Supply Chain Education in the Era of Digital Transformation

September 22, 2025

It is well known that the supply chain industry faces growing complexity from global disruptions, new regulations, and rapidly evolving technology amongst other factors [1]. Supply chain education is no different: academic programs must adapt to these disruptions; this comes with challenges but also opportunities. In particular, the Fourth Industrial Revolution (Industry 4.0) introduced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), robotics, big data, Augmented Reality (AR), and Virtual Reality (VR) into supply chains [2]. The emerging Fifth Industrial Revolution (Industry 5.0) emphasizes human–machine collaboration, sustainability and resilience [3]. Educational programs must prepare students to navigate connected, tech-driven supply chains while still incorporating core supply chain management (SCM) principles as the foundation.

Complexities of Supply Chain Education in Industry 4.0/5.0

Supply chain educators must not only teach the ‘traditional’ theory but prepare students for the world of work, which requires many emerging skill sets. Students must learn traditional SCM knowledge and skills, plus data analytics, AI and automation tools (e.g. ERP systems, predictive forecasting) [2]. Some examples of challenges that arise are:

Curriculum Overload: Programs must cover more topics (IoT, cloud computing, robotics) without sacrificing fundamentals. As one industry report notes, universities are fundamentally restructuring curricula to include AI, big data and automation alongside fundamental topics [2].
Resource Constraints: Incorporating new technologies (VR labs, IoT devices, robotics workbenches) can be costly. For example, practitioners warn of hurdles in implementing Industry 4.0 technologies due to limited infrastructure, funding and skills gap [4].
Rapid Obsolescence: Technology evolves faster than academic policies. Education institutions must plan for continuous updates – balancing enthusiasm for AI/automation with the recognition that strategic thinking and human judgment remain essential [2].

These complexities mean that educators must manage competing demands: teaching cutting-edge digital skills whilst reinforcing core supply chain concepts and soft skills (e.g. teamwork, ethics, problem solving, strategic thinking).

Opportunities and Innovations in Teaching

Despite these challenges, digital transformation brings great opportunities to enhance learning. Modern pedagogies leverage advanced tools and partnerships. Some examples include:

Hands-On Labs & Industry Partnerships: Many schools have built specialised labs that mirror industry technology. For instance, Marquette University’s Omron Robotics Laboratory exposes students to real automation equipment. Such labs, often funded by corporate sponsorship, bridge theory and practice and keep programs aligned with employer needs [2].
Simulation-Based Learning: Business simulation and game-based learning allow students to learn by doing. Universities now use simulated supply chains (for example, a virtual microbrewery) for learners to experiment with testing inventory and logistics decisions safely [2]. Research shows that game-based learning (e.g. the classic Beer Game) effectively teaches coordination, the bullwhip effect and other SCM concepts in an engaging, decision-driven environment [5].
Curriculum Evolution: Institutions are adding courses on data analytics, AI and digital tools. Iowa State’s SCM program, for example, now includes dedicated ERP and analytics classes to teach technology-driven inventory and scheduling [2]. Some universities require foundational AI coursework and encourage students to experiment with tools like ChatGPT while critically evaluating outputs [2]. Stadio Higher Education now includes digital transformation themes in their curriculum and incorporate the use of AI tools but teach the students to use such technologies in an ethical manner with an AI workgroup, revising and setting up policies, in place.

Digital transformation allows educators to innovate. New teaching pedagogies can make abstract concepts tangible and build the future skill sets in line with the world of work.

Technology-Enhanced Learning Use Cases

Modern supply chain programmes now include technologies directly into their curriculum. For example:

Immersive VR/AR Simulations: Virtual reality transforms abstract warehousing concepts into vivid experiences. At the University of Maryland, students put on VR headsets to “learn their way around a warehouse – without even having to leave their dorm rooms,” exploring a fully simulated distribution facility [6]. One instructor calls VR “a game-changer for the way we can teach many supply chain concepts,” since students can see and interact with virtual inventory, equipment and safety hazards [6]. Similarly, Arizona State piloted a VR coffee shop simulation where students manage capacity and staffing – letting them practice decisions in a realistic environment [7]. These immersive labs help bridge the gap between textbook theory and real-world SCM concepts.
AI and Chatbot Assistants: AI tools are also entering the classroom. One OSU professor built a custom chatbot (“Supply Chain Brutus”) that students can query for help on assignments (e.g. creating supply chain maps). Unlike generic chatbots, Brutus references the course’s own textbook, citing chapter pages in its responses[8]. This teaches students to use AI intelligently: the professor encourages open discussion of AI’s limitations and insists that final grades come from human instructors [8 ]. More broadly, institutions are introducing AI technologies and data science projects, so students learn to apply ML algorithms to demand forecasting and risk analysis. Stadio Higher Education has also introduced AI tutors to students, to practice and grow their knowledge on their study materials in their own time.
Simulation Games and Analytics: Software simulations let students experiment with supply chain scenarios. As mentioned, the virtual “Beer Game” or supply-chain board-game software can model multi-tier networks and demand shocks, reinforcing concepts like the bullwhip effect [5]. Other platforms let students run a digital twin of a microbrewery or manufacturing line, using data analytics to optimise production and logistics [2]. These interactive exercises build problem-solving skills and data literacy.
Augmented Reality (AR): Although less common than VR in classrooms, AR is used in corporate training and is starting to appear in education. For instance, AR can overlay picking instructions in a virtual warehouse or simulate new equipment on live camera feeds. By linking digital information to physical spaces, AR could one day allow SCM students to practice skills such as order picking or equipment setup in a mixed-reality environment [9].
Data Tools & Real-Time Platforms: Finally, students increasingly work with the same software used in industry: ERP systems, supply chain visualization dashboards, and cloud collaboration platforms. By analysing real or historical data in class, students learn predictive modelling and network mapping. One educator suggests using tools like FactSet’s supply chain mapping in coursework to teach risk and resilience across multi-tier networks [10].

These use cases show that digital transformation enriches pedagogy. By embedding technology into assignments and classrooms, educators have the opportunity to make learning interactive and future focused.

“Students who experience VR and AI will be prepared with a higher level of knowledge and capabilities – far beyond what they can learn just from a textbook”

(Humberto Coronado, 2023, University Professor)

Conclusion

The era of Industry 4.0 and 5.0 undeniably adds complexity to supply chain education, but it also holds many opportunities for teaching. Educators who embrace digital transformation, by incorporating VR and simulations to AI and analytics, can transform their classrooms into dynamic, real-world learning environments. By doing this, they not only prepare students for the world of work but also shape ‘tomorrows’ leaders of digital transformation.

Reference list:

[1] Bateh, D. R. (2024). Supply chain disruptions and their effect on suppliers and consumers in the marketplace. https://www.researchgate.net/publication/379527456_Supply_chain_disruptions_and_their_effect_on_suppliers_and_consumers_in_the_marketplace [Accessed: 29 August 2025]

[2] Trax Technologies (2025). Supply Chain Education Gets AI Updates. https://www.traxtech.com/ai-in-supply-chain/supply-chain-education-gets-ai-updates#:~:text=Universities%20across%20the%20nation%20are,alongside%20traditional%20supply%20chain%20knowledge [Accessed: 29 August 2025]

[3] Innopharma Education (2023). Digital Transformation 101: What is Industry 5.0? https://www.innopharmaeducation.com/blog/what-is-industry-5-0#:~:text=Industry%205,Step%20in%20Digital%20Transformation [Accessed: 30 August 2025]

[4] Al Kharusi, A., Alkalbani, M., Al Majrafi, N., and Al-Habsi, J., 2024, September. “Revolutionizing Supply Chain Education”: Integrating Industry 4.0 and IOT into University Curriculum: (Opportunities and Challenges). In 5th Asia Pacific Conference on Industrial Engineering and Operations Management, https://doi.org/10.46254/AP05.20240194.

[5] Kavota, J. K., Cassivi, L., & Léger, P.-M. (2024). A Systematic Review of Strategic Supply Chain Challenges and Teaching Strategies. Logistics, 8(1), 19. https://doi.org/10.3390/logistics8010019

[6]; Coronado, H./UMD (2023). Smith Students Learn Supply Chain Management With Immersive VR. https://www.rhsmith.umd.edu/news/smith-students-learn-supply-chain-management-immersive-vr#:~:text=Students%20studying%20supply%20chain%20management,to%20leave%20their%20dorm%20rooms [Accessed: 29 August 2025]

[7] Loonam, M. (2024). VR helps students learn about supply chain management. https://news.asu.edu/20240301-business-and-entrepreneurship-vr-helps-students-learn-about-supply-chain-management#:~:text=Students%20in%20Arizona%20State%20University%27s,immersive%20classroom%20experience%20last%20fall [Accessed: 30 August 2025]

[8] Momeyer, A. (2025). OSU professor uses AI to revolutionize supply chain education. https://spectrumnews1.com/oh/columbus/news/2025/08/01/osu-professor-uses-ai-education#:~:text=Castillo%20uses%20what%20he%20has,textbook%20before%20responding%20to%20students [Accessed: 29 August 2025]

[9] Straight, B. (2024). Augmented reality’s role in upskilling the workforce. https://www.scmr.com/article/augmented-realitys-role-in-upskilling-the-workforce [Accessed: 30 August 2025]

[10] Leonard, M. (2020). How the pandemic is changing supply chain education. https://www.supplychaindive.com/news/coronavirus-pandemic-supply-chain-education/583279/#:~:text=have%20the%20data%20more%20than,we%27ve%20ever%20had%20it%20before [Accessed: 29 August 2025]