Chapter 13: Pathways to Resilient and Sustainable Supply Chains Through Digital Transformation

Supply chains remain essential to the global economic system, providing the flow of services and products from origin to final consumers (Ageron et al., 2020). But the growing complexities of international commerce, consumer preferences, and advancements in technology have shifted conventional supply chain frameworks, turning them increasingly complex and more susceptible to interruptions (Brintrup et al., 2020). In the current dynamic global environment, organisations encounter additional barriers and demands to improve the effectiveness, resilience, and sustainable practices of their supply networks (Khan, Waqas et al., 2022). The incorporation of technological advancements has become crucial in driving the transformation of organisations as they attempts to transform (Barman et al., 2021). The adoption of Industry 4.0 and Industry 5.0 technologies, including AI, IoT, machine learning (ML), blockchain, digital twins, automation, etc., is not only upgrading the operation of supply chains but also altering the prospects of supply chain management (Agrawal et al., 2023). Occurrences like the COVID-19 pandemic have brought attention to the sensitive nature of these interconnected systems, demonstrating their susceptibilities to worldwide disturbances (Goodarzian et al., 2021). As a result, supply chains are now required to be more robust, flexible, and able to quickly adjust to sudden changes in demand or unforeseen disruptions. Within this particular framework, digital transformation is regarded as a crucial means of constructing more robust and adaptable supply chains (Munien & Telukdarie, 2021). The increasing need for sustainable development in the supply network is an additional crucial factor for improvement. There is a growing demand from governing bodies, consumers, and stakeholders on organisations implementing policies that are both environmentally and socially conscious (Khan et al., 2021). Incorporating sustainability concepts into supply chain management is now a necessity rather than a choice, as it is becoming a crucial strategic requirement. Organisations have the responsibility to decrease their carbon emissions, guarantee ethical procurement practices, and adhere to rules designed for encouraging sustainability (Remondino & Zanin, 2022). The increased acceptance of the United Nations Sustainable Development Goals (UNSDGs) is evident in the increasing implementation of sustainability practices across supply chains across several industries (Aravindaraj & Rajan Chinna, 2022). Recent developments in technology, specifically in the fields of Industry 4.0 and Industry 5.0, can potentially tackle these difficulties and empower organisations to establish supply chains that are more robust, environmentally friendly, and productive (Adel, 2022). Considering this as the motivation, the chapter explores the role of digital transition towards building sustainable and resilient supply chains to ensure the sustainable future. The aim of the chapter is to explore key digital technologies driving the transition, sustainability and resiliency aspects and their enablers, major challenges affecting this transition.