The Digital Supply Chain

466 Pages·2022·9.953 MB·English

by  Bart L. MacCarthy, Dmitry Ivanov

The Digital Supply Chain
This page intentionally left blank
The Digital Supply Chain
Edited by
Bart L. MacCarthy
Nottingham University Business School, University of Nottingham, United Kingdom
Dmitry Ivanov
Berlin School of Economics and Law, Supply Chain and Operations Management, Berlin, Germany
Elsevier
Radarweg29,POBox211, 1000AEAmsterdam, Netherlands
TheBoulevard,Langford Lane,Kidlington,OxfordOX5 1GB,UnitedKingdom
50HampshireStreet,5thFloor,Cambridge,MA02139,UnitedStates
Copyright©2022ElsevierInc.Allrightsreserved.
Nopart ofthispublicationmay bereproduced ortransmitted inanyform orbyanymeans, electronicor mechanical,including
photocopying, recording,oranyinformation storageandretrieval system,withoutpermission inwritingfromthepublisher.
Details onhowtoseek permission, furtherinformation aboutthePublisher’spermissions policiesandourarrangements with
organizations suchastheCopyrightClearanceCenterandtheCopyrightLicensing Agency,canbefoundatourwebsite:www.
elsevier.com/permissions.
Thisbookandtheindividual contributionscontainedinitareprotected undercopyrightbythePublisher (otherthanasmay
benotedherein).
Notices
Knowledgeandbestpracticeinthisfieldareconstantlychanging. As newresearchandexperiencebroadenourunderstanding,
changesinresearch methods,professional practices,ormedical treatmentmay becomenecessary.
Practitionersandresearchers mustalwaysrelyontheir ownexperience andknowledgeinevaluatingandusingany
information,methods,compounds,orexperiments describedherein. Inusingsuchinformation ormethodsthey shouldbe
mindfuloftheirown safetyandthesafetyofothers,including partiesforwhom theyhaveaprofessional responsibility.
Tothefullestextentofthelaw,neither thePublishernortheauthors,contributors, oreditors, assumeany liabilityforany
injuryand/ordamagetopersonsorpropertyasamatterofproductsliability,negligence orotherwise,or fromanyuseor
operation ofanymethods,products, instructions,or ideascontainedinthematerialherein.
ISBN:978-0-323-91614-1
Forinformation onallElsevierpublications visitourwebsite
athttps://www.elsevier.com/books-and-journals
Publisher:Joseph P.Hayton
Acquisitions Editor: KathrynEryilmaz
EditorialProjectManager:Aleksandra Packowska
ProductionProjectManager:Omer Mukthar
CoverDesigner: Christian J.Bilbow
TypesetbyTNQTechnologies
Contents
Contributors xv
Preface xvii
Part I
Introduction
d
1. The Digital Supply Chain emergence, concepts, definitions, and technologies
Bart L. MacCarthyand Dmitry Ivanov
1. A transformativedecade 3
2. Emergence of the Digital Supply Chain 5
2.1 The digitalization of supply chains 6
3. Building blocks for the Digital Supply Chain 7
3.1 Smart Factories, Smart Warehouses, and Smart Logistics 7
3.2 The Cloud and platforms 9
3.3 Analytics, Data Science, and AI 10
3.4 Emerging technologiesdBlockchain, Digital Twins, and the Internet of Things 11
4. Defining the Digital Supply Chain 14
5. Manyopportunities, manychallenges 15
6. Outline of book contents 17
References 18
Part II
Digital building blocks and enabling technologies
2. Digital Manufacturing: the evolution of traditional manufacturing toward an
automated and interoperable Smart Manufacturing Ecosystem
Dimitris Mourtzis, John Angelopoulos and Nikos Panopoulos
1. Introductiondthe evolution of production paradigms 27
1.1 From Computer-Aided Manufacturing (CAM) to Computer-Integrated Manufacturing (CIM) 28
1.2 Industry 4.0 and the emergence of Smart Manufacturing Systems 29
2. Interoperability and automation 32
2.1 Interoperabilityand ontologies 32
2.2 The pyramid of industrial automation 33
2.3 Generic approaches to implement interoperability in smart manufacturing ecosystems 35
2.4 The smart factory: connectivity, automation, and data 35
2.5 IoTarchitectures for automation, interoperability, and monitoring of Industrial Big Data 36
3. Interoperable Digital Twins and predictivemaintenance in modern manufacturing 36
v
vi Contents
4. Digitalization and smart factories: trends and future challenges 39
4.1 Product lifecycle management 39
4.2 5G for smart manufacturing and Industry 5.0 40
5. Conclusions 40
Glossaryof acronyms 41
References 41
d
3. Smart warehouses a sociotechnical perspective
Sven Winkelhaus and Eric H. Grosse
1. The digital supplychain transforms the requirements for warehousing 47
2. Warehouse management 48
3. Smart warehouses: enabling technologies 49
4. Order-picking in the smart warehouse 52
5. Smart warehouses are sociotechnical systems 54
6. Conclusions 57
References 58
d
4. The Internet of Things an emerging paradigm to support the digitalization of
future supply chains
Hamed Baziyad, Vahid Kayvanfar and Aseem Kinra
1. Introduction 61
2. The basic concepts of IoT 63
2.1 IoTarchitectures 63
2.2 IoTand CPSs 65
3. Supplychain management, novel digital technologies, and IoT 66
4. IoTapplications in OM and SCM 66
4.1 Agri-food 66
4.2 Cold chains 67
4.3 Other manufacturing domains 67
5. Future challenges for IoT in the supplychain 67
5.1 Securityand data privacy 67
5.2 Standards, identification, and naming services 68
5.3 Big data generation 68
6. Perspectives on IoTadoption and implementation in supplychains 68
7. Conclusions, limitations, and future research 70
Appendix A 70
References 71
d
5. The cloud, platforms, and digital twins Enablers of the digital supply chain
Gongtao Zhang, Bart L. MacCarthy and Dmitry Ivanov
1. Introduction 77
2. Perspectives on cloud-based systems 78
2.1 Defining cloud computing 79
2.2 Software as a service 79
2.3 Cloud-based Enterprise Resource Planning (ERP) systems 80
2.4 Advantages and challenges for enterprises adopting cloud computing 80
3. Platform technologies 82
3.1 Characteristics of digital platforms 82
3.2 Platform commerce 82
Contents vii
3.3 Platform ecosystems 83
3.4 Manufacturing as a Service (MaaS)dcombining platforms and the cloud 84
4. Digital twins 85
4.1 Defining a digital twin in a supply chain context 86
4.2 Applications of digital twins for supply chain resilience management 87
5. Conclusions 88
References 88
6. Algorithms, Analytics, and Artificial Intelligence: harnessing data to make supply
chain decisions
Xavier Brusset, Davide La Torre and Jan Broekaert
1. Introduction 93
2. Current and prevalent algorithms and AI techniques 95
2.1 Prescriptive techniques 96
2.2 Predictive techniques 97
3. Current AI and algorithmic applications with the most impact 103
4. Potential techniques and emerging areas of application for AI and algorithms 104
5. Conclusion and perspectives 106
References 107
7. The impact of digitalization on contemporary and future logistics
Stephen Pettit, Yingli Wang and Anthony Beresford
1. Introduction 111
2. Digitalization in logistics and supplychain management 112
3. Cloud-based systems 113
4. Emerging technologies 113
4.1 Platform logistics 115
4.2 Artificial Intelligence 115
4.3 Pervasive computing and Internet of Things 116
4.4 Digital twins 117
4.5 Physical Internet and Industry 4.0 118
4.6 Big data and Business Analytics 119
5. Concluding observations and future prospects 121
References 122
8. Blockchain technologies in the digital supply chain
Horst Treiblmaier, Abderahman Rejeb and Wafaa A.H. Ahmed
1. Introduction 127
2. Functionalityof blockchain 128
3. Blockchain in the academic supplychain literature 129
3.1 Methodology 129
3.2 Drivers of blockchain adoption in logistics and SCM 132
3.3 Barriers to blockchain adoption in supply chains 134
4. Industrial applications of blockchain 137
5. Conclusion and further research 140
References 141
viii Contents
Part III
Managing the Digital Supply Chain
9. Digital architectures: frameworks for supply chain data and information
governance
Konstantina Spanaki, Erisa Karafili and Stella Despoudi
1. Introduction 147
2. Data as a resourcedthe need for data quality 148
2.1 Data and information management frameworks 148
2.2 Data and information landscapes and information ecologies 150
3. Data and information architectures 151
3.1 Data management in cyber-physical SC environments 152
3.2 Data governance in the SC environments 154
4. Data sharing agreements 154
5. Data attributes, sharing, and access control 156
6. Actors, roles, and relationships in data sharing 157
7. Conclusions 158
References 159
d
10. Supply chain traceability systems robust approaches for the digital age
Kitty Kay Chan
1. Introduction 163
2. Visibility, transparency, and traceability 164
2.1 Being visible and transparent 164
2.2 The usage of termsdtraceability, traceability system, tracking, and tracing 164
3. Motivations for traceability and transparency 165
3.1 Increasing operating efficiency 165
3.2 Meeting legal compliance 166
3.3 Managing risks 166
3.4 Building trust and confidence 167
4. Information requirements for traceability systems 167
4.1 Traceability standards 167
4.2 Common information building blocks 168
4.3 Working with information in a common language 168
5. Enabling technologies 169
5.1 Laserand camera-based system with barcodes and QR codes 169
5.2 Radio frequency identification and near field communication 169
5.3 Internet of Things and blockchain 169
6. Challenges 170
6.1 Cybersecuritydsupply chain cybersecurityand multiple-partyauthentication 170
6.2 Standardsdbuilding standards and harmonization of guidelines 170
6.3 Data qualitydunsynchronized data and signal corruption 171
6.4 Integrating new technology 171
6.5 Competing interests among stakeholders 171
7. An illustrativecase: the wood supplychain 172
7.1 Motivation and challenge 172
7.2 Relevant information 172
7.3 Enabling technology 172
8. Conclusion 173
References 173
Contents ix
11. Digital purchasing and procurement systems: evolution and current state
Karsten Cox
1. Introductiondthe rise of digital procurement systems 181
2. The development of digital procurement systems 182
2.1 Early computer-assisted purchasing with MRPand spreadsheets 183
2.2 The integration of procurement and supply chain management through Electronic Data Inter-
change (EDI) and ERP 183
2.3 Characteristics of contemporary digital procurement systemsdP2Pand S2P 184
2.4 State of the art in practice 187
3. Research perspectives on digitalization of procurement 187
3.1 Research on digital procurement systems adoption: technology readiness 187
3.2 The need for wider research on contemporary digital procurement systems 188
4. Hitachi case study 188
4.1 Start of Hitachi’s digital procurement system journey 188
4.2 Hitachi Rail Group: implementing Jaggaer 190
4.3 Pilot study: supporting tenders on high-speed bid projects 191
5. Looking ahead: the future of digital procurement systems 192
5.1 Further automation of digital procurement systems 193
5.2 The future of S2P digital procurement technology 193
5.3 Data integrityand cyber security in future digital procurement 194
6. Conclusions 194
References 194
12. Measuring and managing digital supply chain performance
Ashish Kumar Jha, Nishant Kumar Verma and Indranil Bose
1. Introduction 199
2. A framework for performance management in digital supplychains 200
2.1 Traditional view of performance management in supply chains 200
2.2 Importance of data in digital supply chains 201
2.3 A data-driven framework for performance management 202
3. Case studies 204
3.1 Cisco Systems 204
3.2 Ramco Cements Limited 205
3.3 Tetra Pak 206
4. Impact of emerging technologies on performance measurement and management 210
4.1 Supply chain dashboards 210
4.2 Other emerging technologies 210
5. Conclusions 211
References 212
13. The art of cyber security in the age of the digital supply chain: detecting and
defending against vulnerabilities in your supply chain
Sang Yoon Cha
1. Introduction 215
2. Governments, consultancies, and industryapproaches 217
3. Research on supplychain cyber security 221
4. Research frontiers 226
5. Conclusions 227
References 227