Digitalization in Improving Supply Chain Efficiency

Abstract

The thesis explores the importance of digital transformation in enhancing the supply chain efficiency in the context of international trade logistics. The study is focused on Finland and covers two of the largest Finnish food companies Atria and Valio. Challenging fluctuating global trade landscape Today, businesses are forced to cope with greater complexity, uncertainty and the inevitability of faster and more transparent logistics operations. This research explores the use of digital technologies including real-time data analytics, automation, and supply chain integration platforms that are being used to improve logistics performance and decision-making. A qualitative research strategy was applied using academic literature, industry reports and company documentation to examine currently applied digital tools and their implications. The results show that digitalization has had tangible benefits in the form of better inventory management, delivery lead times, traceability and visibility in the supply chain. Both Atria and Valio have been able to adopt smart logistics solutions that help them run more efficiently and streamline their international Supply chain networks. Nevertheless, the study also presents major challenges such as the significant start-up investment expenses, the technical issues that derive from the interaction between the legacy systems and the new technologies and the organizational reluctance against the change. Such barriers can slow and hinder the progress of digital transformation. This thesis also adds to the knowledge about how it is possible to strategically use e-tools in support of international logistics. The results provide practical information for both supply chain and business practitioners.