This document presents the findings from five scholarly articles, explaining the relationship between supply chain network design, sustainability, and digital transformation in operations. For instance, at Steinweg Bridge, a global logistics company, efficient supply chain management is critical to meeting cost management, customer satisfaction, and sustainability objectives. The effectiveness of supply chain management is strongly related to a company’s overall success, as efficient supply chain operations ensure cost management, customer satisfaction, and seamless operational workflows (Dash et al. 2019). The literature proves that digitalisation can change supply chain processes by using modern technological tools such as Artificial Intelligence, Blockchain, Internet of things and data analytics. Akbari and Hopkins (2022) stated that these technologies offer real-time monitoring, predictive maintenance, enhanced forecasting, and better waste management, all of which are necessary for sustainable practices. Furthermore, IoT facilitates real-time data sharing by linking digital platforms and physical devices, which reduce inefficiencies and encourages recycling. AI’s data processing, trend analysis, and predictive forecasting skills enable organisations to create a supply-demand balance while minimising waste and surplus inventory (Dash et al., 2019). As supply chains become more complicated and involve a variety of stakeholders, blockchain provides a safe and immutable alternative for tracking and recording transactions. Each transaction is verified and permanently stored using public-private key cryptography, eliminating the possibility of tampering or manipulation (Helo & Hao, 2019).Now linking this synthesis to our group assignment which focused on old mutual strategy to digitise their debt collection system. Real-time tracking and monitoring are critical components of both supply chains and financial operations. Just as supply chains rely on IoT for real-time inventory and logistics management, debt collection may use real-time data analytics and AI to track client payments and predict default. Hung et al., (2019) emphasises the importance of adapting data analytics on companies, as it can improve customer, operational efficiency, and profit. Data-driven tactics improve supply chains as well as debt collection operations. For example, supply chains use predictive analytics to optimise inventories and routing. Similarly, Old Mutual intends to employ predictive analytics to anticipate client defaults and pre-emptively modify collection attempts. The complexity of managing diverse stakeholders, transporters, warehouse, and customs agents demands an agile network design that adapts to market fluctuations while maintaining sustainability objectives. Businesses can use these advanced technologies to construct supply chain networks that not only maximise operational efficiency but also align with broader sustainability goals, ensuring long-term economic, environmental, and social benefits.
Archives: Build Challenges
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How does maintenance influence the sustainability of digital operations?
This paper explores how maintenance influences the sustainability of digital operations within supply chain management. Maintenance is seen as a critical component influencing the sustainability of digital operations due to it ensuring reliability, longevity and efficiency in hardware and software systems. Effective maintenance strategies extend the lifecycle of infrastructure, reducing the frequency of equipment replacement, which can have a significant environmental cost due to waste and the resource-intensive processes required for manufacturing and disposal (Chiravuri, Feroz, & Zo, 2021). This paper also makes specific reference to Mphilo Milling, a SME developed in 2006. Mphilo Milling currently faces scalability, supply chain and barrier to entry challenges. Although it has automated it’s milling process it is still limited in its output, producing between three to six hundred tons per month. The dilemma identified is how Mphilo Milling can scale and become sustainable through digitalising operations and the maintenance thereof. Through the adoption of digital technologies and the revisualisation of operations, businesses can increase operational efficiency, improve the customer experience and drive innovation. The use of data analytics (predictive and prescriptive), machine learning, AI and IoT can revolutionize the operation of Mphilo Milling.(Eyo-Udo, Ogundipe, Ololade, & Onesi-Ozigagun, 2024). The maintenance of the above-mentioned technologies can improve energy efficiency, as modern updates often include energy-saving enhancements. For example, optimized software and hardware management, such as server load balancing and energy-efficient protocols, contribute to reduced power consumption across data centres. This leads to decreased carbon emissions and aligns digital operations with broader sustainability goals, such as carbon neutrality and resource conservation. Proactive maintenance also strengthens cybersecurity, mitigating the risk of breaches and downtime that can result in costly data recovery and excessive resource use. Furthermore, predictive maintenance, facilitated by data analytics and AI, enhances sustainability by allowing organizations to pre-emptively address potential failures. This predictive approach helps to reduce both operational interruptions and the need for emergency repairs or replacements, thereby conserving resources and reducing waste. The influence of maintenance on digital sustainability is multi-faceted: it reduces environmental impact, enhances energy efficiency, and improves operational resilience. Organizations adopting comprehensive maintenance practices not only reduce costs but also contribute to global sustainability efforts by decreasing the environmental footprint of digital operations. In essence, maintenance transforms digital infrastructure from a potential environmental burden into a sustainable asset, underscoring its critical role in the digital age.
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How can we design digital products/services that are sustainable?
This paper examines how firms can design sustainable digital products and services, using Old Mutual Bank’s collections department as an example. It highlights sustainability or what Armstrong and Lee (2024) describe as “survival”, as a primary objective of the firm. It then explores how business model innovation, digital product and service creation, and data utilisation contribute to this goal. Aagaard (2024) emphasises business model innovation as a pathway to sustainability, adaptability, and customer-centered practices. For OM Bank’s collections department, this could involve reimagining traditional collections to create a more resilient, customer-focused model, using digital tools to promote sustainable practices. In Designed for Digital: How to Architect Your Business for Sustained Success, Ross et al. (2019) argue that digital business design aids in creating agile companies with innovative, constantly evolving portfolios of digital offerings that respond to digital disruption and changing customer needs. Their framework for sustainable product and service design stresses adaptability and resilience, focusing on creating solutions that are efficient, scalable, and responsive to evolving demands. For Old Mutual Bank’s collections department, designing sustainable products and services would prioritise inclusivity, ethical practices, flexibility, environmental impact, and continuous improvement. This approach would involve making the platform accessible for all customers, including those with limited digital access, and partnering with telecom providers to reduce data costs. Predictive analytics should be used responsibly, with transparent debt communication, while a modular system architecture would keep operations flexible and efficient. Optimizing data storage to reduce energy consumption and prioritizing renewable energy sources would also be essential. Customer feedback would be incorporated continuously, enabling the platform to adapt to emerging trends for long-term sustainability and relevance. This approach aligns with Senge’s (2006) view of firms as interconnected systems, where understanding these interdependencies is crucial for addressing complex organisational challenges and fostering learning organisations.
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How can enterprises adopt sustainable cyclical models?
This paper explores how the Old Mutual Bank debt collection systems can adopt sustainable cyclical models. The literature on sustainable cyclical models in banking, particularly in the context of the Old Mutual Bank, reveals a growing recognition of the imperative to integrate sustainability into banking practices. The foundational work by (Palmieri & Geretto, 2023) highlights the necessity for South African banks to embrace sustainable development as a core component of their competitive advantage. (Palmieri & Geretto, 2023) posits that the banking sector must reevaluate its approach to stakeholder value in light of sustainability issues, especially following the failures of several small to medium-sized banks that inadequately addressed these challenges. Building on this premise, (Stavropoulou et al., 2023) explore the dynamics of sustainability transitions within the South African retail banking sector, providing a comparative framework that can inform practices at Old Mutual Bank. Their research introduces a novel conceptual approach integrating multiple frameworks to analyse the intersections between banking regimes and sustainable practices. This dual analysis reveals critical points of constraint that, when addressed, can transform into opportunities for innovation and sustainability- (Hindarsah, 2024). Firstly,(Napolitano, 2024) argues that adopting sustainable cyclical models requires rethinking value chains by incorporating elements of waste minimisation, resource reutilisation, and end-of-life management for products and services. For Old Mutual Bank, this involves leveraging digital transformation to improve efficiency, such as digital documentation and e-banking solutions, reducing the need for paper-based transactions and lowering operational carbon footprints. Additionally, (Adeniran et al., 2024) concur that banks can implement predictive analytics and artificial intelligence (AI) to enhance debt collection processes, as these technologies can proactively manage asset recovery, reducing economic “waste” through improved financial performance. In conclusion, Old Mutual Bank’s transition to a sustainable, cyclical model can serve as a blueprint for financial institutions aiming to integrate circular economy principles. Through technological advancements, strategic partnerships, and eco-conscious operations, the bank can align with evolving sustainability goals, reducing environmental impact and contributing positively to South Africa’s socio-economic landscape. This transformation aligns with the company’s values, positioning Old Mutual Bank as a leader in sustainable finance.
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How can work design influence sustainable digital operations?
This synthesis explores how Human Resources (HR), and work design can influence sustainable digital operations. A recent study conducted by Martínez-Peláez et al. (2024) presented a comprehensive framework for sustainable digital transformation in Small and Medium Enterprises (SMEs). The framework highlighted the importance of defining clear objectives, fostering stakeholder engagement, and setting sustainable dimensions. By applying this framework to HR and work design, organisations can align digital operations with sustainability goals. This can be accomplished by including employees in the decision-making process so that digital initiatives are designed with sustainability in mind. Saqib and Qin (2024) investigated the effects of digital innovations on sustainable operations in logistics. Their findings proposed that technology adoption and integration positively impact environmental, social, and economic sustainability. In the context of HR and work design, this implies that promoting the adoption of innovative technologies and integrating them into existing processes can enhance overall sustainability. Another study done by Zhang et al. (2023) explored the relationship between digital transformation and sustainability within the project management environment. Their research highlighted the necessity for a rounded approach to incorporating digital strategies with sustainability practices. HR can facilitate this integration by designing work processes that foster collaboration and innovation, ensuring that digital projects contribute to sustainability objectives. A systematic literature review by Springer (2023) also provided insights into the challenges and opportunities of digital transformation and sustainability. This review highlighted the importance of organisational culture and leadership in driving sustainable digital operations. The organisation’s HR department can foster a culture of sustainability by promoting ethical behaviour, transparency, and accountability among employees across the organisation. Springer (2023) also stressed the role of human-centred design in creating sustainable digital operations. By focusing on the needs and experiences of employees, HR can create work processes that enhance both digital efficiency and sustainability for the organisation. Work design can influence sustainable digital operations by adopting a holistic approach that integrates digital innovations, fosters stakeholder engagement, promotes a culture of sustainability, and emphasises human-centred design. HR plays a critical role in this process by aligning digital initiatives with sustainability goals, promoting innovative technologies, and fostering a supportive organisational culture.
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How can digital infrastructure of enteprises take into account layout strategies?
Research Question: How can digital infrastructure of enterprises take into account layout strategies? In the mining sector, digital transformation introduces unique challenges and opportunities, especially for resource-intensive enterprises like Debswana Diamond Company. Established in 1969 as a joint venture between the Government of Botswana and De Beers Group, Debswana has played a critical role in Botswana’s economic landscape, contributing between 25-30% of the nation’s GDP and a significant portion of its export revenue (Debswana, 2024). As one of Botswana’s largest employers with over 5,000 employees and 6,000 contractors, Debswana is both a major private sector player and a leader in the global diamond industry. Recognizing the finite nature of diamond resources and aiming to position itself for the future, Debswana has embraced a forward-thinking approach to digital transformation by focusing on smart connected mines. Through this approach, which includes a partnership with Huawei to deploy 5G technology, Debswana leverages Industry 4.0 technologies to drive efficiency, operational resilience, and environmental sustainability, all of which are critical for remaining competitive in a volatile market (Huawei, 2023). This research explores how Debswana’s digital infrastructure can integrate layout strategies that address advancements in technology, sustainability goals, and workforce transformation needs, while ensuring robust supply chain management. The increasing digitalization of business processes, accelerated by Industry 4.0 technologies, underscores the need for adaptable infrastructure layouts in mining. For example, Debswana’s smart connected mine initiative demonstrates a strategic approach to leveraging automation and data analytics for process optimization. In mining, interconnected systems such as IoT, AI, and data management require well-designed layouts that support continuous adaptation to evolving technology. This necessitates a process-based approach that emphasizes both flexibility and continuity, allowing digital systems to respond swiftly to changes in resource availability, demand, and environmental considerations. With global digital transformation spending projected to reach $3.4 trillion by 2026, investment in smart infrastructure is crucial for companies like Debswana to ensure resilience, efficient resource allocation, and enhanced sustainability (IDC, 2023). Sustainability, particularly in resource management, is central to Debswana’s strategic direction and impacts both layout strategies and supply chain management. Given Botswana’s arid environment, sustainable resource use—especially water—is essential to Debswana’s operations. For instance, Debswana has adopted water-saving technologies, utilizing underground aquifers for mining activities to mitigate the environmental impact. Sustainability extends to supply chain management, where Debswana’s ESG framework encourages suppliers and contractors to adhere to responsible practices. Globally, nearly 50% of new mining technology investments focus on enhancing environmental efficiency, underscoring the need for digital layouts that support both environmental stewardship and operational efficiency (Deloitte, 2023). As the demand for ESG integration grows, Debswana’s infrastructure must incorporate sustainable practices throughout the supply chain, ensuring technology adoption aligns with environmental goals and societal expectations. Workforce transformation is also integral to Debswana’s future-readiness in digital infrastructure. The advancement of Industry 4.0 in mining demands a skilled, digitally literate workforce capable of operating complex automated systems. Recognizing this need, Debswana prioritizes upskilling employees, aiming to develop a knowledge-based workforce for managing smart mining operations. This approach aligns with broader industry trends where approximately 30% of the workforce currently needs digital skills—a figure projected to rise to 50% by 2026 (McKinsey, 2023). Addressing this trend, Debswana’s digital infrastructure layout must support effective training systems and facilitate seamless digital integration within its operations and supply chain. Incorporating layout strategies into Debswana’s digital infrastructure would allow the company to address the technological, environmental, and workforce challenges associated with digital transformation. This study examines theoretical concepts and practical implications of these trends, exploring how a process-based approach can optimize Debswana’s infrastructure and supply chain to support sustainable growth and operational resilience. References: 1. Barmuta, K. A., Plaksenkov, E. A., & Chigineva, O. A. (2020). Problems of business processes transformation in the context of building the digital economy. Entrepreneurship and Sustainability Issues, 8(2), 672–685. https://doi.org/10.9770/jesi.2020.8.2(39). 2. Debswana. (2024). Company Report. https://www.debswana.com/publications/. 3. Deloitte. (2023). Sustainability in mining. https://www2.deloitte.com/us/en/insights/industry/mining-and-metals/sustainability-in-metals-and-mining-energy-transition.html. 4. Huawei. (2023). Smart connected mining. https://www.huawei.com/en/news/2023/3/mwc2023-5g-oriented-smart-mine#:~:text=Debswana%20and%20Huawei%20Unveil%20World’s%20First%205G%2Doriented%20Smart%20Diamond%20Mine%20Project,-Mar%2003%2C%202023&text=%5BBarcelona%2C%20Spain%2C%20March%203,oriented%20smart%20diamond%20mine%20project. 5. IDC. (2023). Global digital transformation spending. https://www.idc.com/getdoc.jsp?containerId=prUS51352323. 6. McKinsey & Company. (2023). Digital skills in mining workforce.https://www.mckinsey.com/industries/metals-and-mining/our-insights/has-mining-lost-its-luster-why-talent-is-moving-elsewhere-and-how-to-bring-them-back. 7. Nedbal, D., Stieninger, M., & Galy, E. (2020). Critical success factors for implementing digital transformation in small and medium-sized enterprises. Digital Policy, Regulation and Governance, 22(5), 455–477. https://doi.org/10.1108/DPRG-04-2020-0044 8. Solberg Søilen, K. (2020). Geospatial business intelligence: A study of applications for renewable energy assets. Business Information Review, 37(4), 176–183. https://doi.org/10.1177/0266382120969634. 9. Wang, G., Suh, J., & Kim, J. (2020). The effect of digitalization on firm performance: Evidence from Korea. Journal of Business Research, 124, 66–78. https://doi.org/10.1016/j.jbusres.2020.10.001.
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How does inventory management influence/ or is influenced by MRP/ERP decisions?
In the past, many organizational departments were responsible for maintaining their own information systems without considering other business units like marketing, purchasing, accounting, and so on. Depending on their specific requirements, the various unit-level systems had varied ways of collecting and storing data. Managers in their departments were able to improve and make better judgments with the aid of the business unit systems. (Mahesh Guptaa, 2006). While the various systems could help at the unit level, but sustaining effective inventory management necessitated the implementation of appropriate ERP/MRP, which would encourage consolidated information of the entire organization. According to (Wei, Idrus, & Abdullah, 2017), raw material shortages or excesses brought on by poor inventory management have a direct effect on the organization’s success. Additionally, the article further explained that using both the ERP/MRP system results in increased efficiency AND enables manufacturing organizations do away with manual inventory management. My argument is that inventory management is influenced by MRP/ERP decisions as these tools provide a vast of benefits which improve the handling of inventory in an organization. According to an article written by (Kuse, 2023), ERP system enables tasks around inventory to be automated and consolidated with other functions such as scheduling, production and planning, demand forecasting and so forth. The system furthermore benefits the organization by providing real time inventory visibility, automated processes, delivering on time streamlined supply chain and accurate demand forecasting. Additionally, according to (Shari Shang, 2000),ERP system offers operational benefits for inventory management which include reduced labor costs due to the automation of redundant, archaic processes, the creation of new, efficient work methods, and lower expenses for human resources and warehouse space. To further support my argument, any organization’s primary objective is to maximize growth and please its customers, and putting in place an ERP/MRP will assist them accomplish that objective. According to Layth Abuhilal (2006), choosing the right inventory methodology is crucial to achieving the organization’s objective. Additionally, operations management has changed over the years and can now be challenging because of the size of the customer base, which is more international than your local community, and the consolidation of processes and services to meet specific needs while taking into account all kinds of methods, whether mass production or make-to-order. Therefore, putting in place an ERP system is a major part of the company’s strategy since it enables other departments to make sure they are making the most use of their capital, personnel, and equipment while also keeping in mind of meeting the demands of their end-user.
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How can better ERP integration be achieved for improved supply chain resilience?
This study’s objective is to assess potential tactics for enhancing supply chain resilience using an integrated Enterprise Resource Planning (ERP) platform. Service disruption is a common occurrence across all business functions (including supply chain). Therefore, controls and measures need to be put in place to prevent service interruption in supply chain operations. During the COVID19 pandemic many businesses suffered severely due to not having resilience in supply chain processes resulting in some even shutting down (Shen & Sun 2021). The global pandemic pointed out that businesses need to have some form of supply chain resilience for survival and to continue operating during unforeseen circumstances. Many businesses have since started investigating initiatives and strategies to improve resilience in their supply chain operations. This study will provide effective strategies to consider in enabling resilience in the supply chain process collated from various sources that researched how supply chain resilience can be achieved (Rahman. et al., 2022). Furthermore, the study will point out how supply chain resilience can be enabled by the ERP (Muthuswamy & Hu 2023) and other digital technologies, such as Artificial Intelligence, Big Data, Cloud Computing (Gupta et al., 2022). It will focus on these critical aspects of supply chain resilience: inventory management (improved focusing), data management, supplier collaboration, risk management, real-time analytics, scalable solutions and business processes optimization (Azam et al., 2023). By addressing these key areas, businesses will be in a better position to overcome supply chain disasters/disruptions which can lead to revenue loss and decreased customer satisfaction because of not getting their products when they want them.