Summary: How does IT innovation contribute towards development of secure, resilient and integrated international supply chains? This is the question that Bram and Zomer seek to address by examining research agendas of a set of past and present European supply chain projects. In their research paper, these authors identify three main areas of innovation – technology, supply chain risk concepts and collaboration and supervision concepts – that lead the way towards higher uptake of new IT technologies and services in the global supply chains. The authors argue that developers of modern IT-enabled supply chains should pay more regard on non-technical challenges that often hinder adoption of modern IT solutions. The study also introduces and discusses five research papers that will be presented at the fourth Workshop on IT-enabled Resilient, Seamless and Secure Global Supply Chains, WITNESS 2015. The full paper will be available in public domain by fall 2016.
Full review: The paper provides a comprehensive outlook on innovation agendas that present EU 7th framework supply chain projects follow. The study summarises CORE’s innovation goals and clarifies definitions and purposes of CORE key concepts such as the system-based supervision, supply chain resiliency and advanced data capture and sharing mechanisms. Therefore, the paper strengthens the conceptual basis of the CORE’s IT and risk management clusters. The CORE demonstrations will benefit from the paper indirectly if the IT and risk clusters refine the paper’s ideas and findings into applicable concepts that could be implemented in the demonstrations. The paper highlights three main areas of innovation that will likely improve security, resiliency and efficiency of the global supply in the future:
Technological innovation – The technological innovation focuses largely on IT-enabled capture and sharing of data among operators who are involved in end-to-end supply chains. Timely sharing of relevant and quality data is believed to support secure and efficient supply chain management because such data helps supply chain actors to detect faster logistics contingencies and disruptions and react to them. The higher data availability also supports use of modern sensor, track & trace and cargo screening technologies. For example, better information about cargo flows allow customs administrations to focus their screening activities on high-risk cargo.
Risk concepts – The data availability leads to higher visibility over the supply chain and empowers supply chain actors to regain control over cargo. The increased control helps the supply chain actors to detect faster to operational contingencies and disruptions.
Collaboration and supervision models – Risk-based approach to customs inspections is a departure from the 100% screening philosophy, under which every single shipment faces inspection. The modern risk-based approach disrupts less cross-border trade and commerce than the 100% screening because customs (and other border control agencies) select only a percentage of shipments, those that represent the highest risk, to inspection. Another new concept is system-based supervision, an approach that seeks to assess traders’ internal controls of customs compliance rather than conducting transaction-driven
Reference: Klievink, B., Zomer, G., 2015. IT-enabled Resilient, Seamless and Secure Global Supply Chains: Introduction, Overview and Research Topics, Lecture Notes in Computer Science (pp. 443-453)