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Revealing the Supply Chain 4.0 Potential within the European Automotive Industry

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  • Marko Milosavljevic

    (Faculty of Technical Sciences, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Alireza Mousavi

    (College of Engineering, Design and Physical Sciences, Brunel University, Uxbridge UB8 3PH, UK)

  • Slobodan Moraca

    (Faculty of Technical Sciences, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Angela Fajsi

    (Faculty of Technical Sciences, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Danijela Rostohar

    (Centre for Manufacturing and Materials, Coventry University, Coventry CV1 5FB, UK)

Abstract

With the rapid advancements in Information and Communication Technologies (ICT) and the widespread enthusiasm of both theoreticians and practitioners, the broader transition to Industry 4.0 (I4.0) in major industries appears imminent. This empirical study analyzes business data from 1140 automotive companies operating in Europe, utilizing various business intelligence platforms and employing decision tree analytics to establish connections between enablers, drivers, company size, and financial resources. The goal is to identify persistent barriers hindering the rational transition to Industry 4.0. The findings reveal an uneven transformation within the industry nexus. While larger companies possess the financial means to allocate collective intelligence, technical resources, and drive necessary for fulfilling I4.0 requirements, smaller members of the nexus lag behind despite their enthusiasm and intent. This imbalanced evolution poses a threat to the comprehensive transformation required for realizing all the benefits of Industry 4.0 within the sector. The primary discovery indicates that small to medium-sized enterprises do not exhibit the same rates of Industry 4.0 adoption, a lag highly correlated with their available financial and human resources for digital transition. The decision tree proposed in this study offers guidelines for achieving an Industry 4.0-compliant nexus. Given its diversity and substantial global impact, the case study from the automotive industry proves intriguing and may later be generalized to other sectors. The study’s outcome could empower engineering managers and researchers to implement, execute, and assess the impact of digital strategies based on the financial capabilities of industrial institutions.

Suggested Citation

  • Marko Milosavljevic & Alireza Mousavi & Slobodan Moraca & Angela Fajsi & Danijela Rostohar, 2024. "Revealing the Supply Chain 4.0 Potential within the European Automotive Industry," Sustainability, MDPI, vol. 16(4), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1421-:d:1335443
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    References listed on IDEAS

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    1. Swafford, Patricia M. & Ghosh, Soumen & Murthy, Nagesh, 2008. "Achieving supply chain agility through IT integration and flexibility," International Journal of Production Economics, Elsevier, vol. 116(2), pages 288-297, December.
    2. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    3. Reza Yazdanparast & Reza Tavakkoli-Moghaddam & Razieh Heidari & Leyla Aliabadi, 2021. "A hybrid Z-number data envelopment analysis and neural network for assessment of supply chain resilience: a case study," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(2), pages 611-631, June.
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