Digitalization has the potential to transform the way businesses achieve a triple bottom line – economic, social and environmental – to address the rising concerns of shareholders. One way to achieve this objective is to enhance transparency and meaningful integration of these dimensions into the entire supply chain, for which digitalization can be a powerful tool.
A study on the Impact of Digitalization of Sustainable Supply Chains shows the prospects of various digitally powered technologies, such as artificial intelligence (AI), additive manufacturing, blockchain, big data and the Internet of Things (IoT), all of which can contribute to supply chain sustainability.
While there is little doubt that the digitalization of supply chains helps reduce inventory, waste and the environmental footprint, saves time and cut costs, digitalization does not help almost two-thirds of the population of the least developed countries (LDCs) that are still offline. Therefore, the inclusion of the excluded (offline population) is equally, if not more important, if the past development paradigm of “winner takes all” is to be avoided.
Digitalized supply chains have the potential to address sustainability concerns from the perspective of the LDCs. Real-life examples demonstrate how small steps taken in LDCs in the digitalization of trade facilitation and business processes and efforts aimed at enhancing supply chain transparency are benefiting small businesses and farmers.
