Analysis of global trends in the digitalization of global supply chains

Abstract

The work analyzes transformational processes in global supply chains under the influence of digitalization. The author emphasizes that the digitization of supply chains extends the vertical integration of all corporate functions to the horizontal dimension, uniting relevant players — suppliers of raw materials and parts, the production process itself, warehouses and distribution of finished products, and finally customers — through a network of sensors and social technologies that are controlled through a central decision-making center and a common data analysis mechanism. The paper presents approaches to comparing a digitally enhanced supply ecosystem with a traditional linear supply chain. The author argues that the digital way supply chains are integrated allows players to plan their activities collaboratively, using a single data set over time to run scenarios and assess potential trade-offs between variables such as capacity, cost, margin, delivery efficiency and fill rate. The conclusion is that the rapid exchange of information increases the flexibility of the entire supply chain, while ensuring closer integration with customers through efficient electronic platforms, excellent service and a compelling customer experience.