Digital Transformation in Global Supply Chain Management: Opportunities and Challenges

Abstract

Digital transformation is reshaping global supply chain management (SCM) by integrating advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), blockchain, and big data analytics. This transformation enables real-time visibility, improved efficiency, risk mitigation, and enhanced decision-making in supply chains that are increasingly complex and geographically dispersed. This paper explores the key opportunities brought by digital transformation in SCM, including enhanced transparency, predictive analytics, automation, and agility in response to market demands. Alongside opportunities, the paper discusses challenges such as data security risks, integration complexities, high implementation costs, and resistance to change within organizations. Through a comprehensive literature review, the study evaluates how different industries are adopting digital tools to optimize operations, reduce lead times, and increase customer satisfaction. The research methodology involves qualitative analysis of case studies, surveys of SCM professionals, and review of secondary data to understand adoption patterns and impact. Key findings highlight that companies leveraging digital technologies report significant improvements in supply chain visibility, responsiveness, and cost reduction. However, challenges related to cybersecurity, lack of skilled workforce, and technology interoperability persist. The paper also presents a workflow model illustrating the digital transformation journey in SCM, emphasizing continuous data flow, real-time analytics, and adaptive planning. Finally, the study offers practical insights and strategic recommendations for businesses seeking to embrace digital transformation, emphasizing the need for organizational change management, investments in technology infrastructure, and fostering innovation culture. This research contributes to the growing body of knowledge on digital SCM and serves as a roadmap for practitioners and policymakers aiming to harness digitalization for sustainable and resilient supply chains.