Supply chain digital

transformation plan development

OMGT 2230
Supply Chain Technology

Assessment 1 Individual Project 26 February 2023

Prepared By:
Vito Nolan Gunawan ( )

Prepared For: Dr. Victor Gekara

And
Dr. Jaime Wong
 Table of Contents

1. Introduction............................................................................................................................3
2. Context Definition...................................................................................................................3
3. Potential Supply Chain Transport Issues.............................................................................3
4. The Plan...................................................................................................................................4
5. Concluding Discussion...........................................................................................................5
6. Refrences.................................................................................................................................6
7. Appendix..................................................................................................................................6
 1. Introduction
The digital transformation of supply chain operations has become a critical imperative for
businesses seeking to remain competitive and efficient in today's fast-paced and interconnected
world. Technology has the potential to revolutionize different aspects of the supply chain, and
this assignment aims to develop a comprehensive plan to guide the digital transformation of
supply chain transport operations. By focusing on the transport aspect of the supply chain, we
will explore common issues, identify potential causes, and propose relevant technologies to
enhance efficiency. The plan will outline the implementation process to achieve the desired
improvements in transport operations. (Chen.2019)

2. Context Definition
The transport aspect of the supply chain plays a vital role in the movement of goods and
materials between various nodes, such as suppliers, manufacturers, distribution centers, and end-
users. Efficient transport operations are essential for reducing lead times, minimizing costs, and
ensuring timely deliveries. The context of this project involves understanding the complexities
and challenges faced in supply chain transport, with a focus on improving the flow of goods
through technology. (Chen.2019)

3. Potential Supply Chain Transport Issues

Inventory Visibility and Tracking, One of the significant challenges in supply chain
transport operations is the lack of real-time visibility and tracking of inventory during transit. As
goods move through the transportation network, businesses may lose sight of their location,
leading to delays, stockouts, and difficulties in managing demand fluctuations. Without accurate
and timely information on inventory status, it becomes challenging for supply chain managers to
make informed decisions, resulting in inefficiencies and customer dissatisfaction.
(Yakovleva.2019)
And also there are some issue which is inefficient Route Planning: Traditional route
planning methods may rely on manual processes or outdated information, leading to suboptimal
routes for transporting goods. Factors such as real-time traffic conditions, weather disruptions,
and delivery schedules are often not adequately considered. As a consequence, drivers may
encounter unnecessary delays, longer travel times, and increased fuel consumption. Inefficient
route planning can lead to higher transportation costs and decreased on-time delivery
performance. Those issue make a another issue which is Lack of Real-Time Data, a lack of real-
time data in supply chain transport operations hinders decision-making and responsiveness to
unexpected events. Without access to timely information on vehicle conditions, driver
performance, and shipment status, supply chain managers struggle to identify potential
disruptions and take proactive measures to mitigate risks. Delayed information can result in
missed opportunities to optimize operations and respond to dynamic changes in demand or
supply.(Rahman.2017)
 4. The Plan
The Internet of Things (IoT) and Radio Frequency Identification (RFID) technology offer
real-time visibility and tracking capabilities for supply chain transport operations. By attaching
RFID tags to packages and using IoT-enabled sensors in vehicles, businesses can monitor the
location, condition, and status of shipments throughout the entire transportation journey. This
level of visibility allows supply chain managers to proactively identify potential issues, such as
delays or disruptions, and take corrective actions promptly (Rao, S.2020). IoT and RFID
technology also enable businesses to optimize inventory management, reduce stockouts, and
improve demand forecasting by analyzing data from the transportation process. The Plan for
Digital Transformation of Supply Chain Transport Operations:
Step 1: Conduct a Technology Assessment Begin the plan by conducting a thorough
technology assessment of the current state of supply chain transport operations. Identify pain
points, challenges, and areas that require improvement. Engage with stakeholders, including
transportation managers, drivers, and other relevant personnel, to gather insights into the existing
processes and potential issues.(Rao, S.2020)
Step 2: Prioritize Technological Solutions Based on the technology assessment, prioritize
the technological solutions that will address the identified issues and provide the most significant
impact on efficiency. Consider factors such as cost-effectiveness, scalability, alignment with
business goals, and compatibility with existing systems.(Rao, S.2020)
Step 3: Technology Selection and Integration Select the specific technologies that align
with the priorities identified in the previous step. For example, choose a Transportation
Management System (TMS) that optimizes route planning, load optimization, and real-time
tracking. Additionally, consider integrating IoT and RFID technology for improved inventory
visibility and tracking. Ensure that the chosen technologies can seamlessly integrate with the
existing supply chain infrastructure.(Rao, S.2020)
Step 4: Pilot Testing and Evaluation Before full-scale implementation, conduct pilot tests
of the selected technologies in a controlled environment. Use a subset of transport operations to
evaluate the effectiveness of the technologies in addressing the identified issues. Gather feedback
from relevant stakeholders during the pilot phase to identify any challenges or adjustments
needed for successful implementation.(Rao, S.2020)
Step 5: Training and Change Management Invest in comprehensive training programs for
employees and stakeholders involved in supply chain transport operations. Educate them about
the functionalities and benefits of the newly implemented technologies. Address any resistance
to change and emphasize the positive impact on efficiency and overall performance. Effective
change management is essential to ensure smooth adoption and integration of the technologies.
Step 6: Full-Scale Implementation Based on the results and feedback from the pilot
phase, proceed with the full-scale implementation of the chosen technologies. Ensure that all
necessary adjustments have been made, and potential issues have been addressed. Collaborate
closely with technology vendors and internal IT teams to ensure a smooth and successful rollout.
Step 7: Continuous Monitoring and Evaluation Once the technologies are implemented,
continuously monitor their performance and impact on supply chain transport operations. Collect
and analyze data on key performance indicators (KPIs) such as on-time delivery, transportation
costs, inventory levels, and customer satisfaction. Regularly assess the effectiveness of the
digital transformation and identify opportunities for further improvements.(Li, G.2009)
Step 8: Regular Maintenance and Upgrades Maintain and update the implemented
technologies regularly to ensure optimal performance and security. Work closely with
technology vendors to stay informed about updates, patches, and new features. Additionally,
assess the scalability of the technologies to accommodate future growth and expansion of the
supply chain.(Li, G.2009)
Step 9: Continuous Improvement and Innovation Encourage a culture of continuous
improvement and innovation within the organization. Engage employees in identifying
opportunities for further enhancements to supply chain transport operations. Stay updated with
the latest trends and advancements in supply chain technology to remain competitive and
responsive to changing market demands.(Li, G.2009)
By following this step-by-step plan, businesses can strategically guide the digital transformation
of their supply chain transport operations, leading to enhanced efficiency, reduced costs, and
improved overall performance.

5. Concluding Discussion
The proposed plan aims to revolutionize supply chain transport operations through the
strategic implementation of relevant technologies. By addressing common issues and
streamlining processes, businesses can achieve enhanced efficiency, reduced costs, and improved
customer satisfaction. However, it is crucial to acknowledge potential shortcomings and negative
outcomes, such as data security risks or system integration challenges. Mitigation strategies, such
as robust cybersecurity measures and thorough testing, should be implemented to minimize risks.
6. Refrences
● Chen, J., Paulraj, A., & Lado, A. (2019). The impact of supply chain technology
implementation on supply chain performance. International Journal of Production
Economics, 210, 1-10.
● Sassi, A., Ali, M. B., Hadini, M., Ifassiouen, H., & Rifai, S. (2021). The relation between
Industry 4.0 and Supply Chain 4.0 and the impact of their implementation on companies’
performance: State of the Art. International Journal of Innovation and Applied Studies,
31(4), 820–828.
● Rao, S. S., & Chandra, S. (2020). Enhancing supply chain visibility through RFID
technology: A case study in the retail industry. International Journal of Information
Management, 54, 102120.
● Yakovleva, N., Frei, R., & Rama Murthy, S. . (Eds.). (2019). Sustainable Development
Goals and Sustainable Supply Chains in the Post-global Economy (1st ed. 2019.).
Springer International Publishing. https://doi.org/10.1007/978-3-030-15066-2
● Rahman, S. U., & Subramanian, N. (2017). A review of transport management systems in
supply chains. Transportation Research Part C: Emerging Technologies, 78, 383-408.
● Li, G., Yang, H., Sun, L., & Sohal, A. S. (2009). The impact of IT implementation on
supply chain integration and performance. International Journal of Production
Economics, 120(1), 125–138. https://doi.org/10.1016/j.ijpe.2008.07.017

7. Appendix