Factors Related to Industry 4.0 and Industry 5.0 Capabilities and Their Influence on Supply Chain Resilience and Flexibility

Abstract

Supply chain resilience and flexibility are among the most critical dynamic capabilities for surviving in the modern world of uncertainties and risks arising from unexpected dynamics in global supply chain routes and hubs.  Resilience may be viewed as the supply chain capability enabling resistance and withstanding power against disruptions and flexibility defines the modern supply chain capability to adjust to the disruptions to respond to market dynamics and keep the businesses running. Industry 4.0 and Industry 5.0 technologies capabilities can enable the supply chain capabilities of resilience and flexibility positively by offering powerful technology-driven enablers. This research studied the technology-driven enablers and their contributions to the supply chain resilience and flexibility. There were five Industry 4.0 and two Industry 5.0 technology enablers found from the literature review to create an initial model. The model was projected to Fuzzy Interpretive Structural Modeling (FISM) method in which, eighteen experts were selected working in the industrial cities in the Indian states of UP and in MP in logistics engineering having good insight about Industry 4.0 and Industry 5.0 technologies. The experts were engaged through a focus group discussion in which, a structured questionnaire was presented to them for building Structural Self-Interaction Matrix (SSIM) by each expert. The responses collected from each expert were analysed through the FISM steps. The output showed a hierarchical model with four levels of driving and dependence powers. The IIoT, fog computing, cloud manufacturing, big data analytics, and blockchains were found to be having root driving powers in the model. These five variables are technology-driven enablers of Industry 4.0, which were found to be driving the two technology-driven enablers of Industry 5.0: smart robotics and human-centric artificial intelligence. The Industry 5.0 variables were found to be driving supply chain flexibility, which in turn had driving power over supply chain resilience. The practical validity of this hierarchical model was discussed in detail at the end of this article in the context of a flexible and smart manufacturing and logistics system connected with digitalised supply chains. The notions of flexibility and resilience were also discussed in a cellular manufacturing system that can be configured and re-configured quickly as per the demand dynamics.