Abstract

This study aims to identify and prioritize the strategies for overcoming digital supply chain (DSC) implementation barriers. Twenty-five DSC barriers and seventeen DSC strategies are formulated through an extensive literature review and expert discussion. An integrated Modified Stepwise Weight Assessment Ratio Analysis (SWARA) and Combined Compromise Solution (CoCoSo) based framework has been used to fulfil the research objective. A case study in the automotive industry is undertaken to assess the applicability of the proposed framework. With the help of experts, a pairwise comparison matrix has been developed for critical DSC barriers and DSC strategies. The result shows that “absence of urgency for SC digitalization”, lack of proper innovation strategies”, and “Inadequate leadership to lead digital transformation “are the highest-ranked DSC barriers that needs to be overcome on a priority basis, and “determined top management commitment to digitalization to gain a competitive edge”, “planning and coordination for implementing digital technologies in SC”, and “Adequate management of investment for comprehensive digitalized business” are the top-ranked DSC strategies which has to be considered on priority basis by the management to overcome most of the barriers. Accordingly, the management should effectively plan to mitigate the DSC barriers and implement strategies phase-wise for successful DSC implementation. This study will also guide the practitioner to select the optimal strategies within the available resources. Sensitivity analysis has also been done for the obtained results, whose analysis shows that the proposed research model is robust as ranking strategies are relatively sensitive to barrier weights.

Introduction

Supply chain (SC) managers are under enormous pressure because of the growing influence of the corporate world and the internet on consumer purchasing behaviour and demand patterns [1]. Therefore, it is imperative that SC managers prioritize the enabling new processes, boosting corporate connectivity, and expanding business agility [2]. Over the past decade, the proliferation of social media platforms and smart connected devices has dramatically altered consumers’ reaction time and multi-channel service expectations [3], [4], [5]. Technology, especially the Internet of Things (IoT) and information and communication technologies (ICTs) [6], has had a profound effect on the manufacturing setup of any typical organization, and the SC is just one functional area that has been profoundly altered as a result [7], [8]. Digital transformation is critical for modern firms due to innovation acceleration in businesses. Customer service, supplier relationships, sales, and company growth all benefit from digital transformation [5]. According to [9] The use of advanced digital tools and technology to modify and improve business practices, policies, corporate cultures, and customer experiences to meet shifting business demands is known as “digital transformation”. Digital transformation can help businesses identify consumer preferences, strengthen customer connections, acquire real-time visibility into processes, and create a more agile SC [10]. It also facilitates the expansion of production, product availability, pricing, and delivery schedules, as well as, most notably, sustainable development [11]. Digitizing the SC has many benefits for businesses in all sectors, but it entails operational and financial factors that can hinder long-term performance [12]. However, SC digitization faces some obstacles which would require cautious solutions [13]. The gradual adoption of digitalization across SCs may have two key impacts; firstly, there are a variety of roadblocks that prevent companies from deploying digitization strategies throughout the entire SC. Second, some of the enabling components may prove useful in the future for the SC and for enterprises as they make the move to digital technology. Due to the low rate of digital technology adoption, SC managers need to be aware of both the challenges that come with digitization and the opportunities it presents [14], [15]. For the effective digital transformation of the SC, the organization must create the necessary innovative environment to enable effective action, performance, and continuous progress to maintain the necessary enthusiasm and confidence amongst the employees [16], [17]. Digitization is still an emerging phenomenon that requires more administrative insight than theoretical comprehension [18]. The term “digitalization” refers to a modern business strategy that goes beyond the single and limited application of technology to include SC wide systematic implementation [19], [20]. The automotive industry is now affected by the disruptive effects of digitization, which is the most significant development in recent years. There were many different factors that have an increasing amount of influence on the automotive industry [21], [22], [23], [24]. These include consumer and product diversification, globalization, which enables manufacturers to enter new markets and a shorter product lifecycle in order to keep up with the rapidly changing demands of consumers with innovative products [25].

Result and discussion

This research thoroughly explains DSC implementation by outlining its strategies and challenges in descending order of importance. It is difficult to claim that DSC can be adopted in an enterprise environment without challenges. How these DSC barriers are managed will have a significant impact on an organization’s ability to develop and adopt digital technologies. This study majorly focuses on to prioritize DSC strategies to effectively remove barriers to DSC adoption. According to the literature and expert opinion, a total of 25 DSCBs have been identified, as well as 17 strategies to mitigate all the DSCBs in a phased manner. An integrated modified SWARA and CoCoSo has been used, and detailed analysis was performed. The modified SWARA method is used to rank the most influential DSCBs, and CoCoSo is used to prioritize DSCB solutions as strategies. A case study has also been conducted in the Indian automobile industry to examine the applicability of the proposed framework. The findings for the weights of DSCBs are shown in Table 3. The results show that the “absence of urgency for SC digitalization” (SB3) received the highest priority weight (0.230) amongst the set of 25 DSCBS, as shown in Table 3. It is one of the major barriers to DSC adoption and this should be alleviated immediately. The digital transformation effort with SB3 must begin by installing and maintaining a sense of urgency with the organization [5]. Higher-level management plays a critical role in controlling SB3, and more focused attention is required to minimize SB3 for successful DSC implementation. Barriers such as “Lack of proper innovation strategies” (SB2) and “Inadequate leadership to lead digital transformation” (LB2) were ranked second and third, with priority weights of 0.125 and 0.119, respectively. Organizations must pay close attention to innovation strategies to succeed in capturing new markets, increasing market share, gaining a competitive edge, and adopting new technologies. Rapid technological advancements and intense market competition necessitate the implementation of effective innovation strategies, as any organization that fails to do so will not be able to remain competitive in the market [240]. The development of digital technologies has been the result of a global surge of innovation and disruption. These disruptive technologies have been found in a variety of areas, such as mobile phones, advanced robotics, and automated guided vehicles [241]. Management must be able to effectively communicate the motivations for change to employees and inspire them to embrace new technologies, modify work processes, experiment with novel concepts, and work with internal teams [130]. “Inadequate strategic roadmap for digitalization (SB1)”, “Lack of top management support and commitment (OB4)”, and “Lack of governance mechanism adoption” (LB3) were ranked fourth, fifth, and sixth, with priority weights of 0. 0.0783, 0.0644 and 0.0614, respectively. The company’s strategic roadmap for managing its digitization process may help manufacturers understand the need for digital evaluation and better support their digital transformation process [159]: [242]. Inadequate digital skill and capability is a major barrier for organizations that want to grow at a faster rate.