Digital Transformation and Supply Chain Management: Industry 4.0 Applications

Abstract

Digital transformation has significantly reshaped supply chain management, introducing advanced technologies such as big data analytics, the Internet of Things (IoT), artificial intelligence (AI), and blockchain under the Industry 4.0 framework. These technologies enhance flexibility, efficiency, and transparency in logistics operations, enabling businesses to optimize decision-making and streamline processes. However, the transition to digitalized supply chains presents challenges, including high investment costs, data security risks, and a lack of technical expertise, which hinder the widespread adoption of these innovations. This study examines the integration of digital transformation technologies into supply chain management through a comprehensive literature review. It explores their impact on decision-making processes, operational efficiency, and cost reduction, highlighting their role in enhancing supply chain resilience. Furthermore, the study addresses the sustainability dimension of digital transformation by linking these technologies to green logistics practices. The findings reveal how digital tools optimize logistics networks, reduce environmental impact, and provide businesses with a competitive advantage. The study concludes by emphasizing the need for further research on the long-term effects of digital transformation and the varying adoption levels across different industries. Future studies should explore sector-specific challenges and opportunities to develop more effective digitalization strategies for supply chain management.