Setbacks to IoT Implementation in the Function of FMCG Supply Chain Sustainability during COVID-19 Pandemic
Abstract
:1. Introduction
2. Theoretical Background
2.1. Subject, Goals, and Contributions of the Paper
2.2. Theoretical Basis of Formation and Structuring of the IoT implementation in the FMCG Supply Chain
2.3. The Setbacks to IoT Implementation in the FMCG Supply Chain
3. Methodology
3.1. Aim and Hypotheses
3.2. Research Variables
3.3. Research Sample
3.4. Research Procedure and Data Analysis
4. Results
5. Discussion
5.1. Defining a Model for Predicting the Significance of Setbacks to Delaying IoT Implementation
- Financial incentives—Imply taking a whole set of measures to financially empower the supply chain participants for the implementation of IoT. These would be specialized credit lines for the introduction of advanced technology (e.g., low-interest rates, long repayment period), tax relief and exemptions from VAT on devices and equipment for the implementation and application of IoT, deferral of payment for primary energy sources (electricity, water, gas), programs for co-financing the development of modern information infrastructure (e.g., co-financing by National Funds, commercial banks).
- Incentives for employment—Are related to measures aimed at empowering human resources and training them for the application of advanced technology. These measures imply subsidies for new employment for participants who are accessing digitalization. They also include reduction of taxes and contributions for existing workers, organization of specialized courses and training programs for the use of advanced technologies, education of employees on safety, hygiene, and health measures during the COVID-19 pandemic, knowledge transfer, etc.
- Security measures—Are all those measures that guarantee the security and privacy protection of users. They include clearly defined privacy policy rules for all IoT users, the introduction of security measures when transferring data (e.g., application of SSL—Secure Socket Layer encryption), strictly defined rules when passing data to third parties, the introduction of security measures to protect networking processes within a chain from malware and external attacks (e.g., installation of firewalls, high-security codes), the assistance of experts and institutions in process standardization, etc. In addition to these measures, state institutions, as well as the participants in the supply chain in the WB region, should raise awareness among producers, distributors, wholesalers, and retailers, as well as consumers, about the need for digitalization and its advantages over traditional supply chains, especially during severe market disruptions and long-term shocks caused by the COVID-19 pandemic.
5.2. Comments on the Results
6. Conclusions
Author Contributions
Funding
Conflicts of Interest
References
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No | Setback/ Indicator | Description | Sources |
---|---|---|---|
1 | Data analysis and comprehension | Analysis of streaming data generated by digital sensors requires advanced computing devices, knowledge of mathematical models, as well as highly qualified and trained analysts | Lee and Lee [36] |
2 | User safety | User vulnerabilities due to lack of secure web interfaces, inadequate software protection, and insufficient authorization | Wang et al. [37] Gubbi et al. [18] Lee et al. [36] |
3 | Lack of financial resources | The implementation of IoT platforms requires substantial initial investments and enormous initial system maintenance cost | Končar et al. [17] Granjal et al. [38] |
4 | Lack of skilled workers | Insufficient training of all participants in the supply chain to apply advanced technologies and lack of skilled labor | Bedekar [39] |
5 | Privacy protection | Inability of IoT application users to protect their data related to their movement, consumption, needs, habits, and interactions | Hameed et al. [40] |
6 | Changing the business model | The implementation of IoT requires changes in the organization of the chain itself, for which participants are often not ready | Whitmore et al. [41] |
7 | Underdeveloped infrastructure | Infrastructure that is not able to effectively support and successfully manage interconnected products, equipment, and devices | Botta et al. [42] Luthra et al. [43] |
8 | Standardization | Problems with the introduction of new standards, certificates and permits for the implementation of IoT | Al-Fugaha et al. [44] |
9 | Lack of internet connection | Lack of internet connection, frequent signal interruptions, low use of WiFi connection, etc. | Luthra et al. [43] Bedekar [39] |
10 | Lack of awareness | Existence of an unclear need to digitalize IoT-based supply chain business operations. | Končar et al. [17] Anđelković and Radosavljević [45] |
Gender | n | Structure (%) | Age | n | Structure (%) |
---|---|---|---|---|---|
Male | 121 | 57.9% | up to 30 | 34 | 16.3% |
Female | 88 | 42.1% | 30–40 | 51 | 24.4% |
40–50 | 78 | 37.3% | |||
over 50 | 46 | 22.0% | |||
WB Countries | n | Structure (%) | FMCG Supply Chain Sector | n | Structure (%) |
Crotia | 42 | 20.1% | Production | 49 | 23.4% |
Serbia | 44 | 21.1% | Physical Distribution | 52 | 24.9% |
Bosnia and Hercegovina | 40 | 19.1% | Wholesale | 51 | 24.4% |
North Macedonia | 42 | 20.1% | Retail | 57 | 27.3% |
Montenegro | 41 | 19.6% |
Indicators | Cronbach’s Alpha | Skewness | Kurtosis |
---|---|---|---|
Data analysis and comprehension | 0.911 | −0.069 | −1.040 |
User safety | 0.728 | −0.108 | −1.017 |
Lack of financial resources | 0.839 | 0.341 | −0.885 |
Lack of skilled workers | 0.701 | −0.327 | −1.273 |
Privacy protection | 0.672 | −0.212 | −1.248 |
Changing the business model | 0.755 | 0.057 | −1.538 |
Underdeveloped infrastructure | 0.932 | −0.319 | −0.545 |
Standardization | 0.811 | 0.273 | −1.143 |
Lack of internet connection | 0.683 | 0.322 | −1.300 |
Lack of awareness | 0.847 | 0.224 | −1.655 |
Ord. No. | Indicators (Setbacks) | Production | Physical Distribution | Wholesale | Retail | Mean (M) |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 |
1 | Data analysis and comprehension | 4.11 | 2.83 | 3.72 | 4.21 | 3.72 |
2 | User safety | 3.87 | 3.14 | 3.21 | 3.12 | 3.34 |
3 | Lack of financial resources | 4.41 | 4.13 | 4.25 | 4.05 | 4.21 |
4 | Lack of skilled workers | 3.96 | 3.35 | 4.11 | 3.70 | 3.78 |
5 | Privacy protection | 3.15 | 4.23 | 3.77 | 3.41 | 3.64 |
6 | Changing the business model | 4.01 | 3.27 | 2.88 | 2.96 | 3.28 |
7 | Underdeveloped infrastructure | 3.91 | 3.52 | 4.09 | 3.83 | 3.84 |
8 | Standardization | 3.86 | 3.28 | 2.62 | 3.40 | 3.29 |
9 | Lack of internet connection | 2.74 | 2.67 | 2.11 | 2.89 | 2.60 |
10 | Lack of awareness | 3.14 | 2.62 | 3.04 | 3.73 | 3.13 |
Ord. No. | Indicators (Setbacks) | Min | Max. | Mean (M) | Standard Error (SE) | Standard Deviation (SD) |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | 6 | 7 |
1 | Data analysis and comprehension | 2.00 | 5.00 | 3.72 | 0.0603 | 0.8715 |
2 | User safety | 1.00 | 4.00 | 3.34 | 0.0649 | 0.9381 |
3 | Lack of financial resources | 2.00 | 5.00 | 4.21 | 0.0583 | 0.8425 |
4 | Lack of skilled workers | 1.00 | 5.00 | 3.78 | 0.0694 | 1.0027 |
5 | Privacy protection | 1.00 | 5.00 | 3.64 | 0.0811 | 1.1724 |
6 | Changing the business model | 1.00 | 5.00 | 3.28 | 0.0851 | 1.2308 |
7 | Underdeveloped infrastructure | 2.00 | 5.00 | 3.84 | 0.0448 | 0.6481 |
8 | Standardization | 1.00 | 5.00 | 3.29 | 0.0880 | 1.2728 |
9 | Lack of internet connection | 1.00 | 4.00 | 2.60 | 0.0600 | 0.8675 |
10 | Lack of awareness | 1.00 | 4.00 | 3.13 | 0.0638 | 0.9224 |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
---|---|---|---|---|---|---|---|---|---|---|---|
1 | Data analysis and comprehension | 1 | |||||||||
2 | User safety | 0.84 ** | 1 | ||||||||
3 | Lack of financial resources | 0.89 | 0.73 | 1 | |||||||
4 | Lack of skilled workers | 0.60 * | 0.36 | 0.77 ** | 1 | ||||||
5 | Privacy protection | 0.59 * | 0.75 ** | 0.49 | 0.59 | 1 | |||||
6 | Changing the business model | 0.73 | 0.83 | 0.35 | 0.47 | 0.53 | 1 | ||||
7 | Underdeveloped infrastructure | 0.78 ** | −0.87 | 0.91 ** | 0.86 ** | −0.25 | 0.61 * | 1 | |||
8 | Standardization | 0.34 | 0.51 | 0.64 | 0.66 * | 0.54 | 0.52 | 0.72 * | 1 | ||
9 | Lack of internet connection | 0.48 | 0.61 | 0.57 | 0.63 | −0.67 | 0.75 * | 0.58 | 0.46 | 1 | |
10 | Lack of awareness | 0.54 | 0.56 | 0.44 | 0.49 | −0.55 | 0.54 * | 0.60 | 0.56 | 0.62 | 1 |
Stand. Coefficient | t | Sig. | ||
---|---|---|---|---|
Beta | St. Error | |||
(const.) | 0.69 | 1.163 | 3.577 | 0.000 |
Data analysis and comprehension | 0.462 ** | 0.362 | 0.528 | 0.045 |
User safety | 0.865 | 0.476 | 0.813 | 0.183 |
Lack of financial resources | 0.776 ** | 0.403 | 0.620 | 0.000 |
Lack of skilled workers | 0.683 ** | 0.612 | 1.032 | 0.004 |
Privacy protection | 0.492 * | 0,781 | 0.297 | 0.016 |
Changing the business model | 0.518 * | 0.576 | 1.251 | 0.047 |
Underdeveloped infrastructure | 0.559 ** | 0.391 | 0.405 | 0.004 |
Standardization | 0.491 | 0.584 | 0.624 | 0.063 |
Lack of internet connection | 0.517 | 0.374 | 0.416 | 0.084 |
Lack of awareness | 0.255 | 0.572 | 0.734 | 0.191 |
Production (p) | Physichal Distribution (phd) | Wholesale (w) | Retail (r) | |||||
---|---|---|---|---|---|---|---|---|
Beta | Sig. | Beta | Sig. | Beta | Sig. | Beta | Sig. | |
(const.) | 0.81 | 0.017 | 0.74 | 0.003 | 0.62 | 0.000 | 0.74 | 0.001 |
Data analysis and comprehension | 0.573 ** | 0.000 | 0.512 | 0.073 | 0.662 * | 0.033 | 0.795 ** | 0.002 |
User safety | −0.608 | 0.055 | 0.929 * | 0.012 | 0.737 | −0.081 | 0.623 | 0.557 |
Lack of financial resources | 0.490 ** | 0.001 | 0.627 ** | 0.000 | 0.914 ** | 0.000 | 0.769 * | 0.041 |
Lack of skilled workers | 0.223 * | 0.042 | 0.036 | 0.790 | 0.228 ** | 0.003 | 0.095 ** | 0.003 |
Privacy protection | 0.582 | 0.184 | 0.703 ** | 0.002 | - 0.653 | 0,694 | 0.704 ** | 0.008 |
Changing the business model | 0.747 ** | 0.006 | 0.626 | 0.088 | 0.854 | 0.142 | 0.791 | 0.100 |
Underdeveloped infrastructure | 0.711 * | 0.024 | 0.559 ** | 0.001 | 0.605 ** | 0.007 | 0.622 * | 0.013 |
Standardization | −0.891 | 0.057 | 0.782 | −0.247 | 0.527 * | 0.046 | 0.303 | 0.114 |
Lack of internet connection | −0.522 | 0.315 | −0.358 | 0.681 | 0.694 | 0.067 | 0.433 | 0.323 |
Lack of awareness | 0.671 | 0.066 | 0.581 | 0.054 | 0.481 | 0.112 | 0.191 | 0.074 |
Implementation of IoT | Analysis and Data Comprehension | User Safety | Lack of Financial Resources | Lack of Skilled Workers | Privacy Protection | Change of the Business Model | Underdeveloped Infrastructure | Standardization | Lack of Internet Connection | Lack of Awareness |
---|---|---|---|---|---|---|---|---|---|---|
Croatia | ||||||||||
Correlation coefficient (r) | 0.722 ** | 0.306 | 0.689 ** | 0.397 ** | 0.687 * | 0.514 * | 0.784 * | 0.475 | 0.655 | 0.475 |
Significance | 0.000 | 0.214 | 0.000 | 0.008 | 0.025 | 0.047 | 0.001 | 0.142 | 0.055 | 0.100 |
Number | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 |
Serbia | ||||||||||
Correlation coefficient (r) | 0.641 ** | 0.156 | 0.763 ** | 0.624 ** | 0.867 ** | 0.792 * | 0.386 ** | 0.861 | 0.660 | 0.704 |
Significance | 0.008 | 0.074 | 0.000 | 0.001 | 0.003 | 0.035 | 0.004 | 0.110 | 0.081 | 0.817 |
Number | 44 | 44 | 44 | 44 | 44 | 44 | 44 | 44 | 44 | 44 |
Bosnia and Herzegovina | ||||||||||
Correlation coefficient(r) | 0.662 ** | 0.381 | 0.782 ** | 0.838 ** | 0.630 * | 0.872 * | 0.746 ** | 0.482 | 0.516 | 0.441 |
Significance | 0.000 | 0.071 | 0.003 | 0.000 | 0.021 | 0.000 | 0.001 | 0.066 | 0.141 | 0.091 |
Number | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 |
Montenegro | ||||||||||
Correlation coefficient (r) | 0.487 ** | 0.142 | 0.597 ** | 0.609 * | 0.490 * | 0.717 * | 0.496 ** | 0.215 | 0.,234 | 0.500 |
Significance | 0.001 | 0.100 | 0.003 | 0.014 | 0.044 | 0.000 | 0.000 | 0.107 | 0.059 | 0.084 |
Number | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 | 42 |
Northern Macedonia | ||||||||||
Correlation coefficient (r) | 0.765 * | 0.236 | 0.650 ** | 0.788 ** | 0.582 * | 0.560 * | 0.833 ** | 0.406 | 0.610 | 0.320 |
Significance | 0.031 | 0.426 | 0.001 | 0.000 | 0.040 | 0.033 | 0.001 | 0.202 | 0.069 | 0.110 |
Number | 41 | 41 | 41 | 41 | 41 | 41 | 41 | 41 | 41 | 41 |
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Končar, J.; Grubor, A.; Marić, R.; Vučenović, S.; Vukmirović, G. Setbacks to IoT Implementation in the Function of FMCG Supply Chain Sustainability during COVID-19 Pandemic. Sustainability 2020, 12, 7391. https://doi.org/10.3390/su12187391
Končar J, Grubor A, Marić R, Vučenović S, Vukmirović G. Setbacks to IoT Implementation in the Function of FMCG Supply Chain Sustainability during COVID-19 Pandemic. Sustainability. 2020; 12(18):7391. https://doi.org/10.3390/su12187391
Chicago/Turabian StyleKončar, Jelena, Aleksandar Grubor, Radenko Marić, Sonja Vučenović, and Goran Vukmirović. 2020. "Setbacks to IoT Implementation in the Function of FMCG Supply Chain Sustainability during COVID-19 Pandemic" Sustainability 12, no. 18: 7391. https://doi.org/10.3390/su12187391
APA StyleKončar, J., Grubor, A., Marić, R., Vučenović, S., & Vukmirović, G. (2020). Setbacks to IoT Implementation in the Function of FMCG Supply Chain Sustainability during COVID-19 Pandemic. Sustainability, 12(18), 7391. https://doi.org/10.3390/su12187391