With the evolution of Industry 4.0, the most advanced technologies have been invented and due to rapid globalisation, supply chains (SC) have become vulnerable to various risks and reconfiguration of supply chain design has gained a significant consideration in recent years. This paper intends to provide a critical literature review on the current research practices and identify the key factors influencing the reconfiguration of supply chain design in the digital environment and prioritise the factors considering relative importance and develop a framework to mitigate the risk level. A systematic literature review is conducted to identify and analyse the key factors that influence the reconfiguration of supply chain design, and Analytical Hierarchy Process (AHP) method used to develop a conceptual framework. The findings of this study revealed that reconfiguration of supply chain design in digital environment sheds light on future research and focuses on the potential to enhance supply networks’ efficiency and responsiveness.