What is the impact of industry 4.0 to Green Supply Chain?

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 207-213

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal weblink: http://www.jett.dormaj.com

What is the impact of industry 4.0 to Green Supply

Chain?

Ahmad Hidayat Sutawijaya *, Lenny C Nawangsari²

¹Doctoral Program, Universitas Mercu Buana, Indonesia

Magister Management, Universitas Mercu Buana, Indonesia

Received: 29/05/2019

Accepted: 02/10/2019

Published: 30/02/2020

Abstract

The development of the Industrial Revolution 4.0 brought consequences for increasing high response and demands for transparency

from the company. The green management concept that is based on the environment helps improve the performance of the

organization's environment, minimizes waste, costs efficiency and integrates thinking into the supply chain. The purpose of this study

is to produce a green supply chain management framework and to know the impact of the existence of industry 4.0. This study uses an

explanatory qualitative approach by collecting data through the stages of interviewing and observing the event organizers. The research

object was conducted at 2 (two) management event companies in Jakarta, namely Alphabet and New Diamond Putra. The results of

the research at the two event management companies, illustrate that there was a significant impact on the 4.0 industrial revolution on

the implementation of green supply chains, especially in event organizers. The impact consists of new transformations directed at

change and collaboration from green-based suppliers/vendors, smart event management supported by smart operational indicators,

smart logistics, smart data, smart warehouses, and event decor. Delivery products that are based on creativity and innovation are needed

by consumers so as to produce sustainable synergy for the company. Technology support, the internet of things and service (IoT) also

fundamentally changes the outlook for different lives for companies and consumers.

Keywords: Industry 4.0, Green paradigm, Supply chain, even organization

foreign tourists visiting 2018 experienced a significant

increase compared to the number of visits in December 2014,

Introduction

The emergence of Industry 4.0 implies a new paradigm

2015, until 2017. Now we are soon entering into a stage of the

that considers most managerial approaches. The impact of

these changes is of course with the number of companies

engaged in manufacturing that have switched to using

automation systems, meaning the role of human labour

operators and increasing the role of human labour who have

high competence. There is one thing that stands out most in

this era of change, namely the world must respond to these

changes in an integrated and comprehensive way by involving

all stakeholders, both global political actors, from the

government sector to the private sector, academics,

companies, and of course the wider community (Tribunews,

017). The global economy is currently at the height of major

changes compared to the emergence of the First, Second and

Third Industrial Revolution.

In the tourism sector, there is an increase, this can be seen

in the table below, in a report released by BPS showing that

industrial revolution called the Industrial Revolution 4.0. (14).

Sung (2018) referred to in his article about the McKinsey

survey of firms that provide a surprising result. The McKinsey

survey (March 2017) of 300 leading companies in Southeast

Asia showed that 9 out of 10 respondents believed in the

effectiveness of Industry 4.0. and almost no one doubts it. The

challenge for event organizer companies is to prepare supply

chains that are integrated with technology. The short-term

challenge in this regard is preparing Supply Chain, Internal and

external Logistics (Supply Chain and Logistics) supporting the

Industry 4.0 era, in order to meet the speed of the "demand"

(

Demand). (Ketum ALFI Yukki N Hanafi, 2018). Supply

chain & Logistics management 4.0 makes technology

disruption so fast and makes existing companies out of their

comfort zone.

Corresponding author: Ahmad Hidayat Sutawijaya, Doctoral Program, Universitas Mercu Buana. Email: ahsuta69@gmail.com.

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 207-213

Table 1: Number of Foreign Tourist Visits, 2014-2019

So that the follow-up is adaptation readiness to new

technologies, where humans will further optimize the

functions of strategic intelligence and assisted artificial

intelligence (Artificial Intelligent/AI), Internet of Thing (IoT)

to obtain high-scale production and meet increased efficiency.

Talk about an event organizer, an activity that has a wide range

and has a very important role, namely helping to realize the

goals expected by the owner of the fund (commonly referred

to as a client), starting from the process of creating concepts,

site preparation, licensing, supporting equipment, artist &

talent, documentation, up to the course of the event and if

necessary, the publication of the event in the mass media. In

the era of industrial revolution 4.0, the role of event organizers

experienced a shift that was significant in terms of utilization

and growth of technology that could not be dammed so that the

service industry such as event organizers experienced

adjustments in the form of increased effectiveness and

efficiency.

However, different views of the revolution 4.0 era

associated with supply chain management are predicted to

uproot the work that is often done by humans because it will

be replaced by a machine. (Business Economics, 2018). That

is a real challenge with the existence of 4.0 or fourth generation

supply chain management, thus narrowing employment

opportunities for humans. Its presence made the disruption of

technology present so fast and threatened the existence of

existing companies and had to leave the comfort zone. There

is a need to revolutionize the company in making things and

providing services now. In Indonesia, at the end of 2017, there

were many financial institutions, such as many local banks that

made reductions in the workforce. This is because they are

unable to follow or cannot compete with technology. The

bank's front office workers who previously addressed

customer problems have now been replaced by ATMs

(Automated Teller Machines) and mobile banking or internet

banking. So with the existence of disruptive technology, this

will make a big change and will gradually turn off traditional

business.

The research question in this paper is what is the impact of

the existence of industry 4.0 on the implementation of green

supply chain management? The purpose of this paper is to

produce a green supply chain framework and analyze the

impact of industry 4.0 so that sustainable corporate goals will

be achieved.

Literature Review

.1 What is industry 4.0

The term industrial 4.0 first appeared in 2011 in Hannover,

Germany. This revolution was created to mark the fourth

industrial revolution, a new paradigm made possible by the

introduction of the Internet of Things (IoT) into manufacturing

and Service environments. Industry 4.0 targets the

incorporation of information technology with a new era

industry that is cost-effective, energy-efficient, high-efficiency

equipment, sharing data through operating systems and

software that can communicate with each other with internet

connectivity. The main element of industry 4.0 is the Internet

of Things (IoT). The presence of Industry 4.0 will provide

benefits in terms of increasing productivity, efficiency,

flexibility and a high level of product customization for the

industrial world.

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 207-213

Implementing supply chain management usually begins

with the manufacturer integrating internal processes. Further,

the company tries to integrate external suppliers. Finally is

integrating the external distributors. Green supply chain

management has focused on the role of the supply chain with

regard to its impact on the present natural environment as well

as to the generation of any future environmental change (Reid

Sander, 2011).

Furthermore, green energy management, reduction of

greenhouse gas emissions, water conservation or processing,

waste reduction, reduced packaging / increased use of

biodegradable packaging, product and packaging procurement

practices (9, 10). Example of implementing a green supply

chain is the Samsung Company. In 2007, the Samsung

Company started the Recycling Direct Program, in which

Samsung collaborated with suppliers and distributors to pick

up the remaining electronics. Samsung provides hundreds of

locations for consumers to submit unused electronic products

(

Samsung branded goods or non-Samsung ones). This

program succeeded in recycling 7 million kilograms of used

electronic goods. Another company that applies the green

supply chain concept is Hewlett Packard with HP's Supply

Chain Social and Environmental Responsibility Policy. The

HP Company is committed to its suppliers around the world to

care about the environment as a component that feels the

impact of manufacturing pollution. The initial purpose of

adopting lean and green types of waste, lean techniques and

reducing environmental impact through the utilization of green

practices. Such practices extend beyond the organization to

include inbound and outbound logistics along with reverse

logistics (13).

Figure 1:

Industry 4.0 requires research stages that are long enough

to produce mature concepts and concrete results (Roser, 2015).

The development and progress of technology produce a variety

of new things, namely:Technology & language. A language

translator tool, automatically and directly the tool can translate

from "whatever" to "whatever" language with Voice to Voice

technology. Technology & transportation. Mr Elon Mus k

discovered the concept of Hyperloop, this transportation

moves equal to the speed of sound and faster the average speed

of an aeroplane. In 2017, in the United States, the Hyperloop

prototype was successfully created. Technology & exploration

into the new world. In the coming years, it is estimated that

humans have been able to fly out of space. This can be

witnessed how large companies have designed it there, such as

SpaceX (owned by Elon Musk), Blue Origin (owned by Jeff

Bezos), and Virgin Galatic (owned by Richard Branson).

2.3 Even an organization

Event Organizer is the manager of an activity (Organizing

Events). Every activity held aims to gain benefits on both

parties, both the organizers and those present at the event.

The event organizer is a service intended for the purpose

of people to organize a well-organized event. In every Event

Organiser, there must be people who understand the

organization of events ranging from A to Z. Usually,

experience and flight hours are high. (2). According to

.2 Green supply chain management

Green supply chain management is defined as the

Goldblatt (Goldblatt, 2013): Event Management is a

coordination of supply chains in a form that integrates

environmental concerns and considers inter-organizational

activities. So Green Supply Chain Management (GSCM) aims

to suppress and minimize environmental damage caused by

industrial activities, or service companies so that these

environmental events are translated into supply chain

management. Green supply chain management focuses on the

acquisition, production, and distribution to enhance

profitability, competitiveness, and the resilience of suppliers,

manufacturing systems, distribution centres, and retailers in

the short and medium terms through improved green

performance (1, 7). Benefits of green supply chain initiatives

include the ability to cost-effectively plan distribution routes

with suppliers and customers; maximize capacity and move

full containers; consolidate multiple customer orders and

eliminate expedited and extra shipping costs for on-time

delivery while honouring customer delivery dates (3, 6).

professional activity of gathering and meeting a group of

people for the purpose of celebration, education, marketing,

and reunion, and is responsible for conducting research,

designing activities, planning and coordinating and monitoring

to realize the presence activities.

Judging from the types of events held, Event Organizer can

be categorized into (Wikipedia, Indonesia, 2018):

•

One Stop Service Agency: Even a large organizer

capable of organizing various types of events up to an

international scale.

•

MICE: Short for Meeting, Incentive, Convention,

Exhibition). Even Organizer which specializes in organizing

events in the form of meetings.

•

Brand Activation; is an Even Organizer that specifically

helps its clients to promote in order to increase sales, increase

brand recognition among consumers, by interacting directly

with their target market.

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 207-213

•

Music and Entertainment: Even Organizer which

specializes in entertainment, especially music.

Wedding Organizer: Even Organizer that specializes in

helping clients hold weddings.

Birthday Organizer: Even Organizer which is an expert

at making birthday parties including for children.

Personal Organizer: Special Organizer that moves to

hold private parties, especially for the rich.

Indonesian Event Organizer Community, a media

atmosphere of the performance atmosphere that will be held to

influence the emotions of the audience

•

4. When: Relates to the most appropriate time for

organizing the event and also considers the flexibility or

leniency associated with time for research and preparation

5. What: Regarding how to package this event so that it

is attractive to the target audience, consisting of the name or

type of program, the content of the program and the elements

needed (5).

•

promotion event for events and various events.

•

3 Methodology/Materials

This study used a descriptive qualitative method approach.

According to Sugiono in his book, the qualitative research

method is a research method based on the philosophy of

positivity, used to examine the conditions of natural objects,

where researchers are key instruments, sampling of data

sources conducted by purposive, collection techniques with

triangulation, data analysis is qualitative, and qualitative

research results more emphasis on the meaning of the

generalisation (17). Bogdan and Taylor (in 11) suggest that

qualitative methodology is a research procedure that produces

descriptive data in the form of written and oral words of the

observed persons and behaviours.

The object of this research is two companies engaged in

event organizers in Jakarta, namely Alphabet Event Organizer

and New Diamond Putra. Alphabet Event Organizer is a

company that has been established since 1996 and is engaged

in catering and marriage. While New Diamond Putra is a

company engaged in wedding organizer since 1990.

Figure 2: Structure event management hierarchy which consists of an

event coordinator whose task is as the project coordinator of an event.

An event planner is a person whose profession is the planning of social

events. Event managers have the duty to monitor and organize an event

that can have a positive impact on the target audience. Event Planner

works in order to ease the Event Planner's workload. The duties and

responsibilities of the Event Planner are mostly dependent on the tasks

that are delegated by the Event Planner. (https://www.jobhero.com)

Sources and data collection in this study through

observation to companies, documentation, and structured

interviews with key managers in the company. The structured

interviews in this study were conducted intensively and

repeatedly and the informants were free to give answers.

Structured interviews are designed in the same way as

questionnaires, except that they are not written questions

submitted but oral questions made by an interviewer who

records respondents' answers. The sampling technique in this

study was purposive sampling and snowball sampling.

Purposive sampling is a technique of determining samples

with certain considerations. While snowball sampling is a

sampling technique of data sources that initially have a small

amount, the length becomes large. This is done because there

are many small data sources that have not been able to provide

satisfactory data, then look for other people who can use the

data source (17).

Even Organiser Company usually has several parts. These

parts include marketing, administration, finance and Even

Organiser technical parts. The marketing department has the

task of finding clients for its EO companies. Furthermore, the

administration section has the task of taking care of all the

administrative systems needed. The finance department is in

charge of managing finance from the financial side as well as

the accountant of the Even Organiser Company. Furthermore,

for the task of the technical part of the Even Organiser is

organizing the event to be held. The Production Manager is

responsible and coordinates all technical production activities

and prepares a technical production plan as thoroughly as

possible. Element-Element Events are:

Results and Findings

Based on the research question of this study, "what is the

impact of the existence of industry 4.0 on the implementation

of green supply chain management?", The results of the study's

authors in this study that the existence of Industry 4.0 has a

very important and strategic role in the company. In the

digitized era it also encouraged developments in the small and

medium industrial sectors.

1. Why: Relates to the objectives to be achieved in this

event, especially in meeting the needs and desires of the

audience

2. Who: Relates to each person who will be involved in

this activity, also relates to the target, age group, gender,

education, and lifestyle

Where: Regarding the venue for the event that is most

appropriate for the target audience, this has an influence on the

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 207-213

Figure 3: Green Supply Chain Event Management in the Industry 4.0

These developments are characterised by (i) the use of a

combination of information technology networks in the

production process in small and medium industries, between

suppliers of event organisers supported by indicators such as

smart operations, smart logistics, smart warehousing, smart

data and smart decor so that they will produce smart products

to provide satisfaction to consumers; (ii) increasing the

effectiveness and competitiveness of post-automation and

robotisation industries; (iii) increased productivity and product

quality; and (iv) reducing the risk of workplace accidents and

waste reduction and contamination with humans.

From this description, the author produces a green supply

chain event management in the industry 4.0 framework shown

in figure 3. The basis of the green supply chain is the

integration of environmental management and supply chain

management to control damaging impacts on the environment

in the product life cycle through information sharing and

integrated cooperation. In green supply chain 4.0, one of the

things that must be explored is the orientation on customer

satisfaction and needs.

expand the benefits of internet connectivity that is connected

continuously. Basically, IoT refers to objects that can be

uniquely identified as virtual representations in an Internet-

based structure. In warehouse operations, IoT can assist in the

management of occupational health and safety aspects, such as

sensors installed in Material Handling Equipment (MHE) that

can be connected to a device that will provide information if

MHE travels at a speed beyond the boundary and or crashes

into something. complete with location information, hours and

drivers. In the aspect of inventory accuracy, IoT can help

calculations with a high degree of accuracy also not involving

a lot of human power. As with the use of sensors contained in

each racking that can provide information on the number of

products contained in the racking in real-time (15).

4.2 Smart Supplier/Vendor

The Supply Chain Management Strategy is the main

backbone and plays a very important role in the operation of

event management. The coverage of smart vendors/suppliers

plays an important role in determining product quality, costs,

product development, and access to finance for companies.

Quality of products and services, as a determinant of customer

satisfaction, one of which depends on the quality of selected

suppliers. Quality supplies certainly make it easier for

companies to produce quality products and services as well so

that they will have an impact on the company's performance

management events and on competitors.

.1 Internet of Think and Service (IoT)

The role of information in the green supply chain is very

important. Information consists of data and analysis related to

inventory, transportation, facilities, and customers throughout

the supply chain. The information provides management with

the opportunity to make supply chains more responsive and

efficient. Information is potentially the biggest driver of supply

chain performance. Components of decisions regarding

information are (4).

Currently, in the industrial era 4.0 all companies,

especially event management, are included in the internet-

based information technology era. Internet of Things or

commonly known as abbreviation IoT is a concept that aims to

4.3 Smart Event Management

In the event management is also an important thing,

because good management will be one factor in an event to be

successful and consumers become satisfied. The important

role of management in event management is to clarify the role

of each division, for example, what is the role of the logistics

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 207-213

division? What is the role of the operational part? what is the

role of Big Data division? What is the role of the decor

division? So it is necessary to have a clear role and focus in

managing an activity, without any good organization regarding

tasks between divisions, of course, the functions of each

division will overlap.

In every Event Organiser, there must be people who

understand the organization of events ranging from A to Z.

Usually, experience and flight hours are high. Skill is already

qualified and have a sense and feeling sensitive to potential

problems that usually arise in the world of Event Organiser.

Anything related to the technical event of his position is held

by a Production Manager. Stage, Light system, Sound System,

Front of House, Security, tents, electricity, and others.

Production Manager has several people who act as his right

hand. There is a right hand handling the stage, or lighting, or

sound system, or security/security, or electricity and others.

Coordinate is the keyword in this division. Positions under

Production Manager such as; Assistant Production Manager,

Traffic Management Officer, Administration Officer

Conclusion

Environmental pollution is a major problem that has the

potential to cause the extinction of mankind on earth if it is not

immediately addressed. For this reason, a green supply chain

framework is needed which is expected to provide ideas or

ideas for event management companies in making long-term

decisions so that sustainable corporate goals will be achieved.

At present, the development of the event management

industry which tends to increase and the increasing consumer

awareness of the environment and the issue of an

environmentally sound industry concept has forced the

industry to adapt to the green industry concept in every

business process, which later developed into GSCM.

The industrial revolution 4.0 took a big leap in the

industrial sector especially in companies engaged in service

companies such as event management, where information and

communication technology was fully utilized. In order to be

able to compete, companies must be able to adopt this Industry

4.0 and prepare the right strategies in all departments. The past

year has shown a gradual transition from the Supply Chain

Industry to an environment-based green supply chain that is

controlled by tech-driven. This means that there has been a

rapid change in technology in the form of the Internet of

Things (IoT), Artificial Intelligence or Artificial Intelligence

(

Production Finance Officer), Production Finance Officer

arranging everything related to production finance), Venue

Coordinator (set everything related to venue / event location),

Security Coordinator (arranging everything related to event

security), Stage Coordinator (set everything related to stage),

Lighting System Coordinator (arrange everything Something

related to lighting), Vendor Coordinator (arranging everything

(

AI), Automation, Robots, and Big Data which directly affects

logistics personnel and operating procedures.

So the author's analysis of 2 (two) event management

companies that exist in Jakarta, (New Diamond and Alphabet)

then with the presence of the industrial revolution 4.0 is very

helpful in improving the performance of the company. Even

the rapid advancements in the Industrial Age 4.0 with Big

Data, Artificial Intelligence (AI), and the Internet of Things,

how to transact will be very fast and efficient in the future

besides it will provide more capabilities for vendors / suppliers

to visualise potential problems, find solutions alternatives, and

understand the impact of company event management

decisions to improve operational reliability to a new level, so

that all problems will be avoided early.

related to vendors

/ suppliers etc.), General Support

Coordinator (regulates all the general things related to

production). (Sutawidjaya, Conference on Interdisciplinary

Business and Economics Research, Osaka, Japan, 2017)

4.4 Delivery

Delivery stage, the stage where the company is ready to

launch products to consumers. The processes involved include

handling orders from customers, choosing a shipping service

company, handling warehousing of finished products and

sending bills to customers.

At this stage of Event Organizer, activities must prioritize

quality and not profit. The consumer has proven the quality of

the work of the Event Organization, then on another occasion,

the Event Organizer will also be used again. In addition, other

parties will have the ability to become a new client.

Acknowledgements

The author expresses many thanks to the management of

the New Diamond, Jakarta event organizer and the event

organizer Alphabet Management in Jakarta, which has helped

many writers in providing the data needed in writing this

article.

(

Sutawidjaya, Conference on Interdisciplinary Business and

Economics Research, 2017).

.5 Smart Consumer

The industrial era 4.0 made changes to consumer

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