A Hybrid MCDM Approach in Analyzing Barriers to Sustainable Supply Chain in Industry 4.0

Liang Yiyun

Abstract

While many researchers have investigated Sustainable Supply Chain Management and Industry 4.0 respectively, there is limited research that integrates the two concepts. The fourth industrial revolution, powered by advanced technologies including Internet of Things and Cyber Physical Systems, is expected to bring tremendous industrialization growth. There is an optimistic outlook in the manufacturing industries to achieve greater efficiency, productivity and flexibility with Industry 4.0 technologies. However, it is difficult in leveraging the emerging opportunities in achieving sustainability due to existence of many challenges. This paper attempts to identify and analyze the relevant barriers to supply chain sustainability in Industry 4.0 for automotive manufacturing sector. In the study, sustainability criteria and barriers are identified through extant literature review published from 2013 to 2021. A hybrid model comprising Analytic Hierarchy Process (AHP) and Elimination and Choice Expressing Reality (ELECTRE) is used to prioritize barriers that need to be addressed for achieving full potential of supply chain sustainability brought by Industry 4.0. Among all 11 barriers identified, “lack of vision and leadership from top management”, “lack of collaborative connectivity” and “lack of skilled workforce” are found to be the most critical barriers that need to be tackled by automotive manufacturing organizations. The framework used for barrier analysis and the findings will help industry professionals in assessing the readiness of their organizations in Industry 4.0 transformation, and subsequently developing effective strategies that foster greater supply chain sustainability.