IDEAS home Printed from https://ideas.repec.org/a/gam/jlogis/v8y2024i1p27-d1351467.html
   My bibliography  Save this article

Exploring the Challenges of Industry 4.0 Adoption in the FMCG Sector: Implications for Resilient Supply Chain in Emerging Economy

Author

Listed:
  • Md Shihab Shakur

    (Department of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka 1000, Bangladesh)

  • Maishat Lubaba

    (Faculty of Science and Engineering, Macquarie University, Sydney, NSW 2109, Australia)

  • Binoy Debnath

    (Department of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka 1000, Bangladesh)

  • A. B. M. Mainul Bari

    (Department of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka 1000, Bangladesh)

  • M. Azizur Rahman

    (Department of Mechanical and Production Engineering, Ahsanullah University of Science and Technology, Dhaka 1208, Bangladesh)

Abstract

Background: Fast-moving consumer goods (FMCG) supply chains are experiencing various challenges due to the interactions between consumers and decision-makers during physical distribution, manufacturing, wholesale and retail. One possible strategy to address these challenges for smoothing the supply chain (SC) and logistics operations is to adopt Industry 4.0 (I4.0) based technologies in the FMCG business processes. In this regard, digitalization and automation of the FMCG supply chain can be strengthened by the alluring properties of I4.0 technologies. Methods: This study identified nine significant challenges through a literature review and expert validation. Later, the challenges were evaluated using a novel multicriteria decision-making (MCDM) framework, the Bayesian best worst method (BWM). Results: The findings indicated that “requirement for substantial investment and resources”, “incompatible technological infrastructure” and “poorly structured value chain” are the most significant challenges to implementing I4.0 in the FMCG industry. Conclusions: The study is expected to significantly contribute to improving the FMCG supply chain’s resilience, sustainability, visibility, traceability and responsiveness. Additionally, the research can provide industrial practitioners valuable insights into implementing I4.0 in FMCG and similar sectors and thus promote SC sustainability and resilience in those industries.

Suggested Citation

  • Md Shihab Shakur & Maishat Lubaba & Binoy Debnath & A. B. M. Mainul Bari & M. Azizur Rahman, 2024. "Exploring the Challenges of Industry 4.0 Adoption in the FMCG Sector: Implications for Resilient Supply Chain in Emerging Economy," Logistics, MDPI, vol. 8(1), pages 1-28, March.
    • Handle: RePEc:gam:jlogis:v:8:y:2024:i:1:p:27-:d:1351467
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2305-6290/8/1/27/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2305-6290/8/1/27/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jashim Uddin Ahmed & Asma Ahmed & Fatema Begum & Mohammad Abdul Majid & Gitiara Kabir, 2018. "Bangladesh’s Dynamic Toilet Soap Market: The Case of Keya," South Asian Journal of Business and Management Cases, , vol. 7(2), pages 156-164, December.
    2. Majid Mohammadi & Jafar Rezaei, 2022. "Hierarchical Evaluation of Criteria and Alternatives Within BWM: A Monte Carlo Approach," Lecture Notes in Operations Research, in: Jafar Rezaei & Matteo Brunelli & Majid Mohammadi (ed.), Advances in Best-Worst Method, pages 16-28, Springer.
    3. Areej Althabatah & Mohammed Yaqot & Brenno Menezes & Laoucine Kerbache, 2023. "Transformative Procurement Trends: Integrating Industry 4.0 Technologies for Enhanced Procurement Processes," Logistics, MDPI, vol. 7(3), pages 1-40, September.
    4. Iman Ghasemian Sahebi & Seyed Pendar Toufighi & Alireza Arab, 2022. "A Bayesian BWM-Based Approach for Evaluating Sustainability Measurement Attributes in the Steel Industry," Lecture Notes in Operations Research, in: Jafar Rezaei & Matteo Brunelli & Majid Mohammadi (ed.), Advances in Best-Worst Method, pages 175-193, Springer.
    5. Maheshwari, Pratik & Kamble, Sachin & Belhadi, Amine & Venkatesh, Mani & Abedin, Mohammad Zoynul, 2023. "Digital twin-driven real-time planning, monitoring, and controlling in food supply chains," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    6. Tamvada, Jagannadha Pawan & Narula, Sanjiv & Audretsch, David & Puppala, Harish & Kumar, Anil, 2022. "Adopting new technology is a distant dream? The risks of implementing Industry 4.0 in emerging economy SMEs," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    7. Abhijeet Ghadge & Michael Bourlakis & Sachin Kamble & Stefan Seuring, 2023. "Blockchain implementation in pharmaceutical supply chains: A review and conceptual framework," International Journal of Production Research, Taylor & Francis Journals, vol. 61(19), pages 6633-6651, October.
    8. Mohammadi, Majid & Rezaei, Jafar, 2020. "Bayesian best-worst method: A probabilistic group decision making model," Omega, Elsevier, vol. 96(C).
    9. Brewis, Claire & Dibb, Sally & Meadows, Maureen, 2023. "Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    10. Jung-Fa Tsai & Dinh-Hieu Tran & Phi-Hung Nguyen & Ming-Hua Lin, 2023. "Interval-Valued Hesitant Fuzzy DEMATEL-Based Blockchain Technology Adoption Barriers Evaluation Methodology in Agricultural Supply Chain Management," Sustainability, MDPI, vol. 15(5), pages 1-17, March.
    11. Wan-Chi Jackie Hsu & Huai-Wei Lo & Chin-Cheng Yang, 2021. "The Formulation of Epidemic Prevention Work of COVID-19 for Colleges and Universities: Priorities and Recommendations," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    12. Veepan Kumar & Prem Vrat & Ravi Shankar, 2022. "Factors Influencing the Implementation of Industry 4.0 for Sustainability in Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(4), pages 453-478, December.
    13. Zahra Asadipour Abkenar & Hamidreza Fallah Lajimi & Mahdie Hamedi & Sahar Valipour Parkouhi, 2022. "Determining the Importance of Barriers to IoT Implementation Using Bayesian Best-Worst Method," Lecture Notes in Operations Research, in: Jafar Rezaei & Matteo Brunelli & Majid Mohammadi (ed.), Advances in Best-Worst Method, pages 144-159, Springer.
    14. Gupta, Himanshu & Yadav, Avinash Kumar & Kusi-Sarpong, Simonov & Khan, Sharfuddin Ahmed & Sharma, Shashi Chandra, 2022. "Strategies to overcome barriers to innovative digitalisation technologies for supply chain logistics resilience during pandemic," Technology in Society, Elsevier, vol. 69(C).
    15. Boyson, Sandor & Corsi, Thomas M. & Paraskevas, John-Patrick, 2022. "Defending digital supply chains: Evidence from a decade-long research program," Technovation, Elsevier, vol. 118(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Toqa Amoush & Luay Jum’a, 2025. "The Impact of Industry 4.0 Practices on Sustainable Performance in Jordan’s Retail Sector: The Moderating Role of Environmental Dynamism," Logistics, MDPI, vol. 9(3), pages 1-32, July.
    2. Ahmad Ali Atieh & Alhareth Abu Hussein & Saheer Al-Jaghoub & Ahmad Fathi Alheet & Murad Attiany, 2025. "The Impact of Digital Technology, Automation, and Data Integration on Supply Chain Performance: Exploring the Moderating Role of Digital Transformation," Logistics, MDPI, vol. 9(1), pages 1-24, January.
    3. Muhammad Ali Aslam & Zhaolei Li, 2025. "A Sustainable Approach to Boost Resilience in Fast-Moving Consumer Goods: The Critical Role of Suppliers and Transportation Capacity Explored Through PLS-SEM and NCA," Sustainability, MDPI, vol. 17(6), pages 1-29, March.
    4. Caiado, Rodrigo Goyannes Gusmão & Machado, Eduardo & Santos, Renan Silva & Thomé, Antonio Márcio Tavares & Scavarda, Luiz Felipe, 2024. "Sustainable I4.0 integration and transition to I5.0 in traditional and digital technological organisations," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    5. Anna Szeląg-Sikora & Aneta Oleksy-Gębczyk & Józef Ciuła & Mariusz Cembruch-Nowakowski & Katarzyna Peter-Bombik & Paulina Rydwańska & Tomasz Zacłona, 2024. "Energy Transformation Within the Framework of Sustainable Development and Consumer Behavior," Energies, MDPI, vol. 18(1), pages 1-34, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarfaraz Hashemkhani Zolfani & Ramin Bazrafshan & Fatih Ecer & Çağlar Karamaşa, 2022. "The Suitability-Feasibility-Acceptability Strategy Integrated with Bayesian BWM-MARCOS Methods to Determine the Optimal Lithium Battery Plant Located in South America," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    2. Himanshu Gupta & Kumar Shreshth & Manjeet Kharub & Ashwani Kumar, 2024. "Strategies to overcome challenges to smart sustainable logistics: a Bayesian-based group decision-making approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(5), pages 11743-11770, May.
    3. Zhao, Guoqing & Xie, Xiaotian & Wang, Yi & Liu, Shaofeng & Jones, Paul & Lopez, Carmen, 2024. "Barrier analysis to improve big data analytics capability of the maritime industry: A mixed-method approach," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    4. Corrente, Salvatore & Greco, Salvatore & Rezaei, Jafar, 2024. "Better decisions with less cognitive load: The Parsimonious BWM," Omega, Elsevier, vol. 126(C).
    5. Göçmen Polat, Elifcan & Yücesan, Melih & Gül, Muhammet, 2023. "A comparative framework for criticality assessment of strategic raw materials in Turkey," Resources Policy, Elsevier, vol. 82(C).
    6. Jia, Yibo & Su, Jingqin & Cui, Li & Wu, Lin & Hua Tan, Kim, 2023. "Platform business model innovation in the digitalization era: A “driver-process-result” perspective," Journal of Business Research, Elsevier, vol. 160(C).
    7. Vieira, Fabiana C. & Ferreira, Fernando A.F. & Govindan, Kannan & Ferreira, Neuza C.M.Q.F. & Banaitis, Audrius, 2022. "Measuring urban digitalization using cognitive mapping and the best worst method (BWM)," Technology in Society, Elsevier, vol. 71(C).
    8. Arroyabe, Marta F. & Arranz, Carlos F.A. & Fernandez De Arroyabe, Ignacio & Fernandez de Arroyabe, Juan Carlos, 2024. "Analyzing AI adoption in European SMEs: A study of digital capabilities, innovation, and external environment," Technology in Society, Elsevier, vol. 79(C).
    9. Shivam Gupta & Sachin Modgil & Piera Centobelli & Roberto Cerchione & Serena Strazzullo, 2022. "Additive Manufacturing and Green Information Systems as Technological Capabilities for Firm Performance," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(4), pages 515-534, December.
    10. Alba Yela Aránega & Clara Gonzalo Montesinos & Raúl Castaño Urueña & Rafael Castaño Sánchez, 2025. "Digitalization intention in entrepreneurs and SMEs: a structural equation model of digital behavior and work-life balance," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-22, December.
    11. Sung, Kiseo & Park, Kyu-Tae & Lee, Hakyeon, 2024. "Landscaping the digital twin technology: Patent-based networks and technology reference model," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    12. Henryk Dzwigol & Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2024. "Digitalization and Energy in Attaining Sustainable Development: Impact on Energy Consumption, Energy Structure, and Energy Intensity," Energies, MDPI, vol. 17(5), pages 1-17, March.
    13. Lu, Ying & Wang, Qingling & Huang, Shiyu & Yu, Wenhui & Yao, Shuyue, 2024. "Resilience quantification and recovery strategy simulation for urban underground logistics systems under node and link attacks: A case study of Nanjing city," International Journal of Critical Infrastructure Protection, Elsevier, vol. 47(C).
    14. Kristina Höse & Afonso Amaral & Uwe Götze & Paulo Peças, 2023. "Manufacturing Flexibility through Industry 4.0 Technological Concepts—Impact and Assessment," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(2), pages 271-289, June.
    15. Laxmi Gupta & Ravi Shankar, 2022. "Adoption of Battery Management System in Utility Grid: An Empirical Study Using Structural Equation Modeling," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(4), pages 573-596, December.
    16. Wang, YiZheng & Zhang, ZhenTian, 2025. "Digital development and rural financial inclusion: Evidence from China," Research in International Business and Finance, Elsevier, vol. 73(PA).
    17. Ferdoush, Md. Ruhul & Aziz, Ridwan Al & Karmaker, Chitra Lekha & Debnath, Binoy & Limon, Mohammad Hossain & Bari, A.B.M. Mainul, 2024. "Unraveling the challenges of waste-to-energy transition in emerging economies: Implications for sustainability," Innovation and Green Development, Elsevier, vol. 3(2).
    18. Mohammad Zahirul Khaiyum & Sudipa Sarker & Golam Kabir, 2023. "Evaluation of Carbon Emission Factors in the Cement Industry: An Emerging Economy Context," Sustainability, MDPI, vol. 15(21), pages 1-15, October.
    19. Wu, Qun & Liu, Xinwang & Zhou, Ligang & Qin, Jindong & Rezaei, Jafar, 2024. "An analytical framework for the best–worst method," Omega, Elsevier, vol. 123(C).
    20. Li-Yuan Huang & Xun Zhang & Qiang Wang & Zhen-Song Chen & Yang Liu, 2024. "Evaluating Media Knowledge Capabilities of Intelligent Search Dialogue Systems: A Case Study of ChatGPT and New Bing," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 17284-17307, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlogis:v:8:y:2024:i:1:p:27-:d:1351467. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.