Supply Chain Management Analysis and Design for a Variety of Economic Scenarios, Including Data and System Administration ()
1. Introduction
All aspects of manufacturing and distribution are included in the supply chain, which is a complex and interrelated concept that includes suppliers, manufacturers, distributors, and, ultimately, the end user. This program aims to build stakeholder relationships, improve responsiveness, and meet customer requests. Organizational roles, operational duties, and involvement change as the supply chain network transitions to a more decentralized, diverse, and inclusive structure. One of the biggest challenges many businesses face is the need for more transparency in their entire supply chain and limited access to information within the company. Digitalizing business operations, integrating many stakeholders and resources, aligning product offerings with customer wants, and achieving goals related to the system’s overall competitive advantage are all goals of supply chain management or SCM. Despite continuous research, there are few thorough studies on the application of artificial intelligence (AI) in supply chain management (SCM), primarily due to a need for more understanding. To have a deeper understanding of supply chain management’s use of artificial intelligence, this research will investigate how artificial intelligence (AI) may boost decision-making, optimize operations, and increase productivity in a range of economic contexts. The principal objective is to provide a comprehensive overview of the advancements in artificial intelligence (AI) technology in supply chain management (SCM).
From the perspective of business processes, a supply chain (SC) is generally global in scope and involves the synchronization of worldwide manufacturing, trade, and logistics. Supply chain management (SC) is the business term for coordinating and managing three key activities: the flow of goods from suppliers to final customers, the financial transactions between customers and suppliers, and information sharing between suppliers and customers. International academics first proposed the idea of supply chain finance, which later contributed significantly to the development of trade finance. Hofmann and Zumsteg proposed the concept of conducting supply chain financing activities. They detailed its function and systematic implementation framework in assisting small and medium-sized enterprises (SMEs). They accomplished this by carrying out case studies that precisely delineated supply chain financing.
Supply chain finance refers to the streamlined administration of financial transactions between enterprises, including supply chain companies and external service providers. The main goal of this technique is to achieve mutual benefits through efficient management and strategic allocation of financial resources while optimizing efficiency in the industrial chain, which, most importantly, enterprises control. Supply chain financing may be seen as a unique form of payment [1]. Huff and Rogers proposed a design concept for supply chain financing, which they formulated using their specialized knowledge. As part of their research on the progress of supply chain finance, they implemented a prepayment financing approach. Gelsomino et al. present a succinct summary of the financing method that involves utilizing inventory as collateral. They proposed a financing strategy based on chattel pledge, which reduced operational costs for supply chain companies and alleviated financial pressure on small and medium-sized businesses. However, Serrano claimed that utilizing three finance strategies—accounts receivable, inventory pledge, and advance payment—positively impacted supply chain organizations’ operational and managerial efficiency. These steps also decreased credit risks and guaranteed the secure return of cash. The development of supply chain finance is strongly linked to risk management in that field. Wuttke et al. studied how warehouse receipt commitment affected the speed at which agricultural commodities were produced and operated in 2016. The researchers conducted a comprehensive analysis, investigated the precise technique for applying the financing approach, and implemented measures to mitigate hazards. The industry utilizes three primary disciplines in its approach, which include several sectors, including financial services and process industries.
Choice analysis, probabilistic risk assessment (using fault and event trees), and vulnerability assessment (using innovative team-based methodologies for deliberate actors) are all included in this topic. Subjective evaluations supplement the simulation software used to carry out these tasks. Because terrorism is so complicated, using worst-case analysis and contingency reaction scenarios has become helpful in assessing likelihood. Business Continuity Planning is now widely acknowledged as a crucial strategic goal for designing and executing the organizational and communications structure to efficiently handle ongoing interruption risks, as well as for crisis management and emergency response.
The seventh principle highlights the imperative of cooperation, coordination, and collaboration within and among various roles and supply chain partners [2]. Employing non-collaborative approaches to manage interruption risks is too expensive and fails to capitalize on potential synergies. Furthermore, to adhere to the second suggestion, it is essential to cooperate to actively identify and improve areas of weakness. Individuals at all levels must strive to create a mutually beneficial resolution. As information and communication technologies (ICT) such as electronic data exchange (EDI), the Internet, and the World Wide Web have advanced, so has the importance of behavioral themes. The increasing complexity of the systems that control interactions between buyers and suppliers has led to the use of these technologies. Organizations have used online communication tools in response to the intricate nature of supply chain management. The Internet facilitates communication by encouraging increased company and client interaction. Companies must allocate significant financial resources to revamp internal organizational and technological processes, update obsolete product distribution strategies, and enhance customer service procedures.
Moreover, they must provide comprehensive guidance to their personnel to effectively execute an IT-enabled supply chain. The literature frequently addresses significant concerns raised by researchers and practitioners regarding developing an IT-integrated supply chain management (SCM). These issues include the need for more IT infrastructure, poor strategic planning, inadequate IT integration with the business model, underutilization of IT in virtual firms, and inadequate understanding of IT implementation in supply chain management. Manufacturing and service industries have seen substantial periods of expansion and revolutionary changes, evolving from traditional craftsmanship to large-scale production and from large-scale production to efficient and flexible manufacturing. These advancements depend on the market’s demands and the constantly evolving nature of the industry. Within the framework of a worldwide market, companies must strive for success by demonstrating adaptability and nimbleness. Several firms strive to enhance the adaptability of dispersed organizations.
Supply chain management (SCM) facilitates efficient corporate integration for companies operating in this environment. The supply chain is a complex interconnected system encompassing suppliers, manufacturers, warehouses, distribution hubs, and retailers. It facilitates the acquisition, transformation, and dissemination of unprocessed materials to customers. The primary objective of modeling and analysis is to efficiently design and manage operational systems to enhance competitiveness by producing superior goods and services. Operational research models and approaches may be used to address supply chain management difficulties, such as designing value-added activities, evaluating throughput time, managing orders, and selecting and developing suppliers. The evaluation of the effectiveness of the logistics system relies on three main factors: the interplay between the organization and the supply chain, the core principles of logistics, and the characteristics of these principles. The Production Planning and Inventory Control Process includes the sub-processes of production and storage, along with their connections. The scope of production planning is the efficient management and coordination of the entire manufacturing process, including the scheduling and procurement of raw materials, the development and organization of the production process, and the oversight of resource management and regulation. Inventory control involves the methodical preparation and execution of work-in-progress inventories, finished product inventories, and raw material storage norms and practices [3]. Accurately identifying the precise characteristics of the underlying hazard creating the risk is essential for managing it.
Moreover, determining the risk level requires applying an extensive risk assessment approach. Identifying the pathways by which these hazards can be triggered is part of this. Furthermore, to efficiently handle risk, the chosen approach must align with the specific attributes and requirements of the decision-making scenario. Furthermore, it is crucial to include suitable managerial methods and protocols in the ongoing evaluation of risks and cooperation among stakeholders in the supply chain. These four principles comprise three key commitments that must be consistently and simultaneously performed as the foundation of managing the risk of disruption. The three steps involve identifying risk sources and vulnerabilities, conducting an assessment, and implementing mitigation strategies, together known as (SAM). The strategy will follow the SAM architecture. Three main disciplines form the basis of the approach used in various industries, such as financial services and process industries: decision analysis, vulnerability assessment using new team-based techniques for intentional actors, and probabilistic risk assessment using fault and event trees. Subjective evaluations are used to assist these activities, which are carried out using simulation software. In order to overcome the challenges associated with evaluating terrorist risks, especially in circumstances where probabilistic evaluation is complex, Grossi et al. (2005) have suggested using worst-case analysis and contingency reaction scenarios. Business Continuity Planning is now widely recognized as an essential strategic objective for crisis management and emergency response and for developing and implementing the organizational and communications structure needed to address continuing interruption risks successfully. The ideas of supply chain management and design have recently become widely recognized as an operational paradigm [4].
The World Wide Web (WWW), the Internet, and electronic data exchange (EDI) are a few instances of how information and communication technologies (ICT) are developing to keep up with the growing complexity of the systems that manage supplier-buyer relationships. Businesses must invest significant financial resources to update antiquated product distribution tactics, enhance customer service procedures, and restructure internal organizational and technological systems. Furthermore, companies must invest in employee education and training to successfully implement an IT-enabled supply chain. Researchers and practitioners usually raise many problems while developing an IT-integrated supply chain management (SCM), which is often emphasized in the literature. Among these problems are the underuse of IT in virtual businesses, inadequate strategic planning, subpar IT infrastructure, a lack of understanding about how to integrate IT with the business model, and a lack of expertise in IT implementation in supply chain management. There is not yet a comprehensive framework for integrating IT efficiently to accomplish supply chain management (SCM). Considering the importance of this framework, careful consideration of the available literature has been done in building it. A virtual enterprise is a corporate model that leverages outsourcing to use core strengths and adapt to changing market demands, improving flexibility and responsiveness. Businesses connect various supply chain components and the information systems that support them to increase operational efficiency. Incorporating virtual businesses (VE) into the Internet has heightened the significance of supply chain management (SCM) for high-level executives. Integrating information technology (IT) into supply chain management necessitates adopting a project management approach. This entails forming a team with the appropriate skills and expertise to effectively design and implement IT projects. Securing endorsement from top-level executives is crucial for obtaining intangible and tangible assistance in effectively integrating information technology (IT) and achieving streamlined supply chain management (SCM). In order to stay up-to-date with the latest research, we focused exclusively on research publications published from 1994 forward. This claim can be supported by analyzing the chronological order in which the ideas of Supply Chain Management (SCM) and Information Technology (IT) were established.
Corporations emphasize strategic planning to set long-term goals and implement organizational modifications to enhance their competitiveness. Effective strategic planning necessitates the active participation of high-ranking executives, considering both external and internal elements that impact an organization. The IT strategic planning should align with supply chain management’s long-term goals and aspirations (SCM), emphasizing enhancing agility and responsiveness to address evolving market demands. In order for companies to effectively penetrate a new market, they must possess the ability to adapt and reorganize their resources in response to evolving demands. Nevertheless, prioritizing synchronizing the operations plan with the IT strategy is crucial. An ideal strategic alignment model for a manufacturing information system that effectively caters to the needs of utilizing the growing advancements in information technology would be very desired [5]. The market is the primary catalyst for any alterations within a firm. Market forces, including consumer preferences, competition, and pricing, influence how corporations handle their operations. Enterprises choose IT-enabled supply chain management (SCM) to sustain competitiveness in a networked economy. In order to remain competitive in the global market, organizations must meet many performance targets, including pricing, quality, flexibility, responsiveness, and dependability. It is crucial to prioritize these objectives. The primary economic factor in this case is the assessment of costs. Flexibility and agility are crucial for maintaining competitiveness in a global and interconnected economy.
Nevertheless, the cost factor is crucial in determining competitiveness. Undoubtedly, the concepts of flexibility and promptness are closely linked to the factor of cost. A significant number of organizations choose cost reduction as their primary objective in order to enhance their competitive performance. Companies have used supply chain management (SCM) to save on expenses by eliminating processes that do not bring value to production. Information Technology (IT) enhances the seamless and precise transfer of information, enabling precise decision-making that conforms to corporate protocols and adjusts to evolving market demands. Some companies choose to participate in global outsourcing due to the limited availability of local resources. In order to address the issue of limited resources, it is imperative to develop a supply chain management system incorporating information technology. Manufacturing and service firms have experienced substantial changes in their approach, transitioning from traditional craftsmanship to mass production and from mass production to efficient and adaptable lean manufacturing methods. They are now moving towards agile manufacturing. These enhancements depend on the industry’s demands and constantly evolving attributes. Companies must compete in a global market by demonstrating their ability to adapt and respond promptly. Several corporations strive to enhance adaptability in distant organizations [6].
The supply chain is a globally linked network of suppliers, manufacturers, warehouses, distribution hubs, and retailers. It facilitates acquiring, transforming, and disseminating raw content to customers. Operational research models and methodologies are frequently employed to address issues in operations management. The primary objective of modeling and analysis is to efficiently design and manage operational systems to enhance competitiveness by producing superior goods and services. Operational research models and techniques may be used to address supply chain management difficulties, such as evaluating the duration of value-added operations, managing orders, and selecting and developing suppliers.
2. Methodology
Customers can freely distribute computational resources, including network storage and server time, as needed, eliminating the need for direct communication with every service provider. Using traditional methods, the features can be used by various client platforms, such as computers, PDAs, and mobile phones, enabling remote access. A multi-tenant approach efficiently serves multiple clients by pooling the supplier’s computing resources. These virtual or physical resources are dynamically dispersed and redistributed depending on customer demand. Even though the client frequently needs more authority or knowledge regarding the exact location of the resources offered, they may be able to define a place with more abstraction. Allocate resources to immediately give a complete application environment, including servers (typically virtual machines), network bandwidth, storage, and other tools. Platform as a Service (PaaS) provides a sophisticated and enhanced computing environment. The service provider is responsible for maintenance, load balancing, and scale-out tasks on the Platform.
The developer can now concentrate just on the essential features of their product. Specialized software created for a particular use case and potentially available online is known as software as a service or SaaS. As such, it removes individual end users’ need to perform manual operations like downloading, installing, configuring, launching, or utilizing software applications on their computer settings. One company’s exclusive use is the purpose of a private cloud. The organization or a third party may be responsible for its supervision and may be situated on the business’s property or off-site. A private cloud offers the highest performance, reliability, and security control. However, they sometimes come under fire because of how much they resemble traditional proprietary server farms and since they have no benefits, such as no upfront costs. A cloud service provider, like Amazon, Google, or Microsoft, manages the publicly available cloud infrastructure. Prioritizing adaptability and flexibility will help providers create cloud services that match customers’ demands. Applying a Service Level Agreement (SLA) determines the service quality. Between a service provider and a client, this agreement is a legally enforceable contract outlining the client’s particular requirements and expectations and the provider’s commitment to fulfilling them. System availability, data privacy, backup procedures, cybersecurity precautions, and so forth are frequently included in SLAs [7]. Eliminating the need for upfront financial investment in infrastructure and transferring risks to infrastructure providers are only two benefits public clouds offer service customers. However, the limitations of public clouds concerning fine-grained control over data, network, and security configurations may make them less effective in many commercial situations. Cloud infrastructure comprises multiple public, private, or communal clouds connected by proprietary or standard protocols but retains their individual identities. As a result, data and apps can move between cloud platforms more easily. A method known as “cloud bursting” is employed by hybrid clouds to bolster private clouds with additional resources when required. The private cloud does not use the hybrid cloud when it has sufficient processing power to handle its tasks. If workload demands surpass the private cloud’s capacity, the hybrid cloud will immediately provide the private cloud with more resources. Hybrid clouds are more flexible than both private and public clouds. In contrast to public clouds, private clouds offer superior control and security over application data and more adaptable and scalable service expansion and contraction.
The e-commerce site depicted in Figure 1 is specifically built to represent the organization and perspectives of the system in the user interface accurately. It mainly consists of the client interface, middleware, and database repository. The middleware layer is tasked with receiving and processing all communications. The React framework was used to carry out the implementation. The system’s user interface was created using HTML, with Apache as the middle layer and MySQL as the database, which can be accessed using the PHP MyAdmin program. Collaboration diagrams, similar to sequence diagrams, are classified as interaction diagrams. The information is presented in a way that is similar to sequence diagrams.
Conversely, they prioritize the pragmatic usefulness of items by employing a diagram that depicts actors, objects, and arrowheads to demonstrate navigation according to the employed methodologies. Figure 1 illustrates the many cooperation frameworks used to define each specific action in the system. The interface displays the procedures for adding a new item, generating a new document, retrieving recently added documents, doing a search, and overseeing internal
Figure 1. The login page of the Web-based Document Management System.
workflow. It functions as the primary landing page that guides users to various sites inside the system.
The tenth principle is based on the idea that supply chain disruption risks can be decreased by using TQM methods, namely the Six Sigma approach [8]. In particular, such utilization improves supply chain security and reduces operating expenses for international freight transfers by water. RFID (radio frequency identification) technology and information coding systems have made these achievements possible. Based on the studies of others who have looked at the motivations that various parties in a multi-agent scenario confront to make efforts that would benefit the group as a whole, the theory of disruption risk management is applied, as shown in Figure 2. The most straightforward and helpful framework in the field of risk comes from Shavell’s (1984) work, which we will draw upon to inform our empirical research in the upcoming section. Assume that a business is curious about the trade-off between the estimated interruptions costs and risk mitigation initiatives, such as management systems. In order to achieve risk reduction, the business process involves adding a set of screens to the supply chain design and new product development process. These screens submit new goods and processes for a thorough evaluation using a predetermined protocol. It is essential to
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Figure 2. Risk assessment and the expanded supply network.
consider how unobserved management elements in Figure 3 affect the observed outcomes [9]. Although they are confused with these outcomes, these managerial elements may be the primary determinants of the likelihood of accidents and the preparation of facilities. For instance, it needs to be clarified, ex-ante, which way the statistical relationship between accident rates and stricter regulatory frameworks is oriented. Tighter restrictions may encourage improved risk assessment practices and more efficient risk mitigation spending. Stricter restrictions, however, will target more dangerous facilities; the increased risk of these facilities may more than offset the regulatory effect. For the other predictors and results, the similar confounding of the unobserved effects might be further developed. Determining how corporate management reacts to particular management directives is thus an empirical question. Furthermore, anyone can now easily create and consume material in any format thanks to recent advancements in web technology.
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Figure 3. A framework for the development of IT for effective SCM.
It has long been envisaged that computing facilities will be made available to the general public like a utility. The idea of renting computing capacity dates back decades to when businesses would share space on a single mainframe with large spinning tape drives. The technology sector has developed recently to the extent that a growing mass market is forming for this renting arrangement. Cloud computing is, therefore, a relatively small innovation. However, it is a development that’s happened over several decades. The progression of software application hosting towards cloud computing is depicted in Figure 3. The following technologies are frequently used compared to cloud computing; they all have similarities.
In order to enable users to install their programs, providers can expose the applications running inside virtual machines (VMs) or offer access to the VMs as a service. Consequently, virtualization makes up cloud computing because it allows programs to dynamically allocate or reassign virtual resources to them based on demand, as well as pool computing resources from clusters of servers. Although virtual machines (VMs) are convenient, using them also presents new issues, such as balancing the competing resource demands of users through intelligent physical resource allocation—the use of virtualization technologies improperly in cloud computing settings [10]. Virtual machines (VMs) serve as the building blocks for creating particular virtual networks, which may be required for some cloud-based applications. In this instance, the virtual machines (VMs) are cloud-based instances of virtual network routers, and virtual links are established between the routers (a single virtual link can utilize resources from several cloud-based real connections and routers). Grid computing is a distributed computing paradigm wherein networked resources are coordinated to accomplish a shared computational goal. Although scientific applications, often computationally demanding, were the initial driving force behind the creation of grid computing, other applications that required the transfer and manipulation of enormous amounts of data also used the grids [11]. Grid computing and cloud computing are comparable in using distributed resources to accomplish application-level goals. Cloud computing goes one step further in achieving resource sharing and dynamic resource provisioning by utilizing virtualization technologies at several layers (hardware and application platforms).
While each entity follows a deterministic selection process, order and spontaneity naturally arise to form the overall supply chain organization. The process by which the interaction of simple entities over time gives rise to highly structured collective behavior is illustrated in Figure 3, which explains how it leads to the fulfillment of consumer orders. Utility computing refers to providing computer resources as metered services like traditional public utility corporations. Specifically, it allows for on-demand resource provisioning and usage-based charging instead of a fixed charge. Cloud computing can be thought of as a realization of utility computing. It only employs a utility-based pricing strategy to make money. Service providers can minimize operational costs while optimizing resource consumption using utility-based pricing and on-demand resource provisioning.
The network is required for utility computing and cloud computing to be successfully implemented since users must be able to access services from anywhere. Autonomous computing aims to create computing systems that can self-manage or respond to internal and external observations without human involvement [12]. Autonomic computing strives to reduce the management complexity of modern computer systems, with network management as the primary driving factor. While cloud computing has some autonomic elements, such as autonomous resource provisioning, its primary purpose is to reduce resource costs rather than to simplify systems. One of the key reasons for an enterprise’s success is that cloud computing has eliminated the need for an enterprise’s size to be a determining factor in its financial success. Data centers, which provide customers with the physical infrastructure needed to host their computer systems, such as redundant power sources, high bandwidth connection capabilities, environment monitoring, and security services, are a fantastic example of this change. Thanks to these data centers, small businesses no longer have to invest significant resources in developing infrastructure to reach a worldwide clientele. The success of the data center concept may be attributed to its ability to help businesses of all sizes control expansion in tandem with the demand for their goods or services while also allowing them to reduce losses if a product or service launch fails. When a distributed system is available, it functions reliably across an extensive network. The possibility of network link disappearance is a unique aspect of network computing [13]. Businesses are concerned about how readily available cloud computing services will be. One of the most challenging objectives is high availability since even a minor outage can have a significant financial impact and damage client confidence. In general, confidentiality increases the amount of potential security concerns when data is moved off-site; thus, necessary safety measures must be taken. Typically, transactional databases hold all the operational data required to support vital corporate operations. The lowest level of detail is included in this data, which frequently contains sensitive information like credit card numbers or customer details. Consequently, if this kind of private information is not encrypted using a key kept off-site by the host, third parties may be able to access it without the customer’s knowledge.
3. Architecture of Information Management System
An ER (Entity-Relationship) diagram visually represents the relationships between various components of Distribution Management. A detailed explanation of each component accompanies the diagram.
Figure 4. Architecture of information management system.
The illustration of Figure 4 thoroughly depicts the diverse components of an integrated management system, including HR management, purchase management, sales management, distribution management, and fixed asset management. The tasks and processes associated with these primary areas are further divided into more specific sub-components, which provide a comprehensive overview of the corresponding management category.
“Distribution Management,” the central node connecting many essential business tasks, is the focal point of the diagram. Distribution management is a prerequisite for the smooth functioning of supply chain operations and logistics. It is linked to warehouses, stock transfers, stock levels, and warehouse placement. Figure 4 also illustrates how purchasing management and distribution are intertwined, showing how distribution intersects with order fulfillment, stock maintenance, and supplier interactions. There are many benefits to implementing such an integrated system. First, it facilitates the smooth collaboration of many departments, increasing operational efficiency. For instance, a well-coordinated distribution management system can lessen the likelihood of stockouts or overstocking when the procurement and sales departments are regularly updated about stock levels. In order to streamline workforce management, it is also possible to optimize the use of human resources by integrating HR administration with other operations, such as payroll and attendance. However, a system this complex could have certain disadvantages. Because many parts are interdependent, if one goes wrong—like inappropriate supplier relations—it could impact other parts of the business, like order processing and inventory control.
Furthermore, smaller businesses may find it challenging to maintain and deploy such an integrated system since it requires significant investments in technology and training. Finally, because of the system’s complexity, personnel may find it difficult to manage change as they adjust to new, frequently interconnected workflows and procedures. The graphic presents an integrated management system that provides notable operational efficiency and coordination benefits. However, it also poses difficulties regarding the possibility of linked faults, system complexity, and expense. Organizations need to thoroughly review these issues before designing and implementing a system like this.
4. Conclusion
Making a personal website (like Google Sites) and a blog (like WordPress, Blogger, or LiveJournal) publicly searchable is now a typical feature. One of the forthcoming wave’s key goals is to make it easier to design each application as a distributed, scalable, and globally accessible Web service. IT must have a well-documented implementation plan to establish an effective supply chain. Furthermore, effective IT integration in SCM requires the support and participation of top management. The development and utilization of big data analytics and other business intelligence technologies have provided supply chain managers with a new opportunity to leverage performance. More consideration and research are required to thoroughly examine the benefits and drawbacks of business intelligence technologies in supply chain management.
Acknowledgements
We appreciate the wise remarks and recommendations made by the unnamed referees.