The COVID-19 pandemic highlighted the critical role of digitalization in the global economy. Nowhere is its potential more evident than in supply chains, where digital transformation could unlock new efficiencies. First introduced in 2001, the term “digital supply chain” (DSC) refers to an integrated end-to-end system for supply and delivery that minimizes human intervention through digital technologies. According to a report by Strategy&, DSCs are expected to increase efficiency by 4.1% relative to their non-digital counterparts — efficiency gains that could contribute significant cost savings, especially for the chemical industry.
In the AIChE Journal Perspective article, “Digital Supply Chain: An Industrial Perspective,” John M. Wassick and Hector D. Perez of Carnegie Mellon Univ. discuss the future of supply chains, focusing on the business outcomes of DSCs. The Perspective reviews current supply chain challenges that DSCs might help solve and considers a new supply chain paradigm based on networks of heterogeneous information flows, where digital systems, physical entities, and human intelligence interact throughout the supply chain layers.
Challenges. A 2021 Lux Research report identified major challenges associated with the supply chain and logistics in the chemical industry. These included external disruptions, long-term trend shifts, temporary but highly disruptive events, and challenges with...
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