How will smart city production systems transform supply chain design: a product-level investigation

Abstract

This paper is a first step to understand the role that a smart city with a distributed production system could have in changing the nature and form of supply chain design. Since the end of the Second World War, most supply chain systems for manufactured products have been based on ‘scale economies’ and ‘bigness’; in our paper we challenge this traditional view. Our fundamental research question is: how could a smart city production system change supply chain design? In answering this question, we develop an integrative framework for understanding the interplay between smart city technological initiatives (big data analytics, the industrial Internet of things) and distributed manufacturing on supply chain design. This framework illustrates synergies between manufacturing and integrative technologies within the smart city context and links with supply chain design. Considering that smart cities are based on the collaboration between firms, end-users and local stakeholders, we advance the present knowledge on production systems through case-study findings at the product level. In the conclusion, we stress there is a need for future research to empirically develop our work further and measure (beyond the product level) the extent to which new production technologies such as distributed manufacturing are indeed democratising supply chain design and transforming manufacturing from ‘global production’ to a future ‘city-oriented’ social materiality.

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