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1 – 10 of over 3000Florian Bienhaus and Abubaker Haddud
While digitisation is a key driver of the fourth industrial revolution (Industry 4.0); organisations have different approaches to deal with this topic to get a clearer picture of…
Abstract
Purpose
While digitisation is a key driver of the fourth industrial revolution (Industry 4.0); organisations have different approaches to deal with this topic to get a clearer picture of the opportunities and challenges concerning the digital transformation. The purpose of this paper is to identify the impact of digitisation on procurement and its role within the area of supply chain management. The research will also explore potential barriers to digitising procurement and supply chains and ways to overcome them. Finally, the significance of potential enabling technologies to the digitisation will also be examined.
Design/methodology/approach
A quantitative approached utilising an online survey was used to collect the primary data for this study. Data were collected from 414 participants directly involved with procurement or related business functions and work for different organisations in different industries. The survey included eight items about the impact of digitisation on organisational performance in the area of procurement and supply chains; ten items related to key barriers to digitisation of organisations and ways to overcome them; and seven items about enabling technologies to leverage procurement procedures and processes digitisation. All of these items utilised the Likert five-point level of agreement scale.
Findings
The findings indicate that digitisation of procurement process can yield several benefits including: supporting daily business and administrative tasks, supporting complex decision-making processes, procurement will become more focussed on strategic decisions and activities, procurement will become a strategic interface to support organisational efficiency, effectiveness, and profitability, and supporting the creation of new business models, products, and services. The authors were also able to confirm that there are barriers to digitising procurement process and supply chains and such barriers found in existing procedures, processes, capacities, and capabilities. Finally, the significance of a number of enabling technologies to the digitisation process was revealed.
Originality/value
To the best of the authors’ knowledge, this is the first study of its kind with participants located world-wide. Industry 4.0 as a topic had been explored within different business areas and functions but very limited research specifically explored potential impact, barriers, and enabling technologies of procurement 4.0. The results can be beneficial for organisations already implemented Industry 4.0 or planning to do so. The study can also benefit academic scholars interested in the researched topic, business professionals, organisations within different sectors, and any other party interested in understanding more the concept of procurement 4.0.
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Ashraf Mishrif and Asharul Khan
The border closure and lockdowns due to Covid-19 pandemic resulted in partial closure of many industrial and commercial complexes, halted the performance of key strategic sectors…
Abstract
Purpose
The border closure and lockdowns due to Covid-19 pandemic resulted in partial closure of many industrial and commercial complexes, halted the performance of key strategic sectors such as logistics and supply chains, and thus disrupted the global value chains and the economy. The authors argue, however, that the pursuit of survival has driven companies to innovate and use digitization to overcome the negative consequences of the pandemic. More specifically, in this paper the authors aim to assess the success and challenges faced by companies in digitization policy design, adoption and implementation and their effects on firms’ operation, outputs and customer base during Covid-19.
Design/methodology/approach
Sixty-one samples of the companies surveyed between 10 January and 30 April 2021 were analyzed, using the Krushkal–Wallis test and Independent-Samples Mann–Whitney U test to identify the relationships between variables including operation, overall output, customer base, digitization policy, technology use and implementation costs of new technologies.
Findings
Results revealed a positive impact of digitization on the operation and overall outputs, while no effect was observed on the customer base. Analysis also showed that only 1.8% of companies were able to fully implement digitization, and that the cost of technology prevented most companies from using emerging technology or implementing their digitization policy.
Research limitations/implications
While the research has practical implications, it is not without flaws. For instance, the outcome of technology varies as per geographic area and people. The study was conducted in the Sultanate of Oman, a developing country in the Middle East region; therefore, it is difficult to generalize the outcomes suited to developed countries. The developed countries usually have a population quite used to the advanced technologies so some of the issues raised in the study might not work in the logistics and supply chain sectors of the developed countries. Such countries need separate studies.
Practical implications
The findings will have implications for both supply chain companies as well as the technology providers. The supply chain companies will invest in technology infrastructure and add technology as an important component in their business models. The technology providers will consider the costs of implementation and adoption issues of technology in the supply chain companies.
Originality/value
To the best of authors' knowledge, no work has been produced on logistics and supply chain companies considering the technological sustainability during the time of Covid-19. The study will improve understanding of the digitization policy design, adoption and implementation and their effects on logistics and supply chain companies’ performance.
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The purpose of studying digitization transformation of the supply chain is to understand how digital technologies and processes are changing the way supply chains operate and to…
Abstract
Purpose
The purpose of studying digitization transformation of the supply chain is to understand how digital technologies and processes are changing the way supply chains operate and to identify the opportunities and challenges associated with this transformation. Studying digitization transformation of the supply chain is important because it can help global businesses in identifying the best practices in supply chain management (SCM) systems and enhance supply chain performance. Hence, this research study is contributing in revealing the outcomes of digital inclusiveness in overall SCM for the growth of retail and e-commerce based platforms.
Design/methodology/approach
This research is using both descriptive and explanatory research designs to provide a comprehensive understanding of the problems in SCM. Descriptive research provides a detailed description of the characteristics of the population under study, while explanatory research identifies the causal relationships between the variables. Descriptive research has helped us to develop hypotheses about the relationships between variables that can be tested using explanatory research. Explanatory research has been used to validate the findings of descriptive research. By using both descriptive and explanatory research designs, our research design has increased the generalizability of our findings.
Findings
According to this study, businesses intend to change their supply chain strategies after the wake of competitive era to make them more robust, sustainable and collaborative with suppliers, customers and stakeholders by investing more in SCM technology like Blockchain, AI, analytics, robotic process automation and data control centers. This study evaluates the impact of digitization on supply chain systems. This includes assessing the benefits of digitization and identifying the factors that contribute to successful implementation. This research is studying the role of data analytics in SCM and how it can be leveraged to improve efficiency, reduce costs and increase transparency.
Research limitations/implications
The study highlights the importance of adopting digitization in supply chain systems to improve supply chain robustness, sustainability and collaboration with stakeholders. This study's emphasis on data analytics in SCM presents an opportunity for businesses to gain insights into their supply chain systems and make data-driven decisions. This can enhance efficiency, reduce costs and improve overall supply chain performance. The study's focus on SCM technology and data analytics may overlook other factors that contribute to successful SCM, such as organizational culture, human resources and supply chain governance.
Originality/value
This study will complement to the existing body of information, management theory and practice and will benefit all. The research work is original and can be implemented worldwide to promote digitization in SCM for smooth transactions in the entire chain of wholesalers, retail distributors and customers.
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Chunguang Bai, Roberto Antonio Martins and Joseph Sarkis
Marijn G.A. Plomp and Ronald S. Batenburg
The purpose of this paper is to develop a validated measurement model and typology for chain digitisation maturity, defined as the degree of interorganisational collaboration…
Abstract
Purpose
The purpose of this paper is to develop a validated measurement model and typology for chain digitisation maturity, defined as the degree of interorganisational collaboration through ICT.
Design/methodology/approach
Through a literature (meta) study, 22 existing maturity models are found and analysed, on the basis of which an integrated framework is developed. This framework is subsequently applied to interorganisational collaboration within the Dutch retail sector (i.e. retailers and their wholesalers, manufacturers, customers, and trade organisations). The measurement model is tested by determining the chain digitisation level of 24 different retail sub‐sectors (branches) through desk research, interviews, and surveys. Data are collected at the level of the branch, mainly through representatives of trade organisations.
Findings
The framework (i.e. measurement model) appears to be applicable to describing the Dutch retail sector and comparing its branches, providing both expected and new insights. The typology supports the vision of the combination of two dimensions: the level of technology and the level of organisation.
Research limitations/implications
The framework has been applied to the (Dutch) retail sector only. It seems suitable for application to other sectors as well.
Practical implications
The empirical application provides an extended view of the current situation of the (Dutch) retail sector with regard to chain digitisation. On this basis, a roadmap can be derived to support the adoption and deployment of chain digitisation among retail organisations.
Originality/value
The framework for chain digitisation and the derived typology are of value to the SCM research community, as they are specifically developed and tested at the level of interorganisational chains.
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Abstract
Purpose
This paper breaks through the limitations of the research on bullwhip effect in the traditional supply chain, extends the research perspective to digital supply chain and discusses the weakening effect of digital supply chain on bullwhip effect by comparing the overall performance of the two.
Design/methodology/approach
This paper starts with the weakening mechanism of supply chain digitization on bullwhip effect, builds bullwhip effect models of traditional supply chain and digital supply chain, respectively, simulates the influence of supply chain digitization transformation on bullwhip effect by using Matlab software and analyzes the causes of bullwhip effect in supply chain led by T company and the digitization process.
Findings
Firstly, digitization can reduce bullwhip effect in multi-level supply chain by reducing information feedback deviation. Second, digital transformation is conducive to improving the overall performance of the supply chain. Third, government incentives can promote the digital transformation of supply chain and inhibit bullwhip effect.
Research limitations/implications
Although the study considers the heterogeneous subject -- the government's incentive effect on digital transformation and information sharing – it does not include the influence of the end node in the supply chain, that is the consumer. In addition, this paper only analyzes and discusses the bullwhip effect on the amplification of demand, without considering the situation that the market contraction will lead to the reduction of demand.
Practical implications
This paper considers the distortion degree and delay degree of information feedback, carries out quantitative analysis of bullwhip effect, builds the bullwhip effect model of traditional supply chain and digital supply chain, uses Matlab software to analyze the difference of the influence of supply chain digital transformation on bullwhip effect suppression and puts forward the corresponding control strategy.
Social implications
The research shows that digital transformation can reduce the bullwhip effect in multi-layer supply chain by reducing the information feedback deviation, which is conducive to improving the overall supply chain performance, and government support can accelerate the digital transformation of supply chain to a certain extent.
Originality/value
First, break through the limitations of traditional supply chain research, expand the research perspective to digital supply chain and discuss the weakening effect of digital supply chain on bullwhip effect by comparing the overall performance of the two. Second, quantify the bullwhip effect through information feedback bias and provide an analysis method for the weakening of the bullwhip effect. Third, the driving role of the government in the digital transformation of the supply chain is considered in the study, so that the model is more close to the actual situation of enterprise operation.
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Yangyan Shi, Xiaofei Zheng, V.G. Venkatesh, Eias AI Humdan and Sanjoy Kumar Paul
Facing turbulent environments, firms have strived to achieve greater supply chain resilience (SCR) to leverage the resources and knowledge of supply chain members. Both SCR and…
Abstract
Purpose
Facing turbulent environments, firms have strived to achieve greater supply chain resilience (SCR) to leverage the resources and knowledge of supply chain members. Both SCR and supply chain integration (SCI) require digitization in the supply chain, but their interrelationships have rarely been researched empirically. This paper aims to uncover the impact of digital technology (DT) on SCR and SCI and the role of SCI in mediating between DT and SCR.
Design/methodology/approach
China manufacturing enterprises were surveyed through a Web-based questionnaire, and 96 responses were received. Structural equation modeling was used to test the conceptual model.
Findings
The level of enterprise digitization is not directly related to supply chain resilience, but the level of enterprise digitization has a positive impact on the improvement of SCI and SCI also has a positive effect on SCR. Therefore, SCI has a complete intermediary effect between the level of DT and SCR.
Originality/value
This is a pioneer study to examine the relationships among DT, SCI and SCR. The findings of this study present that firms need to improve DT, SCI and SCR consequently.
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Zulqurnain Ali, Bi Gongbing and Aqsa Mehreen
A growing need for financing in small and medium enterprises (SMEs) has become a significant obstacle to the development of firms. To remove this barrier, the purpose of this…
Abstract
Purpose
A growing need for financing in small and medium enterprises (SMEs) has become a significant obstacle to the development of firms. To remove this barrier, the purpose of this paper is to examine how supply chain finance (SCF) assists the firms to improve their performance by utilizing the resource-based view (RBV). Furthermore, the present study also pursues to test the effect of trade digitization as a moderating variable in the relationship between SC finance and the firm performance.
Design/methodology/approach
Using data from the textile sector, the authors run confirmatory factor analysis in AMOS 24 and hierarchical linear regression model in SPSS 23 to measure the proposed model and hypotheses, respectively.
Findings
The study suggests that SCF significantly improves the SMEs performance. Moreover, trade digitization strengthens the relationship between SCF and SMEs performance. Thus, the current study significantly describes the firm RBV through SCF and trade digitization to predict the SMEs performance.
Practical implications
SMEs entrepreneurs or executives can optimize the working capital through SCF and enhance the visibility of transactions through digitization for improving SMEs performance. Moreover, SCF protects the SMEs due to its nature of risk mitigation strategy.
Originality/value
This study covered the unexplored gap in the previous literature of supply chain management by establishing the relationship between SCF and the firm performance empirically while identifying the role of trade digitization as moderating variable in the context of textile SMEs by employing RBV theory.
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Supply Chain Management, Technology, Procurement, Supply Chain Finance
Abstract
Subject area
Supply Chain Management, Technology, Procurement, Supply Chain Finance
Learning outcomes
The key learning objectives are as follows: to gain critical insights into e-commerce supply chains of fashion garments; understand the importance of digitization to manage the risks due to supply chain disruptions; evaluate the role of digitization to improve supply chain performance; understand the importance of supply chain finance in maintaining a healthy buyer–supplier relationship; and appreciate the role of supply chain digitization to transform a regional supply chain into a global supply chain.
Case overview/synopsis
This case highlights the challenges faced by fashion garments industry due to fragmented nature of their supply chains, where the manufacturing base was in the east and most of the consumers in the west. Digitization can create a bridge to integrate these supply chains to drive out their inefficiency, fragility and vulnerability to disruptions.
Complexity academic level
The case could be discussed in 90 min of an Operations Management, Supply Chain Management and Technology Management class at MBA or Executive MBA level.
Supplementary Material
Teaching notes are available for educators only.
Subject code
CSS 9: Operations and Logistics.
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Jean-Noël Beka Be Nguema, Gongbing Bi, Zulqurnain Ali, Aqsa Mehreen, Christophe Rukundo and Yangqian Ke
Several manufacturing firms are facing various internal concerns such as financial and operational issues, which strongly pushed the firms to search for solutions (e.g. supply…
Abstract
Purpose
Several manufacturing firms are facing various internal concerns such as financial and operational issues, which strongly pushed the firms to search for solutions (e.g. supply chain finance; SCF) to sustain their supply chain operations and supply chain effectiveness (SCE). In this view, this study attempts to explore four key factors influencing the adoption of SCF, which, in turn, impacts SCE in Chinese manufacturing firms. Therefore, this study aims to propose that how information sharing, external collaboration, digitization and financial institutions enable manufacturing firms’ to adopt SCF that subsequently enhances SCE. Moreover, how supply chain risk (SCR) mediates the association between SCF adoption and SCE.
Design/methodology/approach
The current research recruited 177 Chinese manufacturing firms administrating a questionnaire to supply chain managers and tested the proposed conceptual model and associations using structural equation modeling.
Findings
The results reveal that all four factors are positively related to the adoption of SCF, which consequently improves the SCE of manufacturing firms. Moreover, the findings show that the effect of SCF significantly and positively impact SCE. Further, the result also confirmed that SCF significantly mitigates SCR, thereby leads to improves SCE.
Research limitations/implications
The current study mainly focuses on Chinese manufacturing firms, which may generate low generalizability. In addition, this study was based on a cross-sectional research design which may generate common method bias. Therefore, more comparative studies are needed between developed and developing countries to enhance the generalizability of the study findings.
Practical implications
This study provides significant new insights about how marketing managers and practitioners can adopt SCF in manufacturing firms via information sharing, external collaboration, digitization and financial institutions to mitigate firm risk and enhance SCE.
Originality/value
The approach used in this research differs from many of the previous studies and investigates the factors of adoption of SCF and their impact on SCE in the manufacturing firm sector within the context of the Chinese economy. Therefore, this research is an important guide for scholars, managers and executives of marketing, while providing them with a new model, significant insights which are significant in their organizations.
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