This paper addresses the question of how the Industrial Internet of Things (IIoT), defined as the industrial aspect of the fourth industrial revolution, will impact supply chain management (SCM) decisions. With this goal in mind, we first describe the conceptual and historical approaches of both the industry and supply chain management. The question of the legitimacy of a new industrial revolution is answered positively and the supply chain management discipline is organised in a flow-based model of ten managerial categories. A thorough cross-field literature analysis delivers the main changes, opportunities and challenges that the upcoming IIoT will bring to supply chains. A neutral approach is favoured and the generally optimistic literature regarding the IIoT is questioned. Cyber-physical systems will indeed redefine the way we provide goods and services to customers and therefore, the way entire supply chains are managed, strategically and operationally. More information, connectivity and intelligence will optimise operations to enable mass customisation and faster than ever times-to-market. Those changes will gradually transform supply chains into smart supply ecosystems, where inter-company boundaries will fade, and the nature of cooperation will evolve. Nonetheless, there is still a long way to go. Early implementations are challenged by issues of cybersecurity, interoperability, missing regulations, inter-company cooperation, cost of investment, and fear of change due to potential job restructuring. Our results are supplemented by qualitative surveys targeting SCM and IIoT professionals. This methodology is meant to discuss additional insights, detect contradictions with the literature and assess the current state of developments.
Table of Contents
Introduction
Motivations
Research questions
Limitations
I Literature review
1 The fourth industrial revolution
1.1 Historical perspective on the industry
1.1.1 The first industrial revolution: mechanisation
1.1.2 The second industrial revolution: electric power
1.1.3 The third industrial revolution: automation
1.2 The fourth industrial revolution
1.2.1 Criteria I: technology and elements
1.2.2 Criteria II: impact on economic systems
1.2.3 Criteria III: impact on social structures
2 Supply chain management
2.1 Overview and concepts
2.2 Historical perspective on supply chain management
2.3 SCM model: categories and decisions
2.3.1 Logistic network and operations strategy
2.3.2 Sourcing
2.3.3 Procurement
2.3.4 Production
2.3.5 Maintenance
2.3.6 Sales
2.3.7 Product flows monitoring
2.3.8 Warehousing and products handling
2.3.9 Transport
2.3.10 Reverse logistics
II Analysis
3 The impact of the IIoT on SCM based on the literature
3.1 Logistic network and operations strategy
3.2 Sourcing
3.3 Procurement
3.4 Production
3.5 Maintenance
3.6 Sales
3.7 Product flows monitoring
3.8 Warehousing and products handling
3.9 Transport
3.10 Reverse logistics
3.11 Challenges
3.11.1 Data and process security
3.11.2 Cooperation and data property
3.11.3 Interoperability and standards
3.11.4 Cost and investment
3.11.5 Impact on labour
4 Qualitative surveys
4.1 Methodology
4.2 Discussions
4.2.1 Additional insights on SC categories and IIoT challenges
4.2.2 Blockchain technology for data security, data property and trust
4.2.3 Current state of development of IIoT applications
4.2.4 Should companies engage in the IIoT today?
Research Objectives and Themes
This paper aims to investigate the impact of the Industrial Internet of Things (IIoT) on supply chain management (SCM) decisions. It seeks to provide a comprehensive analysis of how emerging IIoT technologies influence strategic and operational supply chain processes, while balancing overly optimistic literature with a realistic assessment of current implementation challenges and industry readiness.
- The integration of Cyber-Physical Systems (CPS) within supply chain ecosystems.
- Transformation of supply chain management into smart, flow-based models.
- Strategic implications of IIoT adoption on sourcing, production, and logistics.
- Challenges regarding cybersecurity, data property, and organizational readiness.
- The evolving role of technology in automating and augmenting professional labor.
Excerpt from the Book
1.1.1 The first industrial revolution: mechanisation
The manufacturing sector has evolved through different stages during the last two and a half centuries. Until the middle of the 18th Century, industrial activities mainly took place in people’s homes or small workshops held by extended families, working together towards craft models, using simple machines and hand tools. The maker was the physical owner of its creation and his skills were valued. That changed drastically when what we commonly call the “Industrial Revolution” emerged in Great Britain in the end of the 18th Century. The current convention is to date the first industrial revolution from the 1780s, when the British international trade statistics showed a significant upward movement (Deane, 1980). However, it cannot be seen as a fix date as it resulted from changes in many different social and technological factors driven by a need for other sources of energy for machines and high labour and animal costs (Agrell, 2017).
This period witnessed important developments in industrial sectors such as cotton, steel and mechanical construction. The first industrial revolution also introduced the adoption of large-scale production factories, fueled with high productivity equipment owing to technological advances in hydraulic force machines and steam power.
The textile industry was the one that carried the others. It went through five important developments. In 1733, John Kayne patented the flying shuttle, allowing the cloth to be woven faster. In order to improve the spinning wheel which processed one single thread at a time, James Hargreaves, a British weaver and carpenter, invented the spinning Jenny in 1764 (“James Hargreaves, Inventor of the Spinning Jenny,” 2010). This new frame allowed multiple threads to be woven at the same time and was the first real mechanised invention of the spinning wheel. In 1769, Richard Arkwright patented the water frame: the first powered, automatic and continuous textile machine which spun strengthened threads faster than ever before. This invention marked the transition from home production to mass manufacturing in factories (“Richard Arkwright,” n.d.).
Summary of Chapters
1 The fourth industrial revolution: This chapter establishes the historical context of industrial revolutions and defines the scientific criteria characterizing the fourth industrial revolution, specifically focusing on cyber-physical systems and their technological, economic, and social impacts.
2 Supply chain management: This chapter reviews the conceptual foundations of SCM and provides a flow-based model of ten managerial categories, which serves as the framework for analyzing the impact of IIoT technology.
3 The impact of the IIoT on SCM based on the literature: This chapter provides a detailed cross-field analysis of how IIoT solutions influence the previously defined SCM categories, while identifying critical challenges such as security, interoperability, and investment.
4 Qualitative surveys: This chapter presents empirical insights gathered from interviews with IIoT and SCM professionals, discussing current deployment states, the potential of blockchain, and the necessity for companies to adopt IIoT solutions.
Keywords
Industrial Internet of Things, IIoT, Supply Chain Management, SCM, Industry 4.0, Cyber-Physical Systems, CPS, Smart Factory, Digital Transformation, Automation, RFID, Big Data, Blockchain, Lean Manufacturing, Operations Strategy.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis examines how the Industrial Internet of Things (IIoT), as the industrial face of the fourth industrial revolution, fundamentally changes strategic and operational decision-making in supply chain management.
What are the primary thematic areas covered?
The research covers the conceptual evolution of industry and SCM, the technical and organizational integration of IIoT within supply chains, and the associated challenges such as data security and labor transformation.
What is the main research objective?
The primary goal is to provide a structured, realistic assessment of how IIoT disrupts traditional supply chain models, serving as a comprehensive reference for both academics and managers.
What research methodology is employed?
The study utilizes a two-fold approach: a rigorous cross-field literature analysis to build a conceptual model, followed by qualitative surveys with industry experts to validate and expand upon these findings.
What topics are discussed in the main analysis?
The main body analyzes the impact of IIoT across ten key SCM categories, including sourcing, procurement, production, maintenance, sales, flow monitoring, warehousing, transport, and reverse logistics.
Which keywords define this work?
Key terms include Industrial Internet of Things (IIoT), Supply Chain Management (SCM), Industry 4.0, Cyber-Physical Systems (CPS), smart manufacturing, and logistics transformation.
How does the author view the potential of blockchain in the IIoT era?
The author identifies blockchain as a promising solution for addressing critical challenges regarding cybersecurity, secure data sharing, and ensuring data property rights within a multi-partner supply ecosystem.
What does the research conclude regarding the current state of IIoT implementation?
The research concludes that while the potential for transformation is vast, most companies are still in the early awareness or pilot phases, with successful large-scale implementations remaining relatively rare.
- Citar trabajo
- Lionel Willems (Autor), 2018, On the Supply Chain in the Fourth Industrial Revolution, Múnich, GRIN Verlag, https://www.grin.com/document/442762
