The Digital Supply Chain

1st Edition - June 9, 2022
Editors: Bart L. MacCarthy, Dmitry Ivanov
Language: English
Paperback ISBN:
9 7 8 - 0 - 3 2 3 - 9 1 6 1 4 - 1
eBook ISBN:
9 7 8 - 0 - 3 2 3 - 9 1 6 1 5 - 8

The Digital Supply Chain is a thorough investigation of the underpinning technologies, systems, platforms and models that enable the design, management, and control of digitally… Read more

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The Digital Supply Chain is a thorough investigation of the underpinning technologies, systems, platforms and models that enable the design, management, and control of digitally connected supply chains. The book examines the origin, emergence and building blocks of the Digital Supply Chain, showing how and where the virtual and physical supply chain worlds interact. It reviews the enabling technologies that underpin digitally controlled supply chains and examines how the discipline of supply chain management is affected by enhanced digital connectivity, discussing purchasing and procurement, supply chain traceability, performance management, and supply chain cyber security. The book provides a rich set of cases on current digital practices and challenges across a range of industrial and business sectors including the retail, textiles and clothing, the automotive industry, food, shipping and international logistics, and SMEs. It concludes with research frontiers, discussing network science for supply chain analysis, challenges in Blockchain applications and in digital supply chain surveillance, as well as the need to re-conceptualize supply chain strategies for digitally transformed supply chains.

Covers both theoretical and practical points-of-view
Contains material that readers from different backgrounds and disciplines will find informative
Examines digital practices and challenges in-depth across a wide range of sectors
Provides up-to-date, critical insights on the design, management and control of digitally connected supply chains
Written by experts with strong backgrounds in the field

Endorsements
"Digitalization is transforming all business transactions. This timely issue is the focus of this exciting new book edited by Bart MacCarthy and Dmitry Ivanov. The book focuses on how digitalization is changing supply chains and supply chain management in these unsettling times when supply chain security and resilience take the center stage. This edited book is most comprehensive with 24 chapters covering digital technologies, systems, platforms. The book provides chapters addressing supply chain digitalization in many critically important sectors including retailing, automotive, food, textiles and clothing, logistics and shipping, and in SMEs. These topics are of interest to practitioners. For researchers, the frontiers of research in the Digital Supply Chain are also addressed with chapters on supply network analysis, digital surveillance of supply chains, supply chain cyber security, and scaling Blockchain solutions for supply chain traceability. The book also addresses how digitalization affects supply chain sustainability and how it will affect future supply chain strategies.
The Editors of the Digital Supply Chain must be commended for bringing together such an exciting text that is directly relevant to the challenges we face in today’s global economy." --Christopher S. Tang Distinguished Professor and Edward W. Carter Chair in Business Administration Faculty Director, Center for Global Management UCLA Anderson School of Management University of California, Los Angeles

"Digital transformation of supply chains is one of the most important and timely topics in operations management. It shapes Industry 4.0 and beyond. MacCarthy and Ivanov’s book is the first of a kind creating a comprehensive picture of the related managerial challenges and technological solutions to design and operate digital supply chains. The book covers topics ranging from product tracking and traceability to the impacts of digitalization on supply chain sustainability. The book will be useful for professionals, senior researchers, young faculty and graduate students. In particular, on one hand, the chapters of the book offer introduction to basic understanding of digital technologies and the associated management principles and business models. On the other hand, real-life examples and case-studies illustrate the theories of the topic, which help advance our understanding towards when and how the digital supply chain can provide competitive advantages for companies improving profitability, resilience, and sustainability. This book is an exciting read. The Editors are both well-established top experts in the field and they did an excellent job in putting the materials together in a clear and logical sequence of topics. I would strongly recommend this book." --Tsan-Ming Choi (Jason), PhD, Yushan Fellow and Professor Department of Business Administration, College of Management, National Taiwan University, Taiwan

"The Digital Supply Chain book covers topics on the principles and technologies to design supply chains as cyber-physical systems. Along with the strong theoretical background about Data Analytics, Blockchain, Artificial Intelligence and Digital Twins, the book also showcases many practical applications. The chapters are written by the leading experts in the field, and the Editors have managed very well to structure them into a coherent whole covering the fundamental building blocks, the management of the Digital Supply Chain, cases from different business and industry sectors, and the research frontiers at the leading edge of the subject. I was able to find answers to all of my questions about the Digital Supply Chain in this book, and I am strongly convinced that this will be an invaluable source for both practice and academia." --Alexandre Dolgui Dr.habil., Ph.D. Professor and Head Automation, Production and Computer Sciences Dept. IMT Atlantique, France. Editor-in-Chief – The International Journal of Production Research

"The Digital Supply Chain book that defines a new field by illustrating all facets of the topic. The authors analyse all fundamental technologies for supply chains to succeed in the digital areas. Key features are the numerous illustrative case studies from technology leaders and the combination with most recent research insights. Highly recommended!" --Constantin Blome Professor of Operations Management and Associate Dean for Research University of Sussex Business School, UK. Co-Editor-in-Chief: International Journal of Operations & Production Management

"This new book focuses on a vitally important topic - the digitalisation of supply chains. It critically reviews the technologies and systems that enable supply chains to be strongly connected digitally. Chapters examine digital challenges and opportunities for purchasing, manufacturing, warehousing, and logistics. The book also covers many of the hot topics of current interest to supply chain researchers and practitioners, including Blockchain, the Cloud, Platforms, Digital Twins, Analytics and supply chain network analysis. The sectors examined range from retailing and clothing to the automotive industry and international shipping. The book is a milestone reference for advanced supply chain operations management for senior and postgraduate students as well as supply chain officers and managers. The Editors, MacCarthy and Ivanov, are to be congratulated for putting together such a stimulating collection of studies to enrich our understanding of digitally connected supply chains." --George Q. HUANG, BEng PhD CEng FASME FCILT FIET FHKIE FIISE Chair Professor and Head of Department, Department of Industrial and Manufacturing Systems Engineering, The University of Hong Kong, China

"This new book edited by Bart MacCarthy and Dmitry Ivanov examines how digital technologies are transforming the design and management of supply chains. The text covers the emergence of digitally enabled supply chains, their information architectures, governance, and sustainability. Chapters of interest to supply chain professionals include traceability systems design, digital purchasing and procurement, and supply chain cyber security. Cases reported span the digitalization of supply chains in major industrial sectors as well as SME engagement in digital ecosystems. For the research community there are chapters on the mathematical analysis of supply networks, digital surveillance of supply chains, blockchain applications and supply chain strategy. The Editors are to be praised for this admirable collection of chapters that will be an important marker for supply chain management research and practice." --Dr Xiande Zhao JD.COM Chair Professor in Operations and Supply Chain Management China Europe International Business School (CEIBS) Shanghai, China

"In this book, MacCarthy, Ivanov, and a host of contributors provide a scholarly and comprehensive treatment of end-to-end digitalization of supply chain processes. The chapters provide insightful looks at the evolution of digital technologies in each of the major plan, source, make, deliver, activities that make up supply chains. In addition, readers will find explanations and great examples of all the primary enabling technologies undergirding digital transformation, as well as a primer on how to measure, manage, and master change. I highly recommend this resource!" --Professor Morgan Swink Eunice and James L. West Chair of Supply Chain Management Executive Director, Center for Supply Chain Innovation Neeley Business School TCU, Fort Worth, Texas , USA

"An excellent and timely publication. Competition is driving firms to adopt Industrial Digital Technologies at an ever faster pace and academia needs to understand the major challenges and research questions being faced. This book acts as an excellent overview of these technologies and provides a great set of research topics for those researching in this space." --Prof Roger Maull Academic Director, Initiative for the Digital Economy, University of Exeter, UK

"This new book focuses on a vitally important topic - the digitalisation of supply chains. It critically reviews the technologies and systems that enable supply chains to be strongly connected digitally. Chapters examine digital challenges and opportunities for purchasing, manufacturing, warehousing, and logistics. The book also covers many of the hot topics of current interest to supply chain researchers and practitioners, including Blockchain, the Cloud, Platforms, Digital Twins, Analytics and supply chain network analysis. The sectors examined range from retailing and clothing to the automotive industry and international shipping. The book is a milestone reference for advanced supply chain operations management for senior and postgraduate students as well as supply chain officers and managers. The Editors, MacCarthy and Ivanov, are to be congratulated for putting together such a stimulating collection of studies to enrich our understanding of digitally connected supply chains."--George Q. HUANG, BEng PhD CEng FASME FCILT FIET FHKIE FIISE Chair Professor and Head of Department, Department of Industrial and Manufacturing Systems Engineering, The University of Hong Kong, China

"The post pandemic world has shed light on supply chains and how vital they are for the world’s economy. This important book is one of the first to comprehensively examine the impact of digitalization on the design and control of supply chains. It introduces and analyzes the technologies that are changing the nature of supply chains, from smart factories and smart warehouses to globally connected shipping systems using Blockchain. It does not shy away from the many challenges that arise in data rich supply chain ecosystems. The book is a most valuable and welcome resource for practitioners studying the latest trends in digital supply chain management and researchers seeking the most promising avenues for investigation." --Professor David Simchi-Levi, Professor of Engineering Systems & Director of the Data Science Lab, MIT - Massachusetts Institute of Technology

"The impact of digitalization on supply chains is profound and long lasting with supply chain scholars and practitioners recognising how digital technologies transform logistics and supply chains operations. Digitalization is also creating a plethora of operational advantages and synergies for companies and businesses including, inter alia, the provision of major operational efficiencies, interconnectivity, visibility and understanding between supply chain members at firm and supply chain network level.

This edited book extends our current knowledge and understanding regarding digital supply chains by providing a holistic and comprehensive analysis of numerous digital technologies involved in each supply chain stage and by illustrating a sectoral perspective showing how digital technologies are adopted by specific industries and sectors.

Another core strength of this book is the "Research Frontiers in the Digital Supply Chain" section, which illustrates how this new era of digitalization in supply chains can pave the way for further theoretical advancement of academic thinking and conceptualisation. This is a "must-read" book for anyone interested in digital supply chains. It will be invaluable for graduate students, researchers, managers and practitioners aiming to familiarise themselves with the role and impact of digitalization on supply chains." --Professor Michael Bourlakis, Head of the Logistics, Procurement & Supply Chain Management Group, Cranfield School of Management, UK

Cover image
Title page
Table of Contents
Copyright
Contributors
Preface
Part I. Introduction
Chapter 1. The Digital Supply Chain—emergence, concepts, definitions, and technologies
1. A transformative decade
2. Emergence of the Digital Supply Chain
3. Building blocks for the Digital Supply Chain
4. Defining the Digital Supply Chain
5. Many opportunities, many challenges
6. Outline of book contents
Part II. Digital building blocks and enabling technologies
Chapter 2. Digital Manufacturing: the evolution of traditional manufacturing toward an automated and interoperable Smart Manufacturing Ecosystem
1. Introduction—the evolution of production paradigms
2. Interoperability and automation
3. Interoperable Digital Twins and predictive maintenance in modern manufacturing
4. Digitalization and smart factories: trends and future challenges
5. Conclusions
Glossary of acronyms
Chapter 3. Smart warehouses—a sociotechnical perspective
1. The digital supply chain transforms the requirements for warehousing
2. Warehouse management
3. Smart warehouses: enabling technologies
4. Order-picking in the smart warehouse
5. Smart warehouses are sociotechnical systems
6. Conclusions
Chapter 4. The Internet of Things—an emerging paradigm to support the digitalization of future supply chains
1. Introduction
2. The basic concepts of IoT
3. Supply chain management, novel digital technologies, and IoT
4. IoT applications in OM and SCM
5. Future challenges for IoT in the supply chain
6. Perspectives on IoT adoption and implementation in supply chains
7. Conclusions, limitations, and future research
Appendix A
Chapter 5. The cloud, platforms, and digital twins—Enablers of the digital supply chain
1. Introduction
2. Perspectives on cloud-based systems
3. Platform technologies
4. Digital twins
5. Conclusions
Chapter 6. Algorithms, Analytics, and Artificial Intelligence: harnessing data to make supply chain decisions
1. Introduction
2. Current and prevalent algorithms and AI techniques
3. Current AI and algorithmic applications with the most impact
4. Potential techniques and emerging areas of application for AI and algorithms
5. Conclusion and perspectives
Chapter 7. The impact of digitalization on contemporary and future logistics
1. Introduction
2. Digitalization in logistics and supply chain management
3. Cloud-based systems
4. Emerging technologies
5. Concluding observations and future prospects
Chapter 8. Blockchain technologies in the digital supply chain
1. Introduction
2. Functionality of blockchain
3. Blockchain in the academic supply chain literature
4. Industrial applications of blockchain
5. Conclusion and further research
Part III. Managing the Digital Supply Chain
Chapter 9. Digital architectures: frameworks for supply chain data and information governance
1. Introduction
2. Data as a resource—the need for data quality
3. Data and information architectures
4. Data sharing agreements
5. Data attributes, sharing, and access control
6. Actors, roles, and relationships in data sharing
7. Conclusions
Chapter 10. Supply chain traceability systems—robust approaches for the digital age
1. Introduction
2. Visibility, transparency, and traceability
3. Motivations for traceability and transparency
4. Information requirements for traceability systems
5. Enabling technologies
6. Challenges
7. An illustrative case: the wood supply chain
8. Conclusion
Chapter 11. Digital purchasing and procurement systems: evolution and current state
1. Introduction—the rise of digital procurement systems
2. The development of digital procurement systems
3. Research perspectives on digitalization of procurement
4. Hitachi case study
5. Looking ahead: the future of digital procurement systems
6. Conclusions
Chapter 12. Measuring and managing digital supply chain performance
1. Introduction
2. A framework for performance management in digital supply chains
3. Case studies
4. Impact of emerging technologies on performance measurement and management
5. Conclusions
Chapter 13. The art of cyber security in the age of the digital supply chain: detecting and defending against vulnerabilities in your supply chain
1. Introduction
2. Governments, consultancies, and industry approaches
3. Research on supply chain cyber security
4. Research frontiers
5. Conclusions
Part IV. Digital Supply Chain — sectoral cases
Chapter 14. Digital retail—key trends and developments
1. Introduction
2. The reshaping of the retail value chain
3. Platform-based retail ecosystems—the cases of Alibaba and Amazon
4. Discussion
5. Conclusions
Chapter 15. Digitalization in the textiles and clothing sector
1. Introduction
2. Digital clothing design and sample development
3. Digitalization of clothing supply and manufacturing networks
4. Digitalization of clothing distribution and retail formats
5. Digitally enabled clothing circularity
6. Conclusions
Chapter 16. Digitalization in production and warehousing in food supply chains
1. Introduction
2. DigiMat—an innovation project between a food supply chain and academia
3. Characteristics of food supply chains
4. Introduction to cases
5. Conclusions and future research perspective
Chapter 17. Automotive supply chain digitalization: lessons and perspectives
1. Introduction
2. Overview of SC digitalization in the automotive sector
3. Lessons from the SC digitalization of a car manufacturer
4. Conclusions
Chapter 18. Digitalization of the international shipping and maritime logistics industry: a case study of TradeLens
1. Introduction
2. Methodology
3. Digitalization in the maritime industry
4. TradeLens: a blockchain-enabled digital solution in the shipping industry
5. Impact of shipping industry digitalization on the shipping ecosystem
6. Discussion and conclusion
Chapter 19. How can SMEs participate successfully in Industry 4.0 ecosystems?
1. Introduction
2. Supply chain technology solution provision in Industry 4.0
3. Methodology
4. Starting collaboration—an Open Innovation approach for Industry 4.0 technology solution provision in supply chains
5. Reshaping linear supply chains to become innovation ecosystems
6. Expanding relationships—a Social Exchange view in innovation ecosystems for Industry 4.0 technology solution provision
7. From supply chains to a platform-driven ecosystem structure
8. Maturing technologies—a Boundary-Spanning perspective for Industry 4.0 platforms
9. A conceptual model for Industry 4.0 technology solution provision
10. Conclusions
Part V. Research frontiers in the Digital Supply Chain
Chapter 20. Network science for the supply chain: theory, methods, and empirical results
1. Introduction
2. An outline of supply network analysis
3. Data sources for supply network analysis
4. Network basics
5. Structure of supply networks: theory, methods, and empirical results
6. Effects of network structure on performance
7. Conclusions
Chapter 21. Deployment considerations for implementing blockchain technology in the pharmaceutical industry
1. Introduction
2. Blockchain overview
3. Supply chain benefits of blockchain
4. Pharmaceutical industry applications
5. Pharmaceutical blockchain reference model
6. Scaling issue analysis
7. Research areas for implementation feasibility
8. Summary and conclusions
Chapter 22. Digital supply chain surveillance: concepts, challenges, and frameworks
1. Introduction
2. SDAR—surveillance, detection, action, response
3. Supply chain surveillance activities
4. The role of AI in DSCS
5. Challenges in the application of DSCS—an illustrative example
6. Conclusions
Chapter 23. Sustainability and the digital supply chain
1. Introduction
2. The emergence of a digital supply chain
3. Sustainability in the digital supply chain
4. Building a sustainable digital supply chain
5. Driving down urban emissions—the case of the Electric Vehicle (EV) supply chain
6. Global food supply chains—the case of the beef supply chain
7. Implications for theory, practice, and policy
8. Conclusions and research agenda
Chapter 24. Reconceptualizing supply chain strategy for the digital era: achieving digital ambidexterity through dynamic capabilities
1. Introduction
2. Literature review
3. Conceptual framework and system of relationships
4. Building digital supply chain capabilities (DSCCs)
5. Theoretical implications—achieving digital ambidexterity
6. Managerial implications
7. Conclusions and further research
Index

Bart L. MacCarthy

Bart L. MacCarthy is Professor of Operations Management at Nottingham University Business School. He teaches at Executive, MBA, and Masters levels in operations, supply chain, and project management. His research spans the analysis, modelling, and management of operational systems and supply chains, combining quantitative and qualitative methodologies. Current research interests include the evolution of supply chains, and the impact of digitalization, cloud-based systems, platforms and Blockchain technology on the discipline of Operations and Supply Chain Management. He has published widely in the Operations, Supply Chain, and Management Science literatures. He is Vice-President of the Decision Sciences Institute with responsibilities for Europe, is European Editor for the International Journal of Production Economics, and Consulting Editor for the International Journal of Operations and Production Management. He is a Fellow of the Institute of Mathematics and its Applications, the Chartered Institute of Logistics and Transport, and the Institution of Engineering and Technology.

Affiliations and expertise

Professor of Operations Management, University of Nottingham, UK

Dmitry Ivanov

Dmitry Ivanov is Professor of Supply Chain and Operations Management at the Berlin School of Economics and Law. He is Deputy Director and executive board member of Institute for Logistics, and Faculty Director for the MA in Global Supply Chain and Operations Management. He has taught for more than 20 years in operations management, supply chain management, logistics, management information systems, and strategic management at undergraduate, master’s, PhD, and executive MBA levels at universities worldwide in English, German, and Russian. His research explores structural dynamics and control in complex networks, with applications to supply chain resilience, scheduling in Industry 4.0 systems, supply chain simulation, risk analytics and digital supply chain twins. He has been Chairman, IPC and Advisory Board member for over 50 international conferences in supply chain and operations management, industrial engineering, control and information sciences where he has organized numerous tracks and sessions. Prior to becoming an academic, he was engaged in industry and consulting for process optimization in manufacturing, logistics and ERP systems.

Affiliations and expertise

Professor of Supply Chain and Operations Management, Berlin School of Economics and Law, Berlin, Germany

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Bart L. MacCarthy

Dmitry Ivanov