A Framework of Supply Chain Strategies to achieve competitive advantage in Digital era

Abstract

Listen

Translate article

Today's supply chains are becoming more competitive, complex, costly, risky and unpredictable. Usage of Information and Communications Technology (ICT), digital technology, and big data analysis develops traditional supply chains into smarter supply chains and enable effective management of future challenges in digital era. These technologies of digital era are found to achieve the basic objectives of supply chain such as, faster, cheaper and better product availability and customer reach. The digital era consists of Internet of Things (IoT), Big Data and Analytics, Interconnectivity of digital devises and it requires advanced technologies to capture, collect, store, analyze and interpret huge information. The IoT is a network of hardware, software, devices, databases, objects, sensors, and systems, all working at the service of humanity. With IoT smart devices, supply chain firms would be able to reduce the information acquisition costs. The current evolution of big data in the digital era and an appropriate analysis of this data would provide a huge benefit in terms of positive outcomes in supply chain for companies which utilize and implement them during the next decade. The data driven revolution is going to sweep the way the future business is done and the way supply chain is managed. Big data analytics (BDA), known as ‘supply chain analytics' in supply chain management can help firms gain competitive advantage and achieve the status of ‘Smart Supply Chain’. Supply chain management in Digital Era is influenced through the analysis of wide range of data available in supply chain through various sources such as i) Product Design, ii) Supply Chain Design, iii) Sourcing, iv) Production, v) Warehousing, vi) Transportation, vii) Point-of-Sale to viii) Consumer. Supply chains will be operated in a more networked manner than they are today in the digital era. Organizations need to develop new collaborative models and scalable approaches for managing their supply chains more effectively in the digital era. Digital marketplaces and data cleanroom will enable the data transparency and smooth coordination with strategic supply chain partners. Organizations need to achieve new competitive capabilities like visibility, real-time response and digitization in the digital era in supply chain management. Though some leading companies have already commenced to modify their customer value propositions, and attempting to transform their supply chain operations using digital technologies, consensus has not yet evolved among researchers on what strategies to be adopted by the organizations to achieve supply chain related competitive advantage in the digital era. Therefore, there is a need to study the future strategies of supply chain to be adopted by business organizations to achieve positive outcomes in the digital era. This paper attempts to fill this gap in the body of knowledge by developing a framework of supply chain strategies and their enablers in digital era. It would aid organizations in redesigning their supply chain strategies to achieve supply chain related competitive advantage.