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Advanced Technologies in Smart Factories: A Cornerstone of Industry 4.0

Article in Journal of Industrial Intelligence · September 2023

DOI: 10.56578/jii010302

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 Journal of Industrial Intelligence
https://www.acadlore.com/journals/JII

Advanced Technologies in Smart Factories: A Cornerstone of

Industry 4.0
Svetlana Dabic-Miletic*

Faculty of Transport and Traffic Engineering, University of Belgrade, 11000 Belgrade, Serbia
*
Correspondence: Svetlana Dabic-Miletic (cecad@sf.bg.ac.rs)

Received: 07-19-2023 Revised: 08-17-2023 Accepted: 08-31-2023

Citation: S. Dabic-Miletic, “Advanced technologies in smart factories: A cornerstone of Industry 4.0,” J. Ind Intell.,
vol. 1, no. 3, pp. 148–157, 2023. https://doi.org/10.56578/jii010302.

2023 by the authors. Licensee Acadlore Publishing Services Limited, Hong Kong. This article can be downloaded for free, and
reused and quoted with a citation of the original published version, under the CC BY 4.0 license.

Abstract: The transition from manufacturing activities to an economy dominated by industrial production signifies
the evolution of the Industrial Revolution. Presently, the global landscape is undergoing the Fourth Industrial
Revolution, a natural progression from its digital predecessor, Industry 3.0. This era is distinguished by an influx
of innovations across global business sectors. Solutions, particularly aiming to enhance industrial production and
address volatile consumer demands, have gained paramount importance. These global shifts lead to profound
structural transformations in industrial production. With the rapid integration of contemporary technologies in
Industry 4.0, coupled with significant technical advancements, the notion of “smart factories” has emerged as a
focal point in research, engineering, and practical applications. In the realm of sustainable business operations,
the concept of the smart factory is frequently debated. While its intent is the diminution of manual tasks and
the enhancement of customer service, it inherently demands the incorporation of various technologies inherent to
Industry 4.0. Recognizing the profound impact of Industry 4.0 on production methodologies and the workforce’s
perspective, emphasis is placed on understanding the pivotal role of advanced technologies within the smart factory
paradigm. This abstract seeks to elucidate the core processes in the smart factory concept with a spotlight on refining
intralogistics activities through the lens of Industry 4.0 technologies.

Keywords: Industry 4.0; Smart factory; Intralogistic activities; Internet of Things; Industrial Internet of Things;
Cloud computing
1 Introduction
Since the inception of the First Industrial Revolution, various inventions and methodologies have emerged to
enhance both the quality of life and efficiency of work. Innovations have evolved from the rudimentary steam engine
to intricate, almost fully-automated intralogistic processes. In contemporary times, material processing activities
are predominantly automated, enabling personnel to manage intricate technological processes across industries
more effectively. Rapid technological advancements necessitate that businesses adapt to advanced solutions to
remain competitive. A high frequency of changes characterizes this era, driven by unpredictable customer demands.
The primary focus has shifted towards producing user-friendly, functional, and high-quality products to meet user
specifications, encompassing not only tangible products but also information, energy, and services. The integration
of Industry 4.0’s “smart” devices, supported by the Internet, ensures products and services are consistently and
readily available, indicating an enhancement in both intralogistics and customer service activities [1].
In fiercely competitive markets, numerous companies have endeavored to elucidate how Industry 4.0 can bolster
sustainability across production, logistics, and various other processes. This multifaceted explanation of the concept
of Industry 4.0 has made it challenging to discern a universally accepted interpretation. However, in 2015, a
significant stride towards establishing a common conceptual framework was made by a consortium of German
experts. Their publication, “Design principles for Industry 4.0 scenarios: A literature review”, highlighted four
pivotal elements of the digital revolution: Cyber-Physical Systems (CPS), Internet of Things (IoT), and the Smart
Factory [2]. A majority of the research regards these technologies as foundational. Other technologies, such as
Digital Twin (DT), 3D printing, robotic systems, and Artificial Intelligence (AI), among others, are perceived as
extensions of these foundational elements, vital for realizing processes within the smart factory paradigm to deliver
sustainable products and services [2, 3].

https://doi.org/10.56578/jii010302
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 As technological innovations have matured, initial foundational technologies have been superseded by advanced
counterparts including Big Data and analytics, Autonomous robots, Simulation, Horizontal and vertical system
integration, IIoT, Cyber Security, Cloud Computing, Additive Manufacturing, and Augmented Reality. Studies have
indicated that smart factory processes often falter due to an orientation towards tailoring products based on user
demands [3, 4]. Consequently, this study aims to delineate the significance of specific Industry 4.0 technologies
concerning their role in the seamless functioning of all processes within a smart factory. Figure 1 illustrates the
interconnectedness of Industry 4.0 technologies from the aspect of the smart factory concept, where their direct and
indirect influence on this modern concept is indicated. Following this introduction, a brief overview of the industrial
revolution is provided, focusing on the transition from traditional manufacturing to smart factories. Subsequent
sections delve into the processes, interconnections, and operational principles of the smart factory, emphasizing
prevalent technologies. This will be followed by a detailed exploration of pivotal smart factory technologies,
underscoring the criticality of their interplay for sustainable intralogistics activities. The concluding discussion
encapsulates the implications of modern technology implementation within Industry 4.0 for the sustainability of the
smart factory concept, highlighting potential challenges and avenues for future research.

Figure 1. The interrelationships of Industry 4.0 technologies considering the perspective of the smart factory
concept

2 The Evolution of the Industrial Revolution and the Advent of the Smart Factory
The commencement of the industrial revolution remains a debated topic among scholars due to the multitude
of economic and social transformations that accompanied it. The origins of the First Industrial Revolution during
the 18th century are most frequently associated with Great Britain, subsequently spreading to Western Europe
and North America [1–3]. Such alterations have been largely attributed to significant advancements in science,
technique, technology, and Information and Communication Technologies (ICT), ranging from the first industrial
revolution—defined largely by the advent of the steam engine—to the present era of Industry 4.0 [1–3].
The introduction of the steam engine, a paramount technological innovation, found its implementation in pro-
duction and intralogistics operations. During its early adoption, production processes were managed traditionally,
often localized. However, even during these nascent stages, certain ICT-related inventions were observed to enhance
user services [1]. The subsequent Second Industrial Revolution of the 19th century, often termed the Technological
Revolution, witnessed a proliferation of technological innovations [2, 3]. This era was significantly shaped by Tesla’s
contributions, particularly in the realms of efficient electricity transmission, AC motors, and other technological
applications that substantially augmented production processes. It was during this period that production process
management began displaying elements of globalization. Concurrently, intralogistics gained prominence due to the
emergence of innovative transportation modalities, vehicles, and material handling solutions [3, 4].
Dubbed the Digital Revolution, the Third Industrial Revolution was characterized primarily by the ubiquitous
nature of the computer—a tool now integral to contemporary society. This wave of digitization prominently
permeated sectors such as telecommunications, music, film, and photography [3, 5]. By the 1970s, a marked
emphasis was placed on addressing the evolving consumer demands, leading to an expanded array of products
and services [4]. Production process management during this phase exhibited the zenith of globalization, with
exponential interconnectivity observed amongst companies, suppliers, customers, and other global entities, facilitated
by cutting-edge ICT solutions like IoT, DT, 3D printing, and other Industry 4.0 technologies [5]. Postulations suggest
that the inception of the “smart factory” concept occurred during this period, becoming a cornerstone for the
ecological, economic, and social sustainability of supply chain operations [5, 6]. Given the exponential trajectory of
advancements in science, technique, and technology, the 21st century is awash with novel technologies, permeating
both professional and personal spheres [5, 6].
It has been posited that the Fourth Industrial Revolution, or Industry 4.0, operates concurrently with the tail end
of Industry 3.0. This era emphasizes the need for comprehensive computerization, robotization, and automation

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in production. The term “Industry 4.0” was first formally introduced in Germany in 2011 [5, 7]. Subsequent
terminologies such as Logistics 4.0, Supply Chain 4.0, and Warehousing 4.0, among others, have also emerged [2–
5]. Innovations in the past decade have redefined various facets of modern life, with the prevalent introduction of
“smart” devices and technologies in daily use, culminating in what is referred to as the “smart environment” [4–6].
Given these advancements, it can be deduced that the smart factory concept, within the context of Industry 4.0,
stands as a pivotal technological component for enhancing consumer advantages. Since a smart factory constitutes
a singular entity in the supply chain, the integration of contemporary Industry 4.0 technologies remains imperative
for sustainable customer service.
Industry 4.0 is delineated by the intelligent networking of industrial machinery and processes that rely on CPS,
wherein embedded networked systems are employed for intelligent control. Historically, Industry 4.0 has been
perceived as a technology-driven shift, primarily targeting enhanced manufacturing efficiency. As part of a high-tech
governmental initiative, it was devised to bolster Germany’s global competitiveness [6, 7]. The metamorphosis
of CPS into Cyber-Physical Production Systems (CPPS) is foundational to Industry 4.0, with the Smart Factory
emerging as a pivotal initiative therein [4]. Yet, inherent challenges permeate Industry 4.0. The potential for a
systemic overhaul of the prevailing operational modalities of Europe’s (and by extension, the world’s) industrial
economy presents itself. A significant challenge lies in dissociating the consumption of natural resources from their
deleterious impacts on the environment, climate, and societal structures [5]. Several dimensions characterize this
evolution:
• The shift towards a circular economy, underpinned by regenerative industrial transformation practices. This
ensures that all supply chain entities accrue economic benefits while adhering to sustainability tenets.
• A requisite emphasis on social sustainability. This mandates enhancements in employee welfare, ensuring
their inclusive societal integration, and the deployment of technologies that augment rather than supplant human
capabilities.
• The ecological dimension, which is implicitly characterized by transformative endeavors that phase out fossil fuel
dependency, augment energy efficiency, harness nature-based solutions, rejuvenate carbon sinks, bolster biodiversity,
and conceive novel avenues for socio-economic development, cognizant of natural ecosystem interdependencies.
It has been observed that contemporary civilization remains anchored in the second industrial revolution’s
paradigms. The depletion of fossil reserves, pivotal energy sources, and essential raw materials, compounded
with environmental degradation, signals an acute planetary crisis. Consequently, Industry 5.0 emerges as a strate-
gic imperative, informed by its foundational principles, offering a roadmap to navigate this exigency. Departing
from the narrowly defined technological focus of Industry 4.0, predominantly centered on digitalization and digital
technologies, Industry 5.0 introduces a holistic spectrum, imbuing the paradigm with a richer, multi-faceted sig-
nificance [1, 3]. From this perspective, the Smart Factory is identified as a linchpin, instrumental in pivoting the
application of advanced Industry 4.0 technologies towards environmental and societal sustainability. A thorough
comprehension and integration of the CPS concept become indispensable, laying the groundwork for the seamless
orchestration of smart factory operations. Subsequent sections will elucidate the principles of CPS, establishing a
foundation to explore the sustainable constructs and processes inherent to the Smart Factory paradigm.
3 Specificities of the Smart Factory Paradigm
With the advent of Industry 4.0, prevailing business models and management paradigms have been subjected to
notable modifications and enhancements. Concurrently, a transition from historical manufacturing methodologies
and interactions with supplier entities has been observed. An integral outcome of this transformation is the emergence
of the “smart factory” concept. At its core, this advanced technology, aimed at streamlining production and
intralogistics processes, is characterized by the ability to establish an autonomous smart network with self-regulation,
optimizing underlying processes [3–5].
The term “smart factory” is postulated as a theoretical production solution encompassing automation, wherein
a synergy of software, hardware, and, in certain instances, mechanics, seeks production optimization [3, 4]. Such a
paradigm is synonymous with the reduction of superfluous human intervention and minimization of resource wastage.
In these settings, activities spanning both the digital and tangible realms become intricately intertwined, rendering
intralogistics operations within Industry 4.0 smart factories considerably intricate. Intralogistics is understood as
overseeing the control, execution, and enhancement of internal material movement, information flow, and goods
management across sectors, including business, commerce, and governance [5].
With the integration of nascent Industry 4.0 technologies in warehouses and distribution centers, the demands
placed upon smart factories have amplified. These encompass parameters such as speed, accuracy, precision,
flexibility, and productivity [5, 7]. Consequently, heightened emphasis is being placed on refining and transforming
production processes. This positions the “smart factory” paradigm as pivotal for the seamless operation of sustainable
supply chains [6]. Moreover, leveraging technologies such as the IoT, CPS, and Big Data, this contemporary, adaptable
production model can be integrated with analogous systems across global supply chains.

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3.1 Basic Principles Underpinning the Smart Factory Conceptual Solution
The foundational principles of the smart factory paradigm are intrinsically anchored on the CPS foundation, with
a focal emphasis placed on the plausible sustainability of integrated operations spanning two or more smart factories.
These principles are elucidated in Table 1 [7, 8].

Table 1. Design principles of the “smart factory”

Principle Explanation
In smart factories, a paramount degree of modularity is essential to promptly address user
Conceptualization demands, thereby bolstering intralogistics resilience. This also includes delineating
production system components and their interconnections.
Sustainability in a smart factory hinges on comprehensive information dissemination across
Compatibility
all supply chain entities, covering technical product specifics to commercial data.
Decisions concerning routine activities and adaptive measures in dynamic business and
environmental contexts are made by employees. Furthermore, operations can be conducted
Decentralization level
with significant autonomy from central governance, yet without deviating from overarching
corporate objectives.
Crafting simulated environments approximating reality facilitates real-time process
monitoring and modeling, risk identification, and preemptive control. Such realms are
Virtualization
advantageous for personnel training, system upkeep, and customer engagement during
manufacturing.
Real-time data acquisition and analysis are prerequisites for manufacturers to swiftly adapt
Responsively to changing consumer needs or potential disruptions. This ties back to conceptualization
and highlights the cyclical nature of smart factory design.
Beyond product offerings, customer support extends to tailored services, enhancing
Customization intralogistics endeavors. Adherence to the “7p” principle underscores user satisfaction
and is hailed as a significant contribution of the smart factory paradigm.

Drawing insights from Table 1, it is inferred that CPS’s cardinal tenets, undergirding the smart factory notion,
aim to augment efficiency across production, intralogistics, and related endeavors, striving to meet user anticipa-
tions. Distinguishing features such as seamless information flow, holistic employee engagement in decision-making
processes, and meticulous production surveillance underscore the uniqueness of smart factories, setting them apart
from traditional manufacturing. These attributes underscore the paramountcy of smart manufacturing operations in
enhancing supply chain sustainability.
A salient strength of the smart factory is its adaptability to evolving user needs and the exigencies of competitive
landscapes, aligning with the “7p” principle. Essential characteristics of a smart factory encompass Product, Price,
Process, Promotion, Physical Evidence, Place, and People [8, 9]. Several defining features of a smart factory are
delineated:
• Connectivity: Fundamental processes and material flows are interconnected, engendering requisite data for
real-time decision-making. Within comprehensive smart factories, equipment is equipped with intelligent sensors,
facilitating perpetual information generation from diverse sources, ensuring perpetual updates.
• Transparency: Contemporary data, validated and current, is made accessible to pertinent stakeholders, furnish-
ing comprehensive insights into all “smart factory” operations. This transparency capacitates manufacturing firms
to harness contemporary Industry 4.0 tools, offering real-time notifications.
• Agility: Smart factories are endowed with the capability to adapt to production and schedule variations with
minimal human intervention. Advanced iterations can autonomously reconfigure equipment and material flows,
contingent upon manufacturing requisites and requisite modifications.
• Optimization: Production endeavors are executed with diminished manual involvement and elevated reliability.
Automated activities, synchronized assets, enhanced monitoring, and energy consumption optimization collectively
contribute to increased profit margins, operational time reduction, overall cost minimization, and waste elimination.
• Proactiveness: Personnel are equipped to preemptively identify and navigate potential risks or challenges, whilst
maintaining resilience in post-occurrence mitigation. This may encompass preemptive disruption identification,
inventory replenishments, quality issue resolution, and safety issue monitoring.
3.2 Pivotal Aspects Underpinning the Evolution from Traditional Manufacturing to the Smart Factory
Paradigm
Manufacturing systems of the third industrial revolution are recognized as foundational elements in the paradigm
of Industry 4.0. Traditional manufacturing, characterized by robotization, Enterprise Resource Planning (ERP), 3D

151
printing, among other prevailing technologies, formed a cornerstone of the vast majority of factories operating within
the confines of Industry 3.0. However, with the advent of Industry 4.0, innovative technologies such as the IoT,
CPS, DT, and Cloud Computing have been introduced [6]. These technologies have enabled the amalgamation of
disparate production components and their overarching frameworks into the contemporary “smart factory” concept,
diverging from their previously standalone functionalities in Industry 3.0 [7].
Processes in Industry 3.0 were traditionally automated utilizing logical processors and integrated information
technology. Nevertheless, with the proliferation of data-driven methodologies in manufacturing, a significant portion
of the processes within Industry 4.0 have been automated, relegating human interactions, especially for repetitive
tasks, to a peripheral role. For instance, the computer numerically controlled machine (CNC machine), a hallmark
of Industry 3.0, necessitated human intervention for data input. In stark contrast, within the Industry 4.0 framework,
the same CNC machine not only adheres to predefined programming parameters but also actively harnesses data to
optimize manufacturing operations [8].
Table 2 elucidates the discernible differences between traditional digitalized factories and advanced “smart
factories”, shedding light on the palpable transition from Industry 3.0 to Industry 4.0.

Table 2. Distinctions between traditional and “smart factories” [7, 8]

Digitalized Factory Smart Factory

Centralized production systems Decentralized, flexible production systems
Employee reduction via robotization Collaborative model with robots undertaking strenuous tasks
Networked system controlling work machines
Independent equipment controllers
based on dynamic information
Maintenance executed as per real-time
Predetermined, preventive machine maintenance
machine requirements
Post-production quality assessment Concurrent quality control during production and assembly
Manual data input with varied tools Automated data entry via advanced interfaces
Emphasis on individual outcomes Prioritization of collaborative success
Periodic employee training sessions Continuous and on-site employee training
Relying on internet platforms for information Multilocation, application-integrated cloud data sources
Production focused on product quality Production oriented towards superior customer service
Enhancing individual performance Accentuating team performance efficacy

Moreover, the extensive incorporation of avant-garde technologies in Industry 4.0 has been observed to not only
bolster product quality in alignment with customer preferences but also to profoundly enhance the sustainability of
all entities within the supply chain. Such enhancements are attributed to collaborative undertakings amongst supply
chain partners in an atmosphere of mutual respect and understanding of each other’s necessities. The facilitation
of these intricate interactions has been made plausible through the expanded capabilities of advanced technologies
intrinsic to Industry 4.0, which will be elaborated upon in subsequent sections.
4 Fundamental Characteristics of Pivotal Technologies Underpinning the Smart Factory Paradigm
The smart factory is invariably recognized as a cornerstone of Industry 4.0, being perceived as the bedrock for the
competitiveness of each constituent within the supply chain. Contrary to the misinterpreted objective of completely
eliminating the workforce, the emphasis of integrating sophisticated technologies like the IoT and cloud computing
into production automation has been placed on augmenting productivity, bolstering efficiency, and facilitating the
realization of intricate production tasks. Enhanced information technologies are employed to enable efficient access
to production-centric data, ensuring bidirectional communication. Intricately, smart factories epitomize the fusion
of virtual and actual manufacturing realms, facilitated primarily by the advent of the IIoT. Within these virtualized
environments, products, processes, and resources undergo rigorous modeling and testing, leveraging authentic data.
Iterative assessments are conducted until discrepancies are identified and rectified. Subsequent to this virtual
optimization, the refined solutions are seamlessly transferred and actualized within tangible factory settings. In
light of these considerations, this section elucidates the salient benefits and inherent challenges posed by these
technologies in the broader context of the smart factory concept.

4.1 The Pivotal Role of IoT in the Smart Factory Framework

In the evolution of Industry 4.0, myriad solutions have been established within the realm of information exchange.
It is posited that the bedrock for the seamless attainment of customer requisites in this environment hinges upon
digitization, with a notable emphasis on computer networking. Contemporary supply chains, it has been observed,
stand incapacitated without the trifecta of swift, dependable, and fortified Internet connectivity [5].

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 Central to the progression and execution of the Industry 4.0 paradigm is the IoT. This phenomenon is defined
as a comprehensive network framework intertwining tangible entities with their digital counterparts via amassed
data and sophisticated communication tools [6]. Integral to this infrastructure are the ever-evolving networks and
the Internet. Optimal, fortified, and unerring linkages among all chain stakeholders are deemed pivotal, not merely
as a manifestation of the supply chain’s architecture but also as an enabler of efficacious customer service [6].
For the seamless orchestration of information among suppliers, industries, distribution nodes, and end-users, such
connectivity becomes indispensable. Through the deployment of IoT-fueled “smart” apparatus and systems, supply
chains are discerned to undergo an “intellectual metamorphosis” [6].
Central to a resilient supply chain is the notion of the “smart factory”. This construct leverages rapid information
dissemination and process automation, surpassing the capabilities of erstwhile business templates. Through the
lens of voluminous data, aggregated both by industrial-grade and conventional IoT coupled with cloud technologies,
prognostications of machinery malfunctions become feasible, paving the way for curtailed unscheduled downtimes
and cost efficiencies. From such observations, it might be inferred that the essence of a smart factory lies in its
aggregation of “intelligent” components, with IoT as its linchpin.
While the pertinence of IoT to the digitized operations of Industry 3.0 factories has been underscored, its
multifaceted utility within the smart factory paradigm emerges as a conduit for the sustainability and efficiency of
supply chains [6, 7, 10]. Distinct functionalities facilitated by IoT technology include:
• Real-time tracking and localization of commodities, enabling the exploration of alternative trajectories, poten-
tially leading to expedited product delivery to consumers [6, 7].
• The caliber of products, be it during fabrication, transit, or storage phases, is subjected to meticulous scrutiny
via specific IoT instruments, ensuring timely interventions to optimize processes and elevate product quality [10].
• Ambient conditions of storage facilities and transportation mediums undergo vigilant surveillance through IoT
contrivances, warranting product integrity by preempting potential damages or delivery aberrations.
• Contingency planning stands enhanced, as real-time monitoring by IoT tools identifies prospective vulnerabili-
ties, reinforcing supply chain robustness, especially under adverse environmental scenarios.
• Prophylactic upkeep of assets is facilitated as data relayed from embedded devices within smart factory
machinery interfaces with auxiliary software, detecting imminent operational anomalies.
• Traditional manual procedures, such as data cataloging and paper-based tagging, have been superseded by
IoT devices, predominantly RFID tags, engendering unparalleled transparency in inventory management, thereby
bolstering operational efficiency across the supply chain spectrum.
While the adoption of IoT within the smart factory framework is observed to bestow transformative advantages
encompassing production cost optimization, heightened energy thriftiness, and adept information governance [6, 10],
its practical implementation is not devoid of challenges. An examination of pertinent literature [11] unveils several
barriers to the seamless integration of this technology:
• Technological Dependence: It has been reported that an overreliance on technology can be a double-edged
sword. In scenarios where technological challenges or risks are encountered, the deployment and utilization of
IoT-centric devices often become contingent upon the provision of robust and rigorously-tested support mechanisms.
• Privacy and Security Concerns: Enhanced information transparency, a hallmark of advanced ICT, while offering
manifold benefits, simultaneously ushers in concerns related to information security. The increased accessibility
of data, unfortunately, often inversely correlates with its safeguarding. Unintended exchanges of confidential or
incorrect information can ensue due to the involvement of multiple stakeholders in data dissemination processes.
• Human Capital Implications: A pronounced shift towards an elevated IKT platform, mandating comprehensive
IoT integration, invariably impacts employment dynamics within smart factories. It has been noted that there’s an
observable reduction in roles that previously entailed manual labor. While potential mitigation strategies encompass
employee requalification and training, the evolving landscape invariably demands heightened IT proficiency and
specialized software skills. A niche for IoT specialists, tailored specifically for smart factory operations, is discernibly
emerging.
• Implementation Complexities: The introduction of avant-garde IKT solutions necessitates the confluence of
compatible hardware, refined software, and a trained workforce. Moreover, a societal dimension, often labeled as the
“apprehension towards novelty”, further complicates the implementation matrix, especially for nascent IoT-related
innovations.
In light of these challenges, it becomes evident that while the potential benefits of IoT in smart factories are
manifold, stakeholders must be cognizant of the intrinsic complexities and address them proactively to realize the
full spectrum of advantages.
4.2 The Criticality of IIoT Within Smart Factory Operations
Smart factories are conceptualized as advanced embodiments of manufacturing, where the efficacious networking
of components is paramount, taking into account evolving consumer demands and ensuring supply chain sustain-

153
ability [6, 11]. Consequently, the imperative nature of discerning the appropriate technological choice, its setup, and
the merits of IIoT and cloud paradigms cannot be overstated.
The IIoT is characterized as a conglomerate of intelligent devices connected to systems for monitoring, data
acquisition, exchange, and analysis. Within the spectrum of industrial operations and processing, IIoT is postulated
to be an essential subset of the overarching IoT framework, particularly evident in its applicability to smart factories,
vital to sustainable supply chains [6, 8].
The diverse capabilities endowed by IIoT systems are witnessed across the entirety of the product lifecycle. The
spectrum of these benefits is expansive, ranging from nuances of product design to intricate inventory tracking within
supply chains. A notable implication of IIoT integration is the facilitation of preventive maintenance. Data accrued
through IIoT mechanisms are postulated to substantially curtail production halt frequencies – a pervasive challenge in
certain industries. Such a proactive approach not only mitigates downtime but also augments productivity by signaling
forthcoming equipment maintenance needs [9–11]. Further advancements, facilitated by IIoT, encompass remote
management capabilities, enabling personnel to interface with machinery, thereby providing distanced support. This,
juxtaposed with the efficient oversight of machinery, and the incorporation of cutting-edge software, is deemed more
efficient than conventional manufacturing methods. The ensuing benefits are manifested as cost efficiencies and
enhanced responsiveness to consumer prerequisites – advantages predominantly driven by IIoT-mediated remote
control.
The structural composition of IIoT closely mirrors its IoT counterpart, and can be demarcated into the subsequent
segments [6, 11]:
• Network of Devices: This encapsulates intelligent apparatuses and sensors, including but not limited to
temperature and pressure sensors, humidity detectors, and RFID tags. These entities are integral to the data
acquisition essential for smart factory operations.
• Gateway: Comprising diverse networks, protocols, and methodologies pertinent to smart factory processes.
• Cloud Computing: The technological bedrock for real-time data capture, processing, management, and storage,
with further elucidation provided in Section 4.2.
• Analytics: This module, often regarded as an intrinsic facet of cloud computing, is dedicated to data analysis,
serving to distill actionable insights.
• User Interface: Representing the system’s tangible facet, it enhances the synergy between smart factory
operations and its end-users.
Given the pivotal role of IoT and IIoT technologies in augmenting the efficiency and sustainability of smart
factories, a comprehensive comparative analysis, as presented in Table 3, is deemed essential [6, 10, 12]. While IIoT
is recognized as a subset of the broader IoT framework, its distinguishing feature lies in its emphasis on interconnecting
machinery and devices across sectors, including manufacturing, healthcare, and multifaceted logistic undertakings
such as transshipment, packaging, and warehouse operations [11, 13]. In contrast, IoT is commonly affiliated with
an array of “smart” devices permeating daily life – encompassing appliances like refrigerators and air conditioners.
The application purview of these technological constructs is elucidated in Table 3. A myriad of attributes, from
flexibility to overarching objectives, delineates the nuances differentiating IIoT from IoT. This demarcation also
prompts a paradigm shift, accentuating the broader applicability and universality of IoT in comparison to the
industrially-centered IIoT.

Table 3. Distinctive attributes between IoT and IIoT within traditional and “smart factories” contexts [6, 10]

IoT VS IIoT
Smart factory system management
User convenience
Focus Ensuring maximal efficiency and seamless
Daily process automation
continuity across all operations
Smart devices Subject of Development Highly sophisticated components
Advanced sensors, enhanced
Level of Implementation Streamlined applications with minimized risks
controls, and progressive analytics
Elevated security and privacy measures
Standard safety protocols Safety and Risks Measures
Cyber-attack safeguards
Functional independence Interoperability Integration with contemporary operating systems
Limited adaptability Adaptability Superior adaptability
Critical monitoring Precision and Accuracy Levels Real-time synchronization
Comprehensive reprogramming with
Simplified programming Software Implementation
holistic software support
User convenience Key Objective Economic efficiency enhancement
Minimal or non-existent Flexibility Apparent, especially when disruptions arise
Customer-defined timelines
Maintenance Pre-set intervals
Vendor-led

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 Based on the insights presented in Table 3, while IoT fosters data dissemination throughout the supply chain
spectrum, IIoT predominantly emphasizes the optimization of smart factory operations. In terms of adaptability,
IIoT demonstrates greater flexibility relative to IoT, aligning with its specific application domains. However,
the maximum efficacy of these technologies is observed when synergistically integrated towards implementation
objectives. Whereas IoT aims to augment the convenience across the entirety of supply chains, the focus of IIoT
remains on bolstering the economic efficiency within smart factories. Nonetheless, both technologies contribute
substantially to enhancing facets of the sustainable supply chain, with IIoT honing in on intelligent manufacturing
methodologies.
4.3 Cloud Computing: A Vital Component in Enhancing Smart Factory Competitiveness
In the quest for optimization, many supply chains are found to gravitate towards cloud computing; however, the
efficacy of such a choice heavily relies upon the unique needs of each chain’s components [14, 15]. As observed,
manufacturers frequently harness solutions based on the IIoT, prompting an upsurge in cloud computing adoption
among manufacturing enterprise managers. One salient advantage of integrating cloud computing with IIoT is
identified as the ability of cloud service providers to address multifaceted ICT-related challenges, encompassing
issues of security, scalability, user demand management, and both hardware and networking [14, 15]. Such an inte-
gration, consequently, enables supply chain enterprises to shift their focus predominantly on refining manufacturing
procedures to augment customer service. By leveraging cloud technology, a more profound insight into production
and intralogistics processes is obtained, fostering a rapid response mechanism against risks and potential disruptions
in the operational milieu.
In light of the global crisis that witnessed a decline in manufacturing advancement, it is noted that the amalgama-
tion of smart factories, IIoT technology, and cloud computing has emerged as indispensable technological conduits
that underpin sustainable manufacturing endeavors. Through the extensive data amassed by IoT, IIoT, and cloud in-
frastructures, predictive measures concerning equipment failures are formulated, thereby circumventing unscheduled
operational halts and optimizing cost strategies [13–15]. The emphasis, thus, is placed on understanding the intricate
process of technology selection, its deployment modalities, and the plethora of advantages bestowed by cloud and
IIoT infrastructures [13–15]. The operational backbone of smart factories is discerned to hinge on an astute focus
on the production process. By incorporating cloud computing, manufacturers are observed to tap into advanced
analytics and machine learning paradigms. Such a technology adoption paradigm allows producers access to a
richer information reservoir, further enhanced by sophisticated analytical tools tailored for the operational environ-
ment [14–16]. Additionally, this knowledge arsenal can be supplemented by industrial equipment producers, which,
it has been revealed, can offer a suite of digital services sourced from external platforms [14–16]. In essence, the
synergistic interplay of IoT and IIoT, when undergirded by cloud computing, is recognized to be a significant catalyst
propelling the aspirations of a sustainable smart factory, where the overarching objective remains the enhancement
of customer service across all supply chain touchpoints.
5 Concluding Remarks
In the wake of the prevailing global crisis, supply chains have been identified as being susceptible to multifaceted
disruptions. Driven by current trends, the evolution of Industry 4.0 technologies has been observed, with an empha-
sis on fortifying the inherent vulnerabilities within supply chains [14, 16, 17]. Manufacturing entities, particularly
pivotal due to their interconnections within the supply chain ecosystem, are perceived to be profoundly influenced
by both global suppliers and customer demands. By leveraging Industry 4.0’s avant-garde technologies, notable
enhancements in operations across supply chain stakeholders have been witnessed. In the intensively competitive
contemporary business landscape, production has been deduced as a cornerstone in delivering unparalleled service
to consumers. Essential prerequisites for this segment of the supply chain have been outlined as real-time infor-
mation transparency, meticulous market demand monitoring, customization of offerings, decentralized autonomous
management, and comprehensive globalization across supply chain strata [14, 16, 17].
While the continuum from Industry 3.0 to Industry 4.0 is discerned, distinctions between the two epochs remain
evident. The sheer pace of technological evolution, characterized more by an exponential trajectory than a linear one,
stands out prominently. The Third Industrial Revolution is acknowledged to provide foundational underpinnings,
incorporating pivotal Industry 4.0 technologies like IoT, CPS, 3D, among others. These evolutions indicate a
transformative shift, not only within industries and corporate landscapes but also on broader scales encompassing
nations and societies. Such profound transformations underscore the imperative of understanding the “smart factory”
concept, especially in its alignment with anticipated customer service deliverables [15, 17].
Advancements initiated by the assimilation of digital tools in Industry 3.0, such as ERP, 3D printing, CNC
machinery, and big data frameworks, have been recognized as fundamental in charting the trajectory towards
sustainable supply chains. The transition from conventional manufacturing paradigms to state-of-the-art production
methodologies has culminated in CPS, elucidating the precursory constructs of the contemporary smart factory.

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Supporting this paradigm shift are the pioneering technologies of Industry 4.0, predominantly IoT, IIoT, and Cloud
computing. Even amidst the deceleration in production growth catalyzed by global perturbations, the proliferation of
smart factories, buttressed by IIoT and cloud infrastructures, has been noted. While IoT’s deployment is prevalently
observed across supply chain entities, facilitating seamless real-time information dissemination, IIoT’s application
is pinpointed more towards bolstering industrial resilience and enhancing sustainability.
The present study was undertaken with the intent to elucidate the significance of the smart factory within
the tapestry of a sustainable supply chain. A comprehensive discussion encompassed the merits, constraints, and
challenges associated with the adoption of IoT, IIoT, and Cloud computing, delineating their pivotal roles in the smart
factory schematic. Concurrently, a distinction between IoT and IIoT, in terms of their respective functionalities,
roles, and relevance, not just within the smart factory framework but across the entire supply chain, was established.
As future avenues of exploration beckon, several prospective enhancements beckon. Investigations into the smart
factory’s role in curtailing product manufacturing durations and optimizing logistics expenditures could offer insights
into the supply chain’s enhanced efficiency and competitiveness. Further inquiry might encompass the assessment of
agility in accommodating evolving user stipulations, especially during ongoing manufacturing processes. Lastly, the
adaptability and versatility of IoT, IIoT, and Cloud Computing, both within and beyond the smart factory paradigm,
warrant extensive scrutiny, particularly concerning their implications on the broader supply chain dynamism.
Data Availability
The data used to support the research findings are available from the corresponding author upon request.
Conflicts of Interest
The author declares no conflict of interest.
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