Sustainable Supply Chain Transformation in the Era of Industry 5.0: A Narrative Review

Abstract

Background: Supply chain transformation is moving beyond an automation-centered approach towards the sustainability-, resilience-, and human welfare-centered orientation represented by Industry 5.0. Objective: This narrative review aimed to synthesize evidence concerning the redesign of supply chains for sustainability through supporting technologies, including artificial intelligence, digital twins, blockchain technology, collaborative robotics, additive manufacturing, and Internet of Things infrastructures. Methods: Literature published between 2020 and June 2026 was examined through socio-technical, circular-economy, and supply-chain-viability perspectives. The evidence was reviewed to identify how Industry 5.0 technologies support sustainable supply chain transformation and the organisational conditions affecting their implementation. Results: The findings showed that digital visibility can support forecasting, traceability, resource conservation, and disruption mitigation. However, technology alone does not demonstrate sustainability. Greater benefits were identified when organisations reconfigured supplier relationships, material flows, organisational arrangements, social relationships, skills, responsibilities, and incentives. Major challenges included legacy systems, cybersecurity risks, variable supply conditions, potential rebound effects, uncertainty regarding return on investment, and the absence of adequate social-performance metrics. Conclusion: The review provides recommendations for a transformation pathway and an implementation architecture. Industry 5.0 is interpreted as a change in governance and organisational capability in which technology acts as a facilitator rather than independently transforming supply chain coordination.