Evaluation of supply chain coordination index in context to Industry 4.0 environment

Purpose Today, most of the manufacturing systems are changing very fast in terms of the adoption of new technologies. New technologies being implemented are Internet of Things, cyber physical systems, cloud computing, Big Data analytics and information and communication technologies. Most of the organizations in the value chain are implementing these technologies at the individual level rather than across the whole supply chain. It makes the supply chain less coordinated and causes suboptimal utilization of resources. For efficient and optimal use of modern technologies, supply chains should be highly coordinated. The purpose of this paper is to illustrate an approach for determining the index to quantify coordination in the supply chain. Design/methodology/approach From the literature review, total 32 factors have been identified. These factors are further clubbed into six clusters for evaluation of the coordination index. The graph theoretic approach has been used for evaluating the coordination index of a supply chain of an Indian organization. Findings This study has illustrated a comprehensive approach to quantify coordination of a supply chains for effective benchmarking of the supply chain performance in the Industry 4.0 era. Presently, it is observed that top management is giving more focus on organizational issues such as lean organization structure, organization culture and responsiveness factors for improving coordination in the supply chain rather than on Industry 4.0 technologies. Originality/value This framework can also be used for comparison, ranking and analysis of coordination issues in different supply chains in the era of Industry 4.0. Organizations can use this approach for benchmarking purpose also to improve different supply chain processes for meeting dynamic market requirements.

Automated summary

This study identified 32 factors from the literature review, further categorized into six clusters for evaluating the coordination index of a supply chain. The research illustrated a comprehensive approach to quantify coordination in supply chains for effective benchmarking of supply chain performance in the Industry 4.0 era. It was found that top management focuses more on organizational issues to improve coordination in the supply chain, rather than on Industry 4.0 technologies.