CHALLENGES OF SUPPLY CHAIN VISIBILITY IN DISTRIBUTION LOGISTICS – A LITERATURE REVIEW

Abstract

Purpose: Complex supply chains characterise today's economic life, which is determined by uncertainties and risks. Managing those successfully requires the development of resilient and flexible structures and processes based on information transparency, which enables better decision-making, especially in times of global crises. In this context, supply chain visibility (SCV) is defined as the stakeholders' capability to have access to accurate and timely information about the flow of goods. Although the importance of SCV has been discussed in scientific literature and practice, challenges still inhibit improved SCV, particularly in distribution logistics. These have been scarcely investigated. The purpose of this study is to identify the challenges of SCV in distribution logistics and to provide implications to address them.

Methodology: A qualitative content analysis (QCA) spanning 26 scientific articles was used.

Results: We found evidence of challenges inhibiting SCV in distribution logistics within the three aggregated dimensions of inappropriate processes & technologies and information systems, lack of communication & trust, and insufficient monitoring & decision-making metrics. The findings show that trust can be seen as both a challenge and a prerequisite. Despite the possibilities of digitalisation, there exist trade-offs between manual processes and new technology implementation. Decision-making can be based on individual experiences, and monitoring can be difficult due to undefined metrics.

Conclusion: Practitioners may use the findings to better identify and address the challenges of SCV in distribution logistics. Further studies could extend the findings through empirical studies, which would allow practitioners to assess their level of SCV and derive initial solutions.