C HAPTER 3
6. Conclusion and Future Studies
This summation will point out some of the most important findings of the research and show some directions for further studies. Studies on the IoT in the SC industry have gradually increased over years. Since the concept of IoT emerged in 2009, literature studies have increased by almost 20 times. The accelerated growth in IoT in the SC sector means SC 4.0 will continue to spread to every part of business operations, especially in the field of the SC.
With the introduction of IoT in the SC industry, major changes have emerged in almost all areas, especially in computer science, engineering, and business management. There are few studies focused on the field of reverse SC, social and business sciences, especially on application studies. There is a need for case studies focusing on sustainable and eco- friendly concepts for reverse SC management.
While studies on RFID, sensors, and SC activities are emphasized, this chapter identifies four research gaps in the literature of the digital supply chain, which are a cold chain, food and beverage supply chain, and inbound supply chain.
Through the IoT, all processes and operations in SC will interact with each other by connecting to a network. In this way, by creating a smart SC, it is possible to increase efficiency and productivity in the supply processes to provide the products/services demanded by the customer, to gain customer satisfaction, to reduce costs and to keep the quality high.
IoT affects all SC processes. It provides more efficient use and optimization of the Supply Chain 4.0. With the Internet of objects, SC data management is made more transparent so that processes can be monitored instantaneously. With the digitalization of the SC industry, unnecessary SC activities will be eliminated, the efficiency of processes will increase, and the costs will be reduced. Customers’ purchasing behavior will be examined, and the individual expectations and customer changes will be responded to more quickly. The feedback from customers will be received quickly, and after-sales services will develop. With real-time data, SC performance can be better monitored, and problems that can be experienced in processes can be detected quickly. With the devices used within the IoT, transportation and distribution costs will be reduced. IoT will be ensured in sustainable SC, and the negative effects on the environment will be reduced.
In the upcoming years, the transportation and SC industry is predicted to have vehicles without drivers, ships without captains, and planes without pilots. With SC 4.0, smart-talking systems, and new technologies will closely affect our lives and the existing SC system will leave its place to integrated new systems digitized with state-of-the-art technology.
48 Logistics 4.0: Digital Transformation of Supply Chain Management
Fig. 15: Most cited authors.
Fig. 16: The journal co-citations network.
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The New Challenge of Industry 4.0
Sustainable Supply Chain Network Design with Internet of Things
Sema Kayapinar Kaya,
1,* Turan Paksoy
2and Jose Arturo Garza-Reyes
31. Introduction
Today, environmental pollution is considered one of the major reasons that may lead to the extinction of humanity.
Consequentially, “environmental awareness” has developed environmental control consciousness within the industrial cycles of enterprises. One force encouraging or forcing enterprises to implement green policies is the state power and laws; another force is the negative financial and legal results that they might experience because of wrong administrative approaches in terms of the environment. As economic and technological developments increased environmental values degenerated or were destroyed, which led to problems such as famine, hunger, greenhouse effect, global warming. Although the urban communities developed in the particular second half of the 20th century, attentions were drawn increasingly on environmental issues, and green management concept has emerged.
“Supply-chain Sustainable” becomes an important issue by force of not only economic effects but also environmental and social effects, as one of the most important factors causing global warming disaster is that carbon emission, CO2, has reached higher rates. It can be said that supply chain activities are the main source of carbon emissions. Logistics and transportation industries have a great part in the Carbon emission cake. According to the IPCC-2007 study, logistic, including passenger transportation, has a big part. Similarly, logistic constitutes 24% of global greenhouse gas emissions.
It is accepted that even reducing the carbon footprints of commercial customers of big logistics companies will play a key role in reducing the general CO2 emission.
An important part of the ecological problem is ineffective transportation methods in modern Supply Chain Management (SCM). The report by “Eyes for transport” showed that around 75% of a company’s carbon footprint results from transportation and logistics alone. To tackle the environmental problems in the supply chain, enterprises have implemented Sustainable Supply Chain Management (SSCM), which involves environmentally and financially viable practices into the complete sustainable chain lifecycle, from product design and development, manufacturing, transportation, consumption, return and disposal.
By increasing our digital sophistication, sustainable supply chain management can lead to innovation during the digital transformation. Emerging sensor-embedded products can transform SSCM to future levels. In reverse flow, the EOLP can be recovered with various processes such as reuse, recycle, repair, or dispose. Reverse flow leads to many uncertainties.
The products are returned from customers because they do not meet definite standard requirements. Their amount, their date of expiration, the number of recyclable components of the product, and the model of the product are uncertain.
This condition always causes changes and uncertainties in developing options for the returned products. Ambiguities are largely resolved with the sophisticated digital applications such as the Internet of Things (IoT); products are followed up
1 Department of Industrial Engineering, Munzur University, Tunceli, Turkey.
2 Department of Industrial Engineering, Konya Technical University, Konya, Turkey.
3 Centre for Supply Chain Improvement, University of Derby, Derby, United Kingdom.
* Corresponding author: [email protected]
52 Logistics 4.0: Digital Transformation of Supply Chain Management
along different stages of the supply chain by means of the planted devices (Vermesan and Friess 2013). Radio-Frequency Identification (RFID) and sensor labels integrated with the products follow the life cycle of critical parts in products when the lifetime of the products expires. They include not only static information such as the price of products, their serial numbers, place, repair instructions, but also dynamic information such as the working conditions of products, their error rates, environmental effects, etc. (Ondemir and Gupta 2014a). Parlikad and McFarlane (2007) stated that RFID-based descriptive technologies have positive effects for the retrieval options of the returned products and that they provide sufficient information. Therefore, the decision about which improvement option a product which has expired should be subject to is taken more precisely and within a shorter time, and it makes it possible to decrease the expensive processes such as preliminary examination or full mounting, which are required for the quality level of the returned products.
This chapter presents a novel mathematical model that developed an environmental impact on SSC design via the Internet of Things. IoT provides information about a product when they return and plays a significant role in the recovery process of SCM. This information by reducing and eliminating uncertainty regarding the condition and remaining lives of components in EOLPs IoT technologies such as asset tracking solutions, has become one of the biggest trends in SSC network configurations. Using sensors, RFID, tags, and other IoT devices to track goods through the global supply chain is one of the first use cases for the IoT. Due to the uncertainty of reverse logistics, we creatively provide a new forecast application by using IoT.
The rest of the paper is organized as follows. In the next section, we outline the literature review of Sustainable Supply Chain Management and Reverse supply chain based on IoT. Problem definition and model assumptions are presented in Section 3. In Section 4, a case study illustrates a computation experiment and then, model results are discussed in Section 5. Finally, the conclusion and future studies suggested in the Section 6.