DSC & Agility
DSC & Agility
https://www.emerald.com/insight/1463-5771.htm
Abstract
Purpose – Traditional supply chain arrangements have failed to keep up with escalating customer demands
and breakthrough innovations. The way forward is a flexible yet innovative network that leverages ecosystem
partners and digital tools to unlock new agility. The paper aims at identifying and analyzing numerous critical
success factors (CSFs) that may improve the efficiency of a digital supply chain.
Design/methodology/approach – Twelve CSFs are identified in this paper through an extensive literature
survey. Expert opinion has been considered and the hierarchical structure built using total interpretative
structural modeling (TISM) which highlights the interdependencies between these CSFs. Cross-impact matrix
multiplication (MICMAC) is used to determine the driving and dependence power of each factor.
Findings – This study identified 12 CSFs through an extensive literature survey. The ISM model resulted in
six different levels beginning from redesign organization at the bottom of the structure. The TISM model
explained why redesigning the organization is pivotal to bringing about novel agility in the supply chain.
MICMAC analysis confirmed that the following enhanced the success of a digital supply chain: Sales and
Operation Planning Strategies, Strategic Sourcing Techniques, Smart Manufacturing Processes and
Warehouse Management.
Research limitations/implications – Various other components contributing to the 12 CSFs identified in
this paper may be discovered and detailed in future research. Additionally, further research is required to
expand the existing technology-based services structural model to a more empirical form.
Practical implications – This study offers a comprehensive but not exhaustive list of CSFs essential to
digital supply chain growth. It will enable market experts and leaders to concentrate on key factors leading to
tactical decisions and maximum value for firms.
Originality/value – The paper seeks to add to the body of knowledge on real digitally-led supply chain
transformation, which is still in its early stages. This study is one of the first, if not the first, to examine success
factors critical to the improvement of the performance of the supply chain. It lays the foundation for further
research in this field.
Keywords Digital supply chain, Industry 4.0, Total interpretive structural modeling (TISM), Redesign
organization, Supply chain management, Customer satisfaction
Paper type Research paper
1. Introduction
Henry Ford’s automotive assembly line model marks the origin of the modern supply chain.
The modern supply chain model has served well and generated unprecedented wealth and
opportunities around the world. But in recent years, the system has been challenged by issues Benchmarking: An International
Journal
such as globalization, product complexity, reduced cycles of product development, mass © Emerald Publishing Limited
1463-5771
customization, diminishing natural resources and the rapid pace of business change DOI 10.1108/BIJ-08-2020-0461
BIJ (Pandey and Singh, 2016). Parkhi et al. (2015) affirm that the needs and preferences of
consumers change rapidly. It is also seen that the supply chain also shifts from a conventional
linear model to a transparent, dynamic and interconnected structure. This transformation of
supply operations could lay the foundation for an organization’s competitive advantage
(Farahani et al., 2015). The growth of new technology along with improved power capacities
and lower processing costs has resulted in increased versatility, interconnectivity and
reshaping of the supply chain.
This paper highlights how conventional supply chains, when transformed into digital supply
chains, can improve firm efficiency, reduce waste and promote higher profits across sectors (retail,
FMCG, manufacturing, finance, health, etc.) in India. We also explore answers to a key research
question: how the digital supply chain acts as an intelligent value-driven network that uses data
analytics to exploit new techniques and methods to generate profit and revenue is an area worthy
of examination. It is also crucial to explore how Industry 4.0 and disruptive technology capture,
collect and analyze information from the supply chain to deliver substantial benefits such as
increase in order fill rate and material availability, improvement in master data accuracy,
reduction in stock, and innovations (Gunasekaran et al., 2017; Hofmann and R€ usch, 2017; Ivanov
et al., 2019; Shahabadkar et al., 2019). To answer this question, we explore twelve critical success
factors (CSFs) associated with the adoption of a digital approach in operational supply chains. We
seek to fulfil research gaps and examine strategies to improve current practices and identify areas
to enhance value chain productivity. Inputs from business management experts have been
sought to achieve study objectives. We employ total interpretive structural modelling (TISM) (a
grounded method approach for theory development) (Dubey et al., 2018) in order to understand
the linkages between the CSF’s and to understand the reason for their associations. Past literature
confirms that while various multi criteria decision-making (MCDM) tools have been used to
understand the relationship between enablers or barriers, there are a handful of those that
contribute in theory development. Dubey et al. (2018) argue that TISM is one such technique that
would contribute not only in exploring the linkages and developing a hierarchical structure, but
also support that with finding reasons by performing qualitative assessment of the linkages. On a
similar note, past studies (Agrawal and Narain, 2018; Awwad et al., 2018; Gezgin et al., 2017;
Abdallah and Nabass, 2018) have analyzed the effects of technology on operational efficiency
using different yet similarly grounded research designs. However, there lies a dearth of studies
that have examined the impact of technology on the various supply chain processes to address
the challenges faced by supply chain leaders in India.
It is also noted that while studies in the past have used theoretical arguments to understand
the relationship between certain constructs, their limitations argue that they present only one
side of the relationship. Most of these studies do not reply on discussions with industry experts
who play a crucial role in initially building a roadmap for evaluating the impact of technology in
the supply chain processes. As a preliminary step, we discussed this concern with industry
experts, and it was found that many organizations either did not have established
transformation processes, or lacked in resources. Many leaders revealed how an initiative to
transform one part of the process failed because it could not be integrated with the other players
in the ecosystem. Hence, this study seeks to answer the following questions: (1) What are the
benefits of advanced technological interventions in the supply chain environment? (2) How can
the enablers of technology adoption of advanced technological interventions for supply chain
transformation be mapped? (3) How can the various players in the supply chain be better
connected through technology to decrease overheads and increase return on investment?
TISM is the most suitable approach to use to seek answers to the above questions and
understand existing relationships between factors through carving out a hierarchical
structure to allow managers to make decisions on the basis of a theoretical framework. It can
explain “what” and “how” of theory development by showing nodes as factors and interlinks
(direct and indirect).
To address the above questions, we conducted a literature review (Section 2) considering Digital supply
each technology enabler of the entire supply chain. Section 3 defines the area of the study and chain to unlock
identifies the critical success factors (CSFs) of the digital supply chain. Methodology is
discussed in Section 4. Section 5 lays down results and discussion. Conclusion, limitations
new agility
and scope of future study is covered in Section 6.
2. Review of literature
We performed a systematic review of the literature using the guidelines of Tranfield et al.
(2003) to identify the critical success factors published in the past literature. Some
breakthrough research in the field of digital supply chain management has laid the
foundation for this study. An extensive search was carried out using e-resources using
Scopus and Web of Science database. Extracted papers fell into three categories: (1) Digital
Supply Chain and its Applications (30 papers); (2) Application of ISM and TISM Approach in
Supply Chain Management (10 papers); (3) Application of ISM and TISM in Areas Other than
Supply Chain Management (20 papers). We carefully analyzed the papers that either
overlapped with each other and listed critical success factors or had an overlap with TISM
technique.
According to Wamba et al. (2020), agility and adaptability are direct functions of big data-
enabled dynamic capabilities supported by statistical analysis. Fifty percent of companies
see data analytics as prime technology capable of introducing change. It is further reported
that 42% companies mention Internet of Things (IoT), and 40% companies name cognitive/
artificial intelligence and machine learning as primary drivers of change. Johnson (2019)
defines the digital supply chain (DSC) concept as the development and implementation of
advanced digital technologies (Internet of Things, Blockchain, AI, machine learning,
predictive analytics, etc.) to improve traditional supply chains. The ultimate aim of a digital
supply chain is to provide opportunities for improved efficiencies, reduce redundancy, and
promote better profits (Buyukozkan and Gocer, 2018; Aslam et al., 2018). Mortson (2019), talks
about supply chain as a service (SCaaS) which revolves around outsourcing functions who
have already mastered economies of scale in digital technology. New digital and business
intelligence tools promise/show long-term potential. To achieve digital transformation and
enhance supply chain performance, Alicke et al. (2016a, b) in a Mckinsey and Company article,
suggested that next-generation supply chain representatives plant sensors in all components,
develop networks far and wide, automate processes, and re-examine everything to improve
performance and customer content.
4. Methodology
The flowchart (Figure 1) illustrates the technique and model adopted for analysis–a survey-
based approach to obtain expert opinion on conducting TISM analysis. Industry experts from
BIJ List out the Critical
Success Factors
Literature Review (CSFs) of Digital
supply chain (DSC)
Establish contextual
Expert Opinion relationship
Survey between variables
Develop initial
Develop a Structural
reachability matrix (RM)
Self-Interaction and final incorporating
Matrix(SSIM) transitivity
Incorporate contextual
Expert viewpoint interpretation into the Develop digraph with
engagement model by developing direct and indirect
the Interpretive Matrix links
Figure 1.
Flowchart of the
methodology adopted Final Total Interpretive Structural Modeling for
– TISM approach implementation of DSC
Indian cities including Pune, Delhi and Bangalore were approached. Delphi method,
developed at the RAND corporation in 1950 and 1960s (Gordon and Helmer, 1964), was
employed. The Delphi method is mostly employed to forecast future scenarios. Rome and
Wright (2001) highlighted that this method was particularly useful when experts pertinent to
the study were situated in different geographical locations and unable to meet as one group.
Experts reply to multiple rounds of questionnaires; after each round, responses are
summarized and shared with experts. Delphi surveys differ from traditional surveys in that
experts are randomly sampled in the latter, while in the former, experts are selected on the
basis of their knowledge of the topic under study. The Delphi survey must ensure anonymity,
iteration, controlled feedback and statistical aggregation of group response (Rowe and
Wright, 1999).
This study has been attempted for two reasons. Kaup (2018) found that 67% of businesses
today consider the digital supply chain to be disruptive, and that India should not be left
behind due to a lack of substantial research in the field. Until recently, challenges in
infrastructure and logistics had a negative impact on India’s supply chain network.
Providers, producers and retailers have had to consider delays in the movement of domestic
products due to a complicated taxation system and transport routes that run more than
capacity, increasing overall expenditure. Liberalization of Foreign Direct Investment (FDI)
guidelines, introduction of Goods and Services Tax (GST), and increased government
spending have spurred growth in the sector by providing new avenues for a slow but steady
transformation of India’s digital infrastructure (Mahadevan, 2018). India now ranks 35th in Digital supply
the World Bank Logistics Performance Index 2017, up from 54th in 2014. It is estimated that chain to unlock
India’s logistics industry will continue to grow steadily for the next five years by 10–15%
annually and remain relevant to the national economy. Data were collected through a survey
new agility
for about three days. We received 25 responses with all the required information from
seasoned supply chain experts with several years of experience. Telephonic conversations
were held with a select few after sharing the questionnaire to better understand the reasons
behind the interrelationships between selected factors.
Defining the contextual relationship between the identified CSFs is central to the creation
of a hierarchical structure (Kedia, 2013; Virmani, 2018). Contextual links between CSFs are
discussed and interpreted here and shown in appendix with expert feedback.
Step 3: Structural Self Interaction Matrix (SSIM)
The below matrix shows the relationship between row variable i and column variable j. To
determine the existence of a relationship between any two variables and the corresponding
direction of the relation, a group of experts is questioned. Four symbols –V, A, O, and X – are
used to denote the type of relationship that occurs between any two given variables
(Sandbhor and Botre, 2014).
(1) V – In case i is impacting j but not vice versa;
BIJ
Table 1.
various fields
Lists down papers
successfully applied in
journals in the last four
published in prominent
Sr No Author(s) and year Objective of study Analysis level Research methodology Setting key findings
1 Manjunatheshwara To identify the most important factors and Case study, Content A case study has been conducted to identify From the study, it was found that “Customer
and Vinodh (2018) determine the inter-dependencies of factors analysis, expert inputs, the most important factors and determine the Pressure,” “Government Regulations,”
with respect to sustainable development of qualitative framework inter-dependencies of factors in the context of“Competitiveness,” “Organization Initiative”
tablet devices sustainable development of tablet devices and “Technological Advancements” were the
strongest driving factors. Factors such as
“Environmental Impact,” “Energy Efficiency”
and “Opportunities to Upgrade” were found to
be dependent
2 Jena et al. (2017) To elucidate the methodology of total Literature survey and expert Analyze mutual dependence among inhibitors This study highlights the significance of TISM
interpretive structural modeling (TISM) in opinion, qualitative of smartphone manufacturing ecosystem for modeling inhibitors of SMED over
order to provide interpretation for direct as modelling development (SMED). Cross-impact matrix conventional interpretive structural modeling
well as significant transitive linkages in a multiplication applied to classification (ISM)
directed graph analysis is also performed to graphically
represent these inhibitors based on their
driving power and dependence
3 Shibin et al. (2017) Examine Sustainable Supply Chain Content analysis, primary In this paper, development of a theoretical Study findings suggest that top management
Management of SMEs using Resource Based and secondary data framework to explain sustainable supply can focus on improving SC information sharing
View and Institutional Theory collection, quantitative chain performance (SSCP) has been and Supply chain connectivity which may
analysis attempted. To test research hypotheses, a further help improve management, which in
survey-based instrument is used. The turn might help penetrate new markets
constructs were drawn based on extensive through better brand value. The importance of
literature review. Have used Warp PLS effective information sharing systems is also
version 5.0 which relies on the partial least explicitly proven by the analysis, and will help
squares (PLS) method to estimate the companies improve visibility, design robust
hypothesized relationships processes operational efficiency and
responsiveness and eliminate wastages
4 Yeravdekar and Behl The purpose of this paper is to explore factors Field visits, content analysis, The study uses Interpretive Structural Model It was observed that the variables behaved
(2017) leading to branding of management education qualitative framework (ISM) to ascertain the linkages between differently when studied from the perspective
in India variables, and employs TISM to validate the of private sector colleges and public sector
reasons for association. The variables were colleges; the former saw seven levels of
further structured for classification using arrangement while the latter witnessed only
MICMAC analysis four. Quality of Faculty and Research were key
areas of concern for private sector colleges
while infrastructure featured as a focal point
for those in the public sector
(continued )
Sr No Author(s) and year Objective of study Analysis level Research methodology Setting key findings
5 Yeravdekar and Behl The present study aims to develop a Literature review, TISM approach. The research also discusses The study accounted for 11 enablers and
(2018) conceptual framework using total interpretive experiential analysis, the reasons for inter linkages between discovered that facility given at school or the
structural model to develop a hierarchy of qualitative modelling enablers primary level is the key enabler for
enablers for commercialization of cricket commercializing the game. The study also
found that state-of-art infrastructure,
scholarships given to players, and motivating
incentives from the government were some
other important enablers for enhancing the
positive aspects of commercialization of the
game
6 Prasad et al., (2018) This study aims to present the link between a Literature analysis, The model is based on the integration of three This study provides evidence that perceived
set of technology adoption constructs that aim hypothesis development, adoption theories- technology acceptance usefulness, attitude, perceived behavior
at understanding the adoption of BT in supply sample survey, primary data model (TAM), technology readiness index control, and subjective norm are related to BT
chains collection, quantitative (TRI) and the theory of planned behavior implementation intention. The statistically
research model (TPB). Based on a survey of 181 supply chain validated model is found to have high
practitioners in India, the proposed model was explanatory power with independent
tested using structural equation modelling constructs explaining 68.5% variance of the
behavioral intention (R2 5 0.685); the study
hence contributes significantly to existing
body of research
7 Hasan et al. (2019) The purpose of this paper is to examine the Content analysis, For the current study, a qualitative technique Critical activity alignment of partners in CBJV
elements of asymmetric motives, i.e. initial qualitative, secondary named total interpretive structural modelling is an antecedent of CBJV motive, and minimizes
cross-border joint venture (CBJV) conditions research was used. Furthermore, for identifying the the number of asymmetric motives. Bottom
and relative partner characteristics in elements of study, SDC Platinum database level variables such as culture difference and
emerging nations was used relative capital structure are considered strong
drivers of asymmetric motives
8 Kumar and Sekar, The purpose of this paper is to present an Qualitative framework, A structural model of 24 barriers is developed “Changing governmental policies,” “poor
2020 analysis of barriers affecting the adoption of research based study through total interpretive structural selection of change agents and improvement
lean concepts in electrical and electronics modelling (TISM) approach teams,” “lack of top management commitment
component manufacturing understanding and support of the system,”
“lack of team autonomy,” “lack of flexibility
and versatility” and “lack of customer focus/
involvement” are found to be dominant
barriers on the basis of TISM study
(continued )
new agility
chain to unlock
Digital supply
Table 1.
BIJ
Table 1.
Sr No Author(s) and year Objective of study Analysis level Research methodology Setting key findings
9 Behera et al. (2020) To identify different dimensions of retail Qualitative analysis, Descriptive research design, where relevant Intellectuality often led to established decision.
investors’ overall cognition To study the literature review, secondary dimensions of cognition are described as key Intellectuality can be developed through access
drivers of “degree of interest in investment” research drivers of change in the level of interest to information with mental reasoning,
focusing on investors’ cognition through Total investment by Indian investors processing and analyzing attitude to
Interpretive Structural Model (TISM) understand and interpret information
according to investment requirements of retail
investors
10 The purpose of the paper was to identify and Literature review, TISM is a methodology used to understand Social distancing and community
categorize the climatic, socio-biological factors qualitative framework the interrelationships between factors that consciousness (F5) had strong influence on
that influence the global super-spread of the affect the epidemiological characteristics of host behavior and number of contacts. Strict
epidemic using a theory building approach pandemic COVID-19 around the globe social distancing and proper health practices
could reduce the virulency and infectiousness
of COVID 19
Code CSF References
Digital supply
chain to unlock
C1 Redesign Organization Agarwal et al. (2018), Farahani et al. (2015), Parkhi et al. (2015), new agility
Pandey and Singh (2016)
C2 Sales and Operation Planning Agarwal et al. (2018), Thome et al. (2012), Jonsson and Holmstrom
Strategies (2016), Ivanov et al. (2019)
C3 Strategic Sourcing Kaushik and Mahadevan (2011), Lidegaard (2013), Ramakrishnan
Techniques (2018), Biazzin et al. (2019)
C4 Smart Manufacturing O’donovan et al. (2015), Moyne and Iskandar (2017), Sperling et al.
Processes (2013)
C5 Warehouse Management Biswas and Sen (2017), Andiyappillai (2019), Awwad et al. (2018)
C6 Logistics Capabilities Shibin et al. (2017), Ben-Chaim et al. (2013), Shamsuzzoha (2011),
Shamsuzzoha et al. (2013), He et al. (2009), Shamsuzzoha et al. (2015)
C7 Point of Sale Analysis Biswas and Sen (2017), Bradlow et al. (2017), Chakraborty and Barua
(2017)
C8 Financial Services Integration Saberi et al. (2019), Korpela et al. (2017), Silvestro and Lustrato (2014)
C9 Grievance Redressal Systems Prajapat et al. (2018), Choudhary (2015)
C10 Upskill Labor Dubey et al. (2015a), Gomez-Cede~ no et al. (2015), Prasad et al. (2018),
Cousins et al. (2006)
C11 Lead Time Reduction De Treville et al. (2004), Heydari et al. (2009), Raagul Srinivasan and
Shrehari (2017), Makwana and Awasthi (2017) Table 2.
C12 Customer Satisfaction Ellinger et al. (2012), Zhang et al., 2006, Ou et al. (2010), Omoruyi and List of CSFs and
Mafini (2016), el Shoghari and Abdallah (2016) relevant literature
SSIM is used to develop the initial reachability matrix by following the rules shown in
Table 4. Every element will be represented by 1 for itself (Rajesh, 2017). Table 5 shows the
C1 V V V V V O V V V V V –
C2 V V O V V V O V V V –
C3 V V O O O O V X X –
C4 V V V V O O V X –
C5 O V O V O O V –
C6 V O V X V O –
C7 V V V A X –
C8 V O V O –
C9 V V V –
C10 X X – Table 3.
C11 X – Structural self-
C12 – interaction matrix
BIJ entry for the reachability matrix. The next step is to check for transitivity. If there is an
element A impacting B, and B impacting C, then the transitive rule says that A will be
affecting C, as shown in Table 6. Reachability and transitivity are the two fundamental
principles of ISM which contribute to the creation of different TISM levels (Yadav et al., 2015).
Step 6: Level Partitions of Reachability Matrix
The final reachability matrix obtained from step 5 is divided into different levels for each
factor on the basis of reachability and antecedent sets through a series of iterations called
Table 4. V 1 0
Rule for converting A 0 1
SSIM into initial X 1 1
reachability matrix O 0 0
C1 1 1 1 1 1 1 0 1 1 1 1 1
C2 0 1 1 1 1 0 1 1 1 0 1 1
C3 0 0 1 1 1 1 0 0 0 0 1 1
C4 0 0 1 1 1 1 0 0 1 1 1 1
C5 0 0 1 1 1 1 0 0 1 0 1 0
C6 0 0 0 0 0 1 0 1 1 1 0 1
C7 0 0 0 0 0 0 1 1 0 1 1 1
C8 0 0 0 0 0 0 1 1 0 1 0 1
C9 0 0 0 0 0 1 1 0 1 1 1 1
C10 0 0 0 0 0 0 0 0 0 1 1 1
Table 5. C11 0 0 0 0 0 0 0 0 0 1 1 1
Reachability matrix C12 0 0 0 0 0 0 0 0 0 1 1 1
C1 1 1 1 1 1 1 1* 1 1 1 1 1 12
C2 0 1 1 1 1 1* 1 1 1 1* 1 1 11
C3 0 0 1 1 1 1 1* 1* 1* 1* 1 1 10
C4 0 0 1 1 1 1 1* 1* 1 1 1 1 10
C5 0 0 1 1 1 1 1* 1* 1 1* 1 1* 10
C6 0 0 0 0 0 1 1* 1 1 1 1* 1 7
C7 0 0 0 0 0 0 1 1 0 1 1 1 5
C8 0 0 0 0 0 0 1 1 0 1 1* 1 5
C9 0 0 0 0 0 1 1 1* 1 1 1 1 7
Table 6. C10 0 0 0 0 0 0 0 0 0 1 1 1 3
Final Reachability C11 0 0 0 0 0 0 0 0 0 1 1 1 3
Matrix (indicates C12 0 0 0 0 0 0 0 0 0 1 1 1 3
transitive relationship) Dependence 1 2 5 5 5 7 9 9 7 12 12 12
level partition (Sushil, 2017; Kumar et al.,2019; Khan et al., 2019). This partition is performed to Digital supply
consider level-wise location of variables. Tables 7–9 indicate different iteration and stages. chain to unlock
Reachability and antecedent sets are determined from Table 6. CSF’s reachability set consists
of the CSF itself and the other CSFs over which it may exert control. The collection of
new agility
C1 1,2,3,4,5,6,7,8,9,10,11,12 1 1
C2 2,3,4,5,6,7,8,9,10,11,12 1,2 2
C3 3,4,5,6,7,8,9,10,11,12 1,2,3,4,5 3,4,5
C4 3,4,5,6,7,8,9,10,11,12 1,2,3,4,5 3,4,5
C5 3,4,5,6,7,8,9,10,11,12 1,2,3,4,5 3,4,5
C6 6,7,8,9,10,11,12 1,2,3,4,5,6,9 6,9
C7 7,8,10,11,12 1,2,3,4,5,6,7,8,9 7,8
C8 7,8,10,11,12 1,2,3,4,5,6,7,8,9 7,8
C9 6,7,8,9,10,11,12 1,2,3,4,5,6,9 6,9
C10 10,11,12 1,2,3,4,5,6,7,8,9,10,11,12 10,11,12 1 Table 7.
C11 10,11,12 1,2,3,4,5,6,7,8,9,10,11,12 10,11,12 1 Reachability matrix
C12 10,11,12 1,2,3,4,5,6,7,8,9,10,11,12 10,11,12 1 partition (iteration 1)
C1 1,2,3,4,5,6,7,8,9,10,11,12 1 1 6
C2 2,3,4,5,6,7,8,9,10,11,12 1,2 2 5
C3 3,4,5,6,7,8,9,10,11,12 1,2,3,4,5 3,4,5 4
C4 3,4,5,6,7,8,9,10,11,12 1,2,3,4,5 3,4,5 4
C5 3,4,5,6,7,8,9,10,11,12 1,2,3,4,5 3,4,5 4
C6 6,7,8,9,10,11,12 1,2,3,4,5,6,9 6,9 3
C7 7,8,10,11,12 1,2,3,4,5,6,7,8,9 7,8 2
C8 7,8,10,11,12 1,2,3,4,5,6,7,8,9 7,8 2
C9 6,7,8,9,10,11,12 1,2,3,4,5,6,9 6,9 3
C10 10,11,12 1,2,3,4,5,6,7,8,9,10,11,12 10,11,12 1 Table 8.
C11 10,11,12 1,2,3,4,5,6,7,8,9,10,11,12 10,11,12 1 Reachability matrix
C12 10,11,12 1,2,3,4,5,6,7,8,9,10,11,12 10,11,12 1 partition (iteration 2–6)
C1 Redesign Organization 6
C2 Sales and Operation Planning Strategies 5
C3 Strategic Sourcing Techniques 4
C4 Smart Manufacturing Processes 4
C5 Warehouse Management 4
C6 Logistics Capabilities 3
C7 Point of Sale Analysis 2
C8 Financial Services Integration 2
C9 Grievance Redressal Systems 3
C10 Upskill Labor 1 Table 9.
C11 Lead Time Reduction 1 Final level of CSFs
C12 Customer Satisfaction 1 in TISM
BIJ antecedents is the CSF itself, and the other CSFs that could impact it. Then, for all CSFs, the
intersection of these sets is identified. The reachability and intersection sets are then
compared for all CSFs. After comparison, the CSFs whose reachability and antecedent sets
are same are assigned the top level, i.e. level 1 in the hierarchical model. After discarding the
CSF occupying level 1 from the remaining list, the procedure as mentioned earlier is repeated
to determine the following levels of other factors. The iterative method is continued until the
levels of all the factors are determined. Table 9 shows the final level for each CSF. These levels
help in the creation of the digraph and the final TISM model.
Step 7: Digraph Construction
CSFs are arranged and represented by nodes, and the links showing the direction of the
relationship between two factors obtained in the final reachability matrix. The level achieved
during level partitioning helps in assigning the levels for each element (Yadav et al., 2015). A
digraph with significant connections and relevant transitive links is shown in Figure 2.
Step 8: Interpretive Matrix
The digraph shown in Figure 2 helps in constructing the binary matrix (Table 10) with all
the direct and transitive links represented as “1”. This in turn helps in formulating the
interpretative model in Table 11 obtained by including the rationale behind the relationship
between factors as provided by experts (Kumar et al., 2019).
Step 9: Total Interpretive Structural Model (TISM)
Logistics Grievance
Capabilities Redressal Systems
Smart
Strategic Sourcing Warehouse
Manufacturing
Techniques Management
Processes
Figure 2.
Digraph (→ direct
links → transitive
Redesign
links) Organization
CSFs C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12
Digital supply
chain to unlock
C1 – 1 new agility
C2 – 1 1 1
C3 – 1 1
C4 – 1 1 1
C5 – 1 1
C6 – 1
C7 – 1 1 1
C8 – 1 1
C9 1 –
C10 –
C11 – Table 10.
C12 – Binary matrix
In the final step, the TISM model is built using relevant information in the interpretive
matrix and digraph, as shown in Figure 3. TISM model relation interpretation was written
alongside respective connections.
4.2 Graphical representation of each CSF’s driving force and dependence factor
Matrice d’impacts croises multiplication appliquee a un classment (MICMAC) analysis is
conducted to place the elements of the factor into four quadrants, each having their
functionality, as shown below. Each of the quadrant containing factors helps in determining
their driving and dependence power. This information is provided by the final reachability
matrix, where the row total is categorized as driving power and column total as dependence
for each factor. The graphical depiction of this idea is shown in Figure 4.
(1) Autonomous: CSFs with low dependency and moderate driving power.
(2) Dependent: CSFs with high dependency and low driving power.
(3) Linkage: high dependency CSFs with high driving power.
(4) Driver: CSFs with weak dependence and high drive power.
Table 11.
Interpretive matrix
CSF C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12
C1 –
C2 A next –
generation
operating
model
improves
planning and
efficiency
C3 Sales forecasting –
helps in realizing
a strategic
sourcing plan
C4 Demand –
Management
drives
production
planning
C5 Sync inventory –
position and
sales targets
C6 Spend analysis Maximum Streamlines the –
helps in savings on order outbound
classifying the management process of
logistics for cost packing and
particular shipping
packaged goods
C7 – Reduces
discrepancy in
goods handling
processes
between sending
and receiving
points
(continued )
CSF C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12
C8 Integration of –
financial supply
chains with the
flows of physical
goods and
information is
critical
C9 Maximum Both tracking –
operation (RFID) and
flexibility tracing (GPS) in
transit systems
help in
increasing
security
C10 A technology– Insightful Newer –
driven approach decision from technology will
mandates highly POS system’s require skill
skilled labor data requires development to
training and remain relevant
expertise
C11 Helps mitigate Using POS data –
risks of running increases
out of inventory reaction speed
or having to
carry more
C12 User preference Improves –
prediction leads confidence and
to better trust
customer
relationships
new agility
chain to unlock
Digital supply
Table 11.
BIJ
Figure 3.
TISM model
Customer Lead Time
Upskill Labour
Satisfaction Reduction
User preference prediction Insightful decision from POS
leads to better customer system’s data requires
Improves relationships training and expertise Using POS data increases
Confidence
reaction speed
& Trust
Newer technology will
require skill development
to remain relevant
Financial Service Point of Sale
Integration Analysis
A technology-driven
approach mandates
highly skilled labour-
Integration of financial supply Reduces discrepancy in goods
chains with the flows of physical Helps mitigate risks of running out of handling processes between
goods and information is critical inventory or having to carry more to sending & receiving points
compensate for unreliable suppliers
Logistics Grievance
Capabilities Redressal Systems
Sales forecasting helps in realizing Demand Management drives Sync inventory position
a strategy sourcing plan production planning and sales targets
Redesign
Organization
12 C1 Digital supply
11 C2 chain to unlock
10 C3, C4,C5 new agility
Linkage
9
Drivers
8
7 C6, C9
Driving Power
6
5 C7, C8
4
Autonomous C10, C11,
Dependent C12
3
2
Figure 4.
1 MICMAC analysis of
1 2 3 4 5 6 7 8 9 10 11 12 the CSFs of the digital
supply chain
Dependence Power
reduction and upskill labor could be achieved only as a result of the cumulative effect of all the
benefits offered by the transformation process.
After developing the digraph, experts’ opinions were taken into consideration to construct
the Interpretative Matrix. The number of possible comparisons is 132 [n * (n 1)], which has
been reduced to 18 as shown in Table 9. Finally, Figure 3 represents the TISM, which was
built with all validations in check. MICMAC analysis provides information about the factor
with the most driving power and the ones that are more dependent due to them being placed
in the respective four quadrants. The autonomous cluster does not contain any factor in its
quadrant. The dependent cluster includes Customer Satisfaction (C12), Upskill Labour (C10)
Lead Time reduction (C11), Point of Sale Analysis (C7), and Financial Service Integration (C8).
The linkage cluster contains Logistics Capabilities (C6) and Grievance Redressal Systems
(C9). Drivers cluster includes Redesign Organization (C1), Sales and Operation Planning
Strategies (C2), Strategic Sourcing Techniques (C3), Smart Manufacturing Process (C4), and
Warehouse Management (C5).
The success factors identified through the literature survey and consultation with experts
are inter-dependent. The ISM process was adopted to draw out hidden relations and construct
a structural framework. Figure 2 depicts digraph with direct and indirect links. Redesign
Organization (C1) occupies the lowest stage in the ISM model, and forms the central building
block of a digital supply chain. Therefore, reinventing the supply-chain organization, though
bound to be a slow and complex process, is the need of the hour. Redesigning the
organizational structural paradigm to represent digitization’s new ways of operating relies on
breaking silos between functional department and merging across verticals to derive
maximum output. The top-level consists of Customer Satisfaction (C12), Lead time reduction
(C11) and Upskill Labour (C10).
Figure 3 represents the conceptual framework based on TISM for the success of digital
supply chain management. Driving power and dependence of factors established the
direction of the relationship. Redesign Organization (C1) displayed a strong driving force and
may play an essential and strategic role in increasing digital supply chain adoption. Setting
up of learning and development programs, creating dedicated digital groups that drive
innovations and establishing venture capital investment funds that tap into external
organizations to access new technology are a few solutions that may be implemented to
BIJ enhance the efficiency of the digital supply chain. Practices should be evaluated on the basis
of their effects on these CSFs to strengthen the digital supply chain. Digital supply chain
business/technology leaders should objectively examine and assess any new initiative to
determine if its effect on consumer satisfaction has been positive by simultaneously reducing
its lead time of production. Addressing and identifying the skills required by people to do
their job through proper training and development initiatives also brings in new perspective
of business management capabilities.
MICMAC research also supports the above result because C1, as mentioned above, is in the
cluster “Drivers / Independents.” Included in the “Drivers” class are Sales and Operation
Planning (C2), Strategic Sourcing Techniques (C3), Smart Manufacturing Process (C4), and
Warehouse Management (C5), which show very high driving force (and low dependence). An
established S&OP plan and strategic sourcing will fix more accountability by identifying
mismatches between supply and demand. A smart manufacturing process helps in
optimizing the entire planning process and thus increasing overall profits. Further, data-
driven warehouse management systems help ensure that all items follow systematic
workflows, processes, and protocols as they flow through the warehouse from receipt to
shipment. To ensure long-term success in an emerging area like digital integration in the
supply chain, industry leaders should concentrate on the “Drivers” cluster. The MICMAC
analysis grouped the rest of the CSFs as “Linkage,” demonstrating the area’s partial driving
and partial dependence characteristics. This highlights the fact that several CSFs
cumulatively affect the performance of the digital supply chain. Therefore, for the digital
supply chain to succeed, joint endeavors on diverse fronts are needed. It is important to avoid
the common mistake of overcommitting to CSFs with higher dependency and less driving
power. Results will be less productive in the absence of foundational “driver” CSFs.
Therefore, to attain sustainable success of the digital supply chain, the industry should be
heavily focused on redesigning its traditional structure by entirely modifying their outlook
towards technology adoption.
6.1 Limitation
Despite of providing significant insight of the interrelationship among the success factors of a
digital supply chain, this study has few limitations. Since the entire discussion is based on
industry experts’ judgments, there exists a certain degree of subjectivism which leaves room
for debate. Further, this study is essentially qualitative; an empirical assessment could
provide better managerial implications with respect to the relationships between factors
considered.
6.2 Future scope of the study Digital supply
There may be several other components besides the 12 CSFs identified in this paper that chain to unlock
could be discovered and analyzed in future studies. Further research should also be done to
expand the existing conceptual structure of technology-based services to a statistical model
new agility
based on a robust evaluation criteria which does away with any of the degree of subjectivism
depending on the user’s knowledge. The model should be facilitated by interpretability as
required by the management to have confidence which will allow the effective
operationalization of the model.
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Appendix Digital supply
Data Collection
An initial survey was floated to industry experts before the final discussions where they were asked to chain to unlock
interpret the relationship between each CSF. Industries approached were that from oil and gas, new agility
information technology, financial services, beauty, ecommerce and others. Companies included KPMG,
Capgemini, NVIDIA, Accenture, VMware, Zomato and others. Senior Managers, Managing director, VP
– HR, Owner, Sales manager were among the rest to come afford and help me gather this data for the
research.
Company Name
28 responses
3
3 (10.7%) 3 (10.7%)
2 (7.1%) 2 (7.1%)
2
0
AIOHealthcare Fidelity Investments Indus Hair Extensi... Nomura Securities Thoth Consultancy Zomato
Berkadia HCL KPMG STARAPPS STU... Vidyaam skills & t...
Industry
28 responses
3
3 (10.3(10.7%)
2 (7.1%) 2 (7.1%) 2 (7.1%)
2
0
Animal Protection o... E commerce Healthcare Manufacturing Semi-conductor fb
Beauty Financial Services Information Techno... Offshore Oil and Gas Yes
Designation
28 responses
3
3 (10.7%) 3 (10.7%)
2 (7.1%)
2
0
Application Deve... COO Managing Director SME Senior Software... Vice President
Associate Consu... Electro Technical... Owner Senior Manager... State Outreach C... Stu...
BIJ The questionnaire is as follows:
CSF 1: Organization Rewiring * CSF 2: Sales and Operation Planning * CSF 3: Strategy Sourcing *
Sales and Operation Planning Organization Rewiring Sales and Operation Planning
Strategy Sourcing
Strategy Sourcing Organization Rewiring
Labour Upskilling
Labour Upskilling Labour Upskilling
Lead Time Reduction
Lead Time Reduction Lead Time Reduction
None of the above
None of the above None of the above
Sales and Operation Planning Sales and Operation Planning Sales and Operation Planning
Continuous Tracking and Tracing shipments Continuous Tracking and Tracing shipments Continuous Tracking and Tracing shipments
CSF 7: Point of Sale Analysis * CSF 8: Financial Services Integration * CSF 9: Continuous Tracking and Tracing shipments *
Continuous Tracking and Tracing shipments Continuous Tracking and Tracing shipments Organization Rewiring
Continuous Tracking and Tracing shipments Continuous Tracking and Tracing shipments
Relationship Interpretation
Corresponding author
Abhishek Behl can be contacted at: [email protected]
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