Challenges and motivators associated with transition from Industry 4.0 to Industry 5.0 in supply chain management functions of the Finnish manufacturing sector

Abstract

Industry 5.0, the promising evolution of Industry 4.0, builds upon its core principles and emphasizes a more human-centric approach to manufacturing. Advanced technologies like edge computing, digital twins, collaborative robots (Cobots), the Internet of Everything (IoE), blockchain, AI, and 6G networks become vital technical components in industry 5.0 environments. This evolution promises a more sustainable, human-centric approach, leading to enhanced operational efficiency, increased supply chain flexibility, reduced lead times, lower logistics costs, and improved customer service, painting a bright future for the Finnish manufacturing sector.

The transition to industry 5.0, guided by advanced technologies, presents a significant opportunity for the manufacturing sector to evolve into a smart manufacturing future. In this context, the study focuses on identifying the key challenges and motivators in supply chain management during this transition is particularly relevant to the Finnish manufacturing sector. Thus, the purpose of this study is to identify the challenges and motivators of transitioning from industry 4.0 to industry 5.0 and add new literature from the perspective of the Finnish manufacturing sector regarding industry 5.0 adoption.

The methodological choice for this study is a mono-method qualitative approach, a practical method that allows for a deep understanding of the participants and reduces the complexity of the study. Primary data is collected through a series of one-on-one online interviews using a semi-structured questionnaire, a method that is easily replicable in real-world scenarios. A convenient sampling strategy gathers information from the manufacturer's perspective. The analysis was conducted using qualitative thematic analysis with the help of the NVivo software tool, a widely used tool in research settings.

Firstly, the study revealed four major challenges face during the transition from Industry 4.0 to Industry: difficulties with seamless integration, insufficient technical preparedness, regulatory compliance issues, and a lack of competency and knowledge. Three minor challenges were identified, including data security & privacy, primary focus on non-SCM functions, and high investment cost. Secondly, five major motivators driving the adoption of Industry 5.0 technologies were identified: enhanced agility and resilience, empowered decision-making, operational excellence, sustainability promotion, and fostering a human-centric workplace. In addition, two minor motivators were identified: cost reduction and improved customer experience. These findings provide valuable insights for academia and professionals, shedding light on the challenges and motivators in the transition to Industry 5.0 and the positioning of the Finnish manufacturing sector in the global context.