Technology Optimization and Change Management for Successful Digital Supply Chains

345 Pages·2019·7.532 MB·English

by  Ehap Sabri (editor)

Technology Optimization
and Change Management
for Successful Digital
Supply Chains
Ehap Sabri
KPMG LLP, USA & University of Texas at Dallas, USA
A volume in the Advances in Logistics,
Operations, and Management Science (ALOMS)
Book Series
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Library of Congress Cataloging-in-Publication Data
Names: Sabri, Ehap H., 1967- editor.
Title: Technology optimization and change management for successful digital
supply chains / Ehap Sabri, editor.
Description: Hershey, PA : Business Science Reference, [2019]
Identifiers: LCCN 2018036426| ISBN 9781522577003 (hardcover) | ISBN
9781522577010 (ebook)
Subjects: LCSH: Business logistics--Technological innovations. | Production
control--Technological innovations.
Classification: LCC HD38.5 .T435 2019 | DDC 658.7--dc23 LC record available at https://lccn.loc.gov/2018036426

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Editorial Advisory Board
RachelGibbons,KPMG LLP, USA
AmitGupta,KPMG LLP, USA
VarunGupta,Pennsylvania State University–Erie, USA
MatthiasLederer,ISM International School of Management, Germany
MarkLevy,KPMG LLP, USA
ArifMohammed,JDA Software, USA
AnnaQuitt,ISM International School of Management, Germany
SalimShaikh,JDA Software, USA
MichaelSony,Namibia University of Science and Technology, Namibia
LikhitVerma,Ericsson, USA
AndreasWerner,KPMG LLP, USA
ChadWiseman,KPMG LLP, USA

Table of Contents
Preface..................................................................................................................................................xv
Acknowledgment................................................................................................................................xxi
Section 1
Digital Supply Chain Strategy
Chapter 1
StrategicPerspectivesoftheDigitalSupplyChain................................................................................1
Hanns-Christian L. Hanebeck, University of North Texas, USA
Chapter 2
ProcurementStrategiesforDigitalSupplyChains:ConceptsandBestPractices................................17
Varun Gupta, Pennsylvania State University – Erie, USA
Chapter 3
CorporatesintheDigitalAge...............................................................................................................39
Hammad Azzam, Independent Researcher, USA
Section 2
Success Factors for Digital Supply Chain Transformations
Chapter 4
TransformationFrameworkforSupplyChainSegmentationinDigitalBusiness................................54
Ehap Sabri, KPMG LLP, USA & University of Texas at Dallas, USA
Chapter 5
MasteringChangeManagementforSuccessfulDigitalSupplyChainTransformations.....................85
Ehap Sabri, KPMG LLP, USA & University of Texas at Dallas, USA
Chapter 6
EstablishingtheProgramManagementOffice:AKeyEnablerforDigitalSupplyChain
Transformation....................................................................................................................................107
Chad Wiseman, KPMG LLP, USA



Chapter 7
SupplyChainPerformanceMeasurementandOrganizationalAlignmentintheDigitalWorld........128
Ehap Sabri, KPMG LLP, USA & University of Texas at Dallas, USA
Rohan Vishwasrao, JDA Software, USA
Section 3
Recipe for Success for Optimizing Certain Supply Chain Processes in the Digital World
Chapter 8
CognitiveIntegratedBusinessPlanning.............................................................................................156
Salim Shaikh, JDA Software, USA
Chapter 9
ImpactofDigitalizationonCategoryManagement...........................................................................169
Arif Mohammed, JDA Software, USA
Ricardo Cesar Panserini, JDA Software, Brazil
Chapter 10
DigitalInventoryOptimization:APractitioner’sGuidetoTransformYourOrganization................192
Andreas Werner, KPMG LLP, USA
Chapter 11
CapacityPlanninginDigitalAge:AProcesstoPreparetoMeettheVolatileDemand....................217
Amit Gupta, KPMG LLP, USA
Chapter 12
GreenSupplyChainManagementPracticesandDigitalTechnology:AQualitativeStudy..............233
Michael Sony, Namibia University of Science and Technology, Namibia
Section 4
Key Enablers for Digital Supply Chain Transformation
Chapter 13
DigitalTransformation:Impactof5GTechnologyinSupplyChainIndustry...................................256
Likhit Verma, Ericsson, USA
Mohit Lalwani, Oracle, USA
Chapter 14
SupplyChainProcessesModellingforDigitalization:AScientificClassificationandPractical
RecommendationModel.....................................................................................................................275
Matthias Lederer, ISM International School of Management, Germany
Anna Quitt, ISM International School of Management, Germany
Remzi Avci, University of Erlangen-Nuremberg, Germany
Mario Büsch, ISM International School of Management, Germany

Chapter 15
DayintheLifeofSupplyChainAnalystsinaDigitalWorld............................................................291
Shiva R. Esturi, Micron Technology Inc, USA
Bo Liao, Western Digital Corporation, USA
Compilation of References...............................................................................................................307
Index...................................................................................................................................................321
Detailed Table of Contents
Preface..................................................................................................................................................xv
Acknowledgment................................................................................................................................xxi
Section 1
Digital Supply Chain Strategy
Chapter 1
StrategicPerspectivesoftheDigitalSupplyChain................................................................................1
Hanns-Christian L. Hanebeck, University of North Texas, USA
Supplychainmanagementisoneoftheoldestaspectsofhumancommerce.Ithasbeenaroundforaslong
aswecanlookbackinhistory,andyet,westillhaveaverylimitedunderstandingofwhatstrategicsupply
chainmanagemententailsorconstitutes.Astrategicapproachtosupplychainmanagementnecessarily
needstoconsiderwidercorporatestrategicobjectivesandinitiatives,whileithastocontributetothe
achievementofthesegoalsasallothermanagerialfunctionsdo.Wefurtherdifferentiatebetweenstrategic
supplychainmanagement,whenthesupplychainfunctionprovidesuniquecompetitiveadvantageand
supplychainstrategy,whenittakesonasupportingroletocorporatestrategy.Theauthorsdevelopa
caseforstrategicsupplychainmanagementbasedonedgecomputingapplicationsthroughIoTsensors
suchasGPSorRFIDtoillustratethatsupplychainpractitionersneedtofundamentallyrethinktheway
currentsupplychainsystemsprocessdataandinformationandalsothattheapproachtocollaboration
betweensupplychainpartnerschangesdrastically.
Chapter 2
ProcurementStrategiesforDigitalSupplyChains:ConceptsandBestPractices................................17
Varun Gupta, Pennsylvania State University – Erie, USA
Thepurposeofthischapteristoprovidethebasicconceptsandthebestpracticesforprocurementin
thecontextofdigitalsupplychains.Thischapterconsistsofthreesections.Inthefirsttwosections,a
reviewofdigitalsupplychainprocurementliteratureandtheoriesispresented,followedbyadetailed
discussionofthebestpracticesinprocurementstrategiescomprisingofthesix-stepframeworkfor
procurementstrategiesdigitalization.Finally,thechapterconcludeswithfuturetrendsinprocurement
strategies.Thechapterconsistsofcasestudiesfromdifferentindustriessuchasmanufacturing(Apple,
Betaproducts,IBM),fastfood(Chipotle),andlogistics/pharmaceutical(DHL).EVA(economicvalue
added)modelisdiscussedinthechapter,whichisusefultoevaluatethevalueofdigitalization.This
chapterisintendedforallpractitionersandacademicswhoareinterestedinlearningaboutthecurrent
bestpracticesandthechallengesassociatedwithprocurementfordigitalgoods.


Chapter 3
CorporatesintheDigitalAge...............................................................................................................39
Hammad Azzam, Independent Researcher, USA
Apropositionfordigitaltransformationofglobalgroupsintoefficiententerprisesisintroduced.At
theheartofthepropositionisatransformationalpracticeaimedatcreatingacustomer-focused,data-
drivenglobalcultureinanycustomer-servingcompany.Thedigitalagehasaddedalevelofcomplexity
tothewayweacquireandservecustomers.Doingagoodjobinthetraditionalchannelsisnotenough
anymore.Onlineisincreasinglybecomingthechannelofchoicewiththetwomaincustomer-interaction
paradigms:sellandservice.Andbuildingagreatcustomerexperienceisprobablythemostessential
factorofsuccessforbothfunctions.
Section 2
Success Factors for Digital Supply Chain Transformations
Chapter 4
TransformationFrameworkforSupplyChainSegmentationinDigitalBusiness................................54
Ehap Sabri, KPMG LLP, USA & University of Texas at Dallas, USA
Thepurposeofthischapteristoexplorethefactorsthatinfluencedigitalsupplychainsegmentationand
provideabestpracticetransformationapproachtoensureasuccessfuljourney.Theinitialresearchis
basedonareviewofsupplychainsegmentationliteratureandtheapplicationofrelevanttransformation
stepstospecificcasestudies,comprisingofcompaniesfromdifferentindustries.Digitalsupplychain
segmentationstrategypresentshugeopportunitiesthatarebeingtappedbyveryfewcompanieswho
achievedsignificantbenefitsandgainedcompetitiveadvantage.Thechapterprovidesapracticaland
provendigitalsupplychainsegmentationframeworkforcompanieswhoareabouttotakethesegmentation
transformationjourney.
Chapter 5
MasteringChangeManagementforSuccessfulDigitalSupplyChainTransformations.....................85
Ehap Sabri, KPMG LLP, USA & University of Texas at Dallas, USA
Inresponsetothedramaticchangesinthebusinesslandscapeoverthelastfewyears,manycompanies
arelaunchingbusinesstransformationsleveragingdigitaltechnologiestodrivesweepingchangesintheir
supplychainprocesses.Thedigitalsupplychaintransformationcanbeevidentestablishingcollaborative
forecastingprocesses,optimizingnetworksandinventories,etc.Digitalsupplychaintransformationis
notanewbuzzword.Itistheapplicationofdigitalcapabilitiestoprocesses,products,andassetsto
improvesupplychainefficiency,enhancecustomervalue,managerisk,andachievecompetitiveadvantage.
However,organizationsarestillfacingnumerouschallengestotransformandperform.Perhapsthemost
commonmisunderstandingisthatdigitaltransformationisallabouttheimplementationanduseof
cutting-edgetechnologies.Thischapterwilldivedeeptounderstandmajorchallengestodigitalsupply
chaintransformations,identifythekeydriversandenablersofdigitalopportunity,andprovideachange
managementframeworkfordigitalsupplychaintransformation.