Supply Chain Performance Measurement and Organizational Alignment in the Digital World

The authors describe how organizations can leverage the maturity model approach in conjunction with foundational concepts of perspective-based performance evaluation models like the balanced scorecard (BSC) to define a comprehensive performance measurement framework. A maturity model by design provides a road-map to the next level of performance. In this chapter, the authors propose using maturity models as a structured way of identifying current capability or maturity level of any supply chain. The authors provide guidance on selecting the right “causal linkages” between supply chain objectives and performance measures. They then define a mechanism for specifying even more granular definitions of measures linked to strategic objectives, as the level of maturity progresses. In this chapter, the authors survey widely used supply chain/business process maturity models and current practices related to measuring operational metric. And then present a tiered framework for operational metric alignment and KPI governance based on perspective-based modeling design principles.

Green Supply Chain Management Practices and Digital Technology

Modern day organizations have begun to implement the green supply chain management (GSCM) practices in response to demand from various stakeholders which includes customers to create products and services that are environmentally sustainable. The digital technology has been a boon in erstwhile supply chain management practices. However, the impact of digital technology on various dimensions of GSCM practices are not yet studied. This chapter explores the impact of digital technology on green supply chain management practices. A qualitative study is conducted on managers working in organizations using GSCM. The data is analyzed in line with interpretative phenomenology analysis approach. The impact of digital technology is analyzed on the five dimensions of GSCM practices suggested in earlier research. The research propositions are developed, and future research opportunities are identified.

Digital Inventory Optimization

This chapter provides an overview of select inventory optimization (IO) techniques for single and multi-echelon optimization. The main goal is to familiarize the reader with various IO models by providing a clearly structured approach, improving the reader's understanding of the mathematical concepts, and by providing an ample number of examples. Furthermore, the guaranteed service model for a three stage serial supply chain is introduced to show the effects of keeping inventory at different echelons in the supply chain in regards to total cost. Lastly an inventory planning maturity model is presented to show actionable next steps to the practitioner.

Corporates in the Digital Age

A proposition for digital transformation of global groups into efficient enterprises is introduced. At the heart of the proposition is a transformational practice aimed at creating a customer-focused, data-driven global culture in any customer-serving company. The digital age has added a level of complexity to the way we acquire and serve customers. Doing a good job in the traditional channels is not enough anymore. Online is increasingly becoming the channel of choice with the two main customer-interaction paradigms: sell and service. And building a great customer experience is probably the most essential factor of success for both functions.

Strategic Perspectives of the Digital Supply Chain

Supply chain management is one of the oldest aspects of human commerce. It has been around for as long as we can look back in history, and yet, we still have a very limited understanding of what strategic supply chain management entails or constitutes. A strategic approach to supply chain management necessarily needs to consider wider corporate strategic objectives and initiatives, while it has to contribute to the achievement of these goals as all other managerial functions do. We further differentiate between strategic supply chain management, when the supply chain function provides unique competitive advantage and supply chain strategy, when it takes on a supporting role to corporate strategy. The authors develop a case for strategic supply chain management based on edge computing applications through IoT sensors such as GPS or RFID to illustrate that supply chain practitioners need to fundamentally rethink the way current supply chain systems process data and information and also that the approach to collaboration between supply chain partners changes drastically.

Day in the Life of Supply Chain Analysts in a Digital World

This chapter discusses the role of supply chain analytics in managing digital supply chain, as well as the practical implementation approaches of supply chain analytics. The chapter first discusses a typical day in the life of supply chain analysts. It then discusses the categorization of supply chain analytics and some practical recommendations for the implementation of supply chain analytics. Finally, the chapter provides a case study illustrating some important considerations in supply chain design.

Digital Transformation

Supply chain industry is undergoing massive digital transformation. However, the pace of transformation has been rather slow. One of the challenges in the transformation is that there is so much dependency among various digital technologies that if one is implemented without the other, it might lead to no value creation at all. Furthermore, some of these technologies are dependent on other technologies that are still in its early phase of adoption. The existing technologies (namely artificial intelligence, machine learning, augmented reality, internet of things, virtual reality, big data) are critical enablers for the digital supply chain network; however, to unleash the full potential of these technologies, an extensive data sharing and analysis is required. This will only be possible if there is a robust telecom network. 5G with its features of low latency, high bandwidth, higher speeds, and low power requirements is expected to fill the void and hence expedite the digital supply chain transformation.

Cognitive Integrated Business Planning

Supply chains of the 21st century are becoming exponentially more complex due to increased mergers and acquisitions, the omni-channel conflict, direct-to-consumer, rapid proliferation of product configurations, same-day delivery, the recall management problem, shrinking product lifecycles, and market volatility. Moreover, today's consumers are increasingly demanding a personalized, consistent, and seamless experience across retail, online, and mobile. To be able to serve this diverse spectrum of customers, products, markets, and channels and at the same time do so in a win-win profitable manner, organizations need a cognitive integrated business planning process, which has the ability to act with speed, agility, responsiveness, and flexibility, leveraging machine learning and artificial intelligence for predictive and prescriptive analytics, thereby enabling organizations to realign their plans quickly through an always-on, self-learning, and autonomous integrated business planning process.

Procurement Strategies for Digital Supply Chains

The purpose of this chapter is to provide the basic concepts and the best practices for procurement in the context of digital supply chains. This chapter consists of three sections. In the first two sections, a review of digital supply chain procurement literature and theories is presented, followed by a detailed discussion of the best practices in procurement strategies comprising of the six-step framework for procurement strategies digitalization. Finally, the chapter concludes with future trends in procurement strategies. The chapter consists of case studies from different industries such as manufacturing (Apple, Beta products, IBM), fast food (Chipotle), and logistics/pharmaceutical (DHL). EVA (economic value added) model is discussed in the chapter, which is useful to evaluate the value of digitalization. This chapter is intended for all practitioners and academics who are interested in learning about the current best practices and the challenges associated with procurement for digital goods.

Supply Chain Processes Modelling for Digitalization

Process orientation is often seen as a central starting point for optimizing business performance. This is especially true for supply chain workflows because modeling, understood as specifying activities, data, resources, and control flows, is usually the first step in selecting and implementing digital approaches such as smart factories, virtual agents, and autonomous systems. Many different process notations are known (e.g., detailed vs. rough, flexible vs. standardized, etc.), and at the same time, fundamentally different SCM process types make various assumptions about suitable modeling (e.g., integration of value chain partners, standardization). This chapter presents an association model that suggests which notation fits best to which SCM type. The chapter discusses the benefits of specific notations for classical as well as modern challenges of SCM to help in the selection of notations. The resulting specifications serve as the basis for the holistic digitization of supply chains.