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Supply Network
5.0
How to Improve Human Automation
in the Supply Chain
Bernardo Nicoletti
Supply Network 5.0
Bernardo Nicoletti
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature
Switzerland AG 2023
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
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Foreword
The book’s conclusive sections highlight the most relevant results with
a supply network 5.0. The analysis is based on thoroughly integrating the
model presented and the exposed cases. The results highlight a tremen-
dous value in effectiveness, efficiency, and economic enhancements. The
results present some possible matters of concern connected with a supply
network 5.0 organizational transformation and how to remediate them.
Contents
1 I ntroduction 1
1.1 Research Background 1
1.2 Changing from Supply Chain to Supply Network 2
1.3 Supply Network 5.0 Framework 5
The General Model of the Supply Network 5
A Human-Automation-Machine Integrated Supply
Network 5.0 9
A Sustainable Supply Network 5.0 11
A Resilient Supply Network 5.0 12
1.4 Research Methodology 12
1.5 The Chapters 13
References 15
2 S
COR Model 19
2.1 Introduction 19
2.2 Supply Network Architecture 21
2.3 Supply Chain Operations Reference Model (SCOR) 22
2.4 The SCOR Components 26
Plan 26
Source 27
xi
xii Contents
Make 28
Deliver 30
Return 30
Enable 31
2.5 Extended SCOR Model 31
Define 32
Protect 36
2.6 Performance of a Supply Network Based on SCOR 36
2.7 Conclusions 38
References 38
3 Industrial
Revolutions and Supply Network 5.0 43
3.1 Introduction 43
3.2 Industrial Revolutions 47
First Industrial Revolution: Supply Network 1.0 48
Second Industrial Revolution: Supply Network 2.0 48
Third Industrial Revolution: Supply Network 3.0 49
Fourth Industrial Revolution: Supply Network 4.0 50
3.3 Industry 5.0 53
3.4 Supply Network Transformation 57
Fifth Industrial Revolution: Supply Network 5.0 57
Digital Transformation and Progress in Supply Networks 58
The Supply Network 5.0 Organization and its
Enhancing Solutions 67
3.5 Conclusions 88
References 90
4 Supply
Network 5.0 Human Automation Machine
Collaboration103
4.1 Introduction 103
4.2 Human-Automation-Machine Collaboration Project 105
HAMC Stages 106
ML Models for HAMC, a Generative Approach 107
Transparency and Trust/Workload Equilibrium in
HAMC Systems 108
HAMC for SNM 109
Contents xiii
5 Supply
Network 5.0 Sustainability139
5.1 Introduction 139
5.2 Sustainable Supply Network Management 140
Sustainability and the SCOR Model 142
UN Supply Network Sustainability Report 147
5.3 Green Supply Network and SCOR Model 149
Green Supply Network and SCOR 151
5.4 Green Supply Network Management 155
Green Supply Network Management Model 156
Circular Economy 175
Responsible Automation 176
5.5 Conclusions 179
References180
6 Supply
Network 5. Resilience and Agility191
6.1 Introduction 191
6.2 Supply Network Resilience 192
Types of Resilience 193
Supply Network Risks 194
Taxonomy of Costs Connected with Global Supply
Network 198
A Model for Risks and Opportunities in the Supply
Network 5.0 201
xiv Contents
7 Supply
Network 5.0 Life Cycle227
7.1 Introduction 227
7.2 SCOR Architecture and Supply network 5.0228
Define 228
Deliver 229
Plan 240
Source 244
Make 247
Return 252
Enable 253
Protect 257
7.3 Digital Supply Network Coverage of SCOR
Sub-processes272
7.4 Conclusions 273
References274
8 Supply
Network 5.0 Project287
8.1 Introduction 287
Innovation Processes 288
8.2 Innovation Methods 289
Design Thinking 290
Lean and Automate Supply Network 5.0 Transformation 293
Contents xv
9 Supply
Network 5.0 Conclusions317
9.1 General Conclusions 317
9.2 Main Conclusions 319
Artificial Intelligence 319
Sustainability 321
Resilience and Agility 321
9.3 Plus and Delta of Supply Network 5.0324
References326
G
lossary329
R
eferences359
I ndex419
Acronyms
xvii
xviii Acronyms
ML Machine Learning
MOPT Multiple-Objective Programming Technique
MRP Material Requirements Planning
MSP Managed Service Provider
MTO Make-to-Order
MTS Make-to-Stock
NLP Natural Language Processing
NYSE New York Stock Exchange
OCR Optical Character Recognition
OLAP Online Analytical Processes
OM Order Management
OT Operations Technology
P2P Procure to Pay
PA Predictive Analytics
PaaS Platform-as-a-Service
PCA Principal Component Analysis
PCS Process Control System
PLC Programmable Logic Controller
PLM Product Lifecycle Management
PM Project Management
PML Project Management Lifecycle
PSS Product and Service System
QFD Quality Function Deployment
R&D Research and Development
RCA Root-Cause Analysis
RF Radiofrequency
RFID Radio-Frequency Identification
RFP Request for Proposal
RL Reverse Logistics
RMG Ready-Made Garments
RMM Remote Monitoring and Management
ROI Return on the Investment
RPA Robotic Process Automation
RSN Reverse Supply Network
SaaS Software-as-a-Service
SCC Supply Chain Council
SND Supply Network Design
SCOR Supply Chain Operations Reference
Acronyms xxi
xxiii
xxiv List of Figures
xxv
1
Introduction
This book performs a deep analysis of the supply network, its most
concerning challenges, opportunities, and the integration of digital, sus-
tainable, and resilient tools into competitive organizations, considered
both as singular entities and interactive in their ecosystem.
the customers are better served because they now have “instant choice
and hyper-personalization” (Mazza 2020) across various fulfillment
channels. Therefore, the “chain” is collapsing and becoming a “net-
work” of chains (Fig. 1.2).
There is a wide variety of models and frameworks for the supply net-
work taxonomy The reference model chosen to expose supply network
5.0 general structures, processes, and activities in this book is the SCOR
framework proposed by APICS from an operations model point of view.
This latter framework includes six distinct sub-processes and areas of
interest (Schiele 2019):
Plan relies on all preliminary planning and design activities necessary
to support an adequate supply network.
• The Customers
• The Company
• The Collaborators (be them employees, workers, or partners)
• The Community (or society and environment at large).
Supply network 5.0 refers to a new level of flawless and harmonic integra-
tion between humans, automation, and machines in supply networks.
Many organization leaders perceived automation as a quick fix to the
problem of inefficient processes (Stancombe 2015). Automation is closely
connected with processes, process optimization, and technology execu-
tion. Therefore, it is essential to define and choose automation. The lit-
erature contains many definitions of automation like the following ones:
• The evolving global society will take an essential part in the ongoing
digital transformation in organizations without fear of losing their job
to the automation of new business models and the generation of open-
minded, well-skilled innovative operators.
• Waste prevention supports sustainability, saves costs, protects the envi-
ronment, and gets better in touch with society.
• Resilience and agility assure continuity in adverse and unexpected sit-
uations and market or economic development.
The analysis of supply network 5.0 shows some uncertainty about what it
will bring and how it will disrupt organizations in detail. It will break
down barriers between the natural and virtual worlds (Scanlon 2018).
10 B. Nicoletti
The main characteristic of industry 5.0 is the human touch back to the
center of decision-making through the collaboration between humans,
automation, and machines. Industry 5.0 will lead to the following:
challenges these solutions and methods uncover and some advisable fol-
low-up strategies to extract the most value from these transformational
processes while minimizing their possible downturn.
Chapter 4 examines the implications of extending the concept of
industry 5.0s from single organizations to supply networks. It analyzes
the first and principal component of the supply network 5.0 framework:
the human-automation-machine collaboration. The aim is to adequately
address the most prominent elements of the supply network 5.0 frame-
work and provide real-world evidence of the economic and organizational
benefits these instruments deliver to modern organizations. It defines sev-
eral possible models, each one with its benefits and challenges. It consid-
ers the persons in a supply network 5.0 and the support they need.
Chapter 5 deals with the second fundamental component of supply
network 5.0: sustainability. It considers the green supply network man-
agement and the relationships of green supply with the SCOR frame-
work. It describes the challenge of a circular economy and responsible
automation.
Chapter 6 considers the third fundamental component of supply net-
work 5.0 connected with resilience and agility. It also considers the
emerging management to take care of the possible disruption of the sup-
ply network 5.0.
Chapter 7 considers the entire supply network 5.0 life cycle and its
characteristics in each component of the extended SCOR framework.
Chapter 8 considers the supply network 5.0 project and the innova-
tion models to help realize it successfully. It also considers an innovation
acceptance model to analyze all stakeholders’ critical success factors con-
nected with the acceptance of supply network 5.0.
Chapter 9, as the last part of the analysis, presents some broad conclu-
sions to deliver the results of these investigations. It summarizes the gen-
eral and specific conclusions connected with the implementation of
supply network 5.0. It also considers the potential extension in the future.
The book introduces and analyzes several selected organization cases
relative to the practical implementation of some of the described solu-
tions. Can it quantify the relative gains in efficiency, effectiveness, and
economics? What are the real-world results of such implementations?
What appears to be the most apparent challenges and sources of concern?
1 Introduction 15
References
Atwell, C. (2017, September). Yes, Industry 5.0 is Already on the Horizon.
Automationdesign.com.
Balic, T, & Ebrahimi, H (2017) Automation and digital transformation the ways
that automation solutions can support digital transformation within ICT organi-
zations, Master of science thesis work in IT Management Report nr.
053, Sweden.
Bauman Z. (2012). Times of interregnum. Ethics Glob Polit 5, 49–56.
Carr, C. (1989). Performance technology in the bionic organization: I. What is
the bionic organization? Performance+ Instruction, 28(9), 44–46.
Casalino, A., Bazzi, D., Zanchettin, A. M., Rocco, P. (2019, May). Optimal
proactive path planning for collaborative robots in industrial contexts. In:
Proceedings—IEEE international conference on robotics and automation,
2019, 6540–6.
Cherepanov, V., Popov, E., & Simonova, V. (2021). Bionic organization as a
stage of production organization development in a digital transformation
process. E3S Web of Conferences, 250, 03003.
Christopher, M. (2016). Logistics and Supply network Management, Prentice
Hall, Harlow, UK.
Christopher, M., Mena, C., Khan, O. & Yurt, O. (2011), Approaches to man-
aging global sourcing risk, Supply chain management, (16)2, 67–81.
Dahlsrud, A. (2008), How corporate social responsibility is defined: an analysis
of 37 definitions, Corporate Social Responsibility and Environmental
Management; Corporate Social Responsibility. Environment Management,
(15)4, 1–13.
EESC (2018). Industry 5.0. eesc.europa.eu
Govindan, K. (2018), Sustainable consumption and production in the food
supply chain: A conceptual framework, International Journal of Production
Economics, (195, 419–431.
Gramsci A. (1971). Selections from the Prison Notebooks. trans. and ed. Hoare Q,
Nowell-Smith G. New York International Publishers, New York, NY. 276.
Huan, S. H., Sheoran, S. K., & Wang, G. (2004). A review and analysis of sup-
ply chain operations reference (SCOR) model. Supply Chain Management:
An International Journal, 9(1), 23–29. Computer-assisted supply Chain con-
figuration based on supply chain operations reference (SCOR) model.
Computers & Industrial Engineering, 48(2), 377–394.
Hutchinson, R. (2019). The Bionic Organization. BCG Global.
16 B. Nicoletti
2.1 Introduction
The supply network has a significant impact on the operational activities
of many organizations. Many organizations rely on part or entire supply
network processes, from the purchasing stages related to the relationships
with vendors to the delivery of products produced in their operations.
The economic and pandemic crises have clearly shown how organizations
could suffer from delays related to the supply network: from the avail-
ability of processors for ICT organizations or the shortages of computer
chips for Sony that caused many issues in releasing product stocks
(Sweney 2021). Delays in global shipping cause losses of billions of euros
other than issues in the availability to meet the market demand (Akbulaev
et al. 2020). The obstruction of the Suez Canal in March 2021, caused by
the grounding of the container ship Evergreen, greatly impacted had on
the global market (Lee and Wong 2021). This event caused a high rise in
goods and oil prices and delayed the entire supply lines of all the cargo
ships that needed to pass the Suez Canal, considered one, if not the most,
critical area for international shipments. These effects and damage affect
not just organizations but also end users who must wait for the delivery
of products and suffer higher prices. In these contexts, properly
• Level 1: The top level includes five main processes, namely plan,
source, make, deliver, and return. The plan is the core of the supply
2 SCOR Model 23
Plan
Vendors Customers
Return Return
Enable
Capm. vi. Vna fuit per quam mulier deus altus ad yma
Venit, et ex eius carne fit ipse caro,
Cuius honore magis laudande sunt mulieres
Hee quibus est merito laudis agendus honor.
De muliere bona bona singula progrediuntur,
Cuius honestus amor prebet amoris opem:
Preualet argento mulier bona, preualet auro,
300 Condignum precii nilque valebit ei;
Lingua referre nequit aut scribere penna valorem
Eius, quam bonitas plena decore notat.
Nobilis in portis reuerendus vir sedet eius,
Hospiciumque suum continet omne bonum:
Vestibus ornantur famuli, quas ordine duplo
Eius in actiuis fert operosa manus:
Ocia nulla suos temptant discurrere sensus,
Quos muliebris ope seruat vbique pudor.
Sic laudanda bona meritis est laude perhenni,
310 Quam mala lingua loquax demere nulla potest.
Que tamen econtra mulier sua gesserit acta,
Non ideo reliquas polluit ipsa bonas:
Sunt nichil illa probo cum de vecorde loquamur,
Improba nec iustos scandala furis habent.
Sit licet absurdum nomen meretricis, ab illo
Quam pudor obseruat femina nulla capit;
Sit licet infamis meretrix, tamen illa pudicas
Non fedat fedo nomine feda suo.
Hic bonus, ille malus est angelus vnus et alter,
320 Nec valet vlla mali culpa nocere bono;
Nec decet infamis nomen mulieris honeste
Ledere, vel laudem tollere posse suam.
Fetida dumque rose se miscet invtilis herba,
Non tamen est alia quam fuit ante rosa:
Semper erat quod erit, vbi culpa patens
manifestat468
Crimina, quale vident hoc opus ora canunt.
Quod tamen hic scribam, sit saluo semper honore
Hiis quibus obseruat gesta pudoris honor:
Ergo quod hic agitur, culpandas culpa figurat,
330 Quo laus laudandis sit tribuenda magis.
Scire malum prodest, pocius vitemus vt illud,
Labile pre manibus et caueamus iter.
De muliere mala mala queque venire solebant,
Est etenim pestis illa secunda viris:
Femina dulce malum mentem, decus ipsa virile,
Frangit, blandiciis insidiosa suis;
Sensus, diuicias, virtutes, robora, famam
Et pacem variis fraudibus ipsa ruit.
Mille modis fallit, subtiles milleque tendit
340 Insidias, vnus vt capiatur homo.
Femina talis enim gemmis radiantibus, auro,
Vestibus, vt possit fallere, compta venit:
Aptantur vestes, restringitur orta mamilla,
Dilatat collum pectoris ordo suum;
Crinibus et velis tinctis caput ornat, et eius
Aurea cum gemmis pompa decorat opus:
Vt magis exacuat oculos furientis in illam,
Anulus in digitis vnus et alter erit.
Non erit huius opus lanam mollire trahendo,
350 Set magis vt possit prendere compta viros:
Se quoque dat populo mulier speciosa videndam;
Quem trahit e multis forsitan vnus erit.
Ha quociens fictis verbis exardet amator,
Dum temptat forme subdola lingua bone!
In vicio decor est, mulier si verba placendi
Non habet, vt fatuos prouocet inde viros;
Crebraque complexis manibus suspiria mittit,
Nec sibi pollicito pondere verba carent:
Sepe sonat raucum quoddam, set amabile ridet,
360 Blesaque fit bleso lingua coacta sono.
Quo non ars poterit? discit lacrimare decenter,
Fallat vt hos vultu quos neque sermo trahit;
Vultibus et lacrimis in falsa cadentibus ora
Decipit et fingit vix sibi posse loqui;
Et quociens opus est, fallax egrotat amica,
Vultus et exterius absque dolore dolet.
Monstra maris Sirenes erant, que voce canora
Quaslibet admissas detenuere rates;469
Sic qui blandicias audit solito muliebres,
370 Non valet a lapsu saluus abire pedem.
Pingere sicut habet multas manus vna figuras,
Que variis formis diuaricabit opus,
Sola sibi varios mulier sic auget amantes,
Quos Venus in fatuam credere cogit opem.
Quod natura sibi sapiens dedit, illa reformat,
Et placet in blesis subdola lingua suis;
Eius enim plures fatuos facundia torquet,
Dum modo ridendo, nunc quoque flendo placet.
Sic fragili pingit totas in corpore partes,
380 Addit et ad formam quam deus ipse dedit.
Huius ego crimen detestor ferre loquele,
Quam magis expertus alter ab ante tulit;
Codice nempe suo referam que carmina vates
Rettulit Ouidius, nec michi verba tenent.
Vtque suum iuuenis mulier seruare decorem
Temptat et in variis amplificare studet,
Sic vetus amissi speciem renouare coloris
Spirat, et vnguentis sollicitabit opus.
Horrida sicut yemps agit vt neque lilia florent,470
390 Set riget amissa spina relicta rosa,471
Sic rapit a forma veteres etas mulieres,
Maior et est ruga quo solet esse rubor.
Dextra senectutis, tunc cum sit discolor etas,
Protegit antiquas picta colore genas:
Nam modus est tali casu quod femina vultum
Comat, vt vnguentis splendeat ipsa magis.
Arte supercilia mensurat, labraque rubro,
Gracius vt placeant, mixta colore iuuat;
Sepeque caniciem medicantibus ornat in herbis,
400 Et melior primo queritur arte color;
Sepeque precedit densissima crinibus empta,
Proque suis alios efficit esse suos;
Sicque venit rutilis humeros protecta capillis,
Et vultum iuuenis arte requirit anus.
Sepe crocum sumit, croceo velatur amictu,
Quo minus ex proprio lesa colore patet.
Quot noua terra parit flores in vere tepenti,
Tot habet ad curas femina feda suas.
Non omnes vna pulcras se pingere forma472
410 Crede, set est vsa quelibet arte sua;
Ista petit roseum, niueum cupit illa decorem,
Ista suos vultus pingit, et illa lauat;
Altera ieiunat misere minuitque cruorem,
Et prorsus quare palleat ipsa facit;
Nam que non pallet sibi rustica queque putatur,
‘Hic decet, hic color est verus amantis,’ ait.
Mille modis nostras impugnat femina mentes,473
Si tibi non videas, illico captus eris.
Feminei sensum virus tibi tollit amoris,
420 Recia cuius enim gracia sola fugit.
Ista dat amplexus dulces et mollia figit
Oscula, set tacito corde venena premit:
Fraudibus vxorum multi periere virorum,
Femina nil horret, cuncta licere putat;
Audet quicquid eam iubet imperiosa libido,
Et metus et racio cedit et ipse pudor:
Sepius esse solet quia pugnat forma pudori,
Raro de pulcris esse pudica potest.
Ve cui stulta comes sociali federe nupsit!
430 Non erit illius absque dolore thorus:
Federa seruasset, si non formosa fuisset,
Sponsa, que multociens res docet ista patens.
Quam Venus inspirat seruat custodia nulla,
Ad fatuam nullus limes agendus erit:
Cum Venus et mulier tempus que locum sibi
spirant,
Non caret effectu quod voluere duo:
Frustratur custos mulieris, dum tamen ipsa
Se non custodit, si foret ipse Cato.
Tunc prius incipient turres vitare columbe,
440 Antra fere, pecudes gramina, mergus aquas,
Femina cum Veneris fatuum scrutetur amantem,
Et non inveniat ad sua facta locum.
Littora quot conchas, quot amena rosaria flores,
Quotque soporifera grana papauer habet,
Silua feras quot alit, quot piscibus vnda natatur,
Et tener ex pennis aera pulsat auis,
Non faciunt summam talem, que dicitur eque
Ad mala que mulier insidiosa parat.
Est mundus fallax, mulier fallacior ipso,
450 Senciit infidam nam paradisus eam:474
Est lupus ecce latens agni sub vellere mundus,
Quo lambit primo, fine remordet eo.
Hoc tamen est extra, set serpentina columba
Prouocat in thalamis dampna propinqua magis;475
Hec etenim serpens est, que per mille meandros
Decipit, et pungens corda quieta ferit.
Quis fortis manet aut sapiens illesus ab ipsa,
Celicus est, set eam vincere terra nequit:
Sampsonis vires gladius neque Dauid in ipsam
460 Quid laudis, sensus aut Salomonis habent.
Vt quid ad huc miles temptat superare modernus,
Vincere quod tanti non potuere viri?
Non est quem faciunt transacta pericula cautum,
Set magis in laqueos quos videt ipse cadit.
Quis vetat a magnis ad res exempla minores
Sumere? set noster non sinit illud amor.
Impetuosus agit pugnam gladiator, et idem
Immemor antiqui vulneris arma capit.