HOW DOES SUPPLY CHAIN DIGITALIZATION IMPROVE OPERATIONAL EFFICIENCY?
DOI:
https://doi.org/10.53555/eijbms.v10i1.227Keywords:
Supply Chain Digitalization, Operational Efficiency, Internet of Things (IoT)Abstract
This paper explores the transformative impact of digitalization on supply chain operational efficiency. Traditional supply chains often suffer from limited visibility, manual errors, and slow responsiveness. By integrating advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), blockchain, cloud computing, and digital twins, businesses are reshaping their logistics and operational frameworks. The study identifies how these technologies enhance process automation, traceability, real-time analytics, and decision-making accuracy. Additionally, it highlights key performance indicators (KPIs) improved through digital integration and discusses real-world case studies showcasing the benefits in forecasting accuracy, inventory management, and sustainability. While the digital shift offers considerable efficiency gains, the paper also addresses challenges such as high implementation costs, data security concerns, and workforce adaptability. The findings affirm that strategic digital transformation enables companies to build resilient, responsive, and efficient supply chains aligned with modern market demands.
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