EFFECT OF SUPPLY CHAIN DIGITIZATION ON OPERATIONAL EFFICIENCY AND CUSTOMER SERVICE

Abstract

Digitization of supply chain is currently a strategic requirement in organizations that are keen on improving operational efficiency and customer services in an extremely competitive business environment. The firms will be capable of enhancing the transparency, coordination, and responsiveness of the supply chain operations using digital technologies, such as cloud computing, Internet of Things (IoT), artificial intelligence (AI), and big data analytics. The paper examines the effects of supply chain digitalization on the performance of customer service and operational efficiency. The research methodology employed in quantitative research was a survey data, which is a measure of customer perceptions in terms of reliability, responsiveness, assurance, communication, security and quality of fulfillment by using a structured questionnaire with Likert scale questions. Indicators of operational efficiency such as the order cycle time, logistics efficiency and cost reduction were considered by relying on secondary data. Descriptive statistics and statistical software such as excel in data analysis were used in the statistical process. As per the results, digitization of supply chain has enormous influence on operations effectiveness in that it reduces lead times, enhances coordination, and eases decision-making. In addition, digitization facilitates the improvement of customer service performance by responsiveness, reliability, and transparency ofservices. The papersupportsthe significance of digital integration in contemporary supply chains and offers managerial implications of how organizations can use digital technologies to gain sustainable competitive advantage.