THE IMPACT OF DIGITAL TRANSFORMATION ON SUPPLY CHAIN MANAGEMENT
Abstract
The digital transformation of supply chain management (SCM) is revolutionizing the way businesses operate, driving efficiency, and enhancing competitiveness. This review paper examines the profound impact of digital technologies on SCM, highlighting the benefits, challenges, and future directions of this transformative process. Digital transformation involves the integration of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), blockchain, big data analytics, and cloud computing into supply chain processes. These technologies enable real-time data collection, predictive analytics, enhanced visibility, and automated decision-making, significantly improving procurement, production, logistics, inventory management, and customer service. The paper explores how IoT facilitates real-time tracking and monitoring of goods, while AI and ML provide sophisticated demand forecasting and predictive maintenance capabilities. Blockchain technology enhances transparency and security in supply chain transactions, reducing fraud and errors. Big data analytics and cloud computing offer robust platforms for analyzing vast amounts of data, optimizing supply chain operations, and improving strategic planning. Furthermore, the adoption of robotics and automation in manufacturing and warehousing processes accelerates production and reduces human error. Despite the numerous advantages, the paper also addresses the challenges and barriers to digital transformation in SCM, such as high implementation costs, integration issues with legacy systems, data security concerns, and the need for workforce reskilling. Through a detailed examination of case studies and industry examples, the paper illustrates successful digital transformation initiatives and the lessons learned. Looking ahead, the paper discusses emerging trends and future directions, emphasizing the continuous evolution of technologies and their potential to further transform SCM. This review provides valuable insights for practitioners and researchers, offering a comprehensive understanding of the current state and future prospects of digital transformation in supply chain management.
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References
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