Abstract

The Fourth Industrial Revolution (4IR) epitomizes the most advanced stages of technological innovation, guiding manufacturing and service providers towards achievable sustainability. While it has found diverse applications across various industries, businesses in both developed and developing nations have yet to fully embrace Industry 4.0 technologies. This research focuses on highlighting the importance and application of Industry 4.0 technology within Logistics and Supply Chain Management. We utilize qualitative research methodology to conduct a thorough analysis of the critical elements, challenges, and potential opportunities linked to the incorporation of advanced technologies in these domains. Through this approach, we aim to provide a comprehensive understanding of the implications and possibilities that arise with the implementation of Industry 4.0 in logistics and supply chain management processes.

The study also sheds light on the primary barriers hindering the adoption of Industry 4.0, revealing that many companies lack a comprehensive strategy to meet the technological demands. Merely relying on pilot initiatives is insufficient to achieve Industry 4.0 in the coming years. Existing employee skills do not entirely align with the required skill sets desired by companies for future technology integration. Furthermore, the current level of equipment digitization technology is at a medium level, suggesting room for improvement through a well-prepared strategy. The key barriers to Industry 4.0 adoption include the absence of a robust strategy, inadequacy of employee skills, future IT investment decisions, and challenges related to business data usage and analysis. Consequently, a framework is proposed to guide companies in developing a well-balanced technology strategy, facilitating the organization in meeting future technological needs.

Keywords:Logistics; Supply chain management; Industry 4.0; Technologies; Strategy