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The technologies of digital supply chain in Industry 4.0

Shih-Jung Juan

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 Juan, S.-J. (2023). The technologies of digital supply chain in Industry Juan
4.0: The principles of Internet of Things, big data, blockchain, and
digital supply chain twin and their challenges. In Li, E.Y. et al. (Eds.)
Proceedings of The International Conference on Electronic Business,
Volume 23 (pp. 659-666). ICEB’23, Chiayi, Taiwan, October 19-23,
2023

The Technologies of Digital Supply Chain in Industry 4.0: The Principles of Internet
of Things, Big Data, Blockchain, and Digital Supply Chain Twin and Their
Challenges

Shih-Jung Juan 1,*

_____________________
*Corresponding author
1
Ph.D., National Chengchi University, Taipei, Taiwan, 104356505@nccu.edu.tw

ABSTRACT
Industry 4.0 represents the fourth industrial revolution and is the digital transformation of smart manufacturing and industrial
markets. In the Industry 4.0 era, emerging technologies such as the Internet of Things (IoT), cloud computing, big data,
blockchain, 5G, and digital twins have arisen rapidly. Most of them are utilized in supply chain management processes, leading
to the rise of digital supply chains. The most widely used technology is IoT. The most common applications are the technologies
combined with IoT, cloud computing, and big data analysis. Blockchain is a developing technology, while the digital supply
chain twins are an integrated technology encompassing simulation. Thus, this review focuses on these four critical technologies
(i.e., IoT, big data, blockchain, and digital supply chain twins) to explore their principles, applications, and possible challenges
in the digital supply chain. In addition, this review also compares the difference between digital supply chains and smart supply
chains and explains their relationship.

Keywords: Digital supply chain, smart supply chain, Internet of Things, big data, blockchain, digital supply chain twins.

INTRODUCTION
Industry 4.0 is a popular topic nowadays. It was first introduced by a group of representatives from different fields under an
initiative to enhance German competitiveness in the manufacturing industry in 2011 (Oztemel & Gursev, 2020). Next, the
German federal government announced that Industry 4.0 would be integral to the “High Technology Strategy for German 2020”.
Industry 4.0 is the digital transformation of industrial markets with smart manufacturing, which is currently at the forefront. It
represents the fourth industrial revolution in discrete and process manufacturing, logistics, and supply chain (SC) (Misra et al.,
2022). Many researchers confirmed that Industry 4.0 bring benefits, such as manufacturing flexibility, product diversification,
faster market responsiveness, shorter lead times, better capacity utilization, and others (e.g., Hofmann & Rusch, 2017). In the
Industry 4.0 era, emerging technologies such as the Internet of Things (IoT), cloud computing, big data, blockchain, 5G, and
digital twins have arisen rapidly. Most of them are utilized in the processes of supply chain management. Industry 4.0 represents
a smart manufacturing networking concept where machines and products interact with each other without human control (Ivanov
et al., 2019). Ivanov et al. (2019) noted that Industry 4.0 technology enables new production strategies using cyber-physical
system principles based on highly customized assembly systems with flexible manufacturing process design. Cyber-physical
systems incorporate integrated elements from both information and material subsystems, and decisions in them are cohesive.
SCs have been evolving eventually in such networks and systems with dynamic structures. Cyber-physical systems have led to
the presence of digital SC in recent years. The related topics regarding digital SC have attracted academia and practitioners’
attention. Moreover, many of the technologies applied and converged in Industry 4.0 find their way into agriculture more than
the manufacturing industry. Therefore, this review aims to explore the following research questions:

RQ1: to clarify the definition of digital supply chain and its relationship with smart supply chain;
RQ2: to identify the critical components of the digital supply chain, their principles, current applications, and possible challenges
in the agriculture and food industry and related supply chain.

THE DEFINITION OF DIGITAL SUPPLY CHAIN AND SMART SUPPLY CHAIN

Bhargava et al. (2013) state that a digital supply chain (DSC) is composed of those systems (e.g., software, hardware,
communication networks) that support interactions between globally distributed organizations and orchestrate the activities of
the partners in SCs. These activities include buying, making, storing, moving, and selling a product. Kinnet (2015) defined a
DSC as a smart, value-driven network that leverages new approaches with novel technological and analytics to generate new
revenue and business value for organizations.

Buyukozkan and Gocer (2018) concluded that the definition of DSC is an intelligent best-fit technological system that is based
on the capability of big data analytics and excellent cooperation and communication for digital hardware, software, and networks
to support and synchronize interaction between organizations by making services more valuable, accessible and affordable with

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consistent, agile and effective results. Moreover, Buyukozkan and Gocer noted that DSC is about managing SC processes with
various innovative technologies, e.g., unmanned aerial vehicles, cloud computing, and the Internet of Things.

Khan and Keramati (2023) noted that smart represents all human-centered digital technologies that combine intelligent and
networked collaboration to improve the performance of the SC processes. The improved SC performance by all human-centered
digital technologies is called smart SC. Khan and Keramati explained that digital technologies make technical systems intelligent
and interconnected. Cyber-physical systems are engineered systems that communicate with each other to form the IoT and use
big data and analytics to make well-informed local, autonomous decisions (Lee et al., 2015). At the same time, smart
organizations depend on similar digital technologies to integrate the system by connecting partners to extended value networks.

Smart SC is a flexible organization with the characteristics of customization on demand, process visualization, intelligent
response, and a good early warning system, which can realize the fine sensitization of SC (Xu & Han, 2018). Smart SC is a
system integrated with information technology and intelligent technology and management, with three characteristics:
visualization, transparency, and collaboration (Huang et al., 2018). The smart SC is a comprehensive, integrated technology and
management system that integrates Things, Internet, technology, and modern SC management theory, method, and technology
to realize the intelligent, networked, and automated business between enterprises (Zhao & Wang, 2014). Liu et al. (2022)
concluded that the smart SC should be a system with more information symmetric and contacts in real time between SC members
conveniently in information flow, logistics, capital flow, and others to improve the operational efficiency of SC. The biggest
difference between the smart SC and traditional SC is that the smart SC takes the information network as the foundation of
information transmission in SC. Every company can connect its system to the information system of the intelligent SC, ensuring
the sharing of information and the high integration of information flow in the SC. Therefore, we realize that digital SC is the
foundation of smart SC because digital SC provides the technical facet for smart SC. In contrast, smart SC regards the upper
benefits of digital application.

A Smart Supply Chain Framework

Zhang et al. (2023) defined a smart supply chain as integrating the partners, self-organizing and automatically adapting to
environmental changes, and making intelligent decisions that best achieve business goals. Wu et al. (2016) defined a smart supply
chain as the new interconnected business system which extends from isolated, local, and single-company applications to SC-
wide systematic smart implementations. Zhang et al. (2023) follow the definition of smart SC to present a multi-level smart SC
framework. There are four levels to reflect different stages and scopes of SC management with information communication
technology (ICT), artificial intelligence (AI) & machine learning (ML), and other technologies.

Level 0 consists of smart technologies or drivers which provide the basis of smart supply chains, including ICT, AI & ML, and
other technologies. ICT includes IoT, big data, cloud, blockchain, 3D printing, and others. AI&ML means artificial intelligence,
machine learning, optimization, etc. The other technologies include advanced manufacturing, robotics, digit-twin, intelligent
transportation, drone, supply chain finance and banking 4.0, and so on.

Level 1 is the initial stage of the smart supply chain, which applies the ICT/AI to improve a single function within the supply
chain, that is, smart flow, i.e., material, information, finance with smart drivers, e.g., pricing, inventory, transportation, facility,
sourcing to make smart strategy, tactics, and operations decision, for example, smart logistics, intelligent inventory management
system, etc. The characteristics of this level are visibility, real-time, and optimization.

Level 2 represents the whole supply chain partners connected to implement intelligent decisions of all levels (i.e., operational,
tactical, or strategic) in all flows (i.e., material, information, finance). The characteristics of this smart SC level are interconnected,
intelligent, and self-organizing. They can reconfigure and self-optimize the network in response to environmental change and
changes in business goals. Therefore, it can demonstrate superior performance in all key aspects, including responsiveness,
efficiency, resilience, flexibility, and sustainability.

Level 3 is the smart business/system/industry that SC supports, such as smart automotive manufacturing under Industry 4.0,
smart retailing, smart healthcare service, and even smart city to match business strategy, facilitate the implementation of Industry
4.0, and ultimately achieve the economic, environmental and social goals.

THE INVOLVED TECHNOLOGIES, THEIR APPLICATION, AND CHALLENGES OF THE DIGITAL SUPPLY
CHAIN
Smart SC uses innovative tools to enhance quality, improve performance, and facilitate decision-making (Nozari et al., 2021).
Khan and Keramati (2023) presented the technologies used in the smart SC, including big data analysis, Internet of Things (IoT),
social media, user interface, robotics, 3D printing, blockchain, augmented reality, GPS, RFID, simulation, cyber-physical system,
cybersecurity system, cloud computing. Zhang et al. (2023) reviewed the extant literature on ICT technologies under Industry
4.0 of smart SC management, and they suggested that future researchers can respectively explore the related issues of smart SC
with the specific technology. Thus, we discuss the principle of the critical technologies regarding the smart SC with IoT, big data

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& IoT, blockchain, and digital SC twin.

Internet of Things
The term ‘Internet of Things’ (IoT) was coined by Kevin Ashton in 1999 concerning linking Radio-frequency Identification
(RFID) for a supply chain to the Internet (Ashton, 2009). The Internet of Things is an integrated system of intelligent
interconnections fused with wireless sensory networks, big data, and cloud computing (Khan et al., 2023). IoT implies the
connection of a network of “things” to or through the Internet without direct human intervention (Villa-Henriksen et al., 2020).
“Thing” can be any object with sensors or actuators uniquely addressable, interconnected, and accessible online. IoT is a
technology paradigm contemplated as a vast network of digitally connected devices and machines (Ashton, 2018). Lee and Lee
(2015) presented that IoT technologies are classified into five categories: RFID, wireless sensor networks (WSN), middleware,
cloud computing, and IoT applications, essential for deploying successful IoT-based products and services.

Nozari et al. (2021) presented the four-layer architecture of IoT for the industrial framework. The first layer indicates information
generation with sensors and identification devices; the second represents information transmission by network construction; the
third signifies information processing with management methods; the fourth indicates information application using the
integrated application. Villa-Henriksen et al. (2020), by literature view, noted that there is a general trend to divide the layers of
the IoT architecture into three: device, network, and application to cover the range of technologies, protocols, standards, etc.
employed. The device layer consists of the physical objects (things) that are capable of automatic identification, sensing or
actuation, and connection to the Internet. The network layer communicates the data to a gateway (or proxy server) and then to
the Internet (cloud) with communication protocols. While the application layer stores and can be accessed by the end-user for
processing and analyzing information.

In the implementation processes of the device layer, there are two processes of data (or information). One is the sending data
process, that is, a sensor measures a physical parameter, e.g., air temperature, that is transformed into an equivalent analog signal,
i.e., electric voltage or current, which is converted by the interfacing circuit, i.e., Analogue-to-Digital Converter (ADC), into a
corresponding digital format. Next, the microcontroller, e.g., microprocessors or single-board computers, collects digital data
from one or more sensors through ADC and sends them to the transceiver, i.e., a wireless communication module, which
communicates the data to a gateway. The other is the receiving process. When the transceiver receives a signal, the signal is
communicated to the microcontroller, where it is converted to an analog signal by a Digital-to-Analogue Converter (DAC) or a
digital signal by a Digital-to-Digital Converter, i.e., the interfacing circuit, and finally interpreted by the actuator and acts
according to the received signal.

In the implementation processes of the network layer, the network layer communicates the data first to an intermediary platform,
next to the Internet (cloud), and finally to the used actuators. When the data are transferred to the intermediary platform, it uses
wireless communication technologies such as RFID, WSN, or Near-Field Communication (NFC). The intermediary platform is
normally an internet gateway located in the neighborhood of the connected devices, sometimes including a proxy server, where
the data are collected and occasionally processed to send the information to the end user through the Internet using standard, e.g.,
MQTT or protocol, e.g., HTML or XMPP.

In the implementation processes of the application layer, several important services are included, i.e., data storage, data analytics,
data access through an appropriate Application Programming Interface (API), and a user interface software application. The
middleware platform is also included to handle the heterogeneous cloud data for interoperability. Data storage can be cloud-
based, i.e., on multiple or more locally based servers, where data are stored in different databases, depending on the application
and design. Data analytics can be achieved by cloud computing, where computer resources are managed remotely to analyze
data, often Big Data, or by distributed computing, e.g., edge and fog computing. The IoT middleware platforms are especially
suitable for solving different challenges in the application of IoT, e.g., interoperability. IoT middleware platforms try to simplify
complex communication through the cloud due to the heterogeneity of devices, communications, and networks by using enablers,
e.g., standardized APIs and protocols.

Internet of Things Application

Internet of Things application in supply chain
IoT is one of the key components of the IT infrastructure for developing smart SC, with a high potential for creating sustainability
in systems (Nozari et al., 2021). Traditional SC management systems usually have several problems, such as overstocking,
delivery delays, and stock outages. These problems can be attributed to factors such as complexity and uncertainty in SCs for a
long time. IoT can help companies to manage these uncertainties and improve SC efficiency. Furthermore, the application of IoT
devices can reduce data acquisition costs. Suguna and Kumar (2019) proposed a circulation using IoT solution for SC, including
the following issues: 1) understanding inventory levels and warehouse stock, 2) studying product performance and predicting its
failure, 3) creating fleet efficiencies for optimization, 4) life cycle visibility of a product, 5) gaining user’s insights. Therefore,
companies will invest resources in the IoT to build visibility of the materials stream, decrease materials waste, and lower
circulation costs.

Furthermore, Immense network information on warehouse, production, distribution, and retailing is generated by sensors, RFID

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tags, meters, actuators, GPS, and so on. It can improve product delivery and tracking capabilities, facilitate transportation
decisions, control the temperature and humidity of perishable materials and products, reduce waste, and improve pollution.
Therefore, IoT can become the core business form to achieve environmental sustainability and benefit companies.

Internet of Things application in the arable farming

Arable farming, i.e., farming in an uncontrolled environment, has particular challenges due to the following reasons: much large
farm sizes, the spatial data as a central role, great use of mobile sensors and other devices on vehicles, larger amounts of
heterogeneous spatial data generated at different rates and from very disparate sources, highly varying and uncertain
environmental conditions, more diverse types of field tasks per growing season (Villa-Henriksen et al., 2020). IoT has been
gaining advancement in the farming industry as it can fulfill the urgent necessity for interoperability across brands, scalability,
and traceability. IoT is still evolving and has the potential to adapt to a great diversity of applications. Villa-Henriksen et al.
(2020) categorized six applications of IoT in arable farming: monitoring, documentation and traceability, forecasting, controlling,
farm management information system (FMIS), vehicle navigation, optimization, and logistics.

The Challenges of the Internet of Things

The challenges of IoT-based supply chain
Khan et al. (2023) noted that the IoT-based SC faces numerous financial and environmental challenges, such as the higher cost
of smart gadgets, especially RFID, and controlling software systems. Misra et al. (2022) noted that integrating IoT and business
processes is still at a very early stage of development in the food supply chain and food industry. For example, granular data
alignment exists when creating an end-to-end digital thread from farm to consumer because of the cross-functional entities in the
food supply chain, resulting in the difficulty of data sharing. Usually, raw materials are from developing countries and are
processed by developed countries. Collecting all the data in the acquiring process will be challenging.

The Challenges of the Implementation of IoT in Arable Farming and Food Supply Chain
Villa-Henriksen et al. (2020) identified that interoperability is a major hurdle in the application of IoT. They further presented
four related dimensions: technical, syntactical, semantic, and organizational. Technical interoperability refers to communication
protocols; syntactical and semantic interoperability is data heterogeneity; organizational one indicates scalability. They grouped
the challenges of IoT applications in arable farming into four types: general, device, network, and application layers. The most
concerned topics are power consumption and latency/throughput/rate. The former is in the device layer, and the latter is in the
network layer. Other concerns are three topics in the general area: revenue/affordability, data heterogeneity, and
scalability/flexibility; three topics in the network layer: wireless link quality, communication range, and communication
protocols; one topic in the application layer: data analysis.

Jin et al. (2020) noted that the biggest challenges with the data generated along the food supply chain are data fairness (i.e.,
Findability, Accessibility, Interoperability, Reusability, FAIR), data quality, and lack of standardization. Moreover, they
especially noted that one of the challenges that have caused the limited uptake of IoT technology in food safety is that the data
produced by IoT devices can be difficult to interpret, communicate, and share because of a lack of standardized communication
protocols. They further noted that applying FAIR guiding principles in IoT devices can help solve the lack of standardized
communication protocols. In addition, they also noted that several issues are related to IoT security in food safety, such as
inadequate hardware and software security. This problem can result in a vulnerable point for the security of the entire IoT system
and the rest of the Internet. Therefore, the security risks analysis on IoT should be considered (Nozari et al., 2021).

Big Data, Cloud Computing, and the Internet of Things

Addo-Tenkorang and Helo (2016) defined “big data” as “a fast-growing amount of data from various sources that increasingly
poses a challenge to industrial organizations and also presents them with a complex range of value-use, storage and analysis
issues”. International Data Corporation (IDC) outlined five attributes of big data: big data development sources (Variety – V1),
big data acquisition (Velocity – V2), big data storage (Volume – V3), big data analysis (Veracity – V4), and big data value adding
to industry (Value-adding – V5). Addo-Tenkorang and Helo also outlined some of the most widely used “big data” operational
tools: cloud computing, master database management system, apache Hadoop, map-reduce, apache Cassandra, Pentaho, apache
mahout.

Min et al. (2014) elaborated on the relationship between big data and cloud computing: big data depends on cloud computing as
the foundation for smooth analytical operation. Namely, cloud computing analytics provides solutions for storing and processing
big data. Furthermore, cloud computing virtual storage technology can effectively analyze and manage big data through parallel
computing capacity to improve the efficiency of big data acquisition and processing. Additionally, Min et al. noted that big data
and IoT are interdependent and should be jointly developed. That is, the widespread deployment of IoT drives high data growth,
including semi-structured and unstructured. Big data of IoT is useful only when it is analyzed and processed for value-adding.

The applications of big data/Internet of Things

The applications of big data/IoT in the agriculture and food industry have been discussed by Misra et al. (2022). Misra et al.
noted that IoT-based virtualization of the food supply chain is critical in minimizing risks and dramatically reducing inefficiencies,

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costs, emissions, and social impacts. Moreover, IoT and AI enable customization-oriented production for the food industry.

The challenges of big data/Internet of Things

Addo-Tenkorang and Helo (2016) suggested that because data and information in general and especially industrial operations or
supply-chain management data are confidential and sensitive, thus, the data security aspects of big data/IoT could be investigated
for authenticity. In addition, handling big data issues are challenging and time-consuming, requiring a large computational
infrastructure to ensure successful data processing and analysis in a reasonable time. At the same time, cloud computing can
solve this problem. However, related research on big data in food safety with cloud computing still is in the infancy stage (Jin et
al., 2020).

Blockchain
Blockchain technology has been a success in the cryptocurrency world since its launch in 2008. Blockchain is known for its
digital decentralized ledger system that does not require a trusted transaction intermediary (Misra et al., 2022). Blockchain
technology is essentially a database of records stored as ‘blocks’, shared among all group members, resistant to data modification.
It can be accessed at any time in the future. Therefore, Rana and Sharma (2021) noted that blockchain technology provides
multiple features, including a decentralized ledger, smart contract, consensus, provenance, immutable and transparent to ensure
trust and transparency in a collaborative environment, for example, the supply chain ecosystem. A distributed ledger technology
can enable different entities to communicate in a peer-to-peer network without a middle entity. Consensus is the agreement of
all the stakeholders on the execution of a transaction. The most important feature is its immutability, which means no one can
modify the transaction in the distributed ledger. Therefore, a provenance feature can provide to trace back all the history of any
transaction because all the transactions are recorded in the distributed ledger so that these are transparent to all the connected
nodes of a network, that is, all the connected stakeholders. The smart contract is a computer program that contains the logic of a
contract between two or more entities and can be executed when certain conditions are met.

Rana et al. (2021) proposed a model containing digital documents, the Ethereum blockchain, an interplanetary file system, and
system users to substitute the conventional centralized approach. Many documents, such as purchase orders, delivery advice,
payment notification, etc., are uploaded by different stakeholders like manufacturers, distributors, retailers, etc., during the
production process of goods to their delivery to consumers. Because these stakeholders will access these documents during the
process, the security and integrity of these documents are of prime concern. Any tampered-with or manipulated documents can
lead to distrust. Therefore, decentralized access control is needed. Ethereum is an open-source public blockchain platform with
a smart contract to develop decentralized applications. It uses a ledger to store the access transactions of documents which cannot
be modified due to the immutability feature. The interplanetary file system is a distributed system to store and access these digital
documents. Once a file is stored on an interplanetary file system, a unique cryptographic hash is returned, which is used to
address or identify that file. Digital documents will be stored in encrypted form on the interplanetary file system in the proposed
model. System users are provided with a pair of keys to access the digital documents related to them.

Blockchain technology can be extended to a food supply chain where information such as production data of food, origin, storage
and shipping temperature, expiry date, etc., can be digitally stored in a database, enabling rapid identification of an outbreak or
authenticity of food (Misra et al., 2022). Blockchain can provide a solution to keep records and track food items to implement
food safety and integrity measures, bringing transparency and accountability to the supply chain. The prominent cases are
Walmart and IBM (Misra et al., 2022). The related application of blockchain in food safety traceability is elaborated by Misra et
al. (2022).

Misra et al. also noted that when blockchain technology is adopted widely, standardizing the protocols used in the blockchain is
urgent because of smart contracts suitable for data sharing, blockchain with strong algorithms suitable for data privacy, and its
integration with AI suitable for data immutability.

Digital Supply Chain Twin

Digital twin
Kamble et al. (2022) noted that a digital twin integrates virtual and physical systems using disruptive technologies. A digital twin
is a virtual model and comprehensive description of the system used to understand the performance parameters, improve
processes, and effectively enhance value-added activities (Park et al., 2019). A digital twin is a digital counterpart of the physical
systems based on a simulation that deals with design systems and optimizes them for improving efficiency (Guo et al., 2019).
The digital twin can simulate the manufacturing environment based on the collected information and helps the owner decide
between the available actions for increased efficiency, better accuracy, and economies of scale (Negri et al., 2017). A digital twin
can control production processes in response to the changing market needs with high accuracy and agility (Kamble et al., 2022).
Park et al. (2020) noted that digital twin frameworks have considered one or more manufacturing facilities to develop
independent customized applications. However, they can still not develop a digital twin as a core technological element of the
entire system. In brief, the relevance of digital twins in the manufacturing industry lies in the definition of virtual counterparts
of physical devices (Negri et al., 2017).

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Similarly, Miller et al. (2020) noted that a digital twin is a digital representation of a physical thing’s data, state, relationships,
and behavior. There is a need to develop digital supply chain twins in recent studies. Gerlach et al. (2021) suggested that a digital
supply chain twin is a new application of a classic digital twin and represents a new, innovative technology concept. Therefore,
the definition of digital supply chain twin should be clearly distinguished from that of digital twin.

Digital supply chain twin

A digital supply chain twin is used for advanced supply chain modeling based on prescriptive analytics that works in real-time
and can determine the proper corrective action supporting supply chain optimization (Kamble et al., 2022). They further revealed
through a systematic literature review that a digital supply chain twin drives manufacturing resources aggregation, integration,
and dynamic allocation, creating a valuable link in complex supply chains. Moreover, a digital supply chain twin is a virtual
supply chain mirror consisting of hundreds of physical assets and warehouses, logistics, and inventory positions. Gerlach et al.
(2021) noted no consensus regarding digital supply chain twins in the literature. Defining the digital supply chain twin in the
literature depends on its specific purpose. Thus, a conceptual clarification for the digital supply chain twin is proposed by Gerlach
et al. (2021). A digital logistics twin or digital supply chain twin is a digital dynamic simulation model of a real-world logistics
system with the characteristics of a long-term, bidirectional, and timely data link to that system. The digital supply chain twin
enables diagnostic, predictive, and prescriptive methods to improve logistics performance throughout the customer order
(Gerlach et al., 2021).

Kamble et al. (2022) identified seven components of digital supply chain twin architecture by systematic literature review:
industrial internet of things (IIoT), modeling and simulation, cyber-physical systems, artificial intelligence and machine learning,
blockchain and smart contracting, cloud computing, augmented reality, and virtual reality. Kamble et al. (2022) propose a
sustainable digital supply chain twin framework, including 1) the physical layer (i.e., IIot, cloud computing, blockchain, virtual
reality), 2) the digital supply chain layer (i.e., digital planning, modeling, and analytics), 3) the analysis layer of digital supply
chain twin (i.e., artificial intelligence, machine learning, big data analytics, and simulation models), 4) the application layer of
digital supply chain twin (i.e., to observe real-time supply chain behavior, sourcing policy, inventory status, production and
delivery schedules, etc. with proactive supply chain optimization), 5) sustainable supply chain objectives (i.e., economic,
environment, and social).

There are three scopes of digital supply chain twin in the literature: network level (i.e., a multi-stakeholder value network), site
level (a logistics site such as warehouses, production facilities, and others), asset level (a logistics asset, for example, trucks,
forklifts, and so on) (Gerlach et al., 2021). Specifically, the asset level is related to the digital twin domain and not the area of
digital supply chain twins. The related application cases regarding network and site level are discussed by Gerlach et al. (2021).

What are the benefits of digital supply chain twin implementation? Kamble et al. (2022) mentioned that the digital supply chain
twin provides significant insights into sustainable supply chain performance, and it responds to different inputs to unveil hidden
opportunities by offering answers to how and why various supply chain events occur, thus, providing opportunities for supply
chain transformation. Gerlach et al. (2021) noted that supply chain transparency, increased supply chain performance through a
higher reaction speed, improved flexibility and resilience, and improved user’s ability to make fact-based decisions are three
identified benefits of the network digital supply chain twin. Moreover, transparency and increased site-wide flexibility and
resilience are the identified benefits of the site digital supply chain twin.

The challenges of digital supply chain twin

The digital twin shows considerable potential to track and trace the products for better quality and improved productivity.
However, several problems must be overcome, including long idle time and energy waste (Wang et al., 2020). The challenges
identified for developing an efficient digital supply chain twin are the product’s life cycle, cybersecurity, IP protection, and
unstructured data sources (Kamble et al., 2022).
CONCLUSION
This review lists the definition of digital supply chain in the extant literature and identifies the relationship with smart supply
chain to answer RQ1. Next, the four components are critical in the digital supply chain: the Internet of Things, big data,
blockchain, and digital supply chain twin. We elaborate on their basic principle, the application cases, and possible challenges to
answer RQ2. These technologies are evolving continually, and its applications areas are expanding so that the possible challenges
are changing accordingly. However, the challenges identified by this review are worth exploring furtherly.
Moreover, the review shows that the most widely used technology is IoT. The technologies combining IoT, cloud computing,
and big data analysis are the most common applications from the data flow view. Blockchain is a developing technology. The
smart contract is worth furtherly exploring its applications. In contrast, the digital supply chain twin is an integrated technology
encompassing simulation. Most of it is used in decision choices of multiple possible strategies. Other technologies, such as
robotics, drone, 3D printing, virtual reality, cyber-physical systems, and others, are worth further exploring their applications in
the digital supply chain in the Industry 4.0 era.

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