0 tools in today’s supply chain management. As the body of knowledge in this area is in an early stage of development, the qualitative model of research appeared viable. This approach to the study reflects the necessity of a stronger foundation upon which further, specialized knowledge was obtained.

Based on the introductory facts, research objectives, and literature findings presented earlier, the present thesis relies on its methodological approach to advance the understanding of supply chain management in light of Industry 4.0. The choice of the study model was dictated by the novelty of the subject matter combined with its extreme level of underrepresentation in the contemporary body of research. The main objective of the thesis is to determine the specific tools that are used in modern supply chain management in light of the Industry 4.0 development. Moreover, the theoretical component of the study was to ensure that there is a fundamental framework to support the choice of the instruments. It was theorized that some of these tools are being used intuitively by SCM specialists. In other words, they represent another instance of concretization, in which supply chain managers focus on the tactical and operational goals faced by their specific companies at a given moment. The nexus of theory and practice provided within the framework of the present research attempts to build a bridge between the two hemispheres of SCM. Thus, practical experiences are to be supported with theoretical findings from the contemporary body of literature.

The data obtained in the course of the literature review will be categorized in specific categories. It is required to maintain a gradual approach to the knowledge acquisition, moving from broader aspects to the specialized ones. As such the research funnel will start with an overview of Industry 4.0 and SCM principles, leading into their intersection and concluding with the examination of specific tools and their applicability. Then, the information will be synthesized into a single theoretical framework that will guide the analysis of the interview data. Each of the discussions will be held in a broad narrative form that will allow the participants to explore the subject at length. Each interview will be transcribed and coded for the further examination, which will consist of distinguishing the key notions and patterns. The analysis applied to this data will result in a set of specific tools and their descriptions as per the supply chain management. The measurement will be ensured through evaluating the prevalence of specific tools and concepts in the responses.

This chapter describes the methodology used for this project, while emphasizing its justification and elaborating on the completed research procedures. The methodology is qualitative, considering the novelty of the subject and the need for a better description of it. The research procedures are completed in two stages: a review of the literature and a series of expert interviews.

Methodology description

The present thesis describes an actual phenomenon that does not exhibit a sufficient degree of representation and coverage within the current body of knowledge. More specifically, the primary objective is to describe the influence of Industry 4.0 on supply chain management, while outlining the primary digital tools that are used in this sphere from both theoretical and practical perspective. In the first case, the idea is to ensure a better understanding of the mechanisms behind the modern principles of SCM: what is important for SCM and how the sphere needs to perform in order to meet the requirements of the time. Industry 4.0 on its own is a relatively new phenomenon that still remains a subject of rigorous studies aiming to understand its principles in all their complexity. Its intersection with supply chain management is largely an uncharted territory, in which experts and professionals tend to navigate by intuition or prior experience. At present, SCM 4.0 does not have a solid theoretical framework that could guide managers in the new age of the field that is heavily influenced by the emergence of new technology.

Overall, the project implies a two-step model of research, in which theoretical findings are complemented by practical experiences. First of all, the study relies on a qualitative method, as conditioned by the context of it. According to Mills and Birks (2014), qualitative models are designed specifically to address such issues, improving the understanding of the research problem through better descriptions of the phenomenon. At this stage, the knowledge of SCM’s functioning in the age of Industry 4.0 is insufficient, lacking details and systematization. Thus, quantifiable data is not attainable at present, as the current level of this phenomenon’s understanding does not enable a solid framework within which these calculations can be held valid and precise. On the contrary, qualitative research is the correct approach to this matter, as it will systemize the existing data scattered across the body of literature, synthesizing a uniform model of SCM in the age of Industry 4.0.

The selection of the correct sample is an integral component of success, which is understood as the sufficient completion of research procedures in light of meeting the research objectives. In order to identify the optimal sample for each phase of the project, it was vital to understand the current state of research, as well as the goals of the study. For example, if the subject matter is currently underdeveloped within the contemporary body of literature, it may be problematic to identify a large number of relevant resources. Accumulating articles and books for the sake of expanding the sample was not perceived as a reasonable approach in this regard. By doing so, the author of the present research risked digressing and moving further away from the subject matter. A similar approach was taken in regard to the expert interview phase of the project. The sample was to become sufficiently broad to incorporate a variety of backgrounds and opinions. However, it was necessary to preserve a sufficient amount of time for each discussion and its analysis.

During phase one, a selection of 47 academic knowledge sources was retrieved and subjected to rigorous research. The inclusion criteria comprised authoritative publishers’ books, peer-reviewed articles, and expert reports published within the past 5 years. The specified time limit was necessary to ensure that the knowledge was up-to-date and reflects the current state of research into supply chain management.

As for the practical aspect, there is a strong need for a balanced sample. The number of participants was to be large enough to provide a diversity of models, counteracting the impact of research bias. At the same time, it should not be too high to ensure the adequate amount of time dedicated to each discussion. As such, the final number depended on the availability of respondents from the initial sample of 15 SCM experts that represent various industries and geographical locations. Ultimately, 8 experts were able to complete the scheduled procedures in their entirety. These were the people who are directly involved in the decision-making and functioning of supply chains. All interviews were to be conducted remotely to enhance the coverage of the study, while complying with the current pandemic restrictions.

Systematic Review

A review of the literature is a fundamental aspect of any research project. Its purposes are evident, as studies cannot be completed separately from the current body of knowledge. Contemporary literature reflects the state of the knowledge and progress within a specific area of studies, namely SCM in the age of Industry 4.0. However, in many cases, literature reviews serve to outline the background of the issue, becoming a starting point for the actual research project. In this case, the role of this review is purely informative, but it is possible only when the state of the knowledge is sufficiently developed to provide a comprehensive description of the issue’s basis. The same cannot be said about the matter at hand, since preliminary investigations revealed serious research gaps in this regard. As such, a literature review of this particular project becomes integral to the process and an indispensable procedure within the two-step model. More specifically, it serves to consolidate the existing knowledge that is currently scattered across multiple sources.

Indeed, modern literature fails to provide a uniform framework for SCM in the age of Industry 4.0. The sources that have been examined tend to address particular instances of digital transformation for supply chain management. In other words, there is currently a paradox in the literature. From one perspective, a considerable degree of concretization is observed in regard to the subject matter. Researchers discuss specific technologies in terms of their application for particular projects industries, disregarding the larger context. As a result, the data lacks transferability and recreation potential, which prevents a uniform framework from being formed. On the other hand, another portion of the academic discussion remains highly generalized. Spoken differently, sources discuss higher, abstract notions of Industry 4.0 technology’s influence on and interaction with supply chain management. Only general data is provided, reflecting the necessity of digital transformation and further progress toward Industry 4.0. At this point, a time has come to elaborate on the specific tools’ applicability and usefulness for SCM experts.

By consolidating the body of literature, the present project serves this exact purpose. As there is no uniform framework currently observed in literature, this study undertakes an attempt to synthesize the scarce and dispersed data into a single nexus of theory and practice. This review of the literature cannot remain a mere background part of the study that informs its continuation. On the contrary, it is vital to take more steps toward the systematization of the data through thematic analysis of the writing. In order to complete this task, the researcher has categorized these dispersed findings into specific groups. The first one outlines the very concept of Industry 4.0 and its principles as a new phenomenon that is currently being studied. Second, Industry 4.0 is compared with another prominent notion of digital transformation that is often present in the academic discourse. The purpose of it is to determine whether these two terms are, indeed, synonymous in any way, while describing the exact relationship between digitalization, digital transformation, and Industry 4.0. Third, supply chain management in its current state is examined, namely from the perspective of Industry 4.0 and its principles. Finally, the process culminates with the description of Industry 4.0 tools’ perception by modern authors described as a part of the findings.

In the case of systematic reviews, preference was given to academic articles related to the subject matter to a sufficient degree. Initially, three primary databases were selected, which are Google Scholar, Semantic Scholar, and Oxford. These databases are universally recognized as containing a variety of pieces of academic knowledge that are relevant, reliable, and peer-reviewed. Upon a subsequent examination, the range of databases was reduced to two (Google Scholar and Semantic Scholar), since they were found to contain a large number of matching entries. Thus, the search was continued in these two libraries, following the algorithm of the study. As the subject matter is underdeveloped, a decision was made to search for its elements rather than for the sources that cover the whole topic, as the latter was deemed barely possible. For this purpose, the project relied on a set of key words with increasing relevance: “Industry 4.0”. “Industry 4.0 principles”, “Industry 4.0 and digitalization”, “digital transformation”, “digital transformation and digitalization”, “digitalization of SCM”, “supply chain management”, “supply chain management and Industry 4.0”.

Following these patterns, an initial set of 211 articles was selected that was further subjected to the secondary selection process, described in Table 1. This phase relied on specific inclusion and exclusion criteria with the intent to filter the entries that did not meet the purposes of the assignment. Criterion One said that the articles were to be written in English, representing the international knowledge on the subject. Upon this filter, 9 articles that were written in other languages but had titles in English for search index purposes were eliminated. Second, the next inclusion criteria revolved around the date of the publication. This project addresses supply chain management in its current state and in light of recent advances. Thus, it was decided to consider exclusively recent sources that were published within the past 5 years. At this stage, a list of 109 references was excluded from the total selection for not being sufficiently up-to-date.

Table 1. Literature review source selection funnel

Finally, the study selection process entered the stage of another filter, which was by relevance. The author of the thesis reviewed each work in detail, eliminating those that did not contribute to the actual project objectives. For example, some articles had only a small percentage of relevant information, mostly being devoted to irrelevant subjects. Others reiterated the same pieces of data as previously included articles, thus rendering themselves redundant. The third and fourth filters eliminated another 46 articles, making a total number of studies processed through the prism of the literature review 47 recently published, peer-reviewed academic sources of knowledge.

The process of the systematic review commenced with the selection procedure. In the course of the exclusion-inclusion analysis, each source was examined several times, providing a concrete understanding of the themes and contents. However, when the sample was finalized, another round of rigorous article study began, during which the author conducted thematic analysis of each source. Next, the range of key themes and notions was synthesized, allowing for the final categorization of the review. Overall, the project’s procedures determined four core themes, into which the literature was categorized. First, there were studies that illustrated the essence and principles of Industry 4.0 with its varying definitions and perceptions. Second, the concept of digital transformation was described with the help of relevant sources. Based on this analysis, the differences between digital transformation, digitalization, and Industry 4.0 were presented. Next, the core of the literature review culminated with the intersection of supply chain management and Industry 4.0 tools. This information informed the further process of the study, and its fourth theoretical category, comprising the synthesized theoretical framework, is presented along with the findings.

Expert Interviews

Having completed the literary analysis of the contemporary body of knowledge, the study proceeds to its second stage, which is a series of expert interviews. This particular procedure serves to ensure the practical orientation of the study by incorporating the experience of active supply chain management specialists into its framework. The idea is to hold an open and honest discussion with the people who actually interact with the subject matter in their daily professional activities. Prior to the beginning of the present study, it was theorized that active specialists might become an invaluable source of information regarding the subject. Furthermore, it appears highly interesting to investigate their perspectives in order to outline the practical approach to modern supply chain management. It is not a surprise that there are often inconsistencies between theory and practice, especially in the case of recent phenomena. Thus, it is vital to understand whether the same can be said about supply chain management. If theory and practice continue to develop separately or with limited codependence, the field may enter a state of chaos.

In this regard, the experts’ insight is expected to prove useful in forming a unity with theoretical findings. This format implies a series of qualitative interviews with SCM specialists that are currently engaged in this field and have enough experience to appraise the progression toward Industry 4.0. As the selected methodology of the present project is deemed qualitative, no quantifiable data is obtained from the discussions. Instead, a sequence of open-ended questions is provided to stimulate an active, transparent discussion without artificial constraints, being one of the reasons why a questionnaire survey was not selected. In the course of each interview, the speaker has had an opportunity to express their thoughts in regard to the subject matter. First, a narrative script was provided to guide the interviewee across the key points of discussion. Next, based on the collected information and voiced thoughts, a more open discussion was proposed to complement what was previously said. Each interview is transcribed in a written form, preserving the original thoughts of each speaker.

Then, having completed this step, the researcher conducted a thematic analysis of the scripts. It consisted of carefully investigating the contents of each interview narrative, highlighting recurring themes, key notions, and essential opinions. Based on these findings, a consolidated framework is proposed, in which the researcher identifies the most common perceptions, as well as rare views on the subject matter. In the end, the results of this analysis are compared with the theoretical framework that is produced by the literature review in order to find commonalities and inconsistencies between theory and practice of SCM in the age of Industry 4.0.

For the thematic analysis, the structure consisted of preparing a synthesized list of themes that derive from the examination of literature. More specifically, this stage implied a certain degree of inductive reasoning. Based on the scarce data obtained from the literary sources, four key principles of SCM 4.0 were formulated. They served as the basis of the theoretical framework, which served as an instrument of thematic analysis. This list of principles was expected to be the lens, through which each expert’s narrative was examined in the transcribed form.

The subsequent stage is the deductive one, consisting of preparing possible variations of phrasing, through which a certain principle can be expressed. It is natural that interviewees can refer to the same principles in different ways in an impromptu conversation. For example, the principle of supply chain sustainability can be expressed through the words and phrases such as “green”, “environmentally aware”, “waste reduction”. The key was to categorize the core thoughts of each expert as per the identified literature framework. For this purpose, it was essential to be able to look beyond the surface of the text and understand the profound ideas and concepts beneath the words.

For the practical component of the present study, the selection process was determined individually in light of the project’s goals and the overall research question. As described previously, the main idea was to ensure a diversity of opinions, covering different perspectives of experts, each one possessing their own experiences with Industry 4.0 tools. At the same time, there was a serious risk of expanding the sample beyond reasonable limits, thus lacking the time and attention devoted to each specific expert. This project implied the organization of one-on-one interviews with active SCM specialists. Thus, the time devoted to each interview needed to be enough to cover the subject matter fully. In addition, pre- and post-interview procedures were taken into consideration. In light of all these requirements, it was decided to limit the initial sample to 15 experts.

The selection process included the criteria that revolved around the professional expertise of the participants and not their personalities. There were no limitations in terms of the experts’ nationality, ethnicity, place of residence, religion, race, or personal views. Furthermore, age was not a decisive factor, as the study acknowledges the possibility of being a renowned professional at any age. Listed below are the inclusion criteria in light of which the sample was initially selected:

The participants of the project are to:

• Hold a bachelor’s degree or higher
• Be currently occupied in the sphere of supply chain management
• Have at least 5 years of relevant experience
• Have at least 1 year of managerial experience in supply chain management
• Be available for a remote online interview

The candidates for the interview were identified with Mutual connections, open sources, namely the website LinkedIn. Using this platform’s search engine, the author of the project selected a list of potential interviewees to be recruited for this stage of the research. Each one received a detailed message regarding the purposes, procedures, and expected outcomes of the project. Several candidates requested an executive summary of the project to become more familiar with it. Out of 43 experts initially contacted, 7 candidates respectfully declined an invitation to participate. Next, the remaining 25 experts stopped replying to the interviewer’s messages, eventually disappearing.

Thus, 11 experts confirmed their readiness to partake in the project and were scheduled for a one-on-one interview. However, 2 of them later revoked their agreements, stating that they do not have the time to participate in the project at this point. Another participant only completed the initial pre-interview form, but did not connect to the call. Ultimately, they asked to reschedule the meeting, but their preferred date did not align with the project’s timeline. In the end, 8 experts completed the process and provided a full opinion, which is deemed sufficient for drawing conclusions.

Each expert who agreed to participate was scheduled to have a one-on-one interview with the author of the present thesis. The discussion itself included a brief pre-interview form, in which the participants provided basic information regarding themselves. This way, the discussion could start with a certain level of background knowledge, saving time for relevant topics. The interviews were held in an online format, as conditioned by several factors. First, it allowed the researcher to enhance the scope and attract international experts from different countries. Second, such a format is less time-consuming, which is important in the case of busy professionals. Third, remote interaction appears more fitting in the age of the COVID-19 pandemic that continues to threaten global communities. Finally, digital discussions are symbolically and thematically reminiscent of the research topic. After the live segment of the discussion was completed, each interviewee received a follow-up form in case they wanted to complement or correct what was previously said.

Presented below is the standardized protocol, upon which all interviews were based:

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

1. Your age
2. What is your educational background?
3. What is your industry?
4. How many years of total industry experience do you have?
5. What is your current position in your company?
6. How many years of experience have you had in your current position?
7. Is there anything you would like us to know before we begin the interview?

Part Two: Main Interview Questions

1. Before we start, I would like to confirm the information you submitted previously: …
2. How would you define Industry 4.0?
3. How does Industry 4.0 impact your industry?
4. What Industry 4.0 tools do you use?
5. Do you think that all these tools are equally important or can any of them be redundant?
6. Are there any tools that you think should be added to this list?
7. Has the fourth industrial revolution changed supply chain management? If so, what particular changes have you noticed?
8. How have the specific tools of Industry 4.0 changed the way you work? More specifically, could you describe the impact of the Internet of Things, blockchain, cloud computing, AR, and VR? You can focus on all elements you find necessary.
9. Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?
10. Are you satisfied with the way your company uses the benefits of Industry 4.0 for supply chain management?
11. As far as you are concerned, what is more important for a company: human resource development or technological progress?
12. Are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?
13. Are there any risks that go along with the use of Industry 4.0 tools?
14. What would you change about supply chain management in light of Industry 4.0 and its benefits?
15. How do you feel about the future of SCM?

Part Three: Free Post-Main-Part Discussion

1. I have been taking notes during our discussion, and here is what I would like you to elaborate on…
2. Is there anything else you find important that SCM researchers need to know? (Based on the notes taken throughout the interview, this part provides the interviewee with an opportunity to have an extended, unrestrained discussion)

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview?
2. Have you been able to cover the subject matter in its entirety?
3. Is there anything else you would like to add to what has already been said?

Findings

Following the procedures described earlier, the research was completed per a two-step model. The first phase comprised an investigation of the contemporary body of academic literature, the majority of which was described in Chapter 2. Next, a series of expert interviews was conducted, following the procedure presented in Chapter 3. The appendices of the present dissertation contain full transcripts of the completed interviews, including the participant information that was shared pre- and post-interview. This chapter relies on the information obtained in the course of the discussion, providing comprehensive descriptions of the main contents of each talk. The practical findings are categorized per expert and utilized in a synthesized framework of reference that serves as the ultimate product of the study;

Literature Review Findings

Of all 211 articles initially chosen for further evaluation, only 47 were found relevant to the discussion. This number is below average for two main reasons. First of all, the present research values the quality of the material rather than its quantity. Many pieces of knowledge were found redundant, since they reiterated similar ideas that doubled. Such studies were removed from consideration in order to avoid these redundancies. Second, the subject matter remains a recent addition to the global academic discourse, as the very concept at its core is a novelty. Therefore, it is unlikely that there is a well-developed body of knowledge that would comprise an increased number of fully relevant articles as the concept itself remains highly underrepresented. Figure 1 traces the research funnel, illustrating the process of examining the contemporary body of literature from the initial database investigation the final

One of the peculiar elements of the findings consists of the distribution of relevant data across the sources of relevant knowledge. Table 2 summarizes the frequency of each source used in the descending order. Figure 2 elaborates on this data, providing a clearer visual presentation of the source diversity in the discussion. These findings inform that SCM 4.0 is a broad category of knowledge that is addressed across various settings. It is most prevalent among the researchers who examine the contemporary principles of production, which is why the International Journal of Production Research, International Journal of Production Economics, and Journal of Cleaner Production are the leading entries. From transportation to control and economic planning, supply chain management and Industry 4.0 attract the increased attention of experts and researchers. This further confirms the need for consolidated research efforts that would unite the data in a single channel, since most of its remains are scattered across the body of academic knowledge.

Table 2. List of Selected Journals

In the contemporary body of academic literature, the consensus regarding the status of Industry 4.0 as a positive development for supply chain management is not yet sealed. For researchers, such as Gallo et al. (2021), Koh et al. (2019), Xu et al. (2018), and Ghobakhloo (2020), the emergence of the fourth industrial revolution is a disrupting factor to some extent. As implied by the name ‘revolution’, it instills profound and rapid changes in a familiar environment, prompting people to seek new ways of meeting the new requirements. This is not an easy transition, as it demands serious resources and efforts on behalf of organizations. Without a complete understanding of what Industry 4.0 principles are, their adoption will remain a matter of intuition, thus lowering the efficiency of the new paradigm. Koh et al. (2019) report that the current level of Industry 4.0 adoption in SCM is about 30% globally. However, in the upcoming decade, this number is expected to double, thus marking the beginning of a new era of economy. For this growth to be possible, companies should understand the key descriptors of Industry 4.0 instead of trying to seize its surface.

One of the key notions that is associated with Industry 4.0 is the extremely high speed of its spread across the globe. Such a tendency is reported by several authors, including Singh et al. (2021), Bai et al. (2020), and Oztemel and Gursev (2020). In fact, this is one of the leading descriptors of Industry 4.0, which is characteristic of the fourth industrial revolution as compared to the previous ones. Today, information is spread at an unprecedented pace, as enabled by the development of instant communication and data exchange. As a result, globalization takes its effect, putting the industries of the world into a single interrelated unity that experience a strong ripple effect. In other words, changes in one area inevitably entail a corresponding reaction in the rest of them. Furthermore, not only does Industry 4.0 see a rapid development, it also contributes to the formation of extended supply chains, as supported by globalization. In this regard, serious challenges are posed, and the tools of modern SCM are designed to address them.

Under such circumstances, the external environment, in which most companies operate today, remains extremely changeable. With numerous variables affecting the corporate landscape, competition increases, and so does the possibility of failure if an incorrect strategy is used. Therefore, an additional degree of importance is attributed to the notion of resilience. For the authors like Ralston and Blackhurst (2020), resilience of a supply chain reflects its ability to operate under stressful external conditions, negating the impact of these variables. The authors conclude that the automation of business processes partially contributes to the resilience of supply chains by eliminating the human factor. However, the system becomes subject to a new type of critical failure, which requires the personnel of the company to remain ready for immediate engagement. In fact, Ralston and Blackhurst (2020) associate the lack of expertise and agility, combined with an increased reliance on automation, with one of the highest risks for SCM in Industry 4.0. These risks need to be considered by decision-makers in order to prevent a situation in which the downsides of a new initiative begin to outweigh its advantage.

Some attention is devoted to the ripple effects of digitization in supply chain and business management. This topic is central to the discussion provided by Ivanov et al. (2018) who explain that the interrelatedness of the contemporary corporate environment enables lasting repercussions in adjacent and remote areas. In other words, even minor introductions into the process of supply chain management can affect the corporate entity, as a whole. Thus, risk management becomes integral in Industry 4.0 because of these specific factors. Ivanov et al. (2018) emphasize the importance of an effective risk management framework that would prevent the disruption of key business processes upon the introduction of a new technology.

Such paradigms are vital to ensure that all components of Industry 4.0 implement function in sync, without interfering with one another. The duality of the SCM 4.0 is also discussed by Fatorachian and Kazemi (2020) who note that the mere use of high-tech solutions does not guarantee enhanced performance on its own. It is vital to focus on problem-driven decisions that will amend the current issues instead of creating new ones. This paradigm is inseparable from the notion of information technology and information exchange. The circulation of knowledge needs to be ensured not only between the elements of the supply chain but also within the organization, as a whole. This is related to the concept of integrability, albeit on a larger scale. A new addition within the framework of Industry 4.0 should be integrated not only into the supply chain but into the entire business model to expect improvements. This is opposed to a blind pursuit of high-tech advancements that some companies implement to remain in the trend (Fatorachian & Kazemi, 2020). Therefore, risk management is essential when transitioning to an Industry 4.0 framework of supply chain management.

At the same time, the range of key SCM 4.0 principles extends beyond the internal requirements of supply chain managers and their companies. As established in the research by Bai et al. (2020) and Javaid et al. (2020), Industry 4.0 businesses are expected to utilize their resources to generate not only economic, but also social value by contributing to the sustainable growth of communities. In some sources, this idea is translated into corporate social responsibility. Considering how closely the elements of modern economic activities remain connected, SCM is to comply with such standards.

As indicated by the body of literature, sustainability is another crucial principle of supply chain management in the age of Industry 4.0. This idea is developed, for example, by Yadav et al. (2020), who identify a subfield of sustainable supply chain management (SSCM) within the standard image of SCM. They argue that the tools of Industry 4.0 are invaluable for attaining higher levels of SSCM, reducing operational waste, and maintaining the system’s efficiency. Umar et al. (2021) concur with this model, placing green supply chain management on the pedestal of the prioritized principles of modern SCM. Such views prevail in contemporary literature, reflecting one of the key characteristics of Industry 4.0 (Luthra & Mangla, 2018). The generation of social value, along with the economic performance, is an essential component of the new age, and SCM complies with it.

Having identified the principles of the supply chain management in the age of Industry 4.0, it is necessary to review the specific tools that are used by the field today. It appears important to note that the existing information regarding this subject matter severely lacks systematization, as individual cases of particular settings or technologies tend to be described. First, there is the Internet of Things that has gained extreme popularity in various contexts. Garrido-Hidalgo et al. (2019) insist on the IoT’s colossal potential for reverse supply chain management as an end-to-end solution. The next technology that is actively discussed within the framework of SCM research is blockchain. This revolutionary solution has experienced limited usability outside its initial domain of application, but Esmaeilian et al. (2020) note that blockchain enthusiasts continue to research new avenues for it. Saberi et al. (2018) acknowledge the potential of blockchain as a regulatory mechanism for extended, globalized supply chains. Ben-Daya et al. (2017) and Wieland (2020), the range of Industry 4.0 tools remains on a stable increase. However, most of them, such as cloud computing, AR, VR, and data analytics, appear underrepresented in the literature related to SCM.

A range of studies attempt to synthesize a common perspective that would unite the entirety of the contemporary body of knowledge. However, these attempts continue to reveal the gaps in this knowledge, especially when practical examinations are conducted. Hahn (2019) views Industry 4.0 as the digitization of supply chain management by introducing new solutions into the functioning of this area of expertise. As determined above, there is a line between digitization and digital transformation. Furthermore, SCM 4.0 appears to be more in line with the second notion, implying profound, revolutionary changes in the paradigm of supply chain management. This idea relies on the theoretical perspective, but the findings by Hahn (2019) imply that the global industrial practice, indeed, avoids in-depth modernizations, remaining closer to digitalization. The author concludes that most SCM 4.0 initiatives rely mostly on analytics and smart things while omitting smart people technology and the human-centric approach associated with the i4.0 paradigm” (Hahn, 2019, p. 1426). In this case, the transition cannot be deemed fully complete, suggesting a state of “Industry 3.5” rather than a full-fledged SCM 4.0 framework.

In this regard, experts and researchers continue to seek evidence of a completed transition toward SCM 4.0 across different industries. Garay-Rondero et al. (2020) suppose that this state would imply an introduction of a new concept, referred to as a digital supply chain. As per the authors, it is a conceptual model that implements the tenets of Industry 4.0 to create a new, technology-powered framework. Garay-Rondero et al. (2020) define it as “a referential and systematic model that fuses the inherent concepts and roles of SCM, with the new technological trends directed toward digitization, automation, and the increasing use of information and communication technologies across logistics global value chains” (p. 887). Yet, their examination of the evidence does not point at the actual existence of such a framework in a practical setting. In other words, the increased attention to Industry 4.0 ideas for supply chain management has not yet led to a full transition. Most companies limit their endeavors to a select few technologies that they carefully embed into their chains. This level of innovation does not allow for a full digital transformation that is needed for SCM 4.0.

As the examination of sources implies, this incompleteness is related to the inherent desire of decision-makers to avoid the indeterminacy associated with new initiatives. Spoken differently, if the change is too profound, it can virtually disrupt the established business processes. Combined with the unpreparedness of SCM experts to address the new challenges through the lens of Industry 4.0, this may lead to a deterioration in the performance of the entity. The study by Pandey et al. (2021) concentrates on the identification of the key risks faced by SCM in light of Industry 4.0 progress. As the research reveals, the most important category comprises the risks associated with the disruption of a supply chain (Ali et al., 2021). These chains are built by years of rigorous planning, practical expertise, and necessary adjustments. Serious disruptions may revert the majority of the work done to establish them (Wang et al., 2020). Next, supply chain experts are uncertain about the cyber security of SCM 4.0. According to them, the reliance on digital solutions makes the chain vulnerable to malicious intents from outside, which, in turn, may also lead to severe disruptions (Zimmermann et al., 2019). This indicates that the importance of risk management identified prior is justified.

In this context, supply chain managers interested in a full digital transformation toward a state of SCM 4.0 seek evidence-based solutions to help their risk management. Ivanov and Dolgui (2020) reflect upon this necessity when proposing a supply chain twin as an essential element of an Industry 4.0 framework. This idea implies the creation of a computerized model of supply chain that is currently in place within the organization. It is a fully parallel entity that mirrors the practical situation, while allowing for testing new features and initiatives in a simulated environment. This way, experts can verify the feasibility and productivity of their decisions without any risks of harm to their actual supply chains. This is particularly important in the age of global uncertainty, of which the ongoing COVID-19 pandemic is a prime example. In fact, the very concept of the supply chain twin as a fully computerized, simulated model that includes all the variables and complex relations between them is a sufficiently advanced solution to be in line with the principles of Industry 4.0. Thus, it is a valuable example of how technology contributes to mitigating technology-conditioned challenges.

Overall, within the contemporary body of literature and practical reports, there is a strong sense of hesitance to venture beyond the first steps of digitalization. From a theoretical perspective, most researchers come to a consensus regarding not only the potential benefits of SCM 4.0 but also its practical feasibility. The advantages are evident, especially when the global industrial community inevitably advances on the path of digitalization and digital transformation. The role of technology is only going to increase in the coming years (Ivanov et al., 2018). Yet, the nature of this transition is to be determined by the efforts and priorities of supply chain managers, experts, and researchers.

As a paradox, digital transformation can occur independently on the scale of the entire society and separate industries. The ability of SCM experts to effectuate their own transformations of this kind will determine the degree of their chains’ preparedness to the new reality (Wieland & Durach, 2021). Being cautious of potential hazards is natural, but this behavior should be complemented by actual risk management initiatives. In other words, instead of delaying the transition because of risks, the global institute of supply chain management should move forward and make vital decisions in light of these risks.

Synthesized Literature-based Theoretical Framework

Based on the main information that has been retrieved from the various sources of academic literary knowledge, it is possible to synthesize a uniform theoretical framework that guides SCM in the age of Industry 4.0. This framework is presented as Figure 3, reflecting the key ideas that are scattered across the contemporary body of knowledge. At the heart of this framework lie four key principles of SCM 4.0. First of all, SCM of the 21^st century needs to be efficient, counteracting the increasing pace of global challenge spread. Second, it should equally be agile, becoming adjusted to the requirements of a specific context. Third, SCM is to be integrated profoundly into the company business model, reflecting the complex industrial landscape. Finally, the fourth principle is dictated by the external environment and requires SCM to rely on sustainable practices. These principles are complemented by Industry 4.0 tools that are used by modern companies: IoT, cloud computing, AR, VR, AI, blockchain, big data, data analytics. In this edition of the framework, these tools are not directly associated with specific principles. The produced framework is a unity of Industry 4.0 that is the ultimate goal of digital transformation.

More specifically, the contemporary body of knowledge distinguishes between the area of application of each specific technology as per the corresponding functions of supply chain construction. As per the literary findings, researchers present a supply chain of Industry 4.0 as a profoundly interconnected structure of four key principles: efficiency, resilience, integrability, and sustainability. These overarching functions are the ones that are mentioned and acknowledged the most by various authors. In literature, all of these components are valued equally, implying that there should be no compromising one aspect for the sake of the others. The selection of technologies is dependent on the functions they are capable of performing within the identified framework. Nevertheless, the lines between the areas of technologies are not as defined as between the principles of SCM 4.0.

It appears possible to divide them into two major groups for the proposed theoretical framework design. On the one hand, there are the technologies that enable the structural component of the supply chain and its formation. AI-powered computing with the use of clouds and big data are the primary examples of such solutions. They address the fundamental requirements of a supply chain 4.0 that is expected to be agile enough to enable modifications in the spirit of the evolving landscape. Analytical tools are engaged at the point when the new image of a supply chain is still being defined, directly contributing to its creation. Throughout these cycles, various iterations of a supply chain are tested in order to implement the most optimal solutions. Importantly, a true state of SCM 4.0 usually implies that these solutions are utilized in sync, as they perform less efficiently in isolation. This way, big data analytics tools process vast arrays of information that is stored in clouds to economize the physical storage space. The interpretation of this analysis is complemented by the insights from AI-powered tools, creating a synthesis of human and machine expertise.

Next, the second group concerns more sophisticated principles that extend beyond the base functions of SCM 4.0. While constructing a functioning supply chain is vital, it is equally important to attain the required level of efficiency and make it sustainable, at the same time. At this point, IoT and blockchain are discussed as “next-generation” solutions that can give the required high-tech impetus, especially when combined with such technologies, as the VR (Ben-Daya et al., 2017; Shao et al., 2021). In this case, the business processes are already in effect, and technology serves to enhance it in the areas of sustainability and efficiency. For example, virtual reality is an excellent presentation tool for marketing operations. Blockchain improves the organization’s ability to exchange valuable data through a system of decentralized transfers of data (Saberi et al., 2018; Esmaeilian et al., 2018). In total, these elements create a self-sustained cycle of constant improvement and evolution within the framework of Industry 4.0. Yet, evidence provided further suggests a certain gap between theoretical reasoning and practical application.

Expert Interviews

The practical element of the present research proved to be a source of invaluable information regarding the current state of Industry 4.0 implementation in the field of supply chain management. The format of the discussion informed its content, prompting the experts to provide details about their perception of SCM today, as well as its tools. The course of each discussion was recorded and transcribed, becoming the appendices of the present dissertation (1-8). The primary idea of this stage was to determine which smart tools of Industry 4.0 are currently in use by supply chain managers with years of experience and a profound knowledge of the field. Then, based on their insights, the synthesis of practical findings is compared to the theoretical component of the study. Below are the summaries of each interview that was conducted in the course of the present research. Each participant remains anonymous, and any potentially revealing information has been redacted.

Expert #1

The transcript of the first interview is provided in Appendix 1. The participant is 34 years old and holds a Master’s degree in Management. Their area of operation is pet food and accessories, where they have successfully worked as a chief supply manager for 2 years. The interview with this participant opened the series, meaning that there was no prior experience with other experts. The interviewee was positive about the experience, and showed an active engagement in the topic. According to them, Industry 4.0 is an important area of development for SCM, but its level in the participant’s setting has not yet reached optimal levels. Nevertheless, major improvements are observed in terms of the work process convenience. More specifically, the participant reports major transformations that affect data storage and exchange. The cloud technology is the smart tool that is used to synchronize their work-related interfaces.

In the case of this participant, cloud computing remains the only Industry 4.0 that sees an active use. While they possess the knowledge regarding the benefits of big data analysis and AI for supply chain management, these solutions are not implemented at their workplace because of the managerial restrictions. Simultaneously, the participant notices that even with the available technology their work process has become more efficient and less time-consuming. In this scenario, technology remains an instrument that people use to improve their operations, but the exact positive effect of it depends on the human resources of an organization.

Expert #2

The complete transcript of the second interview is provided in Appendix 2. The participant is 26 years old and holds a Bachelor’s degree, having worked as a Junior supply chain manager of a Logistics company for 3 years. Having less than 5 years of total industry experience, this participant did not meet all the criteria specified for expert interviews. However, considering the enthusiasm and apparent knowledge they demonstrated, an exception was made. The expert confirms that Industry 4.0 is now generating a lot of publicity, being discussed via different media. For them, it “makes [SCM] better, and it helps [SCM experts] complete tasks that would otherwise have taken weeks in just a couple of days”. In fact, the idea of efficiency remains equally prevalent in this expert’s speech. Another important thought is that Industry 4.0 strengthens supply chains in terms of both scale and scope. It is now possible to build larger, resilient networks, and each of their elements is strengthened individually.

Within a heavily integrated framework, it is difficult to distinguish the specific technology of SCM and other tools. Expert 2 lists video communication, augmented reality (AR), business analytics, cloud computing, and the Internet of Things as the leading solutions for quality business. Overall, a higher degree of innovation preparedness is reported within the field as the continuous transformation instigates new stages of progress. Once new solutions are occupied with mundane, time-consuming tasks, supply managers acquire more opportunities to perform strategic analysis and planning. Evidently, there should be a limit as to what is delegated to machines, but the expressed view is positive. To utilize the potential of Industry 4.0, SCM specialists need to be prepared for it from the early stages of university education, as well.

Expert #3

The transcript of the third interview is provided in Appendix 3. The participant is 35 years old and holds a Master’s degree. Their area of operation is retail, where they have successfully worked as a chief supply manager for 4 years with a total industry experience of 11 years. This expert’s perception of Industry 4.0 revolves around the concept change and new levels of economic activities. They emphasize the unusual position of retail as the “intersection of communities, business, and suppliers”. This status makes the industry a fitting environment for the development and tests of new solutions. In part, this is conditioned by the public who wants a resilient and flexible retail, capable of meeting their needs even under difficult circumstances. The principles of SCM sustainability also appeared in this discussion, as it was mentioned that there is less waste being generated today by supply activities.

An important position in compliance with these principles is given to business analytics. The interviewee recounts several instances of using advanced big data processing tools to predict shifts in demand and adjust shipments at different seasons. Without it, the company continued to generate waste, while losing considerable profits. However, today, it relies on precise forecasting mechanisms developed by business analysts, making informed decisions that result in profits. The expert concludes that technological development is essential for SCM, but its outcome will always depend on human resources and their ability to identify and utilize the potential. The main risk in this scenario is to identify false benefits due to a lack of expertise. In this case, “automatization for the sake of automatization” occurs, contributing to the redundant accumulation of technology.

Expert #4

The transcript of the fourth interview is provided in Appendix 4. The participant is 29 years old and holds a Master’s degree. They currently work in retail as a logistics manager, and they have been in this position for 2 years. Initially, the discussion was scheduled with this expert’s supervisor, who ultimately was unable to attend the meeting and proposed a substitute. This manager is initially trained in IT, which contributes to their knowledge of the subject matter. Interestingly, their definition of Industry 4.0 revolves around unity and interrelatedness that is observed between people, technology and resources. Together, their synergy creates a better economy that works with a better efficiency.

The expert particularly values the connection opportunities of Industry 4.0 that allow them to stay engaged with stakeholders at any point. In terms of more advanced solutions, the Internet of Things is discussed once again as an increasingly dominant technology. For the expert’s context, the use of IoT brings direct economic profits, saving litigation money. More specifically, “the whole production process becomes filled with self-controlling sensors that exchange the data and provide you with data”. In addition, big data and business analytics are also mentioned with AI and neural networks with reference to the near future. However, the necessity of human expertise as the ultimate decisive factor is once again brought into the spotlight. This idea is associated with the risk of losing control over the innovativeness of the company, thus making unjustified investments.

Expert #5

The transcript of the fifth interview is provided in Appendix 5. The participant is 41 years old and holds a degree of a Master of Business Administration. Their area of operation is the food and beverage industry, where they have successfully worked as a senior supply manager for 6 years. With a total experience of 21 years in supply chain management, this expert has developed a perception of Industry 4.0 as the next logical step in the evolution of the field. According to him, the technological potential of humanity has been accumulated to a certain ‘boiling point’ beyond which the economic landscape experiences profound digital transformations. Even though technological tools have been present in the field for decades, it is the level of integration that decides if Industry 4.0 is, indeed, achieved.

In terms of specific solutions, the expert remains loyal to cloud computing. According to their information from the interview, clouds have created a single workspace for all 42 warehouses and many distribution centers of the company. With this technology, all information is shared consistently, minimizing the possibility of mistakes. As such, cloud computing enhances cooperation across various departments. Simultaneously, it is supported by big data and business analytics for accurate forecasting of the future development of the firm. Nevertheless, this particular company has not yet embedded the IoT principles in its SCM work, although the expert recognizes its potential. Ultimately, the paradigm of Industry 4.0 creates much space for creativity, helping supply chain managers find new solutions. In this situation, digital literacy becomes the key enabler of positive change, but this competency needs to be nurtured from the early stages of training.

Expert #6

The transcript of the sixth interview is provided in Appendix 6. The participant is 31 years old and holds a Bachelor’s degree in logistics. Their area of operation is Electronics, where they have successfully worked as a chief supply manager for 2 years with 9.5 years of the total industry experience. Based on this experience, the interviewee expresses an understanding of Industry 4.0 as a nexus of expertise and technology. Especially in high-tech industries, it is indispensable to understand the principles of Industry 4.0 and master its tools to remain relevant to the business environment. In this particular case, the preference is given to the IoT and its problem detection mechanism, “because we always see how everything works and what can be done to improve the performance”. For expert 6, this technology is associated with the transparency of a supply chain, because the details of the system’s performance become fully visible and available for analysis.

Evidently, the range of smart tools used by a high-tech company is not limited to the Internet of Things. The interviewee reports abundant experience with cloud computing, data analytics, and AI. However, it is difficult to distinguish more or less important elements of the paradigm, since they are designed to function in a mutually integrated manner. Such frameworks are characteristic of the fourth industrial revolution, in which integrability becomes one of the key notions. As a result, supply chains are expanded to record high levels, and control over them is exercised by the principles of SCM transparency. Nevertheless, the expert insists that operators should not be any less capable than machines. At any point, a supply manager should assume control and complete a procedure without the computer. In other words, technology serves to assist SCM specialists and not replace them.

Expert #7

The transcript of the seventh interview is provided in Appendix 7. The participant is 39 years old and holds a Master’s degree. Their area of operation is medical equipment, where they have successfully worked as a head of supply and logistics for 9 years. This abundant experience has contributed to the formation of a strong stance on the subject matter, providing insight into it. For Expert 7, the fourth industrial revolution is characterized by a new level of automation. From one perspective, automation was part of the previous stages of industrial development. On the other hand, computers are capable of performing highly complex tasks, whereas previously automation mainly concerned manual labor and simple procedures. The idea of time efficiency is discussed once again as one of the key benefits of Industry 4.0 for SCM.

On the level of specific tools, the expert acknowledges the absence of systemized knowledge and materials that would guide professionals in the new phase of industrial development. This particular company uses the Internet of Things and cloud computing in its day-to-day operations. However, the expert’s stance on AI is controversial, as they do not think an artificial intelligence in a true sense can be created. Thus, this technology is rejected as a tool of supply chain management. The remaining instruments form an integrated framework that accumulates the benefits and helps companies become transparent, clean, and efficient. Moreover, technologies only work in a unity, meaning that a single tool cannot become a major disruptive innovation for SCM.

Expert #8

The transcript of the eighth interview is provided in Appendix 8. The participant is 48 years old and holds a Master of Business Administration degree. This expert is currently a Director of their Steel manufacturing and supplier company, thus representing the top management perspective on the current of SCM. Nevertheless, Expert 8’s page mentions an abundant experience with supply management, as well, which was confirmed during the interview. As per this expert’s views, the fourth industrial revolution is “next level of our operational excellence and ability to generate value as humanity” achieved by the thoughtful, aware use of technologies embedded into business processes. Moreover, Expert 8 mentions that this development is often retroactive, meaning that the paradigm shift has already occurred, and now the theoretical body of knowledge attempts to describe it. The size of modern economies is considered to be the primary indicator of Industry 4.0’s arrival, and it is directly related to supply chain management. Multinational companies with expanded supply chains are not rare in the current environment, and the control over them is enabled by digital instruments.

As can be inferred from the speech of Expert 8, modern experts value the transparency of their supply chains. Because of the Internet of Things and other detective mechanisms, it is possible to analyze the performance of each particular link of the chain in the smallest details, taking timely measures to improve its efficiency. The final image of the toolbox will be different for each particular company and depend on the values shared within the organization. For this expert, there should be a balance between innovativeness and willingness to avoid risks. Each new solution is rigorously examined and tested prior to becoming part of the company’s digital tool portfolio. Currently, VR, AI, IoT, big data, and web tools form the majority of Industry 4.0 instruments within this company. The data component is particularly emphasized by the expert who finds the accuracy of today’s data analysis superior in comparison to the procedures of the 1990s and 2000s.

Synthesis of Findings

The discussions that have been held with the experts provide interesting insights into the contemporary state of supply chain management, especially when compared to the theoretical findings. Each narrative was rigorously examined from the perspective of the key notions, principles, and forecasts. The idea was to distinguish the overlapping patterns between the perspectives of the experts and the theoretical literature-based framework. For the purpose of accuracy, the use of machine tools was not implied in this analysis.

Table 3. Summary of Functions in Expert Narratives

In general, experts confirm the lack of a universal framework that would guide SCM specialists today. Instead, most companies and professionals simply seek contextual matches or the tools that meet their current requirements. Furthermore, their principles and prioritized tools are different from the literary perspective. Interestingly, these principles are modified in accordance with the practical ideas expressed by the experts. Most experts agree that human resources are always more valuable than isolated technology, and some mention that both aspects are equally important. Most views of SCM 4.0 are positive, although Expert 7 remains uncertain of its prospects for the field.

In the course of the narrative examination, a thematic analysis was conducted to associate the experts’ perspectives with the previously identified framework. Based on the literary data, it was assumed that the key functions of SCM 4.0 are efficiency, transparency, sustainability, and integrability of the supply chain. The narratives were analyzed thematically in an attempt to associate the expressed ideas with one of the four principles. The point was to dive beneath the surface of the text and grasp the actual concept that the expert was describing, although the form could be different in terms of phrasing. Interestingly, in the course of this analysis, another concept was revealed that did not align with the four principles identified prior.

To this end, it was expected that similar ideas may be expressed differently in the speech of each expert. None of the interviewees had the access to the theoretical framework before the discussions, which served to eliminate respondent bias. Had they possessed the knowledge of what was expected beforehand, it would have been possible for them to tailor the responses to meet the expectations. Yet, that would have not aligned with the principles of transparent and unbiased research. The idea was to collect raw, unimpaired data and then analyze the themes of it instead of having the narrative comply with the pre-identified thematic components. Table 4 summarizes the expected variations of how the narratives could refer to these themes, although the list was not meant to be comprehensive due to the natural variability of the language.

Table 4. Examples of Expected Narrative Representation of Principles

Most experts referred to the size of Industry 4.0 operations as one of the key functions. Specifically, most of them explained overlapping ideas that supply chains are now capable of being larger and easier to control with high-tech tools. Moreover, the relationship is retroactive, meaning that the chains expanded naturally through globalization, and SCM needs to react to this by applying new solutions that would make them controllable. Within this project, it was decided to name this principle the scale of the supply chain. It refers to an ability of the SCM to control growing supply chains in a globalized environment. Most interestingly, active experts practicing SCM 4.0 do not mention sustainability as one of their priorities.

Then, these findings of the thematic interview analysis were processed through the lens of the initial theoretical framework produced by the literature review. The results of this processing are expressed in Figure 4 as a matrix of five key principles, showing the intersection of theory and practice. The scale of the supply chain is placed in the middle as the key linking element of the framework. The notion itself is a novelty that is actively referred to by today’s experts. As per the synthesis of the narrative data, this concept refers to whether the innovation and size of the supply chain corresponds with the strategic objectives of the company. For example, if the development of SCM is slow in comparison to the projected growth of a single enterprise, it has to deal with the negative scale. This principle is associated with such technologies as big data analytics and cloud computing. Next, the central aspect is complemented by the effective synergy of transparency, resilience, efficiency, and integrability. These are the remaining core principles that are valued and discussed by the active experts in the SCM professional community.

When the key elements of the matrix, namely, the five principles, were identified, a subsequent examination sought to establish the links between each function and the technologies that perform it. In this case, there was a similarity with the literary findings in that the distinction remains vague in the area of application of each technology. As summarized by several experts, the field has yet been unable to institutionalize the principles of Industry 4.0 and its solutions. Therefore, many cases of the tool use are incidental, meaning that they are informed not by theory but by individual considerations on the spot. Figure 5 refers to the exact share of each technology mentioned by the experts during meetings. To construct this diagram, the researcher recounted all instances of an SCM 4.0 being mentioned across all eight narratives. Then, the share of each technology was calculated using simple mathematics. These calculations may not be representative of the industry, in general, as the sample was limited, but they add another promising dimension to the discussion.

Interestingly, the comparison of literature and practical expert experiences provided conflicting perspectives on the current state of supply chain management under the influence of Industry 4.0. More specifically, the main variations exist in the significance of specific principles, to which Industry 4.0 serves. The synthesized matrix that was earlier introduced as Figure 4 can be reorganized into a hierarchical pyramid (Figure 6). This pyramid reflects the progression of principles from the fundamental ones in its bottom to more sophisticated aspects at the top.

A considerable body of literature exists on SCM sustainability in the age of Industry 4.0. The latter is presented as a key enabler of this principle that aligns with the contemporary values and the necessity of social value generation in addition to the main economic priorities. However, the current stage of SCM 4.0 development prompts managers to prioritize other principles. First of all, the general consensus is on the feasibility of the changes. SCM experts tend to be hesitant regarding the implementation of new features into their chains, because they want to avoid any disruptions. It is natural to be cautious about any indeterminacy, especially in the vital areas of expertise. Unwarranted transformations of the supply chain framework can render the system less efficient or even unusable in the short-to-mid term. This makes the progress toward a fully completed transformation of supply chain management in light of Industry 4.0 slower than optimal.

The overall process can be explained through the lens that is provided in Figure 6. More specifically, the progression begins by establishing the fundamental principles at the bottom of the pyramid. This tier includes such parameters, as the scale, integrability, and efficiency of the supply chain. These principles are key to the contemporary experts engaged in the management of supply chains at their respective enterprises. As the examination of both theoretical and practical knowledge suggests, these concepts are related to the fundamental ideas of supply chain management that have driven the discipline throughout its existence. These needs have not been modified by time and emergence of new trends within society. Since the dawn of commercial industries, SCM has been expected to optimize the use of resources and be of fitting scale in comparison with the company’s needs and strategic growth plans.

On the other hand, integrability is a more recent addition to the fundamental level of discussion. Apparently, the increase of its importance is related to the growing complexity of the business landscape, as a whole. In the 21^st century, globalization remains the leading trend that determines the growth of businesses. Most successful companies eventually come to a point, at which global expansion becomes the optimal way of further development. As a result, supply chains become considerably larger, growing beyond the borders of nations and entire continents. In this context, scale is of the essence, but the increase of size also leads to a corresponding growth in complexity of the framework.

More specifically, modern supply chains comprise an array of elements that are connected by an intricate network of internal and external relations. Under such circumstances, even the smallest additions to the system affect the remainder of its elements, causing a ripple effect. This tendency is considered within the framework of risk management, per which transformations should not lead to supply chain disruptions. Thus, integrability is essential, as it refers to the ability of a solution to be embedded in the existing framework without disturbing its vital processes. This creates one of the most important criteria for any considered step toward SCM 4.0. All solutions should be integrable with the overall system, explaining the necessity of a gradual approach to digital transformation. Accordingly, there is a strong need for a balance between innovativeness and risk management in terms of the supply chain disruption potential.

Only when the fundamental principles of supply chain management are met, are SCM experts ready to consider the next tiers of the pyramid with seriousness. The middle level comprises two components that are the resilience and transparency of the supply chain. The first concept refers to the ability of the chain to withstand pressure and recover from any disruptions quickly. This is particularly important in light of recent crises that undermined the capacity of the global supply chain operations. COVID-19 is not the only example, but it is one of the few that had a truly universal impact. It shows that, even in the 21^st century, the system can endure the challenges of unparalleled magnitude, which is why resilience should not and cannot be disregarded.

Discussion

This chapter elaborates on the previously presented findings of the two-stage research model. In addition to the identified global principles, there is a higher variety of localized challenges that occur at a smaller scale that also require increased resilience of the chain. This information may suggest that resilience is fundamental, but, in light of Industry 4.0, it still pertains to the extended set of principles. The reason for it is that resilience tends to be ensured after the fundamental changes are made. Spoken differently, it serves to solidify and institutionalize the change that has been made prior. The same can be said about the transparency of the supply chain, which is another tier-two component. Its primary objective is to avoid any vagueness in the way in which the supply chain is organized. All of its elements should be included and arranged per specific logic that stems from the organizational needs and strategies. However, experts agree that transparency is better attained when the supply chain acquires its final form at the current stage of development. Amid the process of digital transformation, it is simply counter-productive to focus on it.

This distribution is explained by the necessity of building a stronger, resilient framework that is capable of sustaining itself in the age of Industry 4.0 prior to engaging with higher, externally conditioned objectives. In this regard, the ideas of sustainability in Industry 4.0 are still underrepresented in the practical environment. Moreover, this principle remains outside the main framework of SCM 4.0, being a matter of the future rather than an immediate priority. In fact, this principle accounts for the most serious gap between the theory and practice of SCM 4.0.

Sustainability is a highly actively discussed concept today across the vast majority of industries. As the impact of humanity on the environment becomes more evident, it is natural to concentrate on containing these effects and conserving the Earth’s resources for future generations. The pursuit of sustainability is noble and topical, which is reflected in the amount of literature devoted to this principle. Supply chain management is not an exception, and the issues of sustainability are actively highlighted in light of SCM 4.0. In practice, this criterion is moved to the top of the pyramid as a distant priority. Experts acknowledge the vital status of sustainable business practices, but they tend to ensure that the core requirements of an Industry 4.0 supply chain are met, leaving sustainability for later as a more sophisticated matter.

Significance of the Findings

The significance of these findings consists of the identified inconsistencies between the current body of theoretical knowledge and practical perceptions. As indicated by the literature review conducted within the framework of the present dissertation, theory lacks systematization, resulting in scattered ideas that are not placed within an established framework with identified relations within it. Furthermore, they do not reflect the current state of practical knowledge, which is found to prioritize a different agenda. The first point of inconsistencies is found at the level of the overarching principles that dictate the integration of Industry 4.0 tools in supply chain management. Theorists emphasize the objective of the social value generation that is faced by most corporate entities today. With the companies’ elements being highly interrelated, SCM is expected to comply with these external requirements and focus on social responsibility along with its immediate goals.

Nevertheless, the field struggles to transcend to the higher levels of the identified hierarchy, as the foundation of the pyramid is not sufficiently stable. Even the fundamental aspects that are prioritized by modern supply managers remain severely underrepresented in terms of the systematic knowledge. For most of them, the scale of the supply chain is a matter of paramount importance, as the control over expanded networks allows companies to compete in globalized markets. Simultaneously, the integrability of the tools is another critical component that is sought by today’s supply chain managers. The completion of these objectives allows supply chains to become resilient, thus contributing to the sustained growth of the companies. Without this integral step, SCM will have neither resources nor space to prioritize higher, more abstract agendas, among which there is the pursuit of sustainability.

The second point of inconsistencies is represented by the specific tools that are identified as indispensable for supply chain management in the age of Industry 4.0. Specifically, the consensus is on the Internet of Things as a key solution that can instill digital transformation in its true sense. However, the perspectives diverge beyond the IoT, prioritizing different technologies that are characteristic of Industry 4.0. Supply chain experts in practice value simpler solutions, namely cloud computing and web interfaces that significantly enhance their ability to interact both internally and externally. While these points are addressed by the body of academic knowledge, they are not given the priority. Perhaps, the relative simplicity of these solutions becomes the reasons why they lack attention within the high-tech discourse of today.

Another key point includes the role of blockchain in the SCM agenda of today. Theorists rightfully identify the benefits of this decentralized exchange protocol for extended supply chains of the globalized economy. In a way, this perception aligns with the SC scope being the central principle of SCM in practice. However, experts did not identify any significant role of blockchain in their practical operations. What they did mention is that SCM should not rely on vague ideas regarding a certain solution’s applicability, which implies that blockchain studies are not advanced or detailed enough in terms of the technology’s application for supply chain management. If the inconsistencies persist, the gap between theoretical knowledge and practice of SCM is only going to expand, thus making it difficult for the field to utilize the potential of Industry 4.0.

Limitations

The present study is a first step toward a better understanding of the new reality of SCM in the age of Industry 4.0. In light of the insufficient representation of the subject matter, combined with the lack of systematization, the discussion struggles to proceed into more concrete plains. Thus, the project addresses the issue from a generalized perspective. Its qualitative format prevents the researcher from identifying concrete, quantifiable relations between the principles and tools and SCM 4.0. Thus, the narrative of the project will benefit from subsequent quantitative findings that will illustrate the exact relations of the subject matter’s elements. From a practical perspective, the study relies on the opinions of eight SCM experts from different countries and industries. The format and objectives of the study do not allow for a broader sample that would eliminate any possibility of researcher or participant bias. Therefore, the identified tendencies are subject to variations when examined within specific nations, markets, industries, or companies.

Future Research

There appears to be a strong need for quantifiable data in regard to the subject matter. This project is qualitative in nature, because it seeks to establish a foundation, upon which the information can be further examined with higher precision. The provided framework can be transformed into a set of testable hypotheses that will guide quantitative research. In its course, specific tendencies can be identified and compared, advancing the knowledge on the subject further. Next, it is justified to investigate the state of the subject matter in relation to specific supply chains. For example, the data for high-tech electronic industries and conservative segments may vary to a considerable extent. Finally, nation- and market-specific research will demonstrate a better level of practical applicability for the specialists currently engaged in supply chain management with the influence of Industry 4.0.

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Appendices

Appendix 1: Expert interview 1

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

Your age – 34 years old:

1. What is your educational background? – Master’s degree in Management
2. What is your industry? – We make animal foods in Eastern Europe
3. How many years of total industry experience do you have? – Twelve years
4. What is your current position in your company? – I’m a chief supply manager
5. How many years of experience have you had in your current position? – Two years
6. Is there anything you would like us to know before we begin the interview? – Nothing, I’m just excited to share my thoughts

Part Two: Main Interview Questions (Author (A) and Interviewee (I))

A: “Hello! First of all, thank you for finding time to have this discussion. It’s a big honor for me and for my project”

I: “Hi! Sure, it’s not a problem! I’m always happy to share what I have about my job!”

A: “Before we start, I would like to confirm the information you submitted previously: So, you’re a chief supply manager at a pet food company that operates in Eastern Europe, and you’ve been in this position for 2 years. Is that correct?”

I: “That is absolutely correct. We make mass-market food for cats and dogs that we sell in Poland, Slovakia, and Romania. I’ve been in this industry for almost 13 years now, but a couple of years ago I got invited to this company as a chief manager, so I took this opportunity”.

A: “I see, thanks for sharing! How would you define Industry 4.0?”

I: “Well, this one is a bit tricky. In Eastern Europe, we have not yet arrived at a point where we have a good understanding of what Industry 4.0 is. I guess it’s the use of high-tech tools and such”

A: “Yes, and how does Industry 4.0 impact your industry?”

I: “Well, it certainly became easier to work now. As far back as 12 years ago, it was different in Poland. I had to do many calculations, I kept these big books that I took around the whole factory. Now, it’s all in my computer and my cellphone. A few clicks – and the program does it for me”.

A: “And what Industry 4.0 tools do you use?”

I: “The thing is that I don’t really know all of them by name. I’m not in the IT, so I kind of use stuff without having a clear idea of what it’s called or what this technology is”

A: “You mentioned that you use computers and smartphones to keep track of your work affairs. Are they synchronized? Like, if you do something on your computer, can you check it with your phone later?”

I: “That’s right, and it is very-very convenient. I think that’s called ‘cloud’, isn’t it?”

A: “Yes, it is”.

I: “Well, then that’s it. I use cloud technology in my work and I do it all the time!”

A: “Well, are there maybe any other tools that you think should be added to this list?”

I: “I heard a lot about artificial intelligence and big data when I attended a seminar a couple of months ago. The problem is that my company is not very eager to try them. It takes time and money to get the equipment, the software, to train the people. But yes, I’m excited to see what’s coming with big data and AI”.

A: “Has the fourth industrial revolution changed supply chain management? If so, what particular changes have you noticed?”

I: “Absolutely. I see that things are quicker now. We receive orders, we plan deliveries, and it’s all very-very fast. Like, 10 years ago, it took me 3 or 5 days to get everything arranged for a delivery. I was making phone calls; I was trying to connect the route between all distributors. Now, we do it in a cloud, we text. If anything comes up, I can start a video call like we’re doing right now. So, that’s my observation: things became really fast.”

A: “How have the specific tools of Industry 4.0 changed the way you work? More specifically, could you describe the impact of the Internet of Things, blockchain, cloud computing, AR, and VR? You can focus on all elements you find necessary”

I: “Well, like I said, there is not too much to share at the moment. Cloud, for example, was a big change for me, that’s right. Like I mentioned, I think that big data is going to change a lot, especially for huge companies and networks. For me, in particular, it’s a bit too early to appreciate”.

A: “Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?”

I: “Absolutely. It’s the future, it’s very promising and just one piece of technology can make our work very effective. But like I said, it’s a question of money and time, so it’s understandable that some companies still hesitate”

A: “In your case, are you satisfied with the way your company uses the benefits of Industry 4.0 for supply chain management?”

I: “Not completely, there’s always room for improvement. But once again: I understand”.

A: “As far as you are concerned, what is more important for a company: human resource development or technological progress?”

I: “Human resources are very important. I couldn’t do half of what I’ve done in the past year without our team. We all work for the same goal, we support each other, and that’s important. We all want to grow together and become better, that’s the goal. Technology is just the instrument”.

A: “Are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?”

I: “That depends, because the industry is very big. I understand that there are probably companies that are very high-tech in America or China. There are probably good scientists and developers who make new solutions, but we don’t hear about them here. Like, this development is not even, it does not happen everywhere. I think we still need more time to really feel this Industry 4, because so far, my experience is very-very limited.”

A: “Yes, you’re absolutely right. And what if we look at the downsides of what you’re describing? Are there any risks that go along with the use of Industry 4.0 tools?”

I: “I think there are always risks. But once again, I don’t have enough experience to tell if it’s risky or dangerous. Either way, there is more good than there is bad in Industry 4”.

A: “In this regard, what would you change about supply chain management in light of Industry 4.0 and its benefits?

I: “I don’t think I’m in a position to change anything. I mean, the industry is old, there are rules and there are customs. Of course, I would like supply management to develop more quickly. I want those new inventions to be available everywhere and not just for selected companies or markets”

A: “And it is fully reasonable. Actually, how do you feel about the future of SCM?”

I: “Well, you never know what’s in the future. I think it will be fine. Supply management will grow and improve, we’ll finally get used to this high-tech progress and what it brings for us. I think our future is bright, but there is still work to do.”

Part Three: Free Post-Main-Part Discussion

A: I have been taking notes during our discussion, and here is what I would like you to elaborate on. So, you mention that we still have some work to do to make this bright future of SCM happen, right? What kind of work is it?

I: “Oh, sure, this is pretty interesting. I think that we need to make more efforts to make it happen, like we need to work harder”.

A: “You mean that we need to develop these high-tech solutions faster?”

I: “It’s not exactly that. It’s not about the solutions or technology. These technologies are already good as they are. We talked about clouds, big data, business analytics, all these things. They already exist, it’s already possible to use them. It’s just we, as supply managers, are not exactly ready. We need to work on our perception of these new things and how we treat them”.

A: “So, you’re saying that our field is a bit conservative”.

I: “I can’t say for the whole field, but in my experience, yes. We need to be open for change, even if we need money and time to make it happen. We have to be flexible and ready to try new things, to learn.

A: “This is a very important idea, thank you! Is there anything else you find important that SCM researchers need to know?”

I: “Well, I need to think about it. But thank you for letting me talk about it and thank you for researching this important topic. It means a lot!”

A: “Well, thank you for sharing your thoughts! I really appreciate it, all the best!”

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview? – Fully satisfied
2. Have you been able to cover the subject matter in its entirety? – As much as I could, yes.
3. Is there anything else you would like to add to what has already been said? – I just wanted to reiterate how important it is that we become the driving force of the change in supply management. Do not be afraid to try new things and test those new solutions.

Appendix 2: Expert Interview 2

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

Your age – 26 years old:

1. What is your educational background? – Bachelor’s degree
2. What is your industry? – Logistics
3. How many years of total industry experience do you have? – Three years
4. What is your current position in your company? – Junior Supply Chain Manager
5. How many years of experience have you had in your current position? – Three years
6. Is there anything you would like us to know before we begin the interview? – No, thanks!

Part Two: Main Interview Questions (Author (A) and Interviewee (I))

A: “Hello! First of all, thank you for finding time to contact me and talk about this topic”

I: “Good evening! From my side, thank you for having me, I’m really flattered to be recognized as a professional.”

A: “Before we start, I would like to confirm the information you submitted previously: So, you’re a supply manager and you’ve been in this position for 3 years. Is that correct?”

I: “Yes, correct. We’re a Logistics company that is based in the U.S. I actually did my internship there during my senior year. I did well, and we had a good rapport with my superiors, so I got a full-time job offer right after graduation. They were looking for a supply chain officer, and I was honored by the amount of trust they showed me”.

A: “So, you probably know a lot about this sphere, so I’m excited for our talk”.

I: “Me too, can’t wait to start!”

A: “Then let’s get started. So, how would you define Industry 4.0?”

I: “Industry 4.0 is something that we hear about a lot on the internet, in professional meetings. This year alone we held like 4 or 5 talks regarding this. So, this is a concept that I’m pretty familiar with”

A: “So, how would you define it?”

I: “The way my company puts it, Industry 4.0 is a new level of industrial performance where technology helps do what was previously impossible”

A: “Do you agree with them?”

I: “Sure, I share the same vision. Technology makes us better, and it helps us complete tasks that would otherwise have taken weeks in just a couple of days”

A: “I agree, and this is fantastic! So, how does Industry 4.0 impact your industry?”

I: “In every manner imaginable. As a logistics company, I feel we are at the forefront of Industry 4.0; we must be efficient in all parts of our services, including distribution, warehousing, and shipping. We need to be up to date on new technology and how they might help us improve our productivity and satisfy our clients.”

A: “And what Industry 4.0 tools do you use?”

I: “Like me personally or the company? Either way, we use a lot of them. You know this Internet of Things technology? There are sensors everywhere now, and they track your preferences, they adjust your experiences accordingly. This is an actual smart home we’re talking about! In our business planning, we use Cloud computing, Video calling, and now we are even implementing AR slowly and making a strategy. For example, we have tested Vision Picking in collaboration with an AR firm, the name of which I suppose I cannot mention. We understand that it will streamline operations by providing pickers with smart glasses that enable hands-free order picking. We’re currently using a combination of handheld scanners and a paper pick list, but we can make this process leaner and more user-friendly by becoming paperless and hands-free. Vision picking has the potential to significantly boost productivity, and assist our staff in their regular tasks. This is really amazing and it is just one of the features.”

A: “Do you think that all these tools you mentioned are equally important or can any of them be redundant?”

I: “Well, this is pretty subjective, don’t you think? Besides, you never know if something truly helps your cause or is just redundant until you try it. Our company is focusing heavily on IoT and AR.

A: “I tend to agree, this is, indeed, subjective. Another question is: has the fourth industrial revolution changed supply chain management? If so, what particular changes have you noticed?”

I: “It has changed it, and it is changing it as we speak. First of all, I don’t think this fourth industrial revolution is even over. There are new technologies that are being developed, and even the existing ones find new ways of being implemented. For example, AI is not a new concept by any means. I remember hearing about it a lot in the past when I was a kid. Of course, it was a different perception of AI and not an actual tool. Still, who would’ve thought that you can use it in supply chain management? So, what I noticed is that supply chain management becomes less conservative and there is more room for innovation. It’s like current progress makes us more open to new discoveries.”

A: “How have the specific tools of Industry 4.0 changed the way you work? More specifically, could you describe the impact of the Internet of Things, blockchain, cloud computing, AR, and VR? You can focus on all elements you find necessary”

I: “There is much more precision in my work today. With business analytics and big data, computers tell you exactly how much a shipment will take to a certain degree of accuracy. It takes into account so many factors, it would take days for a human to calculate. Now, we just have this data supplied in real time, adjusting the figures. We have much more room for creativity and for testing different formats, too. I like how the Internet of Things helps us keep the whole supply chain well-functioning. If anything goes wrong at any point, we have the equipment to tell us about it right away so we can react quickly”.

A: “Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?”

I: “I think we do a pretty good job using Industry 4.0 to make our products and supply chains more efficient. I wouldn’t say we use it fully, since this is a big uncharted territory for most of us. Still, what we have – we use, and it helps get better results.”

A: “Does that mean you are satisfied with the way your company uses the benefits of Industry 4.0 for supply chain management?”

I: “Yes, clearly, I am satisfied and I am looking forward to what’s coming next”.

A: “As far as you are concerned, what is more important for a company: human resource development or technological progress?”

I: “You can’t have one without the other. Technology does not evolve on its own: it’s done by very smart, forward-looking people who know how to make the most of it. It works like this the other way round, too. No advanced technology can be useful without smart people to operate it correctly and creatively”.

A: “Are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?”

I: “I believe I am, yes. I see new solutions everywhere and I see how efficient it is becoming. I am glad there are such serious efforts to help us with our tactical and strategic objectives. I think our future is pretty bright, and we will see even more cool new tech to assist supply chain managers.

A: “And what if we look at the downsides of what you’re describing? Are there any risks that go along with the use of Industry 4.0 tools?”

I: “There are always risks, I’m afraid. You have to be very careful with how much you trust these machines. High-tech is always nice and useful, but there always needs to be human expertise. This is what I meant about smart people operating the equipment: you have to control what your machines and computers are doing, you always need to double-check them. They’re there to assist you, not replace.”.

A: “In this regard, what would you change about supply chain management in light of Industry 4.0 and its benefits?

I: “I think I’d show more attention to training managers in terms of the ability to work with high-tech stuff. Right now, it’s more of a voluntary initiative by each individual manager or company. There is no system or centralized educational component to it.”

A: “And how do you feel about the future of SCM?”

I: “The future is all right, as long as we stay cautious and smart. Like always, we need to calculate the risks and consider them when making our decisions.”

Part Three: Free Post-Main-Part Discussion

A: I have been taking notes during our discussion, and here is what I would like you to elaborate on. So, the training component you talked about – do you mean that we need to modify university curricula for SCM?”

I: “It’s everything, actually, not just universities. But yes, unis most of all. It’s all about how to train new SCM specialists. Young people like ourselves are open to new ideas, but the way we’re trained is not exactly up-to-date. And that’s understandable! I mean, education is difficult, you have to be very careful with what you teach, you can’t just update a curriculum without assessing the impact of these changes.”

A: “Maybe there’s something that can be done after graduation?”

I: “There definitely is. It’s about sharing the experience between professionals. Communicating and cooperating. And that’s even more difficult because we all need to work in sync, otherwise there’s just too many sides of that coin, too many opinions”.

A: “Do you think that projects like ours will contribute to that? We’re trying to develop a uniform framework for SCM in the age of Industry 4.0”.

I: “This is exactly what we need, a framework like this. But you need to understand that it will take time to become big”

A: “Yes, sure, but we need to start somewhere”

I: “That’s what I think, too. Actually, we’re getting short on time, so thanks for letting me share my ideas! I hope I helped”

A: “Absolutely! Thank you very much and all the best!”

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview? – Satisfied
2. Have you been able to cover the subject matter in its entirety? – I have
3. Is there anything else you would like to add to what has already been said? – No, I think not, but thanks!

Appendix 3: Expert interview 3

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

Your age – 35 years old:

1. What is your educational background? – Master’s degree
2. What is your industry? – Retail
3. How many years of total industry experience do you have? – 11 years
4. What is your current position in your company? – Chief supply chain manager
5. How many years of experience have you had in your current position? – 4 years
6. Is there anything you would like us to know before we begin the interview? – No, thank you

Part Two: Main Interview Questions (Author (A) and Interviewee (I))

A: “Hello! First of all, thank you for finding time to contact me and talk about this topic”

I: “Hello and you’re welcome. Thank you for having me, too.”

A: “Before we start, I would like to confirm the information you submitted previously: So, you’re a chief supply manager in retail and you’ve been in this position for 4 years. Is that correct?”

I: “Yes, I’ve been in charge of the department for about years, but I’ve been working in this industry for much longer”.

A: “Then I’m excited to hear your ideas about the field!”

I: “Sure, excited to share them

A: “Then let’s get started. So, how would you define Industry 4.0?”

I: “Industry 4.0 is the fourth industrial revolution with superior technology and new solutions taking a more important position in business. It’s like a digital transformation, a whole new level of business”

A: “And how does Industry 4.0 impact your industry?”

I: “You mean retail? Retail is very changeable in that it is affected by basically anything that happens in the external environment. We exist at the intersection of communities and businesses. So, we have to adapt to what’s happening outside so to speak. In terms of technology, we should be the ones to actually try it and implement it in our practices. Our customer base is pretty diverse, and these are the people who keep up with the trends”.

A: “So, it’s your clientele that demands changes?”

I: “Not as much demand as expected. They expect us to be agile and up-to-date, but it’s difficult with so many factors affecting us”

A: “And when it comes to progress, what specific tools do you use in your industry?”

I: “Everything that is digital. Apps, websites, Internet of Things. We mostly use the tech that helps us track our customers’ preferences and react to any changes in them.”

A: “Do you think all of these tools are equally important, too?”

I: “I think so, not sure, to be honest. If we use them then they’re important, right. We have a lot of different tasks and each tool fits individual tasks, that’s that. We use apps to track customer activity, and then business analytics to predict seasonal changes in their purchasing behavior”

A: “And if we talk about your specific position: has the fourth industrial revolution changed supply chain management? If so, what particular changes have you noticed?”

I: “There is less waste, both figurative and literal. I get more precision and details about our supply chain operations. We have pretty advanced business analytics tools that react to any changes in customer behavior. For example, they register a shift in demand between our locations, they compare it against historical data and give us an accurate forecast about the demand curve for each of our venues. It’s a very big deal for the holiday season, for example. A couple of years ago we were selling a new product for young kids and our forecasts were incorrect because we did not use these tools. The demand between different stores was nothing like we expected, so we ran short in one location. There was a lot of waste in every sense of the word, which is neither efficient nor sustainable. Now we take a different approach, it’s much more precise and informed. There are so many other advantages that I won’t be able to go into detail.

A: “How have the specific tools of Industry 4.0 changed the way you work? More specifically, could you describe the impact of the Internet of Things, blockchain, cloud computing, AR, and VR? You can focus on all elements you find necessary”

I: “In my daily work, I work pretty closely with business analysts. These guys have the equipment and algorithms to make my work more efficient. I make an educated assumption about possible changes and we can analyze it beforehand to get an idea without wasting money and time. For example, a couple of months ago we reworked our shipment patterns in the area. It was not an obvious choice for me, personally. There were many risks about this pattern, but the calculations were pretty solid on this one. So, we followed their lead and reduced our daily product delivery time in the area by 15%. In the long run, that’s a lot, especially in terms of money saved”.

A: “Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?”

I: “Yes, we always try new things and if there’s something we’re certain about, we do it.”

A: “Does that mean you are satisfied with the way your company uses the benefits of Industry 4.0 for supply chain management?”

I: “Yes, of course”.

A: “As far as you are concerned, what is more important for a company: human resource development or technological progress?”

I: “These are different things, and it’s hard for me to pick one that is more important. If I have to make a choice, it will be human resources. If you have the right people working on a common goal, you can do anything. Technology can’t do anything on its own”.

A: “Are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?”

I: “The thing with me is that I’m never fully satisfied. It’s not that I’m grumpy or anything, I just think there’s always room for improvement. Once you become fully satisfied, there’s just no desire for growth. I’m happy with what we’re doing, but I’ll be happier if we can do more”

A: “And what if we look at the downsides of what you’re describing? Are there any risks that go along with the use of Industry 4.0 tools?”

I: “There is always a risk of going too far. When we just introduced these algorithms, we were pretty cautious about them. We delegated tasks to the machines one by one as we became assured of their potential. But you have to know when it’s time to stop. At some point, you risk losing control and trusting the machines way too much. Sure, they can do complex tasks and a lot of them, but there must always be a person in charge. And this person needs to know exactly what is being done, why it’s being done like this and how to fix it if it goes wrong”

A: “In this regard, what would you change about supply chain management in light of Industry 4.0 and its benefits?

I: “Well, I would like to manage people’s expectations and keep them more realistic. In my field, I usually get two types of co-workers. Some think that machines are evil and unreliable. That we are lazy and delusional for trusting them. These are the kinds of people who keep taking notes with their pencils and avoid storing any information in their computers because it may get hacked. They stop our progress.”

A: “And what is the second type?”

I: “The second type is the opposite of that. It’s the people who are obsessed with technology, AI, VR, BD, and any other abbreviation. They want everything automated or scripted so that computers take care of all these things. I’m not sure that it is productive. Some tasks can be delegated to machines, but in the case of others, it’s pointless. I think there should be balance in all we do”.

A: “And how do you feel about the future of SCM? Do you think we’ll be able to find this balance”

I: “Yes, I hope we will. I see a lot of improvements, especially in [our company]. I don’t want to be too optimistic, but I’m pretty sure Industry 4.0 will be a new step toward a better future. It’s not supply chains or distributions, no. Actually, I think we’ll be moving away from separating these things. If there is a big, integrated network, you can’t afford to just focus on supply chains. You have to see a bigger picture.”

Part Three: Free Post-Main-Part Discussion

A: I have been taking notes during our discussion, and here is what I would like you to elaborate on. You mention that some tasks are not worth being automated. Did I understand you correctly?”

I: “Yes, you did. In some cases, that’s just automatization for the sake of automatization”

A: “And why is it so?”

I: “First, the difference in time may not be that big. I can’t think of a professional example right now, but here is one from my office. One of my co-workers brought a Bluetooth coffee-maker. You connect your phone to it, and you can start making coffee without actually coming to the coffee-maker and pressing the button”.

A: “Well, it may be convenient for some”.

I: “But what is the point? Does it actually take this much time to go to the kitchen and press a single button? Besides, Bluetooth won’t refill the water tank or coffee beans or change the filters. The amount of time you save is just not worth the expenses.”

A: “Are there any other reasons to give up on automation”

I: “Sure, sometimes the risks are too high. I’ll put it differently: when you implement something, you may get good immediate value off it. But the chance of something going wrong is also high. And when it does go wrong – you lose more at once than you gained before. I’ll give you an example. We once discussed if we could one day use autonomous vehicles for our deliveries. For the management, it seemed pretty exciting: it’s state-of-the-art, it’s good marketing, and we get to save up on drivers’ pay. But what if it goes wrong?”

A: “Well, this kind of technology gets heavily tested before use.”

I: “Of course, it does. But you can’t prepare for everything that may happen on the roads. Traffic is not scripted especially in this country and it isn’t always predictable. There are actual people driving around, there are roadblocks and accidents, then there’s weather. You just can’t replace the expertise of a professional driver who’s been doing this for decades. Machines learn after experiences, people can anticipate the situation. If something goes wrong and this autonomous vehicle gets lost, we also lose tens of thousands in profits. And if there’s a human operator ready to go at all times, what’s the point? How is it different from hiring a professional driver?”

A: “This actually makes sense, thank you very much for your input!”

I: “You are welcome, thank you for inviting me”

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview? – Yes, satisfied
2. Have you been able to cover the subject matter in its entirety? – Yes
3. Is there anything else you would like to add to what has already been said? – Nothing

Appendix 4: Expert Interview 4

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

Your age – 29:

1. What is your educational background? – Master’s
2. What is your industry? – Retail
3. How many years of total industry experience do you have? – 2 years
4. What is your current position in your company? – Logistics manager
5. How many years of experience have you had in your current position? – 2 years
6. Is there anything you would like us to know before we begin the interview?

Note: the interview was scheduled with this company’s chief supply manager who had to withdraw because of a schedule conflict and provided a junior replacement

Part Two: Main Interview Questions (Author (A) and Interviewee (I))

A: “Hello! First of all, thank you for finding time to contact me and talk about this topic”

I: “Hi! Thanks for having me!”

A: “Before we start, I would like to confirm the information you submitted previously: So, you’re a logistics officer in retail and you’ve been in this position for 2 years. Is that correct?”

I: “Yes, all is correct”.

A: “And you also mention that you’re only in this field for two years, as well. So, it’s your first job in supply management?”

I: “Exactly so. I have a Master’s in an IT-related field, but a couple of years ago I got this opportunity and decided to give it a shot. I have to say, it worked out pretty well”

A: “Oh, so you’re educated in IT? This has to be pretty interesting in light of our subject matter!”

I: “Well, let’s see”

A: “Perfect, let’s get started. So, how would you define Industry 4.0?”

I: “I’m not sure there’s a fixed definition for it yet, but I’ve heard about it a lot. The way I see it, Industry 4.0 is a new, digitally-transformed economy where money, people, and technology work together to generate value”

A: “And how does Industry 4.0 impact your industry?”

I: “In every way possible. In our company’s mission statement, the CEO is pretty hopeful about digitalization and how it can change our line of work. We’re pretty up-to-date in this regard.”.

A: “And what specific tools do you use in your industry?”

I: “We’ve got a lot of digital tools in our toolbox. Most are different digital interfaces that connect us with our clients. That’s the neat thing about Industry 4.0: you can stay connected to your customers and your suppliers at all times. Then you’ve got the Internet of Things. If you can set it up, your whole production process becomes filled with self-controlling sensors that exchange the data and provide you with data. We can see where our products currently are, how fast they travel, what the temperature is outside. If the goods are damaged, we check the sensor history to see at which exact point it happened. This one is new and it’s already saved us a few hundred thousand in litigation with shipping companies.”

A: “Do you think all of these tools are equally important, too?”

I: “Some are better than others, that’s for sure. It also depends on how well you can use them. I am pretty excited about AIs and neural networks. Those are the kinds of things that can really advance your business and generate huge profits, but it’s super difficult to set up. In my previous line of work, I had some experience with neural networks. You can build one, but you have to really know how machine learning works for it to be of any use. That means a lot of knowledge, time, and effort. If you don’t have it, don’t waste your time trying to customize an AI unless you you’re sure that you can make it work”

A: “And if we talk about your specific position: has the fourth industrial revolution changed supply chain management and logistics? If so, what particular changes have you noticed?”

I: “Yes, for sure. I gave you a few examples about how we apply the Internet of Things. I’ve only been in the industry for two years, so I can’t really tell what exactly has changed. But there are changes and they’re happening as we speak.”

A: “How have the specific tools of Industry 4.0 changed the way you work? More specifically, could you describe the impact of the Internet of Things, blockchain, cloud computing, AR, and VR? You can focus on all elements you find necessary”

I: “I’ll just summarize what was said: the Internet of Things, big data, business analytics. Then, potentially, AI and neural networks are up there if we can make them work”.

A: “Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?”

I: “We’re trying to make it work, and we’re doing a good job, yes. My superiors are open for suggestions, they have big plans. But there’s still a lot of work to be done.”

A: “Like the AI?”

I: “Like the AI, exactly”

A: “Does that mean you are satisfied with the way your company uses the benefits of Industry 4.0 for supply chain management?”

I: “I will be satisfied if we can finally set up this neural network, but that’s a long shot”.

A: “As far as you are concerned, what is more important for a company: human resource development or technological progress?”

I: “Human resources, that’s for sure. Technology does not just appear in the vacuum, it’s not created by gods or the universe. It’s all people. It’s all talented, genius people who think outside the box. Technology is invented, created, and operated by people. Remember what I said about AI? Neural networks exist and they’re very good potentially. But they’re no good for you if you can’t set them up properly”.

A: “Are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?”

I: “I think this development is far from over and there’s still a lot to accomplish. But I’m happy with what I see, especially in my company”

A: “And what if we look at the downsides of what you’re describing? Are there any risks that go along with the use of Industry 4.0 tools?”

I: “When you run after digitalization, you tend to forget what you do that for. One of our competitors was so bound on digitalization, they spent so much money on it without actually giving it too much thought. It’s pretty funny how that ended up losing so much money ”

A: “In this regard, what would you change about supply chain management in light of Industry 4.0 and its benefits?

I: “Just the way we look at Industry 4.0. It’s not a downfall of human civilization and it’s not a blessing either. It’s just the reality, it’s a tool that can and should be used.”

A: “And how do you feel about the future of SCM?”

I: “Only time will tell, but I’m hopeful. I think there will be some sort of a natural selection in the industry. In this case, technology is a constant, and our ability to use it is the variable. Companies that can actually analyze these tools critically and apply them correctly will inevitably outlive those who just pursue profits or blind digitalization.”

Part Three: Free Post-Main-Part Discussion

A: Speaking of the future of supply chain management and Industry 4.0, you mentioned that the application of these tools should be done correctly…”

I: And critically, yes.

A: Could you please elaborate on that?

I: Sure. I believe in technology and its benefits for our work, but I’m not sure we should jump on any tool that we find. Many people I know, who work in similar fields, do not analyze these tools critically. This means that they find a new technology like blockchain, and they just go for it. And this happens a lot!

A: So, what you’re saying is that we don’t have enough critical, evidence-backed data on the applicability of certain tools.

I: That’s right. Do not innovate for the sake of innovation. Such things disrupt your supply chain to a degree, so you need to know why you’re doing it. A co-worker may say that blockchain is the future, and we need to implement it as soon as possible. I ask them, “How exactly will it help in our particular case?”. But it usually comes down to the fact that many journals and experts mention blockchain without an actual framework of its application. Of course I am talking hypothetically but you get my point?

A: Thank you so much for the insight.

I: Thanks to you, as well!

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview? – 100%
2. Have you been able to cover the subject matter in its entirety? – 100%
3. Is there anything else you would like to add to what has already been said? – No, thanks!

Appendix 5: Expert interview 5

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

Your age – 43:

1. What is your educational background? – MBA
2. What is your industry? – Food and Beverage
3. How many years of total industry experience do you have? – 21 years
4. What is your current position in your company? – Senior supply manager
5. How many years of experience have you had in your current position? – 6 years
6. Is there anything you would like us to know before we begin the interview? – No, excited to share my thoughts

Part Two: Main Interview Questions (Author (A) and Interviewee (I))

A: “Hello! First of all, thank you for finding time to contact me and talk about this topic”

I: “Hello and thank you, too!”

A: “Before we start, I would like to confirm the information you submitted previously: So, you’re a senior supply manager in the food and beverage industry, and you’ve been in this position for 6 years, is that correct?”

I: “Yes, it is”.

A: “And you also mention that you’ve been doing supply chain management for 21 years

I: “Also correct”

A: “That’s quite impressive, you’ve seen the evolution of SCM first-hand, and I can’t wait to hear your insights”

I: “Well, don’t get your expectations too high, I’m just a man willing to share an opinion”

A: “Sure, let’s get started. So, how would you define Industry 4.0?”

I: “It’s the next logical step in our development. It’s the point where we use technology with a full understanding of its capacity and potential concerning our goals”

A: “This is a fascinating interpretation. Could you please elaborate on that? Where is this line between “before” and “after” in terms of Industry 4.0?”

I: “We used technology before, that’s for sure. For example, computers. We’ve had them in our offices since the late 1990s. Then there is different software, apps, phones, GPS. But these are just separate things, not specific to what we do in supply chain management. In many ways, it’s been sporadic, and there was no system to it. In Industry 4.0, it’s different. Technology becomes integrated in our operations and strategies. It does not just assist us but defines what we do”.

A: “And what specific tools do you use in your industry?”

I: “I’m a big fan of the cloud, personally. We have 42 warehouses across the country and hundreds of distributors. Can you imagine how difficult it was to keep our databases synchronized? There were always inconsistencies and mistakes. Sometimes they cost hundreds of thousands because we couldn’t keep up with each other. Clouds are a blessing, because we always have access to the same, up-to-date database. I change one thing in the headquarters, and distributors a thousand miles away see it.”

A: “Is there anything else you use?”

I: “Sure, lots of things. Data analytics is also pretty important for us in terms of forecasting. Before, even the most experienced manager could do no more than an educated guess, and it was often costly. Business analytics reduce those risks, because these algorithms process immense amounts of data, and that happens pretty fast, too”

A: “Do you use the Internet of Things?”

I: “Not yet, We’re still in the process.”

A: “Do you think all of these tools are equally important, too?”

I: “No, of course not. Things that work in one industry or even one specific company may not work anywhere else. It’s normal, we all have different priorities, and only time will tell which model is correct”

A: “And if we talk about your specific position: has the fourth industrial revolution changed supply chain management and logistics? If so, what particular changes have you noticed?”

I: “I see a lot of more time for creativity. These automation tools really helped me and my co-workers tackle some of the daily operations that are fairly simple but necessary and often time-consuming. Now, we don’t have to do it manually, so we have more time for strategic planning and creativity. I think that translates into faster growth of our department and the company.”

A: “Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?”

I: “We’re trying to do our best here, yes. Still a lot of things left to do and to implement, though.”

A: “Does that mean you are satisfied with the way your company uses the benefits of Industry 4.0 for supply chain management?”

I: “Yes, that’s for sure”.

A: “As far as you are concerned, what is more important for a company: human resource development or technological progress?”

I: “Both of them need to be in sync for a company to truly grow. You can’t develop your technological capacity without human resources. And you can’t stay relevant without good technology to back up your efforts. But technology needs operators, it needs people who can make the most of it. What’s the point of developing data analytics algorithms if you don’t have good analysts to make them work? And with Industry 4.0, technology is no longer limited to specific departments. I remember how about 10 years ago half of my coworkers believed that nobody outside the IT department needed to know how to use software. Today, it’s different. When technology expands, when it permeates all operations, you have to know how it works, whether you’re a delivery truck driver or the CEO”.

A: “As I understand, you’re talking about digital literacy”.

I: “Yes, that’s what it’s called, I think. We have to nurture it”

A: “Moving forward, are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?”

I: “That takes me back to what I just said. I’m satisfied with how many great tools we get now, but I’m extremely dissatisfied with the level of digital literacy that I see. There is a lot more that we can do but people resist the change”

A: “Do you think that it’s a generational problem?”

I: “No, I don’t think so. I’m 43 and I have no problem accepting the new reality. At the same time, I had a 24-year-old intern who said – and I quote – ‘I’m not getting paid to know how Excel works’. That’s pretty sad if you ask me”

A: Are there any risks that go along with the use of Industry 4.0 tools? Especially vis-à-vis digital literacy?”

I: “That’s the main risk, yes. There could be a situation where technology evolves to a certain point but we’re just too much behind to appreciate it ”

A: “In this regard, what would you change about supply chain management in light of Industry 4.0 and its benefits?

I: “I want to change the way people perceive technology and Industry 4.0. I want to eradicate this idea that technology is an extra perk that can advance the main work, because it’s not. It’s part of the profession, it’s integral to the work process, so you have to be ready to master it before you end up a dinosaur.”

A: “And how do you feel about the future of SCM?”

I: “There’s a lot of uncertainty about it, that’s for sure. If we don’t change our attitude, we risk missing out on the benefits of Industry 4.0. From my side, I do everything I can, but I can’t vouch for the rest.”

Part Three: Free Post-Main-Part Discussion

A: “I really appreciate your thoughts, especially about digital literacy. How do you think we could address this issue?”

I: “It’s a matter of education, I think. It needs to be part of all programs and all initiatives aimed at the training of new employees. From day one, supply managers must understand that their work is not just numbers, spreadsheets, logistics, calculation or whatever. Do not take technology as a bonus, treat it as a must… Oh, I’m sorry, I have a meeting that starts in a couple of minutes. Thank you, gotta go!”

A: “Thank you, too! Goodbye!”

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview? – Satisfied, but wish I had more time to expand on my ideas
2. Have you been able to cover the subject matter in its entirety? – No, unfortunately
3. Is there anything else you would like to add to what has already been said? – Yes, but it’s difficult to formulate it in writing right now. Hopefully, we can follow up for your next project!

Appendix 6: Expert Interview 6

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

Your age – 31 years old:

1. What is your educational background? – Bachelor’s degree in logistics
2. What is your industry? – Electronics
3. How many years of total industry experience do you have? – 9.5 years
4. What is your current position in your company? – Head of supply
5. How many years of experience have you had in your current position? – 2 years
6. Is there anything you would like us to know before we begin the interview? – Yes, I really liked the idea of the project and think that it’s important that we talk about such things

Part Two: Main Interview Questions (Author (A) and Interviewee (I))

A: “Hello! First of all, thank you for finding time to contact me and talk about this topic”

I: “Hello, my friend, and thank you for choosing me as your speaker.”

A: “Before we start, I would like to confirm the information you submitted previously: So, you’ve been a head of your company’s supply department for 2 years, right?”

I: “This is right! I came to [redacted] after another company here. I was really excited to grow as a professional”.

A: “And I’m really interested in seeing your perspective on our subject”.

I: “Yes, thank you, because I feel we don’t talk about Industry 4.0 enough here”

A: “Well, speaking of Industry 4.0, how would you define it?”

I: “Industry 4.0 is the future! It’s technology and experience that help us integrate all business processes into one unity. In simple words, it’s technology-assisted business processes, all integrated.”

A: “And then, how does Industry 4.0 impact your industry?”

I: “My industry is Industry 4.0! Anything related to electronics is high-tech by default, but it’s also spreading to other businesses. The way I see it, companies are less isolated today, because we have to interact in order to exchange knowledge and tech. All parts of the process become integrated. We utilize state-of-the-art technology for our product, because we want to make the best of the tools that we have”

A: “Okay, but that is the consumers’ perspective, right? Like, your product is cutting-edge in terms of the solutions used. But how about the way your work and supplies, in particular, are organized?”

I: “I see what you mean. Yes, it often happens that high-tech companies that make state-of-the-art products are not that progressive themselves. But we try to keep up and make our business process efficient, like we should. We have all the means and resources for that and we put them to good use”

A: “And what Industry 4.0 tools do you use?”

I: “The Internet of Things is a top one, we’ve adopted it recently and it’s been going great! Every important part of the production process has the sensors and detectors, they exchange information with the data center. We see how we perform, whether there are any issues or sudden drops. Then, we can analyze the entire supply chain’s performance, break it down into separate links and analyze them too! This is very important for transparency, because we always see how everything works and what can be done to improve the performance. This way, our relationship with the management also gets better, because they see a very clear breakdown of our supply chain and make sure we don’t miss anything”

A: “Are there any other tools that you use?”

I: “There is a cloud for our databases, data analytics for performance evaluations, we’re also testing an AI to monitor the shipment patterns, but it’s too early to talk about it”.

A: “Do you think that all these tools are equally important or can any of them be redundant?”

I: “They work in a system, my friend. Remember what I said about Industry 4.0? It’s all integrated, there are no parts that are more important or less important. It’s all a very complicated and interrelated mechanism that is designed to function as one. You take one small thing out of it – and it falls apart. So no, I can’t tell if it’s more important or less important”

A: “Thank you, this is a very interesting perspective, and a reasonable one, too. Another question is: has the fourth industrial revolution changed supply chain management? If so, what particular changes have you noticed?”

I: “We became more connected to each other and to other parts of the company. Like I described, there is not an integrated system where each element supports the other. We work closely with research and development, with strategic planning, and HR. I think Industry 4.0 creates this feeling of being part of something bigger than just our supply chain.”

A: “How have the specific tools of Industry 4.0 changed the way you work? More specifically, could you describe the impact of the Internet of Things, blockchain, cloud computing, AR, and VR? You can focus on all elements you find necessary”

I: “Well, yes, I’ve talked about the Internet of Things earlier. For me, it’s the biggest change that I experienced in the field of supply chain management. No one could think that you connect an assembly line’s parts to a server and see how it performs in real time. It helps with performance analysis. Then we have business analytics and big data for analyzing the past and making plans for the future. It’s better like this because we have solid evidence to show the management when we need to defend a point of view or a strategy. There’s also a lot of smaller things like clouds and advanced software”.

A: “Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?”

I: “Probably, yes. It’s doing a great job and we’re not afraid to risk a little bit. Like with the Internet of Things, it was risky and we weren’t sure it would pay off. But it did. I think the company holds a good position in this regard, because we’re open for new opportunities but we just don’t want to adopt untested things. There’s healthy risk that is justified, and then there’s blind risk, when you’re just trying to look for innovations without truly understanding if you need them or not”

A: “Does that mean you are satisfied with the way your company uses the benefits of Industry 4.0 for supply chain management?”

I: “More like yes than no”.

A: “As far as you are concerned, what is more important for a company: human resource development or technological progress?”

I: “It’s human resources, no doubt. Technology is never constant, it changes and evolves all the time. Think about the past times, about the first capitalist countries and their businesses. Did they have technology? No, they didn’t. It was primitive and it was not enough, but they still made money and they still developed a lot. It’s because there were people who worked very hard there. If your human capital is good, you can do anything with or without technology”.

A: “So, it’s all about the attitude?”

I: “Yes, exactly. Attitude!”

A: “Are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?”

I: “Yes, of course, we have a lot of benefits. We have big projects that are now possible because of the technology of Industry 4.0. Our network of distributors is bigger than we could ever imagine because we can actually control it! Instant communication, remote tracking, accurate forecasting, all that is Industry 4.0!”

A: “And what if we look at the downsides of what you’re describing? Are there any risks that go along with the use of Industry 4.0 tools?”

I: “Risks? I don’t know. I mean yes, there are always risks, it’s never easy. Without attitude, a bad worker can mess up even the easiest task”.

A: “And what is the biggest risk?”

I: “The biggest risk is if bad workers decide they don’t need to grow, because computers can do everything for them”

A: “In this regard, what would you change about supply chain management in light of Industry 4.0 and its benefits?

I: “Keep the workers focused and not trust computers too much. I mean, it’s fine if a computer does some work for you, but it’s not good if you can’t do it without a computer. Always have a backup plan!”

A: “And how do you feel about the future of SCM?”

I: “I think it will be good, I think we will do even bigger projects and work together on a global scale.”

Part Three: Free Post-Main-Part Discussion

A: I have been taking notes during our discussion, and here is what I would like you to elaborate on. So, you listed a lot of tools that you use, but you never said anything about blockchain. Have you heard about it?”

I: “Yes, of course I heard about, but I don’t know how it can help my work right now”

A: “In modern literature – I mean, academic literature – there is a lot of discussion about blockchain in supply chain management. The thing is that I haven’t heard anyone mention it during any of the interviews”

I: “Well, I’m sure all these authors have a good reason for discussing blockchain. What I said is that I don’t personally see how it can help with our tasks at the moment, but it doesn’t mean that it can’t be used at all. It’s all subjective and it’s all about individual goals. If there are new tools that can help, I am always happy to try!”

A: “Do you think that projects like ours will contribute to a better understanding of such potential tools?”

I: “Based on what you sent me, yes! You see, the problem is that we’re a bit in the dark here. All the things that we used, we tested them ourselves. All our scripts and algorithms are tailored for our factories and warehouses. There isn’t a manual or anything that we can use. So, yes, a nice, detailed project on how Industry 4.0 helps manage supply chains is long awaited.”

A: “Thank you for this, and thank you for your input!”

I: “Thank you for inviting me, my friend. I hope you do well with the rest of your project.”

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview? – Yes, absolutely
2. Have you been able to cover the subject matter in its entirety? – As much as I could
3. Is there anything else you would like to add to what has already been said? – Good luck!

Appendix 7: Expert Interview 7

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

Your age – 39 years old:

1. What is your educational background? – M’s
2. What is your industry? – Medical equipment
3. How many years of total industry experience do you have? – 17 years
4. What is your current position in your company? – Head of supply and logistics
5. How many years of experience have you had in your current position? – 9 years
6. Is there anything you would like us to know before we begin the interview? – No

Part Two: Main Interview Questions (Author (A) and Interviewee (I))

A: “Hello! First of all, thank you for finding time to contact me and talk about this topic”

I: “Hello.”

A: “Before we start, I would like to confirm the information you submitted previously: So, you’ve been a head of your company’s supply operations for 9 years, right?”

I: “Not exactly. It’s 9 years in total but different companies”.

A: “Oh, thanks. And how long have you been in your current company?”.

I: “Two years. Two and a half, maybe. Yes.”

A: “Okay, thanks. So, my question is: how would you define Industry 4.0 from your perspective?”

I: “It’s the fourth industrial revolution.”

A: “Sure, thanks, but what does it mean exactly? For you, for your company?”

I: “Industry 4.0 is more reliant on technology. It’s more advanced and it is pretty promising if you ask me”.

A: “What are its main promising aspects?”

I: “Automation, I think. You delegate a lot of work to machines, and you can focus on more important things”.

A: “Like what?”

I: “Like planning and development”

A: “And how does Industry 4.0 impact your industry?”

I: “In the same way I described earlier. Automation, efficiency, more time for planning and less time for mundane operations”

A: “And what Industry 4.0 tools do you use?”

I: “What do you mean by Industry 4.0 tools? Is there a full list or something?”

A: “Well, usually these are advanced solutions that are integrated in the work process. Internet of Things…”

I: “Yes. This one is something we use”.

A: “How about cloud computing?”

I: “Yes. This, too”

A: “And AI?”

I: “Artificial intelligence? Well, it is controversial, isn’t it?”

A: “Why do you think it is controversial?”

I: “Because I don’t think we can even design a real AI. In my understanding, an artificial intelligence should be capable of the same things as a natural one. In our case, a human mind. But we don’t have it. We just have complex programming that slightly resembles a real intelligence”

A: “So, AI cannot be used in supply chain management, because a true AI cannot exist, is that correct?”

I: “The way I see it, yes. It is correct. We have neural networks, but they’re not the same”

A: “Okay, and aside from AI, are other tools equally important and valuable for SCM?”

I: “No, of course, they’re not. Some are just unnecessary whereas we can’t even live without the others anymore.”

A: “And how can you tell the difference?”

I: “It’s all about value and it can be calculated. How much did it take to develop and integrate this tool into your SCM? How much money did it cost? And how much money and time did you win by using it? The ultimate question is: was it worth it?”

A: “Have you had any cases when your reply was ‘no, it was not worth it’?”

I: “Yes, sure. I can’t list them because it’s insider information, but one out of two or three projects usually end up being futile”.

A: “Thank you for your honest thoughts. Another question is: has the fourth industrial revolution changed supply chain management? If so, what particular changes have you noticed?”

I: “Specific to supply chain management? Well, supply chains are bigger now and they’re easier to control. You want your supply chain transparent and easily fixed if something doesn’t go the right way. Technology helps with all that, that’s for sure.”

A: “How have the specific tools of Industry 4.0 changed the way you work? More specifically, could you describe the impact of the Internet of Things, blockchain, cloud computing, AR, and VR? You can focus on all elements you find necessary”

I: “It’s all pretty complex, and it’s pretty much impossible to go over it in five minutes, or ten. The way I see it, you can’t just evaluate their impact separately. It’s one and the same, it’s a single framework that just has many components. Sure, some of them are better and some are worse, and sometimes you need to replace them. But I can’t say that, for example, VR and AR or Mixed reality might change our industry forever. A single technology cannot do that, because they only work as a complex of solutions””.

A: “Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?”

I: “No, and I don’t think any company does that. It’s just barely possible to use new industrial tools fully. There’s an abundant source of new solutions, and they’re combinations are infinite”

A: “And as far as you are concerned, what is more important for a company: human resource development or technological progress?”

I: “Human resources and technological progress. Those are different things that should be developing together and simultaneously”.

A: “Are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?”

I: “There are good things and there are things that could be better. It’s just how it goes, and it doesn’t matter if I’m satisfied or not. I just have to work with whatever circumstances I have”

A: “And what if we look at the downsides of our topic? Are there any risks that go along with the use of Industry 4.0 tools?”

I: “Risks are always there, all the time. Any good technology can be misused. You can supply millions of people with energy using nuclear power. Or you can kill them in one blast”.

A: “That’s a bit grim”

I: “That’s how it is. The biggest risk with technology is that you don’t know how to use it. Then, the best-case scenario is that you lose money because of it. Potentially, though, you can just ruin your whole supply chain. With how things are quick and interrelated right now, you break one link and the whole chain falls apart”.

A: “In this regard, what would you change about supply chain management in light of Industry 4.0 and its benefits?

I: “I would like to see more knowledge, systemic knowledge about Industry 4.0 and its benefits. You see, we have conflicting ideas about very basic things, not to mention more complex ideas. In my experience, most Industry 4.0 use today is just improvisation”

A: “And how do you feel about the future of SCM?”

I: “It can go both ways, either be ruined or reach a new, superior level. The worst part is I don’t know which is more likely.”

Part Three: Free Post-Main-Part Discussion

A: I have been taking notes during our discussion…

I: “I apologize, but I might have to go back to work now. Email me your other questions if you have any”

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview?
2. Have you been able to cover the subject matter in its entirety?
3. Is there anything else you would like to add to what has already been said?

Appendix 8: Expert Interview 8

Note: Any personal data shared within the scope of the interview is to be treated anonymously. No identifying information is to be released to the public.

Part One: Pre-Interview (to be completed in written form to save time)

Your age – 48 years old:

1. What is your educational background?
2. What is your industry? – Steel manufacturing and supplier
3. How many years of total industry experience do you have? – 24 years
4. What is your current position in your company? – Director
5. How many years of experience have you had in your current position? – 7 years
6. Is there anything you would like us to know before we begin the interview?

Part Two: Main Interview Questions (Author (A) and Interviewee (I))

A: “Hello! First of all, thank you for finding time to contact me and talk about this topic. It’s a pleasure and an honor”.

I: “Good afternoon. The pleasure is mine. I’m always happy to participate in promising initiatives”

A: “Before we start, I would like to confirm the information you submitted previously: So, you are the Director of [your company], as you have been for the past 7 years, is that correct?”

I: “Yes, correct. Although I’m not a stranger to supply chain management. This is the sphere where I spent most of my career”.

A: “Wow, this is actually very nice! It shows how far you can go in this field”.

I: “You sure can, as long you know what you’re doing. And if you don’t know what you’re doing, listen to the people who do.”

A: “Thank you, that actually makes sense! So, I actually had this question prepared about Industry 4.0. How would you define it? What is Industry 4.0?”

I: “The fourth industrial revolution. The next level of our operational excellence and ability to generate value as humanity. In this sense, it’s not that much different from other industrial revolutions. Like always, we invent new ways of making our production better, our logistics faster, and our customers – happier. Now, we just put it all in a single design to describe it all. What’s funny is that it happens retroactively in many cases. We now develop the theory to discuss what we’ve been doing for the past few years.”

A: “Is there anything special about the fourth revolution?”

I: “It’s the size of it, I think. We have grown to operate the whole planet. There are corporations like Tata Steel who work on almost all continents, and it’s becoming much easier now that we have fast computers and the Internet. What’s next? Shall we build warehouses in space?”.

A: “That wouldn’t be off the table”

I: “Sure, but I’m exaggerating a bit. If we do business in space, that will be Industry 5.0 then”.

A: “But if we stick to the present, how does Industry 4.0 impact your industry?”

I: “Like I mentioned, it’s about the size. The network that we control is huge with numerous warehouses and colossal staff. I also notice a level of efficiency I wouldn’t even think about as far as 10 years ago. When we talk about new projects, they’re ready to go in two months now. That’s because piloting, testing, and forecasting are all done with very powerful computers. You couldn’t do that before. You couldn’t have a full profile of your entire supply chain broken down to the smallest details. Well, now you can. And it’s impressive.”

A: “And what Industry 4.0 tools do you use?”

I: “Everything we can touch. I’m a high-tech enthusiast, and I enjoy introducing these novelties into my company. But you have to be convinced. I have to understand why it’s actually good and how we can work with it. Imagine it like this. Our head of marketing comes in and says that we can use IoT to get more data on our customers, on their preferences, and how they behave in a dynamic way. And I think it’s nice, but she has to show me why we should spend money on it. How is it going to work? Is it even possible? How much will it cost? Is it legal? Is it ethical? I won’t sign up for everything I’m proposed, but I’m happy oblige if I can see the potential”

A: “And what are the solutions that you saw the potential in?”

I: “It’s a lot of what you’ve mentioned. IoT, VR, AI, big data, web interfaces”

A: “Are these tools equally important and valuable for SCM?”

I: “No, and it’s not about SCM or anything else. Each department has its own goals and missions. Marketing benefits from VR, for most SCM operations it’s pointless. But they do benefit from our data analytics. Big data tells a lot, and it’s especially valuable for big supply chains. A human mind cannot keep so many variables inside, and it shouldn’t. That’s what analytics tools are for. When you develop logistics routes for a new branch, how many variants can you calculate? 12, 15? With big data analytics, we can consider a thousand of them. All little variables are considered for each outcome. What is the average travel time for this segment at this hour? And an hour before? Are there any traffic lights? What if we start five minutes earlier and then start from here ten minutes later? The possibilities are infinite, indeed.”

A: “How have other specific tools of Industry 4.0 changed the way you work? More specifically, could you describe the impact of the Internet of Things, blockchain, cloud computing, AR, and VR? You can focus on all elements you find necessary”

I: “It could go on and on about it, because SCM is kind of my soft spot. For the Internet of Things, In production and Iot generated data, sure. Wherever it’s appropriate. Clouds – yes, a million times yes, but as long as I know that they are secure.

A: “Do you think your company fully exploits the benefits of Industry 4.0 for supply chain management?”

I: “We use everything that works. Like I said, if the technology is tested and I am convinced that it will be of use, we’ll find a way to implement it. Still, I often get comments that we should be more progress-oriented, more technologically advanced. Yes, it’s nice to want to go farther. But for me, a full use of Industry 4.0 tools means that we take advantage of real opportunities. For others, it means that the company should jump on any high-tech project whether it’s feasible or not”

A: “And as far as you are concerned, what is more important for a company: human resource development or technological progress?”

I: “Human resources, and I don’t think I need to explain any further. Human resources build empires. Poor human resource management ruins them. And if your case is the second, there’s no technology that can help you”.

A: “Are you satisfied with the current state of development of supply chain management in light of Industry 4.0 and its benefits?”

I: “I am, yes. Like you’ve probably noticed, I’m a bit picky about these new tools. There is no prejudice, just caution. And even this way, I get enough options and we make serious progress every year. So, I’m satisfied that not only do the new options emerge, but they’re also reliable”

A: “And what if we look at the downsides of our topic? Are there any risks that go along with the use of Industry 4.0 tools?”

I: “Absolutely, yes. That’s the point of all I said about double- and triple-checking the solution before you get into it. The biggest risk for me is to dive in head first and make rash decisions. Prospects of high-tech instruments can blind you. You see how transparent and efficient your supply chain becomes, and you want more. Then, it’s just like the tale of Icarus. You go too far, you get burned, and your supply chain self-destructs”.

A: “In this regard, what would you change about supply chain management in light of Industry 4.0 and its benefits?

I: “I honestly don’t know if there is anything I would change. I worry about my company, and I think we’re doing just fine. For the rest of the industry, I’d just want decision-makers to be more careful about such things”

A: “And how do you feel about the future of SCM?”

I: “The future of SCM is perfectly fine. I saw how much progress we made since the 1990s, and it’s yet another leap forward. It won’t be easy, and my forecast is that many players will have to withdraw from the race.”

Part Three: Free Post-Main-Part Discussion

A: I have been taking notes during our discussion, and I noticed that you don’t often compare the present of SCM with its past. Could you elaborate on the specific differences between Industry 4.0 and what you saw before?”

I: “If anything, the difference is in the amounts of data we have to process and the precision of it. The accuracy. SCM in the 1990s and 2000s was subjective in many respects. We had to make our own forecasts and introduce our own variables to make forecasts or identify spots for improvement. If you’re smart – it’s better, but even then your reasoning may be mistaken. Now you get more objective information, great visuals, you operate with facts and not with opinions”

A: “Thank you so much! I see that we’re running out of time, but I would like to note that I had a great pleasure talking to you”.

I: “Me too, your message was actually a very nice surprise! I like that we’re not stagnating and that you’re working on new projects like this. It makes me hopeful about our future. Thank you and goodbye!”

Part Four: Post-Interview (follow-up data in written form)

1. How satisfied are you with the outcome of our interview? – 10/10
2. Have you been able to cover the subject matter in its entirety? – 8/10
3. Is there anything else you would like to add to what has already been said? – No, thank you

Appendix 9: Consent form

Statement

1. All primary data collected in the course of the present research is to be analyzed by the researcher exclusively.
2. Each participant is informed of the aims, objectives, and methods of the research.
3. All primary data collected in the course of the present research is to be kept anonymous.
4. All interview recordings will be permanently destroyed upon completing their transcription.
5. Any information that can potentially identify the interviewee, including person names and company names, is to be redacted in the interview transcript.
6. Raw data will not be sent, read out loud, or otherwise given in possession of any third parties.
7. Each participant can demand withdrawal from the project at any stage.

Informed Consent Form

I have been presented the goals, aims, and methods of the study. I have been familiarized with the statement principles. I understand that my participation is voluntary and that I am free to withdraw at any time, without giving a reason and without cost. I understand that I will be given a copy of this consent form. I voluntarily agree to take part in this.