Supplier Relationship Management in the Era of Industry 4.0

Abstract

This study investigates Supplier Relationship Management (SRM) in the Era of Industry 4.0, focusing on the integration of advanced technologies and their impact on supplier relationships. The background establishes SRM as a strategic approach crucial for competitive advantage in global markets, with examples from the USA, Canada, and Europe showcasing effective SRM practices. The advent of Industry 4.0 technologies, including the Internet of Things (IoT), Artificial Intelligence (AI), and blockchain, has reshaped SRM practices worldwide. The study examines the challenges faced by SRM, such as information asymmetry and cultural differences, particularly emphasizing the need for localized research in African countries. Comparative analyses reveal variations in SRM practices across the USA, Canada, and Europe, considering regulatory environments and cultural nuances. Sustainability emerges as integral to SRM effectiveness, aligning with the global trend of environmentally responsible practices. Case studies illustrate how technological innovations, such as those employed by Amazon in the USA, enhance SRM. Continuous improvement, exemplified by organizations like Nestlé in Europe, is highlighted as essential for effective SRM. The objective is to explore how Industry 4.0 technologies influence SRM, focusing on smart manufacturing and collaborative supply chain networks. The problem statement identifies a critical gap in understanding the specific implications of Industry 4.0 on SRM, with a focus on emerging trends and the lack of research in African countries. The literature review discusses Resource Dependence Theory (RDT) and empirical studies, revealing knowledge gaps in industry-specific analyses, human-centric elements, and longitudinal studies. The research design outlines a comprehensive literature review methodology, and findings emphasize the transformative impact of Industry 4.0 on SRM practices, highlighting challenges and economic benefits. The conclusion underscores the strategic shift in supplier relationships, emphasizing the role of technological integration and the need for continuous adaptation. The study contributes theoretically by bridging SRM theories with Industry 4.0 dynamics, offering practical insights for organizations, and providing policy recommendations.