Enabling Sustainable Supply Chains in the Industrial 4.0 Era

Abstract

Sustainability has become a global policy agenda following the United Nations adoption of Sustainable Development Goals 2030. Supply chains can contribute to this by adoption of eco-friendly technologies, sustainable materials, reducing waste, among others. Adopting and scaling innovative technologies such as machine learning, blockchain, internet of things (IoT), and 3D printing has potential to improve efficiency through improved visibility, flexibility and decision making across the supply chain. Efficiency and lean operations may induce vulnerability in supply chains, due to disruptions like the Covid-19 pandemic which can compromise business. The concept of sustainability is explored from both the business and customer perspectives, as well as in the broader policy environment that includes politics, the economy and society. Businesses are likely to adopt sustainable practices if there are financial incentives. However, environmental sustainability cannot be pursued at the expense of business survival. Therefore, the adoption of different technologies has potential to bring us closer to solving the sustainability-profitability paradox.