**4. Results and discussion**

#### **4.1 Results**

The Supply web is the next generation of a supply chain that integrates valued chains horizontal, vertical, and diagonal dimensions through collaboration. Through Industry 4.0, supply web management (SWM) would allow firms to perform a hundred times better at fractions of the price similar firms achieved nearly fifty years ago. For instance, an iPhone device can store terabytes of data and process hundreds

of business transactions in fractions of the time it would have taken a hundred 1980 era computers housed in a large building. In so far, not only the device holds a storage capacity of over a hundred earlier computers, but it is also capable of executing thousands of transactions in a record time. Modern technology has enabled businesses, individuals, and governments to conduct virtual meetings miles away, real-time monitoring of product manufacturing and delivery using automation. The current technology innovation has changed societies and demonstrates a 'creative destruction' currently trending to extinguish old industries [9]. Experts believe that Industry 4.0 is comparably helping developing countries as mobile phones did with personal communication. The use of trucks and drones to deliver goods in secluded and urban areas across the globe showed efficiency in developing countries [10]. Industry 4.0 enabled real-time vendor and subcontractors monitoring to manage rapid change and inventory [11] and reduce supply–demand misalignment [5]. Evidence suggests 4IR technologies or Industry 4.0 enhance visibility, interoperability, modularity, decentralization, virtualization, and service orientation [12].

Nonetheless, despite the potential of 4IR in the global supply industry, challenges remain without a deeper understanding of barriers and drivers. While a business' lack of collaboration, awareness, and organizational inertia bare, among others, its ability to execute supply web, a firm likewise needs to master and adopt processes and tools that add value to the supply web. For instance, a firm's plan to adopt strategies that address the reduction of supply–demand misalignment, fast-changing consumer needs, threats of legal penalties, and cost optimization could enhance its Implementation [5].

By addressing the barriers and implementing the drivers to Industry 4.0, the global supply industry would benefit of the 4IR [11]. In the interim, the adoption of Industry 4.0 necessitates investment. In contrast to small firms during the first industrial revolutions, today's small enterprises can reap the benefits of evolving technologies at affordable costs [12]. For instance, a small firm could subcontract its operations or services to large and specialized corporations. Businesses source several activities to lower operating costs, increase market access, enhance scalability, and diminish risks [11, 13].

#### **4.2 Supply web: The next generation of supply chain**

The Supply web is the next generation of a supply chain that integrates valued chains horizontal, vertical, and diagonal dimensions through collaboration. Through Industry 4.0, supply web management (SWM).

Which Industry 4.0 strategy supports the tenets of the next generation of the supply chain into a supply web? The answer cannot fundamentally be linear, as the strategy would be dependent on the industry. Nonetheless, firms would want strategies that can integrate basic tenets of the supply web. In so doing, firms would need to employ a blend of technologies into their business operation. While not inclusive, such technology could range from cloud computing, big data, artificial intelligence (AI), machine learning (ML), commodity sensors, robotics to automation. For the clarity and organization of concepts into the figure, the collaborative dimensions are categorized into levels: One, Two, and Three.

**Figure 3** illustrates how the supply web incorporates the three-dimensional (vertical, diagonal, and horizontal) collaborations into a framework. The vertical Dimension or Level one (L1) represents internal business activities between firms that impact the main production effort. The level 1 collaborative dimension concerns firms within the same product line as A-A, B-B, and C-C.

*Industry 4.0: The Tenets of the Next Generation of Supply Chain Management DOI: http://dx.doi.org/10.5772/intechopen.102979*

#### **4.3 Tenets**

The main production effort is the final service product can a single, or multiple firms produce conjointly. Meanwhile, a horizontal collaborative dimension or Level Two (L2) outside the primary production when as in A-B, C-D, A-E…. For instance, a transportation firm that delivers parts or final products participates in the collaboration under this category. Finally, firms maintain a diagonal collaborative dimension or Level Three (L3) collaboration when they have business transactions that impact the main production effort's internal and external activities. Level 3: A-A-B-B-C-C… The preponderance of Industry 4.0 elements that enable SW within and outside the main production effort would occur at this level. Firms that provide innovative technologies services from cloud computing, Big Data, ML, AI, RFID, IoT, and others add value to the supply web by enabling collaborative Dimension.

The tenets that enable tenets supply web include among others:

*Big Data*. Consumer and company data collection and storage paved the way for extensive data trends analysis. Data has become the most valued asset of any organization today, enabling analytics and market intelligence on customers' behavior, business practice, and decision-king [12]. Businesses and governments could use crowdsourcing technology to reinforce manufacturing standards. Many firms also offer to monitor and track production processes to support the supply industry, enhancing the efficacy of production control and decision making [11]. Comparatively, researchers from the Boston University School of Medicine applied big data analytics to realize early exposure to unsafe food products [14]. In so doing, they discovered that hazardous consumer products in the market could have been possible without the current state of technology [15].

*Artificial Intelligence* (AI). A survey found because of COVID, 55% of companies fast-tracked their way onto AI implementation in 2020, with more companies expected to do the same in 2021 and beyond [16]. With the help of AI, it is possible to depict trends out of large amounts of data. Governments and corporations now employ AI technology in place of human intelligence to enhance decision-making capabilities in machines, which apply scientific models for swift trends analysis. AI technology proved to accurately forecast consumer behavior and business trends crucial to sustaining commodities' management.

*Internet of Things* (IoT) digitizes business and social activities. Intelligent factories, for instance, enable customers, companies, machines to communicate with workers, other technologies, and resources [12] to facilitate collaborative planning, goal setting, and sharing decision-making with stakeholders. The Just-In-Time or JIT model is an efficient inventory management concept used to lessen the need for warehousing and decrease warehousing-associated costs. Thought JIT model antedates Industry 4.0 when applied within IoT, strengthening collaboration. "Much of what people say about the New Economy is not all that new. A series of discontinuous technological changes before the industrial age sparked technological innovations in the 18th Century. The inventions that the steam engine, railroads, steel, electrification, and telecommunications characterized improved internal and external collaboration with various industries [5]. For instance, a home device equipped with intelligent technology could detect and place an order when certain goods reach a set limit. The sensor submits an order processed through the web and informs what follows. The customer and all other statehooders could monitor the order fulfillment and address any issues accordingly.

Throughout humankind, societies implemented innovative technologies to fix the crisis of their time. The massive backlog of cargo ships in Los Angeles ports and across the globe in October 2021 illustrates some of the issues of the state of the early supply chain models. During an interview on CNN, the Executive Director of Port of Los Angeles noted that the orchestra of players needs to get on the same schedule. COVID-19 pandemic reaffirmed that efficient inventory management continued to be a common business challenge for many firms [12]. COVID-19 induced lockdowns disrupted medical and other supply chains creating impacting commodities supply chain [6]. There is evidence that there is a need for greater collaboration between industries and governments to minimize supply disruption at the national and global scales. Firms that collaborate with multiple stakeholders have better business strategies [6].

## **5. Discussions**

This chapter provides a synopsis of 4IR innovative technologies and related concepts for the next generation of the supply chain. Industry 4.0 is setting the next generation of the supply chain by making it more agile and efficient than the traditional supply chain [17]. The next generation of supply chain management ought to integrate processes that share data among partners through collaborative efforts and automation enabled by the Internet of Things, machine learning to artificial intelligence.

The current global environment enables businesses to expand and connect internal processes with customers and suppliers [18]. The expansion and connections require collaboration, flexibility, redundancy, and integration impact supply chain resilience [19]. The collaboration empowers customized configuration processes and is an essential element in tracking products from suppliers to customers with customized configuration [20] I4.0 offers a set of tools to support decision making through collaboration [21].

*Industry 4.0: The Tenets of the Next Generation of Supply Chain Management DOI: http://dx.doi.org/10.5772/intechopen.102979*

The impact of the COVID-19 pandemic and other recent supply chain crises offered the supply industry compelling arguments for implementing4.0 [22]. The adoption of I4.0 has grown in the manufacturing and supply chain sector [23].

Several barriers and drivers exist to Industry 4.0 implementation in the supply chain, including economic, technological, social, organizational, environmental, and inter-relationships [24]. A study found the reduction in supply–demand misalignment, changing consumer needs, legal penalties, and cost optimization as drivers of I4.0. At the same time, a lack of collaboration, organizational inertia, and lack of awareness are designated as barriers [5, 25]. Despite its advantages, firms still face challenges in implementing the I4.0 and in sustaining the security requirements. The cyber community continues to register attacks on secure systems that include attacks in web applications using TLS to secure HTTP communications [17, 26].

Not enough knowledge exists on the implementation strategies of Industry 4.0 concepts for small and medium-sized enterprises [27]. Additionally, no evidence of a conceptual SCM integrates the fundamentals of Industry 4.0, henceforth suggesting the development of business models that tolerate integrative and collaborative connectivity [28].
