Digital Supply Chain Transformation in the Era of Industry 4.0: The Role of Artificial Intelligence, IoT, and Big Data Analytics in Operational Excellence

Abstract

Digital supply chain transformation emerged as a critical strategic priority in the industry 4.0 era due to increasing demands for operational efficiency, agility, and data-driven decision-making. This study examined the impact of Artificial Intelligence (AI), Internet of Things (IoT), and Big Data Analytics (BDA) on operational excellence within modern supply chain environments. A quantitative research design was employed, and primary data were collected from a sample of 350 supply chain professionals working in manufacturing, logistics, retail, and distribution organizations. Data analysis included descriptive statistics, Pearson correlation analysis, and multiple regression analysis. The descriptive results indicated high levels of agreement regarding the adoption and effectiveness of Industry 4.0 technologies, with mean values of 4.23 for Artificial Intelligence, 4.18 for Internet of Things, 4.26 for Big Data Analytics, and 4.31 for Operational Excellence. Correlation analysis revealed significant positive relationships between all study variables, with the strongest association observed between Big Data Analytics and Operational Excellence (r = 0.768, p < 0.01). Regression results demonstrated that Artificial Intelligence (β = 0.312, p = 0.000), Internet of Things (β = 0.284, p = 0.000), and Big Data Analytics (β = 0.391, p = 0.000) significantly influenced operational excellence. The overall model explained 71.6% of the variance in operational excellence (R² = 0.716). Big Data Analytics emerged as the most influential predictor. The findings indicated that the integration of AI, IoT, and BDA enhanced operational efficiency, visibility, responsiveness, and competitive performance. The study provided empirical evidence supporting the strategic role of Industry 4.0 technologies in achieving sustainable operational excellence and advancing digital supply chain transformation.

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