Supplier connectivity: a study on how to gain supplier acceptance for the integration of digital supply chain systems

Supplier connectivity: a study on how to gain supplier acceptance for the integration of digital supply chain systems

Skiha Kalesh (co-authors Dr Nadine Kiratli-Schneider [Department of Marketing and Supply Chain Management, Maastricht University]  and Prof. Dr. habil. Holger Schiele)

EL-IPS, University of Twente

About the Author

Shikha Kalesh is an external PhD researcher at the University of Twente in the Netherlands. She holds a Master’s degree in Automotive Production Engineering from Technische Hochschule Ingolstadt, Germany. Her research predominantly focuses on supply chain digitalisation, supplier integration, and supply chain resilience. Driven by a strong passion for buyer-supplier relationships, her work aims to unravel the complexities of these dynamics and foster collaborative success, thereby enhancing the resilience and adaptability of supply chains. With a rich professional background in the automotive industry, Shikha Kalesh has held key roles as a project buyer and a specialist in supplier integration for inbound logistics. Currently, she serves in corporate supply chain risk management for an automotive supplier firm. This extensive experience enables her to bring practical insights and a profound understanding of industry challenges and opportunities to her research. Shikha Kalesh is dedicated to advancing the field of supply chain management through rigorous research and practical application, ultimately striving to enhance the strategic decision-making processes within organisations.

Abstract

Digitalisation has introduced numerous supply chain systems that enhance operational efficiency and performance, providing companies better visibility and fostering collaboration across the value chain. This enables firms to adapt to market volatility and increase business value. However, the increasing amount of digital systems and pressure from various customers on suppliers to adopt these systems has caused reluctance and resistance from supply chain partners to adopt new digital systems. Therefore, the research investigates how adopting and integrating new digital systems can be successful from the suppliers’ perspective.

Her study investigates the factors that influence suppliers’ acceptance of customer-introduced digital supply chain systems, focusing on integration challenges, expected benefits, and the necessary support from customers. By employing a mixed-method approach, the research combines qualitative interviews with a large-scale quantitative survey involving 220 internationally located suppliers from an automotive-industrial firm. The study identifies 11 critical factors that drive supplier acceptance through this comprehensive methodology. The three most significant factors are providing the system at no cost, incorporating time-saving features, and ensuring tangible benefits for the suppliers.

The complete list of 11 acceptance factors arranged in order of importance for suppliers is shown below: 

1. Systems provided at no cost
2. Systems that save time
3. Tangible benefits to suppliers
4. User-friendliness of the system
5. Use of a standard platform for digital systems
6. Sufficient time allowed to adopt the system
7. Customer representative assigned to the system
8. Financial support from customers for implementation
9. Systematic rollout of the system
10. Training provided by customers
11. Involvement of suppliers in the development of the system

The research emphasises the importance of these factors within established theoretical frameworks, including the Technology-Organisation-Environment (TOE) framework, Technology Acceptance Models (TAM), and Diffusion of Innovation (DOI). The study highlights that cost-related barriers, efficiency, and relative advantages are essential considerations for successful digital system adoption. Supplier support and the systematic rollout of digital systems are vital elements for fostering supplier acceptance.

From a practical standpoint, the study offers valuable insights for managers aiming to ease the digital supply chain integration process. Companies are encouraged to provide digital systems free of charge, develop features that save time, and ensure that the systems offer tangible benefits to suppliers. Involving suppliers in the development phase is crucial for creating systems that align with their needs, thus enhancing their willingness to adopt new technologies. Additionally, strengthening supplier relationship management is vital for facilitating a smooth digital transition and increasing the likelihood of successful adoption.

The research underscores the necessity of considering supplier perspectives to drive effective digital supply chain integration. Companies can better align their digital initiatives with supplier expectations by focusing on acceptance factors such as cost, efficiency, and benefits. This alignment fosters collaborative relationships and accelerates the overall digitalisation efforts within the supply chain. The study provides actionable insights that can guide policy development, enhance collaboration, and ultimately drive the digital transformation of supply chains, benefiting both customers and suppliers.

Additional/further reading

·       Link to the article (open access): https://doi.org/10.1108/SCM-01-2024-0066

·       LinkedIn: link

·       Website: https://www.utwente.nl/en/bms/el-ips/