# Leveraging the Metaverse for Enhanced Decision-Making in Supply Chain Management: A Framework for Addressing Industry 5.0 Challenges

Abdellatif Ghorbal, Alexandre Philippot, Fouad Ben Abdelaziz, Chrsitophe Jalaguier

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Abdellatif Ghorbal, Alexandre Philippot, Fouad Ben Abdelaziz, Chrsitophe Jalaguier. Leveraging the Metaverse for Enhanced Decision-Making in Supply Chain Management: A Framework for Addressing Industry 5.0 Challenges. Smart-Digital-Green Technologies and Artificial Intelligence Sciences, GALALA University, Dec 2024, Galala City, Egypt. **hal-04980657**

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# Leveraging the Metaverse for Enhanced Decision-Making in Supply Chain Management: A Framework for Addressing Industry 5.0 Challenges

1st Ghorbal Abdellatif

CReSTIC

Unviersité de Reims Champagne Ardenne Unviersité de Reims Champagne Ardenne

Reims, France

abdellatif.ghorbal@univ-reims.fr

2nd Philippot Alexandre

CReSTIC

Reims, France

alexandre.philippot@univ-reims.fr

3th Ben-Abdelaziz Fouad

Neoma Bs

Neoma business school

Reims, France

Fouad.BEN.ABDELAZIZ@neoma-bs.fr

4rd Jalaguier Christophe

Regards

Unviersité de Reims Champagne Ardenne

Reims, France

christophe.jalaguier@univ-reims.fr

5th Goudey Alain

Neoma Bs

Neoma Business School

Reims, France

alain.goudey@neoma-bs.fr

**Abstract**—The metaverse, integrating advanced technologies such as digital twins(DT), artificial intelligence (AI), and the Internet of Things (IoT), has the potential to reshape supply chain management (SCM) by addressing some of its most pressing challenges. This paper explores how metaverse environments might enhance knowledge management practices and contribute to more efficient decision-making processes. In particular, it considers the opportunities these immersive, data-driven platforms offer for tackling key issues in SCM, such as real-time decision-making, operational agility, and data fragmentation.

By examining how metaverse-driven solutions could transform supply chain operations, this article sets the stage for future research aimed at comparing traditional methods with those enabled by these emerging technologies. The research steps proposed outline a pathway for investigating the role of the metaverse in fostering more resilient, adaptive supply chains in line with Industry 5.0 principles.

In this early-phase study, the focus is on laying the groundwork for understanding the metaverse's potential in optimizing supply chain operations, offering insights that will guide subsequent comparative analyses and practical applications.

**Index Terms**—Metaverse, Knowledge Management, Supply chain challenges, Decision making, Industry 5.0.

## I. INTRODUCTION

The concept of the Metaverse, originally introduced by Neal Stephenson in his science fiction work Snow Crash, has evolved significantly from its initial depiction as a three-dimensional virtual space where humans interact as avatars. Over time, the metaverse has been categorized into four distinct dimensions: Augmented Reality (AR), Lifelogging, Mirror Worlds, and Virtual Worlds [10]. These dimensions range from enhancing the physical world with digital overlays (AR) to fully immersive virtual environments (Virtual Worlds), applied across various sectors including entertainment, healthcare, education, and manufacturing.

In parallel, the Industrial Metaverse has recently emerged, integrating advanced technologies such as digital twins, AI, and IoT to create virtual platforms that mirror real-world industrial operations. This integration enables real-time data exchange and decision-making across the value chain [9]. The DeMETeRE project at the University of Reims similarly reflects this trend by leveraging digital tools and immersive environments to bridge educational gaps and enhance training in non-urban areas. Supported by the ANR(National Research Agency), DeMETeRE focuses on preparing students for the evolving industrial landscape, much like how the Industrial Metaverse transforms supply chain management by introducing adaptable, innovative technologies into traditionally physical domains.

Aligned with the principles of Industry 5.0, the Industrial Metaverse fosters adaptive, resilient, and human-centric supply chains. Industry 5.0 emphasizes the need to address key challenges in supply chain management (SCM), such as real-time decision-making, sustainability, and cybersecurity [6]. As global supply chains grow more complex, issues like data fragmentation, lack of transparency, and the demand for rapid decision-making have become increasingly critical.

The purpose of this study is to explore how the Industrial Metaverse can address these challenges in SCM by enhancing decision-making processes. Specifically, this study evaluates the role of metaverse technologies, such as AI and digital twins, in improving real-time data integration, operational efficiency, and risk management. Moreover, the research investigates how these technologies can support sustainability goals and build more resilient, adaptive supply chains that align with Industry 5.0 objectives.

As this research is still in its early phases, no empirical results will be presented in this paper. Instead, the paper
lays the groundwork for future research by outlining the key challenges and potential solutions enabled by the metaverse. The next section provides an overview of knowledge management in the metaverse, highlighting its potential for enhancing decision-making and collaboration. Following this, we present an analysis of the key challenges in supply chain management and explore how the metaverse can potentially address these issues. The paper concludes with a discussion of future research directions and an assessment of the metaverse's potential to transform supply chain management.

## II. KNOWLEDGE MANAGEMENT IN THE METAVERSE

### A. Knowledge Management

Knowledge management (KM) is the systematic process of acquiring, distributing, and effectively utilizing knowledge within an organization. It plays a crucial role in enabling organizations to harness the collective expertise and insights of their workforce to maintain a competitive advantage. KM encompasses various processes, including knowledge capture, transformation, storage, sharing, and application. These processes ensure that valuable knowledge is not only generated and retained but also disseminated and applied to enhance decision-making and solve organizational challenges. [2] [1]

In traditional settings, knowledge management relies on databases, documents, and manuals to store and share knowledge. However, the advent of new technologies, particularly in the metaverse, offers significant potential to optimize these processes. The metaverse provides immersive, interactive environments that facilitate real-time collaboration, learning, and decision-making, thus transforming how knowledge is managed. The KM process as illustrated in 1 typically follows a structured flow that begins with knowledge capture, where information is gathered from various sources, including employees, customers, and partners. This knowledge is then transformed into useful formats, making it easier to store and share. Knowledge sharing involves distributing this knowledge across the organization, while knowledge storage ensures that this valuable information is retained in accessible systems. The final step is knowledge application, where the captured and shared knowledge is used to make decisions, solve problems, and improve performance, creating a feedback loop for continuous organizational learning and development. [14] [11]

<figure><img src="image_2.png" /><figcaption>Fig. 1. Knowledge management process</figcaption></figure>

### B. Optimization of knowledge management in the metaverse

The metaverse has the potential to revolutionize KM by creating immersive, 3D environments that transcend physical boundaries and allow for real-time knowledge sharing and collaboration. In metaverse-driven KM systems, users can interact through avatars, participate in virtual simulations, and engage in collaborative decision-making processes, all within a shared digital space. This not only enhances traditional KM activities but also introduces new possibilities for creating, managing, and utilizing knowledge in ways that were previously unimaginable.

Knowledge Sharing in the Metaverse Knowledge sharing is a key process in KM, and the metaverse provides an environment that fosters enhanced collaboration and knowledge transfer. Virtual environments in the metaverse allow employees to engage in real-time discussions, access shared digital resources, and work together on complex tasks without the limitations of physical distance. For instance, industries can leverage immersive learning experiences, such as mixed reality simulations, to train employees in a more engaging and interactive way than traditional methods can provide.

One notable use case involves virtual reality (VR) environments where employees can collaboratively interact with digital twins—exact digital replicas of real-world objects or systems. This creates an ideal setting for knowledge sharing in industrial applications, such as supply chain management, where stakeholders can visualize processes, run simulations, and share insights in real time. Gamification and simulation-based learning also enhance engagement, allowing users to acquire new skills in a practical and immersive setting.

Knowledge Application in the Metaverse The application of knowledge is perhaps the most transformative aspect of KM in the metaverse. By leveraging real-time data integration and AI-driven analytics, the metaverse enables users to apply knowledge more efficiently to solve problems and make decisions. In a virtual environment, decision-makers can simulate various scenarios and outcomes, helping them better understand the impact of their choices before implementing them in the real world.

This capability is particularly valuable for supply chain management, where rapid, data-driven decision-making is critical to maintaining operational efficiency. The immersive, real-time data visualization offered by the metaverse allows stakeholders to explore complex supply chain networks, assess risks, and make informed decisions based on comprehensive data analysis. In this way, the metaverse not only facilitates the application of knowledge but also enhances decision-making by providing a richer, more interactive data environment.

The ability of the metaverse to enhance knowledge management—particularly through immersive knowledge sharing and real-time decision-making—provides critical advantages for industries with complex information flows, such as supply chain management. As we turn our focus to supply chain challenges, the integration of metaverse technologies offers
promising solutions to issues like operational efficiency and risk management. The following section outlines the key challenges facing supply chains today, setting the stage for how the metaverse can address these obstacles.

### III. SUPPLY CHAIN CHALLENGES

Supply chains today face a multitude of interrelated challenges that are reshaping their structure and operational strategies. These challenges arise from a combination of geopolitical tensions, technological advances, and heightened sustainability demands, all of which complicate the management of supply chains.

**Geopolitical Instability:** Global conflicts and regional tensions, such as the Ukraine conflict and disputes in the South China Sea, have disrupted the flow of goods and materials. In response, many companies are shifting from global to more regional or "glocal" models, reducing dependency on distant suppliers and focusing on localized sourcing and production strategies to mitigate risks [13].

**Unpredictable Demand and Supply Disruptions:** Post-pandemic recovery has brought significant volatility in demand, leading to issues such as overstocks and shortages across industries. Supply shortages, often exacerbated by geopolitical crises and climate-related events, further complicate the availability of critical raw materials, leaving companies struggling to effectively manage inventory and forecast demand [13].

**Sustainability Pressures:** Companies are increasingly under pressure to meet environmental, social, and governance (ESG) standards, balancing these requirements with operational efficiency. The push for sustainable practices, such as reducing carbon emissions and adopting circular supply chain models, often clashes with the cost and complexity of implementing these changes, especially in large, multi-tiered supply chains [5].

**Cybersecurity Threats:** The digitization of supply chains brings heightened vulnerability to cyberattacks. As more processes rely on digital platforms for real-time data sharing and automation, protecting these systems from breaches and disruptions is critical to ensuring operational continuity and data security [8].

**Labor Shortages and Skill Gaps:** The shortage of skilled labor, particularly in manufacturing and logistics, continues to hamper supply chain operations. Companies increasingly look to automation and outsourcing to fill these gaps, yet the transition to automated systems presents its own challenges, particularly in workforce adaptation and retraining [5] [13].

**Technological Integration:** While technologies such as artificial intelligence (AI), machine learning (ML), and digital twins(DT) promise enhanced supply chain efficiency, their implementation remains a challenge for many organizations. High costs, technical complexity, and the need for specialized skills act as significant barriers to full-scale adoption, leaving many companies reliant on outdated infrastructure that limits real-time decision-making [8].

<figure><img src="image_3.png" /><figcaption>Fig. 2. Most pressing supply chain problems in 2024 [8]</figcaption></figure>

The results of recent industry surveys further emphasize the gravity of the challenges that modern supply chains are currently grappling with. As shown in the figure 2, rising costs for raw materials top the list, with 71% of respondents identifying it as the most pressing issue for the next 12-18 months. This is followed closely by upstream supply disruptions at 70%, and customer expectations for speed, with 67% of businesses struggling to meet these demands. Other significant concerns include labor shortages and rising freight costs, both marked by 62% of respondents. These figures underscore the increasingly complex and volatile environment in which supply chains operate today. [8]

Having outlined the complex and interrelated challenges faced by supply chains, the next step is to investigate how the metaverse can address these issues. By leveraging its immersive, data-rich environments, the metaverse holds potential for transforming supply chain operations and decision-making. The following section examines the role of the metaverse in reshaping the supply chain landscape.

### IV. ROLE OF METAVERSE IN THE SUPPLY CHAIN

The metaverse is rapidly emerging as a transformative platform for supply chain management (SCM). By leveraging immersive, data-rich environments powered by technologies such as augmented reality (AR), virtual reality (VR), artificial intelligence (AI), blockchain, and digital twins, the metaverse
provides a dynamic space where physical and digital supply chain processes converge. This convergence enhances various operations, from logistics and manufacturing to planning and risk management, enabling organizations to achieve unprecedented levels of transparency, efficiency, and collaboration across the supply chain.

## A. Virtual Warehouses and Digital Twins

Digital twins allow companies to simulate, monitor, and optimize supply chain processes in real-time. Renault has implemented an industrial metaverse that tracks over 90% of its supply chain activities, processing more than one billion data points daily. This system enables predictive maintenance, which has led to a 60% reduction in vehicle delivery time and a 50% decrease in carbon emissions. The digital twin model also helps in identifying potential equipment failures before they happen, improving overall operational efficiency [4].

BMW and Siemens use digital twins to simulate factory processes, improving production efficiency and enabling real-time adjustments in their global supply chain. By creating digital replicas of their physical factories, these companies can predict disruptions and reroute resources as needed, reducing downtime and enhancing responsiveness to market demands [6].

## B. Enhanced Collaboration and Communication

The metaverse facilitates enhanced collaboration and communication among supply chain stakeholders through immersive virtual environments. BMW's collaboration with NVIDIA Omniverse allows cross-functional teams to collaborate in real-time, regardless of geographical location. This shared virtual workspace helps engineers, suppliers, and logistics teams visualize factory layouts, test new manufacturing processes, and resolve issues collaboratively [4].

In the fashion industry, companies like Puma and Adidas are using virtual spaces to collaborate on product design and supply chain management. By integrating digital twins into their supply chain, these brands are able to run real-time simulations, optimize inventory management, and enhance coordination between suppliers and retailers [6].

## C. Integration of Blockchain for Transparency and Security

Blockchain technology, when integrated with the metaverse, strengthens transparency and security across the supply chain. In the automotive sector, the Catena-X initiative leverages blockchain to provide digital product passports, ensuring the traceability and sustainability of materials throughout the supply chain. This system allows real-time tracking of parts and components, verifying their origin and authenticity, which enhances transparency and helps companies meet regulatory compliance.

Similarly, Renault's blockchain integration within its metaverse platform provides a secure and transparent record of transactions, reducing the risk of fraud and counterfeiting. By automating key processes through smart contracts, Renault can quickly identify and address potential supply chain risks, such as quality control issues or shortages [7].

<figure><img src="image_4.png" /><figcaption>Fig. 3. Metaverse applications in SC and its benefits [16]</figcaption></figure>

## D. Immersive Training and Workforce Optimization

The metaverse is revolutionizing workforce training and warehouse operations through immersive technologies. DHL has implemented augmented reality (AR) to optimize its order-picking processes in warehouses. Employees use AR glasses to receive real-time guidance during order fulfillment, leading to a 25% improvement in efficiency and a significant reduction in errors. This AR-driven approach has been scaled to multiple locations, including North America, demonstrating the broader applicability of immersive technologies in logistics [7].

In the logistics sector, UPS and Alibaba use virtual reality (VR) simulations to train employees on complex warehouse tasks. These immersive training programs enable workers to practice warehouse operations, such as picking, packing, and inventory management, in a risk-free environment. By simulating real-world scenarios, employees are better equipped to handle challenges in live operations, leading to improved safety and productivity [12].

While the applications of the metaverse in supply chain management show great promise, several key questions remain
unanswered. To fully harness its potential, further research is necessary to explore the specific ways in which these technologies can be implemented effectively. In the following section, we outline the research directions and open questions that will guide the next phase of this study.

# V. RESEARCH DIRECTIONS AND OPEN QUESTIONS

## A. Research steps

Our research follows a structured approach aimed at understanding how the metaverse can address key supply chain challenges and improve decision-making. The first step involves identifying the critical challenges within the supply chain. Once identified, we will use either a survey with a statistical approach to prioritize these challenges or employ classification methods such as ABC or AHP. After selecting the key challenges, we will explore how the metaverse can specifically address them, and later compare these findings with traditional supply chain management methods. Traditional methods have long focused on several strategies to manage supply chain challenges. For example, inventory management techniques such as Just-in-Time (JIT) have been essential in minimizing stock levels and reducing costs, though they can be vulnerable to sudden supply chain disruptions. Supplier relationship management, involving strategic partnerships and long-term contracts, has been another traditional method to secure steady supply and manage risks like material shortages [15].

<figure><img src="image_5.png" /><figcaption>Fig. 4. Research steps</figcaption></figure>

Moreover, demand forecasting has relied on techniques such as moving averages and exponential smoothing to predict customer demand and ensure that production aligns with market needs. While helpful, these traditional forecasting models often struggle with unpredictable market shifts.

In addressing transportation challenges, traditional supply chains have utilized multi-modal transportation strategies to balance costs and efficiency, leveraging various transport modes like sea, air, and land [3].

These methods have formed the backbone of traditional supply chain management. However, with the increasing complexity of global supply chains, limitations such as a lack of real-time data processing and insufficient agility in responding to disruptions have emerged. As we explore metaverse-based solutions, we will evaluate how they address these challenges more effectively by enhancing visibility, real-time data processing, and collaborative decision-making across the supply chain. This comparison will highlight the evolution from traditional methods to more adaptive, tech-driven approaches.

Finally, we aim to apply our developed framework in a real-world context through a case study. One potential case study could involve applying the framework to an industrial bottling process using the Cellflex system [17], which consists of several stations managing bottling, capping, and packaging operations. By leveraging both physical and virtual data collected from this system, we can simulate real-time scenarios using digital twins. This will include introducing system failures and supply chain challenges to compare the performance of traditional methods with those optimized through the metaverse approach.

## B. Research questions

Our research aims to answer the following key research questions:

**What are the key challenges in the supply chain that the metaverse will help address?** We will begin by applying a decision-making model to prioritize the most critical supply chain challenges. This will be based on several criteria, including the relevance of the challenge to the supply chain industry and its impact on overall supply chain performance. After identifying and prioritizing these key challenges, we will focus on how the optimization of knowledge management within the metaverse can address these issues. Specifically, we will develop a framework that maps the metaverse's response to these challenges and illustrates its potential to enhance decision-making processes across the supply chain.

**How will the metaverse improve decision-making models compared to classical methods?** Once the framework is established, we will explore how metaverse-based solutions can improve upon traditional decision-making models. This will involve conducting an empirical study on a supply chain scenario where variations are introduced into the process to simulate disruptions or challenges. By modeling this scenario, we aim to observe how the metaverse-driven system responds and measure its impact on the current supply chain framework. The results will be compared to classical decision-making
approaches to evaluate improvements in real-time adaptability, operational efficiency, and resilience.

**How can AI and digital twins in the metaverse optimize information flow and enhance decision-making?** A key component of the metaverse involves the integration of AI and digital twins to provide real-time insights and simulations. In this phase, we will examine how AI algorithms can be adapted within the metaverse to optimize the flow of goods, information, and data. The focus will be on creating adaptive algorithms that are aligned with the dynamic needs of global supply chains. By leveraging digital twins, we will explore how real-time simulations can enhance decision-making by predicting disruptions, assessing risks, and offering optimal solutions based on comprehensive data integration.

**How can the metaverse enhance collaboration and knowledge sharing among supply chain stakeholders?**
Collaboration between geographically dispersed supply chain stakeholders is critical to effective decision-making. The metaverse's immersive environments allow for enhanced real-time communication, enabling stakeholders to visualize and interact with supply chain processes in ways that traditional tools cannot. We will investigate how these virtual environments can facilitate better knowledge sharing and decision-making, particularly in the context of managing complex, multi-tiered supply chains. This exploration will include how the metaverse can provide a shared platform for stakeholders to resolve logistical challenges, plan collaboratively, and improve operational transparency.

# VI. CONCLUSION

In summary, the metaverse presents a transformative opportunity for addressing key challenges in supply chain management (SCM). Through the integration of digital twins(DT), artificial intelligence (AI), the Internet of Things (IoT), and immersive environments, the metaverse offers a dynamic platform for improving real-time decision-making, enhancing operational efficiency, and managing risks. By enabling real-time data integration, predictive analysis, and collaborative knowledge sharing, the metaverse can help supply chains become more resilient, agile, and transparent. The ability to simulate and optimize processes in virtual environments, combined with blockchain-based transparency, has the potential to significantly reduce inefficiencies and drive sustainability across the global supply chain.

However, while these possibilities are promising, further research is essential to fully validate and explore the practical applications of the metaverse in SCM. Future studies must focus on refining the integration of metaverse technologies with existing supply chain systems, addressing potential barriers such as technological complexity, scalability, and cybersecurity risks. Additionally, empirical research, including case studies and pilot projects, will be necessary to demonstrate the tangible benefits of metaverse-driven solutions in real-world supply chain environments. As we continue to investigate the role of the metaverse, it is crucial to align these advancements with Industry 5.0 principles, ensuring that supply chains

remain adaptive, human-centric, and sustainable in the face of growing global challenges.

This outlook suggests that while we are still in the exploratory phase, the potential impact of the metaverse on supply chain management is vast. By continuing to refine these technologies and frameworks, we can unlock new levels of efficiency, collaboration, and innovation in supply chain operations.

# ACKNOWLEDGMENT

The work presented in this article was carried out as part of DeMETERE, the winning project of the PIA4 DE-MOES (Higher Education Demonstrator) funded under the France 2030 plan - ANR-21-DMES-0011.

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