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Proposition 6: To develop an AI-based model to solve social and environmental issues in supply
chains and link it with sustainable development. AI-enabled supply chains will transform the role of
supply chain professionals, eliminating jobs in clerical and data entry, but they will also create new
jobs. For example, a steel manufacturer would need to secure iron ore, coal, silica, and other source
materials needed to produce final products in their factories. Hence, the logistic system becomes
vulnerable in managing sudden disruptions and recovering the supply chain (Choi 2020 ) which
brings forth the need for a stronger, more innovative and resilient supply chain. This study will also
provide several implications for supply chain managers to achieve the required resilience in their
supply chains post COVID-19 by focusing on the elements of the proposed research framework.
Barriers and overcoming strategies to supply chain sustainability innovation. Utilizing scanner data
collected at point-of-sale locations, along with vast data from customer reviews and blog posts on
social media, AI-based tools, such as Google’s Video AI, can gather and analyze text, images, and
videos. He served as Dean of the National University of Singapore Business School and as senior
adviser to the President of the National University of Singapore. Artificial intelligence in supply
chain management: A systematic. This whole process might include activities such as: Packaging
Logistical planning Sorting Storage Distribution Marketing and Sales are activities related to
promoting, advertising, and pricing products and services. Machine learning in supply chain Machine
learning is the tool that facilitates the reduction and elimination of the negative impact of data
interpretation because it does not entail direct human involvement. An integrated approach was
presented based on system dynamics simulation and an analytic network process to examine policies
for sustainable transport (Sayyadi and Awasthi 2020 ). Neto et al. ( 2008 ) reviewed the main
activities in logistic networks that affect cost efficiency and environmental performance. Although
this is probably an accurate and reasonable evaluation for the DOD’s purposes, it’s one that few other
enterprises are likely to echo. This has led supply chain researchers to consider the potential of AI
techniques in terms of risk identification, assessment, prediction, and response (Baryannis et al.
2019b ). To overcome the impact of risks and disruptions, Katsaliaki et al. ( 2021 ) suggested that it
is necessary to build resilience by integrating three aspects, i.e., long-term partnerships, IT
applications to enhance business, and government policies that facilitate flexibility. Scholars have to
recognize these changes and movements in order to explain the evolution of decisions related to the
governance structure of the global value chain and explain the dynamics that emerge within it over
time. Morris Business, Economics 2001 Summaries This article poses three questions: can value chain
cooperation be constructed rather than simply reflected. For instance, Altana, an AI startup that
creates dynamic maps of global supply chains, has developed a generative AI tool that utilizes both
public and private data to map a company’s supply chain. There are firms that are born with a global
mandate and configure a global value chain from the very beginning. All rights are reserved,
including those for text and data mining, AI training, and similar technologies. Second, there are
other relevant internal conditions within the firms that can affect the governance mode. Outbound
Logistics IKEA minimized its expenses by creating its own distribution system and distribution
centers. The following research questions are formed to answer in this study: RQ1. These tools can
detect supply disruptions caused by supply and worker shortages, factory shutdowns, and shipping
delays, among other issues. The practice is multifaceted and is used for three primary functions.
Provided by the Springer Nature SharedIt content-sharing initiative Publish with us Policies and
ethics Find a journal Track your research An official website of the United States government
The.gov means it’s official. An efficient and successful SCM relies on the management of the quality
and technology within the technical and social system of the supply chain. Primary activities Primary
activities directly impact the success of products and services in the market. If you do, it’s better to
have planned for unforeseen delays. Cost advantage A cost advantage strategy aims to increase
competitive advantage by lowering the cost of manufacturing a product or offering a service. The
activities related to technological innovation can help supply chain firms to increase productivity,
reduce risks and costs (Fu et al. 2021 ). Lee et al. ( 2018 ) stated that technology innovation is an
important factor for the sustainable growth of the company and in recent years, many companies are
shifting their attention to technology management to achieve competitive advantage.
Persistent network relation: relationship has been developed to certain trust level that actor believe
fair price is determined, transaction can occur before price set and without formal agreement 3.
Using a prioritization matrix can help determine which activities in your value chain are actually
worth more or less. Firstly, we have reviewed the literature that defines the concept of the global
value chain and the different types of activities examined on it. STM’s goal is to enable a researcher
to document metadata by finding topics and analysing their connection (Roberts et al. 2019 ). Based
on the frequency and similarity of words, text was analysed from the documents and thematic topics
were generated using STM. Organizations make their money from the difference between the costs
of the value chain and the value they offer (profit margin). This is most important for a focus on the
differentiation advantage. Another important issue explored in the literature about the implications
of value chain activities is related to innovation performance. For example, a vehicle manufacturer’s
operations could include raw material quality checks, assembly processes, and quality assurance
during and after the production process. What are the AI techniques that could help make a resilient
supply chain? RQ2. Understanding the concept of supply chain resilience. For more information,
check out our Privacy Policy. Consequently, the size of the word represents the occurrence of the
keyword in selected articles. Is there an activity that accounts for a large percentage of the cost.
Kaplinekey and Morris ( 2001 ) Value chain study analysis focuses on the interaction of actors along
each step of the production system as well as the linkages within each set of actors. Two questions
arise: can AI enhance supply chain resilience. Humphrey and Schmitz (2002) explain that quasi-
hierarchical chains offer better conditions for process and product upgrading but worse for functional
upgrading. Hybrid meta-heuristic algorithms for a supply chain network considering different carbon
emission regulations using big data characteristics. Your current distribution, logistics, operations,
and more require streamlined processes. A value proposition helps businesses identify what sets them
apart from competitors. However some variable costs may be related to type of the product. With
over 60 different criteria to identify targets, you can locate a new strategic focus with ease. This
matches one of the types of value chains identified by Yip (1989, p. 31), the multi-domestic firm
configuration, in which foreign subsidiaries are autonomous units with “ all or most of the value
chain reproduced in every country ”. The chain includes all of a product’s stages of development,
from its design, to its sourced raw materials and intermediate inputs, its marketing, its distribution,
and its support to the final consumer. For this purpose, they proposed an ensemble model to support
technological integration for achieving companies’ sustainable growth. Organize a brainstorming
session and bring in various stakeholders from your organization. Cloud manufacturing: a service-
oriented manufacturing paradigm. It is thus necessary to clearly identify the decisions involved in a
global value chain configuration that have been already examined and, from that, the aspects that
remain unexplored. For more on Porter’s value chain model and a detailed description of the goals,
functions, and tasks of a value chain, read The Art of Value Chain Analysis. A compromised
decision-making approach to third-party logistics selection in sustainable supply chain using fuzzy
AHP and fuzzy VIKOR methods. Artificial intelligence applications in supply chain: A descriptive
This study was based on a systematic literature review combined with bibliometric analysis to
investigate the current state of research on AI applications in the supply chain.
This will help you keep your teams aligned and quickly adapt when disruptions occur. As Buckley
(2011) concludes, the dynamics of the industry and changes in the market, such as customer demand
or technologies, also determine the structure of the global value chain under integrated or non-
integrated structures. The value chain system was first described in Tableau Economique, written in
the 18th century by the French economist Francois Quesnay. Specifically, it has been argued that if
lead firms are able to leverage power over their suppliers they may appropriate the value generated,
since they may increase flexibility and take advantage of external competencies in terms of better
quality or lower costs ( Buckley and Strange, 2015 ). Furthermore, it brings an unexpected surge in
the demand-side of the food supply chain because of hoarding behaviour and panic buying among
consumers (Hobbs 2020 ). Various statistical tools are used rapidly to perform bibliometric analysis,
for instance, R package, Pajek, Histcite, Bibexel, and Gephi (Agrawal et al. 2021 ). In business
research, the popularity of bibliometric analysis is due to the manifestation of its efficiency to handle
large quantity of scientific data and creating high research impact (Donthu et al. 2021 ). To perform
the bibliometric analysis, R package was used. All in all, this social upgrading process is driven by
different factors, requires different mechanisms and different actors are involved in it ( Gereffi and
Lee, 2016 ). The interplay between AI and supply chain management, two critical sectors, is more
important than ever to create economic stability and resiliency. Organizations make their money
from the difference between the costs of the value chain and the value they offer (profit margin).
Majeed Alneamy, J.S., Hameed Alnaish, Z.A., Mohd Hashim, S.Z., Hamed Alnaish, R.A.: Utilizing
hybrid functional fuzzy wavelet neural networks with a teaching learning-based optimization
algorithm for medical disease diagnosis. Comput. Biol. Med. 112 (2019). Download references
Author information Authors and affiliations. For extensive strategies and actionable guidance to
support or begin a process of value chain management, consult Michael Porter's book, Competitive
Advantage. When organizations are experiencing high profits, inefficiencies typically soar. For
example, if you’re analyzing your inbound logistics activities, you’ll need to look at receiving,
storage, warehousing, inventory management, etc. ??Tip: This step requires adequate knowledge of
the company’s operations. As Jacobides and Billinger (2006) explain, firms can also use alliances and
generate partial integration with mixed modes. Although these studies show the reasons for locating
different activities in specific countries and the benefits thus obtained, they do not show the
geographical scope of a value chain, nor take into account the complexity of today's business world
or the broader range of the firm's strategic choices ( Wiersema and Bowen, 2011 ). Future research
could empirically examine the evolution and challenges that the different firms involved in the global
value chain may encounter. Subscribe for little revelations across business and tech. Outbound
Logistics involves storing, transporting, and distributing finished products to consumers on time and
in line with market demand. Look at the past in order to analyze the future How much is the
accumulated economic value of your belonging item. Here, you may look at the cost of running your
warehouse, machinery, and assembly lines. For more information, check out our Privacy Policy.
Companies like FedEx see the future as a circular chain that values renewability. The data used to
train AI and AI-produced insights can be biased. A compromised decision-making approach to third-
party logistics selection in sustainable supply chain using fuzzy AHP and fuzzy VIKOR methods.
Proposition 15: Future studies may incorporate green SCM practices in supplier selection
management. If so, find the most optimal approach for that task and standardize it. A production
recovery model was established by using a mathematical modeling approach to overcome these
disruptions in the supply chain of high-demand and essential products during the pandemic (Paul and
Chowdhury 2020 ). Renting out warehouse space during quieter periods could help reduce your
inbound and outbound logistics costs. 5. Identify your best opportunities for competitive advantage
If you chose a differentiation approach, ask yourself which parts of your value chain offer the best
opportunity to achieve differentiation. Data quality management, data usage experience and
acquisition intention of big data analytics. Furthermore, the bibliometric analysis was conducted
using R-package to investigate the research trends in the area of AI in SCR.
Additionally, offshoring experience and a strong orientation toward an overall system of structures
and processes have been considered to be factors that allow firms to anticipate the costs of the
dispersion of activities and avoid its negative effects ( Larsen et al., 2013 ). Table 4 summarizes the
benefits and drawbacks of each type of coordination. Table 4. Benefits and drawbacks of dispersed
and concentrated global value chains. The analysis may suggest that you need greater or more
expensive resources to increase product value, create loyalty, or differentiate yourself from your
competitors. Springer, Cham. Download citation DOI: Published: 29 March 2023 Publisher Name:
Springer, Cham Print ISBN: 978-3-031-28386-4 Online ISBN: 978-3-031-28387-1 eBook Packages:
Intelligent Technologies and Robotics Intelligent Technologies and Robotics (R0) Share this paper
Anyone you share the following link with will be able to read this content: Sorry, a shareable link is
not currently available for this article. An integrated queuing-stochastic optimization hybrid Genetic
Algorithm for a location-inventory supply chain network. STM’s goal is to enable a researcher to
document metadata by finding topics and analysing their connection (Roberts et al. 2019 ). Based
on the frequency and similarity of words, text was analysed from the documents and thematic topics
were generated using STM. Finally, in the last stage, a future research framework was proposed, and
a conclusion was made based on the results generated. Technology management in supply chain
firms Technology management is defined widely as “ a process, which includes planning, directing,
control and coordination of the development and implementation of technological capabilities to
shape and accomplish the strategic and operational objectives of an organization ” (Cetindamar et al.
2009 ). It is crucial to evaluate the impact of information technology on today’s organization as it
has become a fundamental aspect of SCM. It would also be interesting to test empirically the
implications of the different governance modes described in the literature. Inbound Logistics
involves receiving, storing, managing, and transporting the materials or components needed for a
product or service. Some of the resulting opportunities may be as simple as negotiating with
suppliers on raw material costs. This is made up of the flow of knowledge and expertise necessary
for the physical input-output structure to function. It is not meant to be a standalone, rigid
framework that creates barriers between functions or gives equal weight to every task that brings a
product or service to market. Another topic that is interesting and remains underexplored is the case
of downgrading, which means that firms may voluntarily or involuntarily move toward the
production of simpler goods or focus on lower or smaller segments ( Barrientos et al., 2011; Blazek,
2015 ). Then, the bibliometric study was performed to examine the research trends in the fields of AI
and SCR. For example, an appliance maker or car manufacturer must offer after-sale support and
services to ensure their customers are happy. The journal was indexed in the SCCI in 2008, and it is
published in English under the new title (BRQ) since 2014. The value chain concept goes a step
further, and explains that entities may be connected and create a value which is a source of
competitive advantage ( Al-Mudimigh et al., 2004; Stabell and Fjeldstad, 1998 ). Focuses on how a
business creates customer value by examining contributions of different internal activities to that
value Divides a business into a set of activities within the business Starts with inputs a firm receives.
From a different perspective, focused on the complementary assets of lead firms for making
innovations a commercial success, Shin et al. (2009) argue that these firms may capture more
benefits from innovations even when they are developed by non-lead firms. Table 6 offers an
overview of the literature examining the different performance implications of a global value chain
configuration. Indeed, governance modes may vary over time as the industry matures and evolves (
Gereffi and Lee, 2012 ). Supply chain and external conditions under which supply chain resilience
pays: An organizational information processing theorization. To understand this information, you
need accurate data reporting. Responsible AI development is key to the stability of supply chains, as
AI becomes increasingly engrained in supply chain management. Bibliometric study In recent years,
bibliometric analysis has gained massive popularity in the research field of business and management
(Donthu et al. 2021 ). The bibliometric methods are used to provide quantitative analysis of written
papers or publications (Ellegaard and Wallin 2015 ). The technological innovations and AI
applications will help in creating a resilient supply chain and further facilitate risk mitigation, supplier
selection, decision modeling, technology management, network design, data-driven and optimization
algorithm in the supply chain. With over 60 different criteria to identify targets, you can locate a new
strategic focus with ease. The purpose of this article is therefore to review the literature on global
value chain configurations in order to systematize it and indicate avenues for future research (see
Fig. 1 ). If you do, it’s better to have planned for unforeseen delays. Companies that excel with a
low-cost strategy have extreme operational efficiency and use low-cost materials to reduce the
overall price of their product or service. When deciding to outsource, it’s important to consider
whether the end customer will have a concern with the company outsourcing the specific activity,
whether outsourcing impacts delivery time, and of course, the associated costs.
Due to the advent of new data gathering technologies (IoT) and greater storage capacity, big data
analytics (BDA) is rapidly growing as one of the main fields within AI research. An Agent-Based
Model for Supply Chain Recovery in the Wake of the COVID-19 Pandemic. For example,
approaches that focus on discovering cost advantages and disadvantages include. For more
information, check out our Privacy Policy. Considered in its general form, it takes the shape as
described in Figure 1. The policy provides guidance for high-risk AI systems and breaks down
responsibilities throughout the AI supply chain with requirements for importers, distributors, and
other supply chain stakeholders. A model of supply-chain decisions for resource sharing with an
application to ventilator allocation to combat COVID-19. Later, in October 2023, the White House
released a report summarizing President Biden’s executive order on Safe, Secure, and Trustworthy
AI. Future research may examine the mechanisms needed for avoiding this process or for
recognizing it as the optimal strategy. For this purpose, they proposed an ensemble model to support
technological integration for achieving companies’ sustainable growth. Discussion and an agenda for
future research To summarize, the purpose of this study was to revise the literature around global
value chain configurations. Consider your shipping costs to consumers, warehousing fees, distributor
relations, and order processing operations. Instead, identify tasks you can start simultaneously based
on dependencies. Second, there are other relevant internal conditions within the firms that can affect
the governance mode. Therefore, it is necessary to lay out investment cost. Both of these actions will
increase value for consumers and a larger profit margin for the company. One of the crucial aspects
of building an overview of global value chain configuration is therefore an examination of the
activities involved, which can be grouped based on different criteria (see Table 1 ). Thus,
management literature has used the term “global value chain” for those cases in which some
functions are located in other countries. Supplier evaluation for resilient project driven supply chain.
A data-driven approach can be employed to ascertain factors enabling resilience in the supply chain
and the importance of quality information sharing, and swift trust can be emphasized (Papadopoulos
et al. 2017 ). Cavalcante et al. ( 2019 ) developed a data-driven hybrid technique to theorize the
concepts of resilient supply chain performance. This is how your product or service is presented and
sold to your ideal target market. Managing interdependencies becomes as important as managing
within the organization’s walls.” - Michael E. Porter, Junaid Nabi, and Thomas H. Lee. What is a
competitive advantage. But special emphasis has been given to the upgrading process for local
producers that can learn from global buyers. Variable costs are easy to calculate because they change
with output. The generated thematic topics, such as Risk associated with SCM, sustainable
transportation, and logistics, resiliency in supply chain, supplier risk management, data-driven supply
chain, decision model in supply chain, technology management in supply chain firms, network
design in supply chain, machine learning in supply chain, optimization algorithm in supply chain have
been identified. Ivanov D and Hosseini S are two leading authors to contribute to this field of
research with 7 and 6 published articles, respectively. Traditionally, global value chain configuration
has mainly been explored through the study of large firms. They have been considered to have more
of the resources and capabilities that enable them to design integrated structures. How to do it?
Using a centralized platform to manage your strategic initiatives in one place. Strategic Significance
(1). “Value Chain”, the company’s activities are divided into the technologically and economically
distinct activities that the company performs in doing business. This vision, however, focuses on the
examination of MNEs as the unit of analysis, which may hide the existence of global value chains
that include externalized and internalized activities.