Challenges of Implementing the Supply Chain Digitization Process in the Republic of Serbia

Abstract

By using modern technologies, traditional supply chains are transformed into smart ones that need to face challenges in the digital era. Traditional supply chains exhibit numerous shortcomings in terms of security, safety, visibility, losses, delays. To tackle these challenges, companies need to apply the latest technological advancements. Technological innovations such as the Internet of Things, Cloud computing, Blockchain and others guide organizations towards the digitization of supply chains, making them sustainable, flexible and efficient. Despite the numerous benefits they bring, companies encounter obstacles in implementing new technologies, particularly regarding security risks in information exchange. The aim of this paper is to review relevant literature and demonstrate which digital technologies are significant for supply chain management and how these technologies have led to optimizing operational costs, performance, profits, and growing needs of customers. Additionally, it will explain how companies can enhance the process of information exchange as a key component of supply chain management. The paper will present the current state of digitalization of the supply chain in the Republic of Serbia. It will identify indicators of limitations for implementing digital solutions and present measures and guidelines for further development. The paper should provide guidelines for further theoretical and empirical research.