Supply Chain Forum: An International Journal

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Digital supply chain: challenges and future

directions

Blandine Ageron, Omar Bentahar & Angappa Gunasekaran

To cite this article: Blandine Ageron, Omar Bentahar & Angappa Gunasekaran (2020) Digital
supply chain: challenges and future directions, Supply Chain Forum: An International Journal, 21:3,
133-138, DOI: 10.1080/16258312.2020.1816361

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SUPPLY CHAIN FORUM: AN INTERNATIONAL JOURNAL
2020, VOL. 21, NO. 3, 133–138
https://doi.org/10.1080/16258312.2020.1816361

Digital supply chain: challenges and future directions

a b
Blandine Ageron , Omar Bentahar and Angappa Gunasekaranc
a
IUT de Valence, CERAG, Université Grenoble Alpes, Valence, France; bIAE Metz, CEREFIGE, Université de Lorraine, Metz, France; cSchool of
Business and Public Administration, California State University, Bakersfield, USA

ABSTRACT KEYWORDS
The editorial discusses the current developments, challenges and research opportunities in Digital supply chain;
digital supply chain management. First, the emerging theorization on digital supply chain is innovative technology;
introduced and focuses on innovative technologies (big data, cloud computing, internet of performance; strategy
things, etc.). Second, the necessity to explore new strategic, organizational and human dimen­
sions of digital supply chain is underlined. Third, the papers included in this special issue
addressing digital supply chain issues are shortly presented. Finally, future research direction to
academics and practitioners is highlighted.

In this new era characterised by a complex and
dynamic environment and a competitive business mar­
ketplace, digitalisation has emerged as a new phenom­
enon that affected several aspects of life over the
world. More than 90% of internet users have already
made online purchases and about 40% of companies
has used sophisticated tools for big data analytics.
Moreover, in 2020, there are already 26 billion ‘things’
enabled with the ‘Internet of things’ (Hung 2017).
Supply chain processes have also been greatly affected
by digitalisation and it is obvious that the shift from
a traditional supply chain to a digital supply chain
(DSC) appears as a competitive advantage creating
sustainable value for organisations. Several industrial
reports have introduced a digital transformation
approach for supply chain in the next five years
(CapGemini 2016; EY, 2016). Digital supply chain
can be defined as the development of information
systems and the adoption of innovative technologies
strengthening the integration and the agility of the
supply chain and thus improving customer service
and sustainable performance of the organisation.
Indeed, the DSC will integrate innovative technologies
(e.g. Augmented reality, Big Data, Blockchain), focus on
customers/consumers, reduce intra and inter-
organisational costs and create more value for organi­
sations. Therefore, it would be important to address
the issues concerning DSC implementation, optimisa­
tion and development, and new-related managerial
approaches to better satisfy customers. These issues
have been widely discussed by practitioners and have
been considered by more and more companies (e.g.
DHL, DB); while the phenomenon of DSC is in its pre­
liminary steps in the academic world (Büyüközkan and
Göçer 2018) and its potential is still relatively unknown.
Indeed, relatively little research has explicitly focused
on the concept of DSC and the literature remains
fragmented in different research areas. Previous
researches focused mainly on the concept of industry
4.0 and the technological drivers of the DSC: Internet
of Things (IoT), Big Data (BD), Cloud Computing (CC),
Unmanned Aerial Vehicle (UAV), to name a few. In this
regard, Mohamed Ben-Daya, Hassini, and Bahroun
(2017) and Majeed and Rupasinghe (2017) have
explored the role of IoT in facilitating planning, control
and coordination processes of supply chain and in
supporting the Industry 4.0 and DSC. Preindlet al.
(2020) have focused on the impact of Industry 4.0
and Digital Transformation on information sharing
and decision-making across the whole supply chain.
Further, Makris, Lee Hansen, and Khan (2019) have
examined how multinational companies from five dif­
ferent industries can adapt to call Supply Chain 4.0 to
gain a competitive advantage from this transition.
Other studies have explored how BD and predictive
analytics enhance supply chain performance by
improving visibility, robustness, resilience and organi­
sational performance (Gunasekaran et al. 2017). As in
the case of the digital technologies already mentioned,
the use of cloud computing within the supply chain
remains also little explored in theory and practice. The
few empirical works investigating this issue have
focused on the factors influencing the adoption of
cloud computing (Wu et al. 2013; Maqueira, Moyano-
Fuentes, and Bruque 2019) and the impact of Cloud
computing on the supply chain (Jede et Teuteberg,
2015). The studies show that cloud computing contri­
butes to the development of supply network, and to
the efficiency and responsiveness of supply chain pro­
cesses (Jede and Teuteberg 2015; Giannakis, 2019).

CONTACT Omar Bentahar omar.bentahar@univ-lorraine.fr IAE Metz, CEREFIGE, Université de Lorraine, France
© 2020 Kedge Business School
134 B. AGERON ET AL.
Given the emerging theorisation on DSC and the
increasing managerial interest for guidelines supporting
the digital transformation of supply chain, it is important
to broaden the theoretical and empirical spectrum.
Going beyond the study of the implementation of inno­
vative technologies is essential to explore new strategic,
organisational and human dimensions that are neces­
sary for the accumulation of knowledge and the crea­
tion of a new integrated paradigm of DSC. Future
research should develop the configuration of the DSC
in relation to the organisation strategy, explore new
skills in the era of digitalisation, propose project man­
agement approaches supporting digital technologies,
understand the process of consumer or and supplier
integration in the digital transformation and construct
the criteria framework to measure the DSC performance.
Configuration of the DSC and the organisation
strategy
The configuration of DSC is a digital supply network
(DSN) structure and it is not a traditional linear supply
chain, but a more dynamic system by leveraging the
information technology for integrating the supply
chain activities for smooth material flows. The config­
uration for the DSC depends upon the organisational
goals and strategies. The DSC provides more visibility
of the material flows along the value chain and reduces
any bullwhip effects by making available real-time
information for making accurate and timely decisions
that will support the organisational performance
objectives such as revenue, profit, market share, qual­
ity, responsiveness, cost, dependability and sustain­
ability. In DSN, there is a better communication and
interaction among supply chain partnering firms lead­
ing to timely delivery of products to customers. The
advantages of DSC/DSN are (1) agility, (2) integration of
supply chain activities, (3) effective intelligent optimi­
sation, (4) transparency and (5) holistic decision-
making. Technologies such as the Internet of Things
(IoT), AI and Expert Systems, Machine Learning, robots,
Industry 4.0 and big data analytics support the organi­
sational strategic capabilities such as agility, cost, qual­
ity, flexibility and dependability. The DSC enables the
strategic supply chain transformations through design
process optimisation, product optimisation, planning &
inventory efficiency, risk management, supplier colla­
boration, operational efficiency, logistics optimisation,
sales optimisation and after sales service. Moreover,
the DSC/DSN supports sustainable supply chain opera­
tions taking into account economics, social and envir­
onmental factors (Mussomeli, Gish, and Laaper 2016).
Competences to support SC digitalisation
‘Digitally maturing organizations are four times more
likely to provide employees with needed skills than are
organizations at lower ends of the spectrum’ (p.2) note
Kane et al. (2015) in their research report on the ability of
organisations to digitally reimagine their business.
Digitalisation will transform working environments sig­
nificantly. It will change processes in finance, sales,
maintenance, logistic or supply chain by introducing
new concepts of smart manufacturing, smart contracts
and smart supply chain as well as increasing information
sharing (Preindlet al., 2020) and automation (Benzidia
et al. 2019). It will have far-reaching implications on jobs
tasks and profiles and work organisation and environ­
ment. As a consequence, employees will be confronted
with transformed work processes requiring a wider
range of new competencies. Their work being more
automated, connected and interdisciplinary, they need
to acquire and develop competences that are becoming
manifold. Some of these competences are technology-
related competences and grounded on basic skills in
Information and Communication Technologies (ICT)
(Ilomäki, Kantosalo, and Lakkala 2011). These compe­
tences are data analysis, cloud computing, data security,
mobile technologies, etc. Other competences are more
behavioural and are related to employees’ motivations
and personality traits (Boyatzis 1982). They are more
personal and relational and less functional. These com­
petences that promote digital transition in SC are lea­
dership, communication, decision-making, business
process management, critical thinking, negotiation,
etc. This competence challenge introduced by the digi­
talisation of Supply Chains arises at many levels. For
companies, it will first of all be a question of being
able to define job profiles in line with the needs of SC
digitalisation. They will also have to be able to support
their employees in the acquisition and the development
of key competences in order to be able to perform their
tasks. Finally, the issue of recruitment will be
a determining factor, especially since the logistics and
SCM sector is experiencing pressure on its human
resources. For employees, the issue of competences
acquisition and development will require awareness of
the changes that are taking place in SC processes due to
digitalisation. In addition, they will need to be sup­
ported/accompanied by SC managers and HR depart­
ments in the acquisition and development of these
competences. Finally, the universities will also have to
take up this challenge by offering training in relation to
the new requirements of the SC digitalisation. Finally, to
support SC digitalisation, employees possess a set of
knowledge, skills, attitudes, abilities, strategies and
awareness that is required when using ICT and digital
media to perform tasks (Janssen et al. 2013).
Understanding the intersection of project
management and digital supply chain
The lack of project management best practices is an
obstacle to supply chain digitalisation and often leads

to the failure of the technology implementation
(Bentahar, Benzidia, and Fabbri 2016). Several dimen­
sions of project management should be integrated to
support the digitalisation of the supply chain. As stated
by Shenhar (2001, p. 394): ‘One size does not fit all
projects’; thus, it is important to characterise the tech­
nological project in terms of uncertainty, organisa­
tional complexity and degree of innovation in order
to adapt the organisation’s resources and project man­
agement tools and approaches. Understanding project
organisational issues is also critical to the technology
implementation. Indeed, top management should
integrate and anticipate the problems linked to the
ambiguity of the project manager authority, the con­
flicts generated by the project-based organisation, and
the paradoxes between the functional hierarchy focus­
ing on the dynamic of exploitation and the project
structure focusing on the dynamic of exploration.
Another key factor in the technological project process
is the complementarity of the project manager roles
and the project team roles (Bentahar and Ika 2019).
Indeed, during the different stages of the innovative
technology, the project manager and his team should
balance various roles: technical, leadership, manage­
ment, innovation and champion, to achieve the project
objectives. Finally, the digitalisation of the supply chain
should be achieved while respecting the performance
criteria of the technological project in terms of cost,
time, quality and stakeholder satisfaction. Thus, it is
necessary to reconcile the technological project per­
formance and the digital supply chain performance
which is more externally oriented.
Supply chain integration for DSC – from
consumer to supplier
In a VUCA environment where consumers’ expecta­
tions are growing and their loyalty and advocacy are
volatile and difficult to secure, all organisations must
encourage innovation and embrace the new realities
imposed by digital transformation. In this regard, SC
integration is an interesting approach that can be
beneficial for organisations but also for stakeholders.
Defined as ‘the degree to which a manufacturer strate­
gically collaborates with its supply chain partners and
collaboratively manages intra- and inter-organisational
processes, in order to achieve effective and efficient flows
of products and services, information, money and deci­
sions, to provide maximum value to the customer’
(Flynn, Huo, and Zhao 2010, 59), SC integration is
positively related to operational and firm performance
(Ataseven and Nair 2017). Indeed, it enables a better
understanding of market expectations and opportu­
nities, that contributes to a more precise and rapid
response to the needs and requirements of SC stake­
holders (Swink, Narasimhan, and Wang 2007).
Digitalisation questions integration and raised issues
SUPPLY CHAIN FORUM: AN INTERNATIONAL JOURNAL 135
at the three traditional levels of SC, upstream, down­
stream and inside the organisations. It supposes to
‘create a digital community of partners executing coor­
dinated processes in a more organized and informed way
than in the past’ (Merlino and Sproģe 2017, 309). In this
regard, the emergence of new technologies changes
the design activities as the knowledge of all stake­
holders (buyers, suppliers and engineers) concerning
the products (Benzidia 2013). It also creates new
opportunities for companies to better integrate their
end-consumer (Reaidy et al. 2020) and increase custo­
mer satisfaction by proposing individual product
based on configurators and 3D printing (Preindl,
Nikolopoulos, and Litsiou 2020). However, even if digi­
talisation has a major impact on Supply Chain, lots of
SC stakeholders are still sceptical because of its true
added value in a cost/benefit perspective (Makris, Lee
Hansen, and Khan 2019)
Evaluation of DSC performance
The evaluation of DSC performance includes tradi­
tional performance measures based on the strategic,
financial and non-financial measures and metrics and
information system productivity and efficiency consid­
ering the role of digital technologies in DSC. We should
look at the performance measures and metrics at stra­
tegic, tactical and operational levels. Since the informa­
tion technologies such as ERP, IoT, Industry 4.0, Big
Data Analytics, RFID, and Online sales and buying
play a major role in DSC/DSN, the performance of
those technologies should be measured so as to
ensure timely and accurate information exchange
among supply chain partners along the value chain
and this will enable a smooth flow of materials along
the value chain leading to agility and sustainability of
organisations. Real-time information with appropriate
measures and metrics in DSC will result in supply chain
visibility and in turn smooth flow of materials along the
value chain.
This special issue is the opportunity to address some
challenges of the supply chain digitalisation, to fill the
theoretical gap and to support emergent digital practices.
After the paper-selecting and review processes, seven
papers reached the last phase of publication. These
papers based on various methodologies (qualitative,
quantitative, literature review) provide theoretical contri­
bution and practical implication to the digitalisation of
the supply chain. The first paper of Shivam Gupta,
Sachin Modjil, Angappa Gunasekaran and Surajit
Bag is conceptual mobilising dynamic capability and
institutional theories to outline the intention to adopt
digitisation in Industry 4.0 and digital supply chain.
The second paper of Mohsen Attaran is a review of the
literature focusing on technologies enabling the digitisa­
tion of the supply chain. The following two papers of
Smail Benzidia and Naouel Makaoui and Laurence
136 B. AGERON ET AL.
Viale and Dorsaf Zouari concentrate on the upstream
supply chain and more particularly on procurement for
which digitisation is a major issue. Then, a sectoral
approach to digitisation is proposed by the following
two articles of Virginie Noireaux and Joseph
Edzengte Edzengte and Caryn Mathy, Christophe
Pascal, Marie Fizesan, Christopher Boin, Noémie
Délèze and Olivier Aujoulat in two different sectors:
healthcare and agri-food, indicating the increasing impor­
tance of the phenomenon. Finally, the paper of Mourad
Chouki, Valérie Fernandes, Salomée Ruel and Brigitte
Borja de Mozota questions the role of the designer in the
digital project for a better integration of the supply chain.
A summary of these papers follows next:
Shivam Gupta, Sachin Modjil, Angappa
Gunasekaran and Surajit Bag in their paper ‘Dynamic
Capabilities and Institutional Theories for Industry 4.0 and
Digital Supply Chain’ attempt to understand firms’ orien­
tation in adopting Industry 4.0 and digital supply chain
principles. The authors employed institutional and
dynamic capability theories to observe how they moder­
ate this relationship of orientation and industry 4.0 adop­
tion along with digital supply chain. After collecting the
data from 256 manufacturing firms, they tested the the­
oretical framework through structural equation model­
ling and path analysis. Results indicate that coercive
pressure plays a significant role while moderating the
relationship between type of orientation and adoption
intention for industry 4.0 and digital supply chain. The
agencies and regulatory bodies can facilitate the eco-
system to be adopted at faster rate and followed strictly.
This framework can be utilised by professionals for their
business and supply chain.
Mohsen Attaran in his paper on ‘Digital Technology
Enablers and their Implications for Supply Chain
Management’ has conducted a literature review and
identified eight digital technology enablers that
enhance and streamline digital supply chain (DSC) per­
formance. This paper discussed the importance of these
technologies for supply chains and logistics. It explored
potential barriers and the implementation and manage­
rial challenges of using these technologies in supporting
digital supply chain performance. Practitioners could
consider the critical success factors, discussed in this
paper, to improve the chances of successful adoption
and implementation of DSC in their organisations.
Smail Benzidia and Naouel Makaoui in their
paper entitled ‘Improving performance through supply
chain flexibility and market agility: IT orchestration
perspective’ examine the impact of e-procurement on
SMEs performance. The study explores the mediating
effect of supply chain flexibility and market agility and
their role in SME performance, including responsive­
ness to customer needs and the speed of new product
launches. Based on data collected from 126 French
SMEs, the results demonstrate that e-procurement
orchestration capabilities improve firms’ performance
through the mediating role of supply chain flexibility
and market agility. This research provides significant
evidence that can encourage SMEs not only to invest in
IT infrastructures to improve communication, reduce
development and manufacturing time, of their pro­
cesses but also to acquire the capability to orchestrate
their IT resources by constantly adapting to technolo­
gical trends to enhance their market agility and
performance.
Laurence Viale and Dorsaf Zouari in their paper
on ‘Impact of digitalization on procurement: the case
of robotic process automation’ have explored seven in-
depth case studies from various industries, selected on
their significant interest and success stories to digita­
lise their procurement processes. The result provides
empirical evidence of the attributes for procurement
automation, and gives valuable insights into RPA
impacts on procurement in operational, organisational
and relational terms. The analysis of case studies also
identifies the motives and challenges when imple­
menting RPA into procurement.
Virginie Noireaux and Joseph Edzengte
Edzengte in their paper on ‘The benefits of the digital
supply chain for a collective strategy farmers’ attempts
to understand what contribution the digital supply
chain (DSC) makes to farmers’ pooling of resources.
The case of the Bio Loire Océan association demon­
strates how the DSC allows actors to consolidate the
supply of organic food to give a unified response to an
increasing demand. The theoretical benefits of this
research are organised into two types. The first is
linked to the relational theories of the supply chain.
The second is linked to reducing the role of the logis­
tics service provider in the horizontal pooling pro­
cesses managed by the DSC.
Automated dispensing systems (ADS) are essential
for the complete digitalisation of the hospital supply
chain. But, the value of investing in this equipment is
not clearly established in the literature. Depending
on the evaluation methods, the results are radically
different. The paper on ‘Automated hospital phar­
macy supply chain and the evaluation of organisa­
tional impacts and costs’ presented by Caryn Mathy,
Christophe Pascal, Marie Fizesan, Christopher
Boin, Noémie Délèze and Olivier Aujoulat analyses
the changes induced by ADS in the pharmacy of
a major French hospital. It shows that the return on
investment (ROI) does not highlight the transforma­
tions of the hospital supply chain because the orga­
nisational impacts are masked. If they are taken into
account and valued economically, then the ADS gen­
erate gains. In the case presented, the ROI over
15 years goes from very negative to strongly posi­
tive: –443 K€ to +317 K€, with a break-even point
the 4th year. This result is important for hospital
directors and public funders to improve the ration­
ality of their logistical decision-making.

Mourad Chouki, Valérie Fernandes, Salomée Ruel
and Brigitte Borja de Mozota in their paper ‘Towards
the “Digital Project Integration”: contribution of an ana­
logical approach with the Supply Chain Integration’
have explored how the SCI theoretical framework
could be relevant for analysing the relationships
between User experience (UX) designers and other
actors of the digital project (Product owner, developer,
User Interface designer). The contribution highlights the
role of UX designer facilitator to streamline communica­
tion and coordination within teams during a digital pro­
ject. A skill of UX designers is their ability to understand
the needs of stakeholders. This skill could be used with
SCM to better understand the different needs of part­
ners and the complex network of SC.
Conclusion
The digitalisation of the supply chain is a strategic
topic for the academic and professional community
of logistics and supply chain management. Several
technological, organisational and strategic challenges
remain to overcome to foster the success of the DSC
implementation. It is essential to develop the emer­
gent research undertaken on the adoption of technol­
ogies and their impact on the supply chain. It is also
important to explore new directions of DSC the con­
figurations of the DSC, the role of the customer-
consumer and supplier integration, the contribution
of new skills and project management approaches
and the construction of an integrated measuring
instrument of DSC performance. To provide
a comprehensive understanding of the issues related
to DSC, future research should mobilise various theo­
retical frameworks (technology acceptance models
and theory, innovation adoption theory, organisational
project management theory, dynamic capability the­
ory and stakeholders theory . . .) and combine different
method (qualitative and quantitative) and epistemolo­
gical lenses (Positivism, constructivism and pragma­
tism). Researchers should focus more on the issues
related to the digitalisation of SME’s supply chain and
public supply chains such as public hospitals supply
chain which are under-studied.
We have built a common theoretical foundation of
the digital supply chain for future empirical research
and initiatives on the topic. The future research effort
should be directed towards supporting managers’
initiatives by proposing conceptual models and theo­
retical frameworks, case studies and original practices
and projects for DSC.
Disclosure statement
No potential conflict of interest was reported by the
authors.
SUPPLY CHAIN FORUM: AN INTERNATIONAL JOURNAL 137
Notes on contributors
Blandine Ageron is Full Professor in management science at
the Université Grenoble Alpes. Member of the Centre for
Studies and Applied Research in Management (CERAG), her
research interests focus on Supply Management, Sustainable
Supply Chain Management, Innovation in the Inter-
Organizational Relationships and Skills and Competences in
SC. She is the chief editor of the French review “Logistique &
Management” and a member of the French international
research association in logistics and SCM (AIRL). E-mail: blan­
dine.ageron@univ-grenoble-alpes.fr
Omar Bentahar received the Ph.D. degree in management
science from the Université de Caen Normandie, France, in
2011. He is an Associate Professor of Project Management
and Supply Chain Management with the IAE Metz School of
Management, Université de Lorraine, France, and a member
of the European Centre: CEREFIGE. He is the Co-Founder of
the International Conference PROLOG: “Project &
Logistics” www.prolog-conference.com. His research inter­
ests include management of complex projects and
Healthcare SCM. His work appeared in journals including
IEEE Transactions on Engineering Management,
Transportation Research Part E: Logistics and Transportation
Review, International Journal of Logistics: Research &
Application and Supply Chain Forum: An International
Journal. Email: omar.bentahar@univ-lorraine.fr
Dr. Angappa Gunasekaran is Dean and Professor at the
School of Business & Public Administration, California State
University, Bakersfield. Prior to this, he served as Dean of the
Charlton College of Business from 2013 to 2017, Chairperson
of the Department of Decision and Information Sciences
from 2006-2012, and the founding Director of Business
Innovation Research Center (BIRC) from 2006 to 2017 at the
University of Massachusetts Dartmouth. He has over 300
articles published in peer-reviewed journals. He has pre­
sented about 50 papers, published 50 articles in conferences,
and given a number of invited talks in many countries. He is
on the editorial board of several journals. He has organized
several international workshops and conferences in the
emerging areas of operations management and information
systems.
ORCID
Blandine Ageron http://orcid.org/0000-0003-1723-368X
Omar Bentahar http://orcid.org/0000-0002-2047-7135
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