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Title: How Digitalization can Boost Supply Chain Management in Agile Way:
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Title: How Digitalization can Boost Supply Chain Management in Agile Way: Case Studies

of at least Three Companies

Author: Peter Anderson

Affiliation: Research Publishers

Email address: p.anderson@researchpublishers.org

Abstract

Cumulative demand for the supply chain is increasing daily as large-scale manufacturing

industries are expanding and proceeding continuously. For associations working in the

business environment, supply chain agility is the component that can give them an upper

hand over different firms. Adaptability for the abrupt response of market needs is observed in

Agile supply chains. They basically work by producing customers' requirements and not

producing goods and products already in the company's stock. The following article's applied

methodology is an explanatory case studies approach to adapt to the situations and

circumtances used in implementing the digital supply chain management strategy in different

companies. For this study, three companies were selected for the further investigation

process. This article has dawned on the results of the case studies of three different

companies and how Digitalization has helped them improve and enhance their supply chain

management. We have proposed the current digitalization strategy and its several techniques

that impact famous brands like Zara, Nokia and PepsiCo. The digital transformation in a fast-

fashion retailer, a mobile phone manufacturing company and a beverage organization has

directed the progression in the speed of the supply chain, its cost-effectiveness, strong

response towards their customers, and boosting their incorporation of online and offline sales

approaches.

Keywords: Digitalization, Supply Chain Management, Companies, Case Study

 INTRODUCTION

Cumulative demand for the supply chain is increasing daily as large-scale manufacturing

industries are expanding and proceeding continuously. It is hinged on administrative control

of capital flow and information on flow and logistics. The management of production and

transformation of the organizations are responsible for the formation of a smooth network

chain through upstream and downstream regulations. Particularly, it works on the

optimization of the process, which involves the satisfaction of customers by reducing

unnecessary costs, improving the quality of production, and accomplishing a great amount of

economic benefit (Attaran, 2012).

Nowadays, whenever there is a discussion about the digital supply chain, it is automatically

connected with the manufacturing industries' expansion and development. This new pattern

permits the allowance of creating a new environment that has an interconnection of diverse

areas of multinational companies and functional aspects of different companies. Many

organizations are working on manipulating their strategies so that there is an increment in the

practice of their business ethics, along with the inclusion of supply chain management.

Various advantages have been offered by digital technologies to supply chain management

which include "increased availability of information, optimization of logistics practices, real-

time data collection, more efficient inventory management, and increased transparency"

(Seyedghorban et al., 2020).

Accredited to these advantages, there is an increasing amount of popularity gained towards

supply chain digitization in aspects of research. It has been observed that many enterprises

are working on the application of different characteristics of digitization which include "radio

frequency identification, Big Data, cloud computing, Internet of Things and artificial

intelligence." These features are utilized by different firms so that a supply chain system that
is integrated and self-optimized can proactively respond to the nature and benefits of markets

(Büyüközkan & Göçer, 2018).

It has been considered that manufacturing industries that imply the characteristics of supply

chain management should deliver the appropriate and correct product to patrons at the right

time, with accurate quality and accurate state of the product. However, it has been observed

that the increase in the development of the markets and the needs of the consumer have

correspondingly brought some extraordinary and unparalleled challenges to the production of

the supply chain as it totally depends on data analysis of a certain business environment.

Furthermore, some unpredictable environmental changes and random social factors, along

with an ambiguous and dynamic competitive atmosphere, have worsened and exaggerated the

intricacy of supply chain management, which eventually leads to a greater amount of

production cost (Speranza, 2018).

Agile Supply Chain

For associations working in the business environment, supply chain agility is the component

that can give them an upper hand over different firms. A few difficulties are possible by the

organizations that are the supply chain administrators. These difficulties are confronted while

conveying the item to the clients. Hence, firms need to embrace the idea of agility so that there

is some support for the advantage in the competitive market (Wu et al., 2017). In the market

environment, when products and goods are sold directly to the consumers, so in this case,

adaptability and flexibility cause some disruptions as the market situation is rapidly changing

and fluctuating. Whenever there are extreme abrupt alterations in the marketplace, so agile

supply chain is induced during that time. It is also responsive when some mistakes are caused

by the supplier. Advanced technological companies which work in the surrounding of E-

commerce necessitate the speed-to-market approach by utilizing the agile supply chain strategy

in their work environment.

Agility depends on continuous information and the innovation that upholds it. Organizations

with a developed agile strategy defer their last creation until the degree of interest is clear,

even though they might part-make portions in eagerness. Some degree of transient

determining is helpful; however, it relies upon constant information. An agile production

network should market data to keep stock at the most effective level. Agile inventory network

follows up on current interest instead of just verifiable anticipating. Deftness and versatility

win in quickly evolving conditions (Swafford et al., 2006). Being agile is the capacity to

answer emphatically to showcase instability. Solid associations with providers are imperative

to making a dexterous store network work. An agile store network likewise will have lower

warehousing costs as stock is less. Notwithstanding, in certain enterprises, coordinated chains

can make elevated degrees of waste, which can drive costs up. Three achievement factors

have been recognized inside successful and agile inventory chains: your provider

connections, your kin, and the powerful utilization of the new advancements (Jermsittiparsert

& Kampoomprasert, 2019).

Currently, a tremendous amount of research has been conducted that entails the restructuring

of supply chains which focuses on newly advanced progressions which are described in the

context of industry 4.0 or smart factories. The restructuring policies of the fast-fashion

retailers use the digitalization technology the expand their organization in the market share

and also be in the competitive environment of the digital lead firm. All of the companies that

use digitalization strategy in their supply chain management use "big data analytics,

autonomous robots, the Internet of Things and cloud computing, to set up digitally integrated,

highly demand-driven and cost-efficient e-retail value chains" (Butollo, 2021; Fuchs, 2020;

Pardi et al., 2020). Fast fashion retailers are seeking the effectiveness of cost, speed of supply
chain and responsiveness by implementing digital supply chain management that permits the

exchange of real-time data among the online and offline operations of sales along with

different stages of the value chain (Pardi et al., 2020).

CASE STUDY OF COMPANIES THAT USES DIGITALIZATION STRATEGY BY

THE IMPLEMENTATION OF AGILE SUPPLY CHAIN

Case study 1

Prioritizing the adaptability for the abrupt response of needs of the market is observed in

Agile supply chains. They basically work by producing the requirements of customers and

not producing goods and products which are already in the stock of the company. One of the

largest retailers in the world is known as Inditex, which demonstrates one of the superior

applications, which is named as Fast-Fashion. This company has adaptable and also flexible

supply chain management. It is the holding firm of one of the most reputable designers,

"Zara." Zara is a fashion designer and retailer company in Spain.

The worth of Zara's "Fast fashion" model is that it permits retailers to convey originator items

to mass business sectors at generally low costs and with outrageous speed, alongside bringing

patterns practically directly from the catwalks to merchandiser stores. Conventional style

retailers can't oversee or accomplish this, as they work on an occasional premise and require

multi-extended lead times to deliver and convey assortments. Zara, then again, has, through

Digitalization and information examination, figured out how to foster a deft, proficient

inventory network that chops this creation cycle down to under three weeks. The capacity to

dominate this rapid creation cycle has taken care of requesting, moment satisfaction

disapproved of buyers and made Zara flourish throughout the course of recent years while

different retailers have confronted declining or stale development (Megan, 2017).

A few different retailers and fast fashion organizations are endeavoring to imitate Zara's

speedy creation cycle technique. To stay ahead, Zara has specialized in involving

Digitalization and huge information examination in the present moment to increment deals

turnover further and work with even more slender working capital. Each garment, for

instance, is labeled with a radiofrequency identification (RFID) microprocessor before it

leaves a brought-together distribution center, giving continuous stock following until a

shopper buys it at a retail store (Nayak, 2019). Hence, the information about each store's

stock levels and the ubiquity and speed with which each stock keeping unit (SKU) sells is

continually being given to the organization's focal information handling focus. The middle,

which works 24 hours per day, gathers information from Zara's 2,100 or more retail stores

across 80 or more nations and takes into account every other month's item conveyances

customized to individual stores in view of SKU-explicit stock information. Zara can then

continually refine and improve its stock administration, dissemination and plan to limit

squander in the creation cycle and kill design risk (Digitalist, 2016).

By the implementation of these strategies, it is managed by the employers of Zara to execute

the supply chain approx. 50% of their stock keeping unit, which is designed and produced in

every season. Zara has created an agile supply chain strategy that uses the amendments of

digitalization and data analytics. Hence, there is some enhancement in the ordering of the

small batches of goods and services of any particular SKU which is provided by its

distributors (Megan, 2017). The main focus of Zara is on digitalizing its strategies so that

every individual who shops from them has a satisfying experience. This is observed when

Zara introduced the online approach, i.e., click and collect, which permits their patrons to

shop online and pick up their things from a pickup store. This implementation of utilizing a

digitalization strategy in its supply chain management benefited both Zara and its potential

customers (Digitalist, 2016).

Case study 2

Communications and data processing company Nokia was dedicated to achieving deftness in

the allure supply chain when it determined to move from its home-based country Finland.

The company aimed to refocus lower-advantage endeavors fitted to component beginnings

through increasing supply chain openness and streamlining management. "We are aligning

our manufacturing strategy to increase competitiveness," was stated by the representative of

Nokia named Kokkonen (Bask & Kuula, 2011). "We need to optimize our manufacturing

operations to collaborate more closely with suppliers and be more responsive to customers'

needs." The Finnish-based firm aims to mutate allure supply chain and transactions order

administration processes for its new 5G and IoT trades. Wipro was utilized by the supply

chain analysts of Nokia, and they reported that Wipro would help design, digitalize and run

Nokia's buying order administration movements from diversified centers globally

(Henderson, 2020). In addition, it searches out robotics application process automation (RPA)

to enable an energetic-automatic supply chain that will be lean, deft and have the elasticity to

meet the customer's current trade challenges and be even with their future necessities.

The abridgment of the product life-cycle poses questions for the incident of a new product by

Nokia. Several associations no longer obey the demand that a product meets with all the

stages from design to launch for it to be made accessible to the stock exchange. This has,

however, sped faster and more dynamic procurement in organizations. Nokia Corporation

accepts the importance of contracting out to accomplish extreme appropriateness.

Consequently, the company demands allure substitute-builders and suppliers to adhere to the

required agreements of the contract to prevent superfluous permissible complications that

indulge the company's reputation (YU, 2020)

Like some different firms, Nokia has suppliers from all corners of the planet, and it is the

organization's duty to outline allure suppliers' necessities in the unspecified area they are

situated. To guarantee proficient and trustworthy commodity supply, Nokia has devised a

Nokia Supplier Requirements (NSR) that allure suppliers must authorize and obey (Bask &

Kuula, 2011). Nokia stresses the need for exposure and counts on its undertakings

accompanying the suppliers; it is two phrases that drive agreement and performance

progression. This can be determined through suppliers of the organization. To reinforce

temporary assurance and reliability, Nokia attempts temporary preparation, which makes it an

exceptional firm globally (Bask & Kuula, 2011).

A paper stating beliefs published in the International Journal of Physical Distribution &

Logistics Management in 2006 points to in what way or manner Nokia Networks' demand

preparation which can form supply chain networks more agile. The authors take lessons from

Nokia's joint project administration program, which is established to achieve a "truly

customer-focused delivery process." The investigators noted that "Supply chain agility does

not just happen but requires continuous planning," which is mastered by Nokia Networks

(Henderson, 2020).

In the year of 1995, Nokia's strategy of supply chain management generated an ultimate

effective supplier network to offer the highest rank responses and meet consumer beliefs.

Christian Forster, Vice President of Delivery Operations at Nokia, stated, " Nokia had been

looking for a partner to support the digital transformation of its supply chain while

maintaining business continuity and operational excellence. Wipro was selected after

thoroughly assessing its capabilities to deliver innovative solutions and run complex

operations. Nokia has long associated with Wipro, and we selected them for their

understanding of the industry and in-depth experience executing large-scale digital

transformation projects" (Henderson, 2020).

Case study 3

One of the beverage organizations which carries out the digitalization system in its store

network management is PepsiCo. It has been progressively centered around putting resources

into computerized instruments and trend-setting innovations to make a more proficient,

smoothed-out inventory network. In particular, the organization focuses on information

coordination to make a clearer image of the people and families purchasing PepsiCo items.

Not exclusively might this assist the business at some point with satisfying buyer needs

temporarily. However, it could likewise consider better long-term planning and gauging.

More modern information examination additionally assists PepsiCo's merchants and retailers

with the following stock. By further developing requesting calculations, stores can place

more precise orders, representing deals chronicles and buying patterns. This guides in making

a smoothed-out cost-effective chain (Britt, 2020).

Alongside the previously mentioned advanced apparatuses and tech, Pepsi has been exploring

different avenues regarding 3D printing - in any event, making a few ridged potato-chip

prototypes to test inclinations among buyers. While this sort of trial and error with creation

may not be accessible for more modest organizations, focusing on arising tech is key for

organizations hoping to remain in front of the group. The present refined information

assortment and examination devices make it simpler for organizations to make profoundly

precise gauges, prepare for plunges and spikes sought after, and pinpoint regions for

development in the store network. At last, the PepsiCo organization's obligation to social and

natural obligations is demonstrative of a moving tide, as the present buyers progressively

hope to help organizations whose values align with their own (Digital Commerce, 2018).

METHODOLOGY
The applied methodology for the following article is the approach of explanatory case studies

to adapt to the situations and circumstances used in the implementation of the strategy of

digital supply chain management in different companies. For this study, three companies

were selected for the further investigation process. Data was gathered from various open-

access online databases. The platforms utilized to collect the information on the selected topic

included: Google Scholar, PubMed, ScienceDirect, and other studies and facts concerning the

study. Relevant keywords were employed to recruit information. The conjunction of two or

more keywords was used for searching to obtain the relevant data on the topic. Moreover, the

studies and other research papers referred to in the chosen studies were considered too.

RESULTS

Lean and agile are indispensable inventory network methodologies as the previous guarantee

augmentation of functional productivity utilizing end of squanders, while the last option

proffers the upside of reaction and adaptability to eccentric market necessities. Be that as it

may, carrying out systems like lean and agile can never again be viewed as a restraining

infrastructure premise of immediate benefits. The beginning of industry 4.0 and its related

advancements offer the chance of achieving greater power of functional adequacy and

proficiency (Landscheidt & Kans, 2016). Laid-out lean and agile practices are not avoided

with regard to the functional improvement advantage that industry 4.0 advancements deliver.

Lately, it has been seen that in addition to the fact that companies are not only engaged in the

competition but also value chains and supply chains of the companies have become

competitive with the assessment of supply chain management at an elevated degree of

significance. Alongside this present circumstance, organizations are dealing with the most

productive activity of their frameworks by making their stockpile chains or growing their

current ones (Huo et al., 2014). Currently, many companies have utilized a chain of values as
part of supply chain management. Supply chain management sustains organizations to keep

up with consumer loyalty by offering help against conceivable abrupt turns of events,

particularly in worldwide business sectors. Specifically, accomplishing SC agility is a basic

way to deal with improving client support and market position separation, particularly

concerning an elevated degree of customization.

This article has dawned on the results of the case studies of three different companies and

how Digitalization has helped them in improving and enhancing their supply chain

management. We have proposed the current digitalization strategy and its several techniques

that impact famous brands like Zara, Nokia and PepsiCo. The digital transformation in a fast-

fashion retailer, a mobile phone manufacturing company and a beverage organization has

directed the progression in the speed of the supply chain, its cost-effectiveness, assertive

response towards their customers, and boosting their incorporation of online and offline sales

approaches.

CONCLUSION

One of the most essential and significant factors affecting the organization and firms'

performance is supply chain agility with reference to the competitive environment of

different companies and associations. The article has depicted the current situation of famous

brands and how they have utilized the strategy of Digitalization to boost their supply chain

management. It has been concluded from the case studies that the process of digital

transformation enhances the retailer and sales of the following company, thereby highlighting

that Digitalization in the supply chain is the core field of enhancement in technology.

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