The Influence of ICT on Competitive Advantage in Global Supply Chains

This research proposal investigates the influence of Information and Communication Technologies (ICT) on global supply chain organizations, focusing on how these technologies contribute to competitive advantage. The study aims to determine the types of ICT used, identify the benefits and challenges of implementation, and assess the role of ICT in enhancing competitiveness, with a case study on United Parcel Service (UPS). The proposal includes a literature review examining supply chain management, ICT applications, and the benefits of technologies like EDI, barcoding, and RFID. The research methodology involves a detailed analysis of the research problem, questions, and objectives, alongside ethical considerations and a timeline for completion. The study seeks to offer recommendations for improving global supply chain operations through ICT advancements.

Research Proposal

CONTENTS
INTRODUCTION...........................................................................................................................1
Research problem........................................................................................................................2
Research questions.......................................................................................................................2
Objectives....................................................................................................................................2
LITERATURE REVIEW................................................................................................................3
Introduction..................................................................................................................................3
Conclusion.................................................................................................................................10
RESEARCH METHODOLOGY..................................................................................................10
DATA COLLECTION..................................................................................................................12
ETHICAL, VALIDITY AND RELIABILITY..............................................................................13
TIMELINE....................................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Global competition, enhancing customer demands and innovative technologies are
encouraging companies to reconsider on the way they can take advantage of technologies related
to information and communication to manage their supply chains in a better manner. Previously,
supply chain management was only a process of moving products or services. In today's world,
the modern aspects focus on strategic supply chain management, supply chains are now being
utilized as a way for creating competitive advantages & increase organisation (Cheun et.al.,
2018). Due to globalization, companies had also started changing the method of communication,
increasing diversity of transactions in business, improvement of processes and implementation of
technology for improving the performance of the organisation with the assistance of IT
applications in the supply chain networks. In the current state, Supply chain management is a
complex and integrated network concept that involve each and every process from beginning to
end, for example- procuring the raw material from the manufacturer & completing the delivery
of the final product to the customer. The complexity of data is increasing day by day which is
enhancing the uncertainty risk within the supply chains it ultimately increases the vulnerability
of electronic risks (Ted Lirn et.al., 2018). Therefore, the downstream & upstream integration of
supply chain networks is the fundamental need for fulfilling the targets or motives of supply
chain management. The information technology implemented in supply chain management helps
in managing the flow of information easily with the key procedures of business, money outside
& within the networks, materials and help in increasing organisation's profits by improving the
quality as well as by minimizing the costs of coordination and risks related to transaction. In the
present research, the scholar will review the influence of information & communication
technologies on the global supply chain organisations, the research will also identify the role of
these technologies on competitive advantage with the supply chain organisation. (Choi, 2018)
For the purpose of achieving objectives of this research scholar will conduct a study on United
parcel service (UPS), it is a leading organisation that provides supply chain services in any
countries all around the world. The research will include the implementation of various research
methodologies for conducting this study, researcher will also review views of different authors or
scholars by examining various articles, journals and literature. In respect to the research, scholar
developed specific aim and objectives for leading towards a precise conclusion.
1

Research problem
The application of Information and Communication technology (ICT) is more essential and
beneficial in management of supply chains at a global level for big companies, supermarkets,
grocery stores etc. Information & communication technology helps to reduce cost of operations
and increase efficiency. Although, the practical implementation of ICT in small firms is still at
its initial phase. Even though small firms were aware of the various benefits of implementing
ICT, they were slow in adopting the same. The supply chains traditionally operated without any
kind of technology due to lack of knowledge and develop in terms of technology. But nowadays
the technologies have been developed to a large extent and many companies are utilising
technologies such as ICT (Ul-Hameed et.al., 2018). And it has been observed that the supply
chain management in the present world is relatively fast, accurate and affordable as compared to
the traditional methods. Hence, there is a need to identify and review the impact of ICT on
supply chain organisations and also examine whether or not it affect their competitiveness within
the global market.
Aim
"To review the impact of information and communication technologies on development of
competitive advantage for global supply chain companies" - A case study on United Parcel
Service (UPS)
Research questions
1. What are the various types of information and communication technologies(ICT) used in
supply chain?
2. What are the benefits and challenges of implementing new technologies in United Parcel
Service?
3. What is the role of ICT in development of competitive advantage in supply chain at
global level?
4. How to improve supply chain operations globally?
Objectives
 To determine the various types of information and communication technologies used in
supply chain management
2

 To identify the benefits and challenges of implementing new technologies in United
Parcel Service
 To understand to role of ICT in development of competitive advantage in supply chain at
global level.
 To provide effective recommendation to improve supply chain operations globally.
LITERATURE REVIEW
Introduction
In this part of the study research will include analysis of different articles, journals and literature
related to the topic which is the influence of information and communication technologies on
supply chain organisations. There are many studies conducted on similar subject by various
authors and scholars which will be reviewed in the study for attaining the aim of this
investigation in an effective manner. The literature review will help to understand different views
or perspectives of authors on the topic of this research. The review of literature will be done by
framing distinct themes to examine each and every aspect of the subject and determine major
perceptions of numerous researchers. In simple terms, this section will analyze secondary data
and information that will assist in identifying the influence of ICT on activities of supply chain
organisations and how these technologies help them to obtain competitive advantage in global
market.
Supply chain management
Supply chain management in simple words means to streamline the procedures towards
the movement of goods its conversion from raw material into consumable items (Rinaldi and
Bandinelli, 2018). Companies which are providing products to the consumers demonstrate the
cumulative effort due to which these firms are known as the supply chain & during the situations
when supply chain exists for a longer period of time most of the companies focuses only on what
is happening internally in their organisations. There are various similar areas like procurement,
logistics, ICT, and the logistics that are considered under the supply chain management. In the
views of, supply chain management is the means used by organisations and business for
managing the flow of goods & services, as well as the storage of inventory used for work in
progress and raw material. On the other hand, Ishtiaque and et.al.,(2019) states that supply chain
is an important element for each and every business or organisation whether large or small.
3

Supply chain management can be referred to the dynamic management of operations of supply
chain for increasing the customer values & for achieving competitive advantages that can be
easily maintained. It determines an effective attempt by the supply chain companies for
developing and running supply chain with the best possible ways. In addition to this, Cragg and
McNamara,(2018) states that there are different operations of the supply chain that includes
development of product, logistics, sourcing, manufacturing and information system that is
needed for organising all these activities. In the same way, Apiyo and Kiarie, (2018) defines that
supply chain management refers to the managing activities directed by information system from
sourcing to manufacturing to development of product to distribution to enhanced customer value.
It is also mentioned that supply chain management is engaging information, resources, planning,
technology, and processes altogether to produce, store & supply the consumable goods to the
customers. In other words, it refers to the execution, designing, development of plan, controlling
& monitoring of supply chain procedures with the aim of developing enhanced customer value,
creating competitive infrastructure, synchronization of supply along with demand & evaluating
performance at an international level.
Information and communication technologies (ICT)
Information and communication technology or ICT plays an important role in the development
of an organisation or business. Information and communication technology nowadays is very
much essential for each and every organisation nowadays for actualizing its strategy or plan.
Calatayud, Mangan and Christopher (2019) states that ICT are the technologies that focus on
communication and information systems that are offering easy access to data and information. It
is utilised for performing various tasks with regard to planning, decision making & procedure of
transactions. Shee et.al., (2018) also states that information & communication technology can be
defined as the infrastructure and elements which are important for allowing modern computing.
These technologies are also permitting the organisations as well as individuals to communicate
with the digital world. ICT is defined as an expansion in the field of information technology
which is utilising telecommunications. It refers to a tool of information system essential for the
collaboration and coordination between company and markets for developing buyer and seller
relationship. In addition to this, ICT is based upon the utilisation of computer networks, internet,
mobile phones and wireless network in order to exchange information, accessing and sharing
timely information for enhancing performance. Schauer, Polemi and Mouratidis (2019)
4

mentioned that ICT consists software, hardware, communication IT services and networking to
develop junction for different technologies for providing access to information in real time.
According to the views of various scholars it can be stated that Information and communication
technology focuses on different technologies and applications related to communication which
offers access to information and helps in exchanging it in digital form for external and internal
contact.
Types of ICT used in supply chain
There are various types and kinds of Information & communication technologies used in
the supply chain and its management activities. Each and every technology plays a vital role in
improving the efficiency and performance of overall supply chain processes and assist
organisations to increase the customer values by offering fast and convenient supply chain
services to them(Zeraati and et.al., 2019).
Electronic Data Interchange (EDI)
This technology was initially introduced in the period of 1970s and got popular in 80s, EDI
technology has been increasingly utilised by organisations in supply chains for facilitating
information exchange and transactions. According to Maata and Ombui, (2018), Electronic Data
Interchange technology refers to means of exchanging structured information or data computer to
computer for enabling automatic processing. EDI us also utilised by supply chain partners for
exchanging important information essential for the effective operations in their businesses. These
kinds of structural link are generally developed between organisations that are having a long
term relationship. For instance, several multiple retailers will supply electronic point of sale data
to suppliers directly, which leads to replenishment of the sold product. Hence, the main issue
related to this kind of strong link is that those suppliers will be capable of building historical
sales pattern that will further help their own activities for demand forecasting (Mandić and
Praničević, 2019)
Bar coding and scanner
According to De Vass, Shee and Miah, (2018) codes are the demonstration of a code or number
in a suitable form that assist machines to read. Bar codes are highly utilised within the supply
chain as it is fast and accurate, car causes include ladder orientation where data is stored in
optical or magnetic form as a component not communication system. Many organisations are
utilising it in supply chain networks to automate tracking and tracings goods & services at each
5

and every process flow. It also helps in providing timeliness and accurate information which is
highly beneficial in reducing errors because it is the representation of a code or number in most
suitable form that is easy to be read by machines. On the other hand Dujak and Sajter,
(2019)stated that the bullwhip impact, which is experienced by consumer good industry
commonly leading to high inefficiencies for instance, poor customer service, excessive
investment in inventory, ineffective transportation, lost revenues, misguided plans for capacity
and mixed schedules for production, where scanners and barcodes have been created & applied
in the procedure of supply chain for removing errors and inaccuracies. Many organisations such
as Walmart, FedEx, etc. applied this technology to develop efficiency in their supply chain
network & improvimg the organisational performance in relation to the flow of goods and
services.
Radio frequency identification (RFID)
Radio frequency identification is also an essential element of technology that can be helpful in
providing various advantages to the organisations in supply chain networks (Szymczak et.al.,
2018) . RFID chips are placed on each and every item that is used by the organisations to easily
track their goods or inventory. Due to the enhanced visibility provided by RFID chips
organisations can improve their supply chain and its efficiency by detecting any malpractices
with order as they occur, it also enables employees to correct errors immediately. Furthermore,
Radio frequency identification is allowing highly consistent and easier tracking of products that
enables organisations to gain maximum visibility & control over their inventory or goods
throughout the supply chain process. Since RFID chips are providing computerized product
management they can be effective in eliminating the potential for errors, simplifying the supply
chain processes and reducing the costs of operations. Oguz et.al., (2018) stated that Radio
frequency identification has became a popular trend in supply chain networks and logistics
nowadays. Million of RFID chips are been sold all around the world, that represents the
increasing development and use of technology in the supply chain businesses.
Using of social media in supply chain
Social media is one of the most effective technology which has changed the world and
marketplaces with more than 288 million Twitter users and more than 1.2 billion Facebook users.
It is a known fact that a huge number of organisations or businesses have turned to social media
for gaining high visibility for their association or organisation. It has been identified by
6

Daneshvar Kakhki and Gargeya (2019) that more than 70% of all 500 organisations in Fortune
depends upon social media as most important element of their supply chain management as well
as marketing strategy. With the utilisation of Social media platforms, organisations in supply
chain networks can develop more open communication with their customers, enhance the
visibility of their businesses, increase their products' demand, use cost effective and time
efficient marketing strategies, reduce their costs of operations and increase the overall of
productivity of their organisation. Social media is also highly used for interacting with
customers, provide quick responds to queries and create automated updates related to the
inventory or goods.
Benefits of ICT in supply chain
As indicated by Luthra et.al., (2018) Organizational execution of different organizations
whether private, open or non government. It has acquired incredible lift because of information
and communication technologies(ICT). Fundamentally, ICT handles the manage and stream of
information or data identified with critical spots, individuals and elements in business
environment or association. It is fundamental to take note of that powerful execution of
associations incompletely relies on information and communication technologies to expand
development, vital arranging and compelling basic leadership. Likewise, so as to remain focused
in the present competitive condition the associations needs to create inventive methodology and
offer particular administrations that utilizes new innovations, for example, Information system
(Yuliadi and Nugroho, 2019). These advancements empower organizations to look at the helpful
effects of Information and communication technologies as a component that help to accomplish
elevated requirement execution. High productivity, viability and quality execution speaks to
basic issues and difficulties that the greater part of the associations faces in this highly
competitive world. In regard to these difficulties Information framework turns into a basic vital
segment that helps with making focused advantages and supporting endurance of business.
Mondrago et.al., (2018) contended that associations needs to receive innovative devices
and gadgets supporting them to acquire focal points mostly inside financial directions which is
by and by an exceptionally basic innovation and have additionally guaranteed that information
and communication technology or system is comprising over 70% of the capital venture inside
help industry. Subsequently, the quick development and improvement of Information framework
and the related reflections on market, associations and ventures have built up an incredible
7

conviction that Information framework is basic for advancement and endurance of associations.
Numerous researchers still argue in recognizing the hidden connection between authoritative
presentation and data frameworks. Studies demonstrated that productive and compelling use of
data frameworks is a significant segment that separates fruitful associations from less effective
counterparts. Further, issues, for example, improving execution, decreasing expense and
upgrading productivity have implemented associations to embrace most recent advances or new
sorting out instruments, for example, Information framework for improving execution.
Mondrago and et.al., (2018), expressed that Information framework alludes to a reasonable
reaction to challenges by associations. From this handy perspective, it very well may be plainly
expressed that Information framework can directly affect execution of any association or
business exercises. This framework can help the associations to react adequately to the changing
outside condition.
Challenges
One of the greatest test of actualizing data framework is attention to parts of ICT which requires
preparing on framework advancement and the executives. On the other hand, according to the
perspectives on Bendersky, Metzler and Croft, (2012) arrangement of data framework procedure
with business technique is the greatest test which can be looked by supply chain companies.. It
is significant for the association to comprehend the challenge which is important to take care of
issue which emerge because of methodologies of business and framework. The researcher
expressed that it is significant for the administration of association to have clear objectives to
limit the risk of failure. What's more, time arranging is another test which is looked by supply
chain association at the hour of executing data framework. Time trouble is the part of ICT which
sway usage of Information and communication technologies. Galliers and Leidner, (2014)
expressed about specialized test which is looked by association at the hour of actualizing IS that
is change and reconfiguring of framework in procedure of business. Further, redesigning past
framework is another test which can obstruct process the board. Besides, trouble in estimating
advantage and costs is another boundary which goes over when actualizing IS in an association.
Absence of spending plan for equipment and programming is another test which can be looked
by non government association at the hour of actualizing ITC. As per Tao and (2014), it is
verbalized that absence of information on workforce, duty of top administration, frail
administration jobs and poor coordination are a portion of the basic administration challenge
8

which can be looked by organisations providing supply chain services at the time if actualizing
Information and communication technologies. These are obstruction which can cause absence of
communication, ill-advised administration of duties.
Absence of information individuals and absence of data framework office made testing
circumstance for supply chain organizations that make obstructions for actualizing ICT in
business (Hryshchuk and Yevseiev, 2016). Without having the talented individuals the
achievement of strategy is unimaginable which doesn't enable firm to maintain their general
business exercises adequately as contrast with different associations inside various area who
execute IS effectively and appreciate the outcomes. Absence of coordination and correspondence
issues is additionally consider as one of the reason for significant issues which carry difficulties
to actualize new data framework required to increase aggressive advantages (Tao et.al., 2014).
So as to maintain the business successfully organizations actualize this framework which is
profoundly required. Powerful correspondence comprehends the points and objectives of
business and construct solid relations send among the board and laborers so they can actualize
and work beneficially as opposed to previously. This sort of correspondence lets every one of the
laborers work together in successful and deliberate manner. It get to each staff convey extra data
by taking changes that tracks frameworks. By executing ICT business tasks the board accumulate
more information about individuals needs which make them ready to give benefits superior to the
others(Basheer and et.al., 2019)
Recommendations to overcome challenges related to ICT
It can be stated that the usage of cloud computing technologies, wireless technologies and
mobile in supply chain organisations has lead to a great improvement in efficiency, transparency
and precision in supply chain activities and its management. According to various authors and
scholars management of ICT application and related resources is essential for improving
performance of the supply chain management. It is suggested by some scholars that development
of process oriented perspective towards ICT can be beneficial for management of supply chain
activities and it will also assist in improving the performance of supply chain. On the other hand,
it has been also suggested that supply chain organisations can also develop resource base
perspective in order to promote the utilisation of ICT tools in supply chain activities of the
company. Further, it has also been identified that organisations needs to focus on increasing the
development of skills among the workforce mainly IT skills for integrating ICT within the
9

supply chain process and improve the efficiency of the overall supply chain management of the
organisation (Ali and Haseeb, 2019). It is also recommended to the organisations to choose or
select ICT tool according to the position of the company in global supply chain for cost
effectiveness and efficiency with the supply activities. The organisation can collaborate with
technological companies for developing ICT solution with regards to supply chain management
according to the needs so that the utilisation of ICT can be promoted in potential markets.
Conclusion
The literature review concluded that there different perspectives of various scholars or authors
who have conducted studies or research on the ICT and its impact on supply chain organisations.
The above review of literature helped researcher to gather a great amount of secondary
information in relation to the subject of this study. It is necessary to understand each and every
perspective developed by different researchers so that the study can provide most accurate and
real outcomes while considering all the previous studies related to the topic of the study. The
literature review included the theoretical concepts of supply chain management, information and
communication technologies along with the types of ICT tools used in supply chain
organisations manage effective flow of goods and services (Speranza, 2018). In addition, the
benefits and challenges of ICT in supply chain are also examined with the help of diverse range
of studies conducted previously.
RESEARCH METHODOLOGY
Research system offers explicit method and methodology to assemble and dissect data gathered.
It is a strategy which offers basic assessment of research ideas so as to design and attain useful
findings. Determination of instruments and procedures is done on the proposition since it helps
in creating understanding of overall nature of information assortment and examination. It gives a
knowledge to researcher on what strategies are been utilized and helps in smooth conducting of
research. The exchange of various methodological apparatus is given beneath :-
Research philosophy
The philosophy of research reflects significant assumptions that assist scholar in sourcing and
collecting the data as well as it guide the analysis of data for arriving at precise conclusion in a
systematic way. Research philosophy develops the research base to understand nature of research
problem by developing the contextual understanding and knowledge. The basic research
10