Increasing the effectiveness of food supply chain logistics through digital transformation

Kristina Sermuksnyte-Alesiuniene; Zaneta Simanaviciene; Daiva  Bickauske; Stefaniia  Mosiiuk; Iryna Belova

doi:10.14807/ijmp.v12i6.1748

PDF HTML

Published: Nov 1, 2021

DOI: https://doi.org/10.14807/ijmp.v12i6.1748

Keywords:

agriculture digitalization digital technologies IoT logistics supply chain effectiveness

Kristina Sermuksnyte-Alesiuniene

Lithuanian Centre for Social Sciences; Institute of Economics and Rural Development

https://orcid.org/0000-0002-6567-9689

Zaneta Simanaviciene

Mykolas Romeris University

Daiva Bickauske

Mykolas Romeris University

https://orcid.org/0000-0002-2256-4697

Stefaniia Mosiiuk

National University of Life and Environmental Sciences of Ukraine

https://orcid.org/0000-0001-6970-1073

Iryna Belova

West Ukrainian National University

https://orcid.org/0000-0002-5399-3654

Abstract

During the COVID-19 crisis, there were many restrictions to transportation. Due to that, a significant disruption in the food supply chain has emerged. The transportation of the fresh food and maintaining the quality, from farm to the table or distributing and then collecting from the warehouses and delivering to the consumer, has become crucial. Technologies and especially IoT, have become the primary tool to fight it. The research objective is to analyze and create new knowledge about digital technologies used to improve and make more effective the food supply chain processes. An exploratory case study methodology helps to investigate a large consortium based on IoT technologies, implemented in pilot cases on farm level and measuring their performance over the period of four years. This is an interpretative study, and the method of semi-structured interviews and document review for collecting the data was used. The results show IoT-connected sensors and systems in food and beverage supply chain logistics offer real-time visibility and data-driven analytics, allowing stakeholders to improve performance, cut operating costs, conduct predictive maintenance to avoid downtime, and even decrease energy usage or reduce negative environmental impacts.

Downloads

Download data is not yet available.

Issue

Vol. 12 No. 6 (2021): Independent Journal of Management & Production (2-nd Special Edition ISE, S&P)

Section

Integration System of Education, Science and Production

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

1. Proposal of Policy for Free Access Periodics

Authors whom publish in this magazine should agree to the following terms:

a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.

b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.

c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).

Proposal of Policy for Periodic that offer Postponed Free Access

Authors whom publish in this magazine should agree to the following terms:

a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.

b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.

c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).

d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
   Version of the article that can be deposited in the repository:
   Pre-print: before being reviewed by pairs.
   Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
   At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.

Author Biographies

Kristina Sermuksnyte-Alesiuniene, Lithuanian Centre for Social Sciences; Institute of Economics and Rural Development

Ph.D. student in Economics. Her area of research is the effectiveness assessment of European Union member states twin transition to a sustainable and digital economy in the agri-food sector. Experienced Digital hub coordinator, Cluster Manager, Senior Product Development, and Innovation Manager with a demonstrated history of working with innovations, information technology and services, technology transfer in the agri-food sector for 15 years. Strong cross-sectorial knowledge application and adaptation. Skilled in innovation management, research and development and implementation, requirements analysis. Strong ICT and innovation professional. She teaches disciplines: digital innovations and technologies in the agri-food sector; green deal and digitalization in the agri-food sector. Scientific interests: twin transition: green deal and digitalization, clusters, digital innovation hubs, technology transfer, innovation management, economics.

Zaneta Simanaviciene, Mykolas Romeris University

Professor, Head of Laboratory Business Innovation. Professor of Social sciences at Mykolas Romeris University, She has more than 40 years of experience in delivery of business regulation, supervision, economic security. She specialized in economic security and business policy. She teaches disciplines taught: economic security, business policy, corporate social responsibility. Scientific interests: economic security, business policy, corporate social responsibility. Author of more than 100 scientific works. Web of Science ResearcherID W-3675-2019. ORCID 0000-0001-6008-2405.

Daiva Bickauske, Mykolas Romeris University

Ph.D. student in Economics. Her area of research is Assessment the Impact of Industrial Digitization on State Economic Security. She is an expert in business advisory services and innovation support services with more than 10 years experience of in implementing innovation support projects for companies and research institutions. Scientific interests: Industry digitalization, economic security, digital transformation, Economics.

Stefaniia Mosiiuk, National University of Life and Environmental Sciences of Ukraine

Ph.D. in Economics, Associate Professor (Economics), has been working at the Department of Tourism, Hotel and Restaurant business. She teaches disciplines Marketing in Tourism, Logistic in Tourism. Scientific interests: Researches in the tourism industry.

Iryna Belova, West Ukrainian National University

Ph.D. in Economics, Associate Professor, Department of Accounting, Economic and Legal Support for Agroindustrial Business. She teaches disciplines: Accounting and legal support of Agribusiness
Has practical experience as the manager at the enterprise; Intellectual Products. Scientific interests: accounting and analytical support of strategic management, accounting and analysis in the system of strategic management, digital accounting. ResearcherID: G-5382-2017

References

Arshinina, P., & Kiseleva, A. (2020). Evaluation of the Effectiveness of the Logistics System. Proceedings of the International Conference on Economics, Management and Technologies 2020 (ICEMT 2020). Advances in Economics, Business and Management Research (12 May, 2020). DOI: https://doi.org/10.2991/aebmr.k.200509.087.

Balabash, O., Ilin V., Poprozman, N., Kuznetsova, I., Shushpanov, D., & Slavina, N. Content Strategy In Management of Communications. Independent Journal of Management & Production, 12(3), s232-s242. DOI: https://doi.org/10.14807/ijmp.v12i3.1538

Bertodo, R. (2002). Some Developing Trends in Manufacture- Supplier Relationship. International Journal of manufacturing technology and Management, 4(12), 21-35. Retrieved from http://www.inderscience.com/link.php?id=1435. Access: 08 May 2021.

Beske, P., Land, A., & Seuring, S. (2014). Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature. International Journal of Production Economics, 152, 131–143. DOI: https://doi.org/10.1016/j.ijpe.2013.12.026.

Bickauske, D., Simanaviciene, Z., Jakubavicius, A., Vilys, M. & Mykhalchyshyna, L. (2020). Analysis and Perspectives of the Level of Enterprises Digitalization (Lithuanian Manufacturing Sector Case). Independent Journal of Management & Production, 11(9), 2291-2307.

Chen, I. J., & Paulraj, A. (2004). Towards a theory of supply chain management: the constructs and measurements. Journal of operations management, 22(2), 119-150. DOI: https://doi.org/10.1016/j.jom.2003.12.007.

Croom, S., Vidal, N., Spetic, W., Marshall, D., & McCarthy, L. (2018). Impact of social sustainability orientation and supply chain practices on operational performance. International Journal of Operations & Production Management. DOI: https://doi.org/10.1108/IJOPM-03-2017-0180.

Da Xu, L., He, W., & Li, S. (2014). Internet of Things in Industries: A survey. IEEE Transactions on industrial informatics, 10(4), 2233-2243. DOI:10.1109/TII.2014.2300753.

Emamisaleh, K., & Rahmani, K. (2017). Sustainable supply chain in food industries: Drivers and strategic sustainability orientation. Cogent Business & Management, 4(1), 1345296. DOI: https://doi.org/10.1080/23311975.2017.1345296.

Emamisaleh, K., Rahmani, K., & Iranzadeh, S. (2018). Sustainable Supply Chain Management Practices and Sustainability Performance in the Food Industry. The South East Asian Journal of Management. DOI: https://doi.org/10.21002/seam.v12i1.8689.

European Commision (2020). Farm to Fork Strategy: For a fair, healthy and environmentally-friendly food system.

European Commission (2020). CORDIS. Horizonе2020, Internet of farms project. Retrieved from https://cordis.europa.eu/project/id/731884.

European Commission (2020). Strategy, Shaping Europe's digital future. Retrieved from https://ec.europa.eu/digital-single-market/en/large-scale-pilots-digitisation-agriculture.

Felea, Mihai & Albastroiu, Irina. (2013). Defining the Concept of Supply Chain Management and its Relevance to Romanian Academics and Practitioners. Amfiteatru Economic, 15, 74-88.

Hall, D., Jones, R., Raffo, C., Andertonб, A., Chambers, I., & Gray, D. (2008). Business studies: Teachers guide (4th ed.). Harlow, Essex: Pearson Education.

Hult, G. T. M., Ketchen, D. J., & Arrfelt, M. (2007). Strategic supply chain management: Improving performance through a culture of competitiveness and knowledge development. Strategic management journal, 28(10), 1035-1052. DOI: https://doi.org/10.1002/smj.627

Ibrahim, S. B., & Hamid, A. A. (2014). Supply chain management practices and supply chain performance effectiveness. International Journal of Science and Research, 3(8), 187-195.

Jain, J., Dangayach, G. S., Agarwal, G., & Banerjee, S. (2010). Supply Chain Management: Literature Review and Some Issues. Journal of Studies on Manufacturing, 1(1), 11-25.

Kang, H. S., Lee, J. Y., Choi, S., Kim, H., Park, J. H., Son, J. Y., Kim, B. H. & Noh., S. D. (2016). Smart Manufacturing: Past Research, Present Findings, and Future Directions. International Journal of Precision Engineering and Manufacturing-Green Technology, 3 (1), 111–128.

Kilimis P., Zou W., Lehmann, M., & Berger, U. (2019). A Survey on Digitalization for SMEs in Brandenburg, Germany, IFAC-PapersOnLine, 52(13), 2140-2145. Logistics Management, 41 (1), 16-31.

Lohosha, R., Mykhalchyshyna, L., Prylutskyi, A., & Kubai, O. (2020) Institutionalization of the agrarian market in Ukraine and European economic community: genesis, evaluation and analysis. Independent Journal of Management & Production, 11(8), 727-750. DOI: 10.14807/ijmp.v11i8.1232.

López-Morales, J. A., Martínez, J. A., & Skarmeta, A. F. (2020). Digital Transformation of Agriculture through the Use of an Interoperable Platform. Sensors, 20(4), 1153. MDPI AG. DOI: http://dx.doi.org/10.3390/s20041153.

Lozano, J., Saenz-Diez, C., Martinez, E., Jiménez, E., & Blanco, J. (2017). Integration of the SMED for the improvement of the supply chain management of spare parts in the food sector. Agric. Econ. – Czech, 63(8), 370–379. DOI: https://doi.org/10.17221/69/2016-AGRICECON.

Mathur, B., Gupta, S., Meena, M. L., & Dangayach, G. S. (2018). Healthcare supply chain management: literature review and some issues. Journal of Advances in Management Research, 15(3), 265-287. DOI: https://doi.org/10.1108/JAMR09-2017-0090.

Mckinnon, A. C., Browne, M., & Whiteing, A. (2012). Green Logistics: Improving the Environmental Sustainability of Logistics. Kogan Page Publishers, London.

Mogaka, C., Njiru, K., & Arani, W. (2020). Supply chain management practices as a competitive tool for third party logistics providers performance. Journal of Sustainable Development of Transport and Logistics, 5(2), 143-152. DOI: https://doi.org/10.14254/jsdtl.2020.5-2.13.

Movahedi, B., Lavassani, K., & Kumar, V. (2009). Transition to B2B e-Market place Enabled Supply Chain: Readiness Assessment and Success Factors. The International Journal of Technology, Knowledge and Society, 5(3), 75–88. DOI:10.18848/1832-3669/CGP/v05i03/55999.

Oettmeier K., & Hofmann, E. (2016). Impact of additive manufacturing technology adoption on supply chain management processes and component. Journal of Manufacturing Technology Management, 944-968. DOI: https://doi.org/10.1108/jmtm-12-2015-0113.

PWC report (https://www.gsma.com/iot//wp-content/uploads/2013/02/Connected-life-low-res-210213.pdf). Access: 09 March 2021.

Renda, A., Reynolds, N., Laurer, M., & Cohen, G. (2019). CEPS and BCFN Digitising Agrifood: Pathways and Challenges.

Rotz S., Gravely E., Mosby I., Duncan E., Finnis E., Horgan, M., & Fraser E. (2019). Automated pastures and the digital divide: How agricultural technologies are shaping labour and rural communities. Journal of Rural Studies, 68, 112-122.

Rushton A., Croucher P., & Baker P. (2014). The Hand Book of Logistics & Distribution Management (5th ed.), London: Kogan Page.

Russmann, M., Lorenz, M., & Gerbert, P (2015). Industry 4.0. The Future of Productivity and Growth in Manufacturing Industries. Retrieved from https://image-src.bcg.com/Images/Industry_40_Future_of_Productivity_April_2015_tcm9-61694.pdf. Access: 18 March 2021.

Salampasis, M., & Theodoridis, A. (2013). Information and Communication Technology in Agricultural Development Preface. Procedia Technology, 8, 1-3.

Sarni, W., Mariani, J., & Kaji, J. (N/D). From Dirt to Data: The Second Green Revolution and IoT. Deloitte insights. Retrieved from https://www2.deloitte.com/insights/us/en/deloitte-review/issue-18/second-green-revolution-and-internet-of-things.html#endnote-sup-9. Access: 01 March 2021.

Schwab, K. (2016). The Fourth Industrial Revolution: what it means, how to respond. World Economic Forum, 2016. Retrieved from https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/. Access: 12 April 2021.

Tyapuhin, A. P. (2007). Designing commodity distribution systems based on logistics: studies allowance, Moscow: Finance and Statistics.

Tzounis, A., Katsoulas, N., Bartzanas, T., & Kittas, C. (2017). Internet of Things in agriculture, recent advances and future challenges. Biosyst,164, 31–48.

Ulas D. (2019). Digital Transformation Process and SMEs. Procedia Computer Science, 158, 662-671.

Varsei, M., Soosay, C., Fahimnia, B., & Sarkis, J. (2014). Framing sustainability performance of supply chains with multidimensional indicators. Supply Chain Management: An International Journal. DOI: https://doi.org/10.1108/SCM-12-2013-0436.

Villa-Henriksen, A., Edwards, G. T. C., Pesonen, A. L., Green, O., & Sørensen C. A. G. (2020). Internet of Things in arable farming: Implementation, applications, challenges and potential, Biosystems Engineering, 191, 60-84. DOI: https://doi.org/10.1016/j.biosystemseng.2019.12.013.

Wajszczuk, K. (2016). The Role and Importance of Logistics in Agri-Food Supply Chains: An Overview of Empirical Findings. Logistics and Transport, 30, 47-55.

Zdyrko, N., Ishchenko, Ya., Melnyk, O. (2020). Economic development of fishery and accounting support of cost management for biological conversion in fish farming of Ukraine comparing to the other CEE countries. Economic Annals-XXI, 181(1-2), 137-150. DOI: https://doi.org/10.21003/ea.V181-12.

Тryhuba, A., Hridin, O., Slavina, N., Mushenyk, I., & Dobrovolska, E. (2020). Managerial decisions in logistic systems of milk provision on variable production conditions. Independent Journal of Management & Production, 11(8), 783-800.

Тryhuba, A., Тryhuba, І., Mushenyk, І., Pashсhenko, О., & Likhter, М. (2020). Computer model of resource demand planning for dairy farms. Independent Journal of Management & Production, 11(9), 658-672. DOI: https://doi.org/10.14807/ijmp.v11i9.1410.