Yan, Jingyang (2026) Implementing Industry 5.0 in advanced manufacturing supply chains: a decision-making framework for supply chain improvement. University of Southampton, Doctoral Thesis, 227pp.
Abstract
Industry 5.0 is a new concept which complements Industry 4.0 by emphasising three core values: human-centricity, resilience, and sustainability. The paradigm shift from Industry 4.0 to Industry 5.0 is based on a change in the core rationale, moving from a primarily technical or economic consideration to a human-deterministic one. It also brings significant changes to supply chains in the manufacturing industry. However, there is still a lack of research that provides a clear and holistic understanding of the impacts of Industry 5.0 on manufacturing supply chains. Verified frameworks are unavailable to guide companies in transferring their supply chains to Supply Chain 5.0. Additionally, a decision-making model is lacking to measure the readiness and performance of supply chains in transition to Industry 5.0. To address these gaps in the literature, this thesis aims to develop a decision-support framework to provide a holistic view of the opportunities and challenges of adopting sustainable supply chains under Industry 5.0, which will facilitate and support rational decisions by decision-makers and other stakeholders in the manufacturing industry. To achieve the main aim, the research has been embedded into three papers.
The first paper focuses on identifying gaps in the existing knowledge through a thorough survey and thematic analysis of relevant literature concerning ‘Industry 5.0’, ‘manufacturing’ and ‘supply chain’. It also proposes a conceptual framework to provide a comprehensive view of Supply Chain 5.0, employing a systematic literature review following the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) framework. Through a review of 103 high-quality peer-reviewed journal articles, 23 challenges were identified and organised into five interconnected categories: Economic challenges, Managerial and operational challenges, Socio-cultural challenges, Process challenges, and Technological challenges. On the basis of synthesised insights, a conceptual framework was developed, underpinned by four themes, which are: (i) Definition of Industry 5.0, (ii) Drivers of Transition to Industry 5.0, (iii) Impacts of Industry 5.0 on supply chains, and (iv) Challenges to transition to Industry 5.0. The framework highlights the essential aspects of literature and reflects a holistic understanding of the various dimensions of Industry 5.0.
The second paper explores and ranks the key Supply Chain 5.0 performance factors and potential approaches to improve Supply Chain 5.0 performance. A three-phase methodology was applied: (1) a comprehensive literature review and the Delphi method to unearth and validate performance indicators and potential optimisation approaches; (2) a fuzzy Analytical Hierarchy Process (FAHP) to quantify the level of significance of these indicators; (3) a Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS) to prioritise the approaches. The results identify a set of 28 performance indicators across eight categories and four potential approaches. The findings reveal that production efficiency, risk prediction, perfect order fulfilment, and supply chain flexibility are the most significant performance indicators. The most important approaches for performance improvement are developing a real-time operational framework, and enhancing transparency and information sharing between supply chain partners.
The third paper examines the direct and indirect effects of Industry 5.0 challenges on improving supply chain performance (SCP). Partial Least Squares Structural Equation Modelling (PLS-SEM) has been used to test the hypotheses using survey data from 230 industry professionals, followed by FAHP to quantify and prioritise the impacts of Industry 5.0 challenges on SCP indicators. The results indicate that overcoming Industry 5.0 challenges has a direct positive impact on both supply chain integration (SCI) and SCP. Furthermore, the mediation analysis suggests that SCI plays a significant role in mediating the relationship between overcoming Industry 5.0 challenges and SCP. The most important challenge category with the highest weight is Economic challenges. The need of high investment and unforeseeable consequences, insufficient knowledge, hard to create collaborative working environment, and ineffective performance measurement system are the most significant challenges that need to be addressed.
This research contributes to the body of knowledge by providing a foundation for researchers and practitioners to improve their understanding of Industry 5.0 and its impact on manufacturing supply chains. It can support strategy development to address the challenges and barriers to implementing Industry 5.0, avoid being locked into wrong strategies, enable a smoother transition, and ultimately optimise their SCP in a fast-evolving environment. Additionally, understanding the nature of the relationship between Industry 5.0 implementation challenges and SCP optimisation should assist decision-makers in identifying areas they need to improve to enhance SCP, and in choosing appropriate strategies for enhancing supply chain performance by addressing the direct and indirect effects of Industry 5.0 implementation challenges.
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