2023-05-30-ADB-Building_Supply_Chain_Resilience_with_Digitalization_23页_489kb

Supply Chain Resilience and Digitalization Summary

The ADBI working paper by Kim Hua Tan explores how digitalization can enhance supply chain resilience, particularly in light of global disruptions like COVID-19, trade wars, and geopolitical events. The paper defines supply chain resilience through multiple perspectives: engineering (focus on recovery speed and costs) and evolutionary (learning from disruptions to adapt). Key dimensions include Readiness, Responsiveness, and Recovery, with "Reinvention" added for the digital age to emphasize creative adaptation.

Digital technologies such as AI, IoT, blockchain, and digital twins are highlighted for improving end-to-end visibility, predictability, and operational flexibility. A triangle of digitalization capabilities—digital backbone (secure data collection), digital twin (simulation for disruption analysis), and digital workforce (upskilled personnel)—is proposed as crucial for resilience. The paper recommends implementing these through systematic digital transformation, supported by policies that foster infrastructure development, talent training, and funding mechanisms.

Recommendations for practitioners and policymakers include leveraging advanced technologies for better decision-making, investing in digital education, and creating robust management systems to address uncertainties and build agile supply chains.