Document Type : Original Article
Authors
1
PhF Student, Department of Industrial Management, Faculty of Management and Strategic Planning, Imam Hussein University
2
Assistant Professor, Faculty of Economics, Management and Strategic Planning, Imam Hussein University, Tehran, Iran
Abstract
Background and Objectives: The rapid emergence of Industry 4.0 technologies—such as IoT, AI, Big Data Analytics, and Cyber-Physical Systems—has introduced both opportunities and complexities for supply chains, especially in strategic sectors like the oil industry. These technologies offer significant potential for process optimization; however, their implementation in traditionally structured industries requires a comprehensive understanding of both enabling and inhibiting factors. This study aims to evaluate the impacts of Industry 4.0 technologies on the oil supply chain and proposes a structured implementation framework by accounting for key drivers and barriers to digital transformation.
Materials and Methods: To achieve this objective, a systematic literature review was conducted to identify critical factors influencing technology adoption. Four analytical dimensions—strategic, organizational, technological, and legal-ethical—were derived to guide the analysis. Based on these dimensions, a two-stage system dynamics model was developed to simulate the interactions among variables and explore various implementation scenarios. The model assessed the comparative performance of traditional and technology-enabled methods in the distribution and sales of petroleum products.
Results: Simulation results demonstrated that Industry 4.0 technologies can substantially enhance supply chain performance, particularly through smart inventory management systems that reduce response times, improve order accuracy, and lower inventory holding costs. Enablers such as senior management support, robust technological infrastructure, and regulation-based incentives were found to facilitate digitalization. In contrast, resistance to change, insufficient technical expertise, and legal-ethical constraints posed significant challenges.
Conclusion: The study underscores that the successful integration of Industry 4.0 in the oil industry hinges on the concurrent management of both enablers and barriers. The proposed system dynamics model can function as a decision-support tool for guiding digital transformation initiatives in the oil and energy sectors. Moreover, the developed framework offers a transferable roadmap for other traditional industries aiming to adopt intelligent, technology-driven supply chain practices.
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