Relational Approaches Related to Digital Supply Chain Management Consolidation
Abstract
:1. Introduction
2. The General Theoretical Framework of the Research
2.1. The Importance of Digital Supply Chain Management
- “Visibility” reflects the established exchange of information, in a digitalized system, between the partners within the supply–delivery chain;
- “Trust” reveals strict exchanges of information and data to achieve levels of digital relationships and interaction that are necessary to achieve common goals within the business system;
- “Sustainability” highlights the viability and fairness of transactions in the digital system of the supply chain, for all partner companies;
- “Efficiency and standards” reveal the continuous observance of the principles imposed by standards, transparency and business ethics in the structure of the digital supply chain, to ensure the necessary collaboration, full functioning and performance [37].
- Connection, i.e., adequate communications between the system components, as well as between them and the external environment, by ensuring all digital devices and interconnected processes;
- Information, through a complex informational system that facilitates inputs, processing, timely capitalization and outputs of information to the beneficiaries of the microenvironment and macroenvironment of supply chain management;
- Smart mechanism, which allows capabilities and rapid actions of advanced analysis for decision-making and real-time business process management;
- Automation using robots and other advanced technological systems to gain a competitive advantage over competitors by increasing productivity and reducing costs in the reference market or markets [39].
2.2. Actions That Are Required for the Evolution and Functional Consolidation of Digital Supply Chain Management
- The existence of digital technical systems, supported by a small number of well-motivated professionals, is insufficient for the execution of complicated (digital) profile procedures in line with the constraints imposed by the business’s complexity;
- The evolved digitalization only of some important functional segments from the staff of the partner companies of a supply–delivery chain, which did not determine an efficient holistic digital operation for the entire business system;
- The use of external (digitized) services for the creation of complicated SCM processes, which prohibited additional investments in digitization, training and skills development by field-based employees;
- Manifestation of deficiencies in business planning within SCM, due to the non-existence of a high-performance digital infrastructure;
- Despite the availability of modern digital infrastructure, some or all digitized business operations were carried out inefficiently, necessitating significant changes in the future;
- The absence of constant communication between the structures responsible for digital integration within the SCM components led to the non-optimal attainment of the efficiency metrics set by digitalization within the relevant business systems [41].
2.3. Determinations and Classifications of High-Performing Organizations Using Digital Supply Chain Management
- Achieving the objectives appropriate to its own digitization;
- Achieving the necessary parameters of agility and resilience to face any risks and challenges in business;
- Investments in new technologies for innovation and sustainability [46].
3. Materials and Methods
3.1. Research Methods
3.2. Research Results
3.2.1. Relational Considerations Regarding the Consolidation of the Digital Supply Chain Management
3.2.2. Considerations Regarding Appropriate Information Management within Consolidated Digital SCM
3.2.3. Proposed Mathematical Relationships to Strengthen Digital Supply Chain Management
- Digital business facilities achieved through digital consolidated SCM (Fa.; for example, the surplus (value) resulting in turnover determined in a certain period of time, as a result of digital transformation);
- The average value level of the digitization achieved within the SCM, resulting by summing the value levels of each component (Dav; represents a constant resulting from the ratio of the two value states of the system, ie: high digitized SCM/lower digitized SCM; it reflects the expenses (efforts) made in order to strengthen the digital SCM);
- The value level of losses related to all risks manifested in the operation of the digital consolidated SCM in local, zonal or global environments (Ll; for example, some interruptions in the operation of new digital systems, with an impact on the performance of digitally consolidated SCM).
- The income obtained in 2021, Ic1/2022 = 1.4 billion EUR (the digital transformation of SCM takes place);
- The income obtained in 2022, Ic2/2022 = 2.1 billion EUR;
- Value of technological systems/previous digitization, Vts1 = 130 million EUR;
- Value of technological systems/digital consolidation, Vts2 = 270 million EUR;
- Associated risks, Ll = 0.
- The elements in formula (1) presented above have the following configuration:
- Important improvement of the parameters of functional agility (speed and flexibility) (Ifa) within the SCM processes;
- Adequate increase in the visibility of the operations (IVO) specific to the efficient functioning of the SCM components;
- The functional association (high-performance and complementary) of digitalization with the robotization of artificial intelligence and the Internet of Things (FA), all technologically integrated within the evolved processes, specific to the SCM components;
- The possibility of avoiding or diminishing the effects of disturbing factors (Pa/ddf) on SCM components;
- Rapid recovery of some value losses (because of the action of some disturbing factors) and the return in a short period of time to the initial functional performances (Rrl) of SCM. Based on the presented, we highlight the following relationship:
- Ab–the abilities of the staff in the management and execution subsystems, both at the higher level of the digital SCM and at the level of each component company. In turn, the mentioned abilities can be expressed as follows:Ab = Q × (K + S + Exp)The elements of the relationship represent Q-qualification; K-knowledge; S-skills; Exp–the experience. The relationship has the expected effect in the conditions where the objectives and performance indicators are adequately described in the job description. However, this can be achieved when: the qualification is based on a relevant formative side accompanied by multi-qualification; the knowledge must be in line with the requirements of the position and continuously updated; the skills involve skills, clarity and positive and innovative justification of the effort made with efficiency to carry out the assigned tasks; experience denotes successful practices in previous functions and the accumulation of added value in professional activities, which allows new high-performance developments in one or more functions that will be occupied later. We believe that the role and importance of abilities (Ab), as a fundamental element within mentioned formula for determining performance (P), is given by the individual value of the acquired level of the component sub-elements. Therefore, within the consolidated digital SCM, the weighting of skills (Q) with the group resulting from the combination of knowledge (K) with skills (S) and experience (Exp) determines, for an employee, a beneficial action power resulting from an individual professional aspect characterized by: efficiency and effectiveness; adequate collaboration—internal and external; intelligent, proactive, innovative and productive thinking; prolonged effort in situations imposed by the performance of certain work duties (natural; urgent; anticipatory etc.); smart management and leadership that continuously engages a mix of resources (human, material, financial, informational) etc.
- M-the pecuniary and non-pecuniary motivation of the management and execution staff within the digital SCM.
- R-the resources committed for the efficient operation of SCM in win-win terms, for the digital SCM components and for the clients of this business system.
3.2.4. Case Study on the Selection and Implementation of the Optimal and Timely Solution, Needed to Strengthen the Digital Supply Chain Management
- (a)
- Initial details
- (b)
- Data for analysis, comparison and decision
- (c)
- Requirements set to be addressed
- V1–V3, are the three decisional variants;
- R1–R3, are the risk nodes, where some random events take place (favorable, average or unfavorable conditions), determined by the costs of acquisition, installation and verification of the operation of the technological components of the digital intelligent system;
- D1–D9, decisional nodes, where the intervention of the deciding manager will take place, who will opt for one of the three decisional variants (V1–V3);
- E1–E18, represent final nodes in which the costs of acquisition and functional implementation of the elements of the intelligent digital system are measured.
4. Findings
5. Limits of Research
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Decisional Alternatives (Solutions) | Evaluation Results in Points/Eligibility Criteria | ||||
---|---|---|---|---|---|
Price (Ps; P) | Agility (As; A) | Sustainability (Ss; S) | Robustness (Rbs; Rb) | Resilience (Rss; Rs) | |
The standard evaluation established for each criterion (Ps, As, Ss, Rbs, Rss) according to its importance, in 100 points | 15 | 17 | 18 | 20 | 30 |
V1 | 11 | 15 | 16 | 16 | 22 |
V2 | 13 | 16 | 17 | 18 | 25 |
V3 | 15 | 17 | 18 | 20 | 30 |
Decisional Alternatives (Solutions) | Individual Evaluation Values/Eligibility Criteria and Final Values | |||||
---|---|---|---|---|---|---|
Price (P/Ps) | Agility (A/As) | Sustainability (S/Ss) | Robustness (Rb/Rbs) | Resilience (Rs/Rss) | Final Arithmetic Values of V1, V2, V3 (Pji) | |
V1 | 0.73 | 0.88 | 0.88 | 0.80 | 0.73 | 4.03 |
V2 | 0.86 | 0.94 | 0.94 | 0.90 | 0.83 | 4.47 |
V3 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 5.00 |
Decision Variants (Solutions) (for Technological Components Acquisition of the Intelligent Digital System) | Smart IT Equipment Costs (Million EUR) | Assessment of the Costs Necessary to Make the Decision to Purchase and Implement a Smart Digital System Necessary for the SCM “M” Functional Consolidation (Million EUR) | |||
---|---|---|---|---|---|
Favorable Conditions | Average Conditions | Unfavorable Conditions | High Costs | Low Costs | |
V1 | 160 | 690 | 330 | ||
142 | 590 | 270 | |||
145 | 450 | 190 | |||
V2 | 170 | 850 | 600 | ||
143 | 670 | 350 | |||
139 | 500 | 270 | |||
V3 | 162 | 590 | 340 | ||
145 | 490 | 240 | |||
141 | 350 | 170 |
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Minculete, G.; Stan, S.E.; Ispas, L.; Virca, I.; Stanciu, L.; Milandru, M.; Mănescu, G.; Bădilă, M.-I. Relational Approaches Related to Digital Supply Chain Management Consolidation. Sustainability 2022, 14, 10727. https://doi.org/10.3390/su141710727
Minculete G, Stan SE, Ispas L, Virca I, Stanciu L, Milandru M, Mănescu G, Bădilă M-I. Relational Approaches Related to Digital Supply Chain Management Consolidation. Sustainability. 2022; 14(17):10727. https://doi.org/10.3390/su141710727
Chicago/Turabian StyleMinculete, Gheorghe, Sebastian Emanuel Stan, Lucian Ispas, Ioan Virca, Leontin Stanciu, Marius Milandru, Gabriel Mănescu, and Mădălina-Ioana Bădilă. 2022. "Relational Approaches Related to Digital Supply Chain Management Consolidation" Sustainability 14, no. 17: 10727. https://doi.org/10.3390/su141710727
APA StyleMinculete, G., Stan, S. E., Ispas, L., Virca, I., Stanciu, L., Milandru, M., Mănescu, G., & Bădilă, M. -I. (2022). Relational Approaches Related to Digital Supply Chain Management Consolidation. Sustainability, 14(17), 10727. https://doi.org/10.3390/su141710727