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Week 4 Assignment: How Supply Chain Management Platforms Benefit Companies in

a Digital Business World

Shaker Abdullah Al Morshed

B204963

Department of MSEM, Westcliff University – Irvine, CA

TEM 630: Strategic Technology Management

Professor Elizabeth Crow

November 17, 2024

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Introduction

Enable SCM (Supply Chain Management), which is critical in the present digital

transformation age. SCM has tremendously benefitted from digitally enabled technologies

that make it both more efficient and effective in ensuring improved customer satisfaction at

lower costs. This paper examines the role of SCM in a digital business platform, illustrates

the ways in which companies can gain value from their investment in SCM platforms with

pertinent examples and ultimately presents observations about the future of SCM including

implications for domestic and global e-commerce.

Importance of Supply Chain Management in a Digital Business Platform

For every business, supply chain management plays a major role in simplifying the

processes and to adapt to the changing market needs. SCM acts as the backbone of a digital

business platform (Sita,2020), managing the flow of goods, services and information between

all stages of production. Digital Technology Adoption – The increase in adoption of digital

technologies has resulted in more connected, transparent and agile digital supply chains. As a

result of automation, Blockchain and Artificial Intelligence (AI), companies can monitor their

inventories, analyse demand forecast, and optimize allocations (Bechtsis et al., 2022).

The use of SCM platform provides a wide variety of benefits to the global supply

chains, one such is initiating the real-time communication between suppliers and

manufacturers and retailers. Adoption of digital tools in form of IoT (Internet of Things) and

AI, have improved the predictability of supply chains, enabling forecast demand accurately,

reducing stockouts while keeping appropriate levels of inventory; (Hanelt et al., 2021).

Additionally, with SCM platforms supply chain managers can have an insight into

every nook and cranny of the operations, create data-driven decisions that help enhance

operational efficiency. This transparency results in greater customer service because

businesses are able to quickly respond and adjust to changes in demand or disruption of
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supply. Digital platforms in SCM enable businesses to save time, minimize errors and

optimize the decision-making process at every stage of production and distribution (Liu,

Yeoh, Qu, & Gao. 2022).

Examples of How Supply Chain Management Benefits Companies

Amazon's SCM Platform

Digital SCM platforms have converted the global supply chains into a world as they

exist in Amazon. The firm has implemented a sophisticated SCM system applying various

automation and machine learning techniques. (Hanelt et al., 2021) The Amazon platform can

track stock across different fulfilment centres, and dynamically change where a package ships

from based on demand and geographical location. With these technologies in play, Amazon

is pushing for 1-day delivery, which has become the new-beat for e-commerce.

Walmart's SCM Innovations

SCM platforms have also been used by Walmart to improve operational efficiency.

The retail behemoth uses IoT devices to monitor its supply chain in real-time and uses data

analytics to make sure that its inventory is stocked according to seasonality, consumer

preferences (Bechtsis et al., 2022). With its blockchain-based technology, the company tracks

product provenance and food safety standards to provide higher transparency and trust for

consumers.

Tesla’s SCM Optimization

Electric vehicle leader Tesla utilizes SCM platforms to streamline its production

facilities and synchronize its supply chains. Tesla embodies this innovation from the use of

digital twins and IoT technology which allows them to monitor their inventory in actual time

(Liu et al., 2022), ensuring that all necessary parts are available at the right moment for its

electric vehicles. Such a strategy allows Tesla to avoid production hiccups, streamline

operations and strengthen its international supply chain processes.

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The Future of Supply Chain Management in E-Commerce Domestically and Globally

Domestic E-Commerce

With e-commerce evolving rapidly, SCM platforms have become an increasingly

important solution to cope with the growing demand for faster and efficient deliveries.

At the centre of this transformation lies AI-powered demand forecasting, which

empowers businesses to better predict product demand and adapt their inventories

accordingly. It decreases wastage, improves the stock levels, and ensures product

availability (Nozari et al., 2022; Sadeghi Sahar & Ghahremani Nahr, 2022); SCM

platforms provide capabilities that businesses need to meet high consumer

expectations of same day and next-day delivery, which have become the norm.

Global E-Commerce

Internationally, the SCM of tomorrow will coin in on linked supply chains

powered by the applied sciences. Blockchain adoption can also mitigate complexities

concerning the management of cross-border transactions (Bechtsis et al., 2022), hence

facilitating transparency and trust in international stakeholders. Blockchain smart

contracts will eliminate the odyssey involved in Global supply, thus, automating

many aspects of it and reducing delays by making sure that goods arrive on time

without any paper works.

In addition, coupled with Digital Twins and IoT, such technology will provide

the ability to monitor goods in real-time as they move from place to place globally.

These digital platforms will allow the businesses to mitigate the risks of international

shipping and reduce environmental footprint through optimum route planning and

wastage minimization (Xu et al. 2021; Mak & Brintrup, 2019).

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Impact on Future Companies

Future organizations will become cost-effective, efficient, and improve customer

satisfaction with the wide adoption of digital SCM platforms. The emerging

technologies such as AI, IoT and Blockchain, provide the companies with integrated

capabilities that deliver faster development, efficient decision making and reinforced

form of responsiveness to market changes therefore optimised operational flexibility

(Nozari et al., 2022).

Addendum: Memo to the Chief Technology Officer (CTO)

Memo

To: Chief Technology Officer (CTO)

From: Shaker Abdullah Al Morshed

Date: 17/11/2024

Subject: A Focus on SCM Demand Forecasting System With AI

Introduction

Continuing our commitment to optimize clicks-to-order, I recommend deployment of

an AI-based forecast engine integrated into the supply chain platform. It would allow

us to be able to predict demand in a more efficient way and accordingly manage our

inventory, which will reduce operational costs.

Justification

A forecasting system powered by AI can anticipate the demand more effectively by

analysing historical data, market trends and consumer behaviour. It enables us to

stock products in a more effective way, reduce unnecessary inventory, avoid stock-

outs and ultimately contribute to better customer satisfaction and margin.

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Implementation Steps

Integration: We will partner with our SCM software provider to seamlessly

integrate AI forecasting into our existing system. Training Staff will be trained

to maximize the use of the new system

Monitoring: We will establish metrics to monitor performance so that we can

have an iterative process of improving prediction quality.

Conclusion: This initiative is in line with our strategy to drive efficiency and

deliver an even better customer experience. Implementing AI-powered tools

are the only way to stay up with the trends of a rapidly changing digital

market.

Kind Regards,

Shaker Abdullah Al Morshed

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References

Hanelt, André & Bohnsack, René & Marz, David & Antunes Marante, Claudia. (2020). A

Systematic Review of the Literature on Digital Transformation: Insights and

Implications for Strategy and Organizational Change. Journal of Management

Studies. 10.1111/joms.12639.

Liu, J., Yeoh, W., Qu, Y., and Gao, L., “Blockchain-based Digital Twin for Supply Chain

Management: State-of-the-Art Review and Future Research Directions”, , Art. no.

arXiv:2202.03966, 2022. doi:10.48550/arXiv.2202.03966.

Nozari, Hamed & Sadeghi, Mohammad Ebrahim & Ghahremani-Nahr, Javid & Najafi,

Esmaeil. (2022). Quantitative Analysis of Implementation Challenges of IoT-Based

Digital Supply Chain (Supply Chain 0/4). 10.48550/arXiv.2206.12277.

Tsolakis, Naoum & Schumacher, Roman & Dora, Manoj & Kumar, Mukesh. (2022).

Artificial intelligence and blockchain implementation in supply chains: a pathway to

sustainability and data monetisation? Annals of Operations Research. 327. 1-54.

10.1007/s10479-022-04785-2.

Xu, Liming & Mak, Stephen & Brintrup, Alexandra. (2021). Will bots take over the supply

chain? Revisiting Agent-based supply chain automation. International Journal of

Production Economics. 241. 108279. 10.1016/[Link].2021.108279.