DOI QR코드

DOI QR Code

Analysis of Key Success Factors for Building a Smart Supply Chain Using AHP

AHP를 이용한 스마트 공급망 구축을 위한 주요 성공요인 분석

  • Received : 2023.12.06
  • Accepted : 2023.12.17
  • Published : 2023.12.31

Abstract

With the advent of the Fourth Industrial Revolution, propelled by digital technology, we are transitioning into an era of hyperconnectivity, where everything and objects are becoming interconnected. A smart supply chain refers to a supply chain system where various sensors and RFID tags are attached to objects such as machinery and products used in the manufacturing and transportation of goods. These sensors and tags collect and analyze process data related to the products, providing meaningful information for operational use and decision-making in the supply chain. Before the spread of COVID-19, the fundamental principles of supply chain management were centered around 'cost minimization' and 'high efficiency.' A smart supply chain overcomes the linear delayed action-reaction processes of traditional supply chains by adopting real-time data for better decision-making based on information, providing greater transparency, and enabling enhanced collaboration across the entire supply chain. Therefore, in this study, a hierarchical model for building a smart supply chain was constructed to systematically derive the importance of key factors that should be strategically considered in the construction of a smart supply chain, based on the major factors identified in previous research. We applied AHP (Analytical Hierarchy Process) techniques to identify urgent improvement areas in smart SCM initiatives. The analysis results showed that the external supply chain integration is the most urgent area to be improved in smart SCM initiatives.

Keywords

Acknowledgement

This work was supported by a research grant from 2023 Halla University

References

  1. Akyuz, G. A. and Gursoy, G., "Becoming smart, innovative, and socially responsible in supply chain collaboration, Encyclopedia of Information Science and Technology", (4th ed.), IGI Global, Hershey, 2018, pp. 5285-5305.
  2. Basset, M. A., Manogaran, G., and Mohamed, M., "Internet of things (IoT) and its impact on supply chain: A framework for building smart, secure and efficient systems", Future Generation Computer Systems, Vol. 86, 2018, pp. 1-15. https://doi.org/10.1016/j.future.2018.04.051
  3. Bonkenburt, T. "Robotics in logistics, DHL Customer Solutions & Innovation", Germany, 2016.
  4. Butner, K., "The smarter supply chain of the future", Strategy and Leadership, Vol. 38, No. 1, 2010, pp. 22-31. https://doi.org/10.1108/10878571011009859
  5. Buyukozkan, G. and Gocer, F., "Digital supply chain: literature review and a proposed framework for future research", Computers in Industry, Vol. 97, 2018, pp. 157-177. https://doi.org/10.1016/j.compind.2018.02.010
  6. Carmigniani, J. and Furht, B., "Augmented reality: An overview, Handbook of Augmented Reality", Springer, New York, 2011, pp. 3-46.
  7. Chung, G., Niezgoda, D., Beissmann, R., Chaturvedi, K., Kooi, T., and Wen, J., "3D Printing and the Future of Supply Chains", DHL Customer Solutions & Innovation, Germany, 2016.
  8. Gesing, B., Peterson, S. J., and Michelsen, D., "Artificial Intelligence in Logistics - A Collaborative Report by DHL and IBM on Implications and Use Cases for the Logistics Industry", DHL Customer Solutions & Innovation, Germany, 2018.
  9. Glockner, H., Jannek, K., Mahn, J., and Theis, B., "Augmented reality, DHL Customer Solutions & Innovation", December, 2014, [online] https://doi.org/10.1145/2656433.
  10. Heutger, M. and Kuckelhaus, M., "Blockchain in logistics", DHL Customer Solutions & Innovation, Germany, 2018.
  11. Heutger, M., "Self-Driving Vehicles in Logistics", DHL Customer Solutions & Innovation, 2014.
  12. IMF, "World Economic Outlook", available at https://www.imf.org/en/Publications/WEO/Issues/2023/04/14/weo-april-2023, 2023.
  13. Jay, W. F., "Industrial Dynamics", Cambridge, MA: MIT Press, 1961.
  14. Jeske, M., Gruner, M., and WeiB, F., "Big Data in Logistics: A DHL Perspective on How to Move Beyond the Hype", DHL Customer Solutions & Innovation, Germany, 2013.
  15. Joe, M., Evan, Q., and Michael, E. R., "Forging links into loops: The Internet of Things' potential to recast supply chain management", Deloitte Review Vol. 17, Deloitte University Press, 2015. http://dupress.com/articles/internet-of-things-supply-chain-management/.
  16. Kaur, H. and Singh, S. P., "Modeling low carbon procurement and logistics in supply chain: A key towards sustainable production", Sustainable Production and Consumption, April, Vol. 11, 2017, pp. 5-17. https://doi.org/10.1016/j.spc.2017.03.001
  17. Kim, H. J., and Oh, K. H., "The Effects of SCM Activity on Management Performance", Korean Management Consulting Review, Vol. 9, No. 4, 2009, pp. 111-128.
  18. Kraemer, D., "Omni-Channel Logistics: A DHL Perspective on Implications and Use Cases for the Logistics Industry", DHL Customer Solutions & Innovation, Germany, 2015.
  19. Lee, I., "The internet of things (IoT): Capabilities and applications for smart supply chain", The Internet of Things in the Modern Business Environment, 2017, pp. 76-93.
  20. Lund, S., Manyika, J., Woetzel, J., Bughin, J., Krishnan, M., Seong, J., and Muir, M., "Globalization in Transition: The Future of Trade and Value Chains", McKinsey, January, 2020. available at https://www.mckinsey.com/featured-insights/innovationand-growth/globalization-in-transition-the-future-of-tradeand-value-chains
  21. Macaulay, J., Buckalew, L., and Chung, G., "Internet of things in logistics", DHL Customer Solutions & Innovation, Vol. 1, No. 1, 2015, pp.1-27.
  22. Marchese, K. and Crane, J., "3D Opportunity for the Supply Chain", Deloitte, 2015.
  23. Michael, R. and Mark, C., "The more things change: Value creation, value capture, and the Internet of Things", Deloitte Review, Vol. 17, 2015, Deloitte University Press, https://dupress.deloitte.com/dup-us-en/deloittereview/issue-17/value-creation-value-capture-internet-of-things.html.
  24. Niezgoda, D., Endriss, S., and Kuckelhaus, M., "Unmanned Aerial Vehicles in Logistics", DHL Customer Solutions & Innovation, Germany, 2014.
  25. Papadopoulos, T., Gunasekaran, A., Dubey, R., Altay, N., Childe, S. J., and Fosso-wamba, S., "The role of big data in explaining disaster resilience in supply chains for sustainability", Journal of Cleaner Production, Vol. 142, 2017, pp. 1108-1118, Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2016.03.059
  26. Park, G. W., Park, G. T., and Kim, B. W., "Relationship Management in Supply Chain Management - Focused on the Characteristics of Relationship Management Variables", Korean Management Review, Vol. 44, No. 4, 2015, pp. 985-1012. https://doi.org/10.17287/kmr.2015.44.4.985
  27. Raj, S. and Sharma, A., "Supply Chain Management in the Cloud", Accenture, pp. 1-11, 2014.
  28. Ribeiro, J. P. and Povoa, A. B., "Supply chain resilience: definitions and quantitative modelling approaches: A literature review", Computers & Industrial Engineering, Vol. 115, November 2017, pp. 109-122. https://doi.org/10.1016/j.cie.2017.11.006
  29. Richter, K. and Poenicke, O., "Low-cost sensor technology, DHL Customer Solutions & Innovation", Germany, December 2013, p. 24.
  30. Saaty, T. L., "A scaling method for priorities in hierarchical structures", Journal of Mathematical Psychology, Vol. 15, 1977, pp. 234-281. https://doi.org/10.1016/0022-2496(77)90033-5
  31. Shin, J. C., Lim, O. K., and Park, Y. H., Song, S. H., "A Study on Determining Priorities of Basic Factors for Implementing Smart Supply Chain", Journal of the Korean Society of Supply Chain Management, Vol. 17, No. 1, 2017, pp.1-12. https://doi.org/10.25052/KSCM.2017.05.17.1.1
  32. Urciuoli, L. and Hintsa, J., 'Improving supply chain risk management - can additional data help?", International Journal of Logistics Systems and Management, Vol. 30, No. 2, 2008, pp. 195-224. https://doi.org/10.1504/IJLSM.2018.10013175
  33. Wahlster, W., Artificial Intelligence as the driver of the second wave of digitization, VDMA Impulse, 2017. [online] https://www.vdmaimpulse.org/article/-/article/render/156223#
  34. Wu, L., Yue, X., Jin, A., and Yen, D. C., "Smart supply chain management: A review and implications for future research", The International Journal of Logistics Management, Vol. 27, No. 2, 2016, pp. 395-417. https://doi.org/10.1108/IJLM-02-2014-0035
  35. Yang, J. Y., Lee, H. S., and Park G., "Consideration of COVID-19 and Innovation Demands in Supply Chain Management Strategies: Focusing on Proposals from Global Consulting Firms", Korean Management Consulting Review, Vol. 20, No3, 2020, pp. 225-236.