Industry 4.0 sustainable supply chains: An application of an IoT enabled scrap metal management solution

The fourth industrial revolution and the digitisation of supply chains have led companies to realize that the adoption of Industry 4.0/Internet of Things (IoT) solutions creates opportunities for more sustainable management. The sustainable management of scrap metal is a challenging task for all the organisations that participate in the supply chain and especially for scrap metal producers and waste management companies. Although metals are considered to be infinitely recycled, scrap metal management is often inefficient due to several factors including collection processes, communication and marketplace limitations, which have significant environmental and economic impacts. The purpose of this paper is to provide evidence of the impact of an IoT solution on the sustainable supply chain management (SSCM) performance. A case study from a scrap metal producer that operates in the lift industry and a waste management company is presented, in order to illustrate how the deployment of a state-of-the-art industry 4.0 solution has the potential to improve sustainability both in the firm level and in the supply chain level. Direct benefits of the introduced solution are the automation of monitoring and negotiation procedures for the produced scrap metal. Indirectly, the proposed solution is beneficial in terms of CO2 emissions' reduction, resources availability and response time optimization. The results validate the framework for assessing SSCM for Industry 4.0 developed by Manavalan and Jayakrishna (2019) and demonstrate that Industry 4.0 solutions have the potential to improve, among others, the economic, environmental and social sustainability in supply chain management. The present study contributes to the literature by bridging the gap between theoretical developments and real-world cases in the fields of industry 4.0 and SSCM. Managerial implications, limitations and future research opportunities are also provided. (C) 2020 Elsevier Ltd. All rights reserved.