The Effects of Supply Chain Digitalisation on Value Co-Creation An exploratory study about digitalisation in global supply chains and how it affects value co-creation Linnéa Dybvik Mattias Schmidt Johan Jakobsson Supervisor Graduate School Master's Degree Project in International Business and Trade Spring 2022 Abstract The transition from traditional to digital supply chains could change our present understanding of global supply chains and how value is created. Despite various efforts to explore the potential of digitalisation on global supply chains and SCM, little research has focused on supply chain digitalisation in relation to the aspect of value. Based on this, the aim of this study is to provide a deeper understanding of the utilisation of digitalisation within the field of SCM by documenting how this is addressed and the effects of digitalisation of global supply chains on value co-creation. This is done through a qualitative multiple case study involving six case companies either having the role of focal firms or service providers, and data was collected through semi-structured interviews with twelve respondents. The findings show that supply chain digitalisation is addressed differently and affects value co-creation positively by enhancing value propositions, supporting the application of knowledge and skills, and becoming a constituent of resource integration. Furthermore, supply chain digitalisation improves SCM, and its benefits extend beyond the individual firm. This study contributes to the literature by providing a conceptual framework and a better understanding of the effects of digitalisation in global supply chains by adopting a value co-creation perspective. Keywords: Digital Supply Chain, Digitalisation, Global Supply Chains, Supply Chain Management, Value Co-Creation I Acknowledgement We would like to express our deepest gratitude to our supervisor, Johan Jakobsson at the School of Business, Economics and Law at the University of Gothenburg. Your dedication, feedback and guidance during this process have been invaluable. Further, we are also grateful to our seminar group for providing valuable feedback and comments throughout the process. Lastly, we would like to extend a sincere thanks to the case companies and interviewees who participated in the study. You have provided us with valuable insights and without your time and professional expertise, this study would not have been possible. Thank you! Gothenburg, 26 May 2022 Linnéa Dybvik Mattias Schmidt II Table of Contents Abstract ........................................................................................................................................................................................ I Acknowledgement..................................................................................................................................................................... II Table of Contents ..................................................................................................................................................................... III Table of Figures ....................................................................................................................................................................... VI Table of Tables ......................................................................................................................................................................... VI List of Abbreviations............................................................................................................................................................... VII 1 Introduction ..................................................................................................................................................................... 1 1.1 Problem Discussion .............................................................................................................................................. 3 1.2 Purpose and Research Question ........................................................................................................................ 4 1.3 Delimitations ......................................................................................................................................................... 4 2 Theoretical Framework ................................................................................................................................................... 6 2.1 Global Supply Chains ........................................................................................................................................... 6 2.1.1 Global Supply Chain Participants ................................................................................................................................7 2.1.2 Global Supply Chain Flows ......................................................................................................................................... 10 2.2 SCM ......................................................................................................................................................................10 2.2.1 Defining SCM .................................................................................................................................................................. 10 2.2.2 Internal and External SCM .......................................................................................................................................... 11 2.2.3 Perceived Value .............................................................................................................................................................. 12 2.3 Supply Chain Digitalisation ...............................................................................................................................13 2.3.1 Digital Supply Chain ..................................................................................................................................................... 13 2.3.2 The Digital Supply Chain Pillars ................................................................................................................................ 15 2.3.3 Industry 4.0 ...................................................................................................................................................................... 16 2.4 Value Co-Creation ..............................................................................................................................................18 2.4.1 Value Co-Creation in Global Supply Chains ......................................................................................................... 19 2.4.2 Digitalisation and Value Co-Creation ..................................................................................................................... 21 2.5 Conceptual Framework......................................................................................................................................21 3 Methodology .................................................................................................................................................................24 3.1 Qualitative Method ............................................................................................................................................24 3.2 Abductive Approach ..........................................................................................................................................24 3.3 Multiple Case Study Research Design .............................................................................................................25 III 3.3.1 Case Selection ................................................................................................................................................................. 26 3.4 Data collection ....................................................................................................................................................27 3.4.1 Semi-Structured Interviews ........................................................................................................................................ 27 3.4.2 Interview Setting and Respondents ........................................................................................................................ 28 3.5 Thematic Analysis ...............................................................................................................................................30 3.6 Quality of Study ..................................................................................................................................................32 3.6.1 Credibility.......................................................................................................................................................................... 32 3.6.2 Transferability .................................................................................................................................................................. 33 3.6.3 Dependability .................................................................................................................................................................. 33 3.6.4 Confirmability .................................................................................................................................................................. 34 3.6.5 Ethical Considerations .................................................................................................................................................. 34 4 Empirical Findings .........................................................................................................................................................36 4.1 Jotun.....................................................................................................................................................................36 4.1.1 Jotun’s Supply Chain and SCM ................................................................................................................................. 36 4.1.2 Supply Chain Digitalisation at Jotun ....................................................................................................................... 38 4.1.3 Value of Supply Chain Digitalisation - Jotun ........................................................................................................ 39 4.2 Parker Hannifin ...................................................................................................................................................41 4.2.1 Parker Hannifin’s Supply Chain and SCM .............................................................................................................. 41 4.2.2 Supply Chain Digitalisation at Parker Hannifin.................................................................................................... 43 4.2.3 Value of Supply Chain Digitalisation - Parker Hannifin .................................................................................... 44 4.3 Stadium ................................................................................................................................................................45 4.3.1 Stadium’s Supply Chain and SCM ............................................................................................................................ 46 4.3.2 Supply Chain Digitalisation at Stadium .................................................................................................................. 47 4.3.3 Value of Supply Chain Digitalisation - Stadium .................................................................................................. 48 4.4 Postnord ..............................................................................................................................................................49 4.4.1 Postnord’s Role in the Supply Chain ....................................................................................................................... 50 4.4.2 Supply Chain Digitalisation at Postnord ................................................................................................................ 51 4.4.3 Value of Supply Chain Digitalisation - Postnord................................................................................................. 52 4.5 Transporeon ........................................................................................................................................................53 4.5.1 Transporeon’s Role in the Supply Chain ................................................................................................................ 54 4.5.2 Supply Chain Digitalisation at Transporeon ......................................................................................................... 54 4.5.3 Value of Supply Chain Digitalisation – Transporeon ......................................................................................... 55 4.6 Flexport ................................................................................................................................................................57 4.6.1 Flexport’s Role in the Supply Chain ......................................................................................................................... 57 4.6.2 Supply Chain Digitalisation at Flexport .................................................................................................................. 58 IV 4.6.3 Value of Supply Chain Digitalisation - Flexport .................................................................................................. 60 4.7 Summary of Empirical Findings ........................................................................................................................61 4.7.1 Findings - Focal Firms .................................................................................................................................................. 62 4.7.2 Findings – Service Providers....................................................................................................................................... 64 5 Analysis ...........................................................................................................................................................................65 5.1 Supply Chain Digitalisation is Addressed in Various Ways ..........................................................................65 5.1.1 Firm Characteristics and Industry Affects the Mode of Supply Chain Digitalisation .............................. 66 5.1.2 Supply Chain Digitalisation Goes Beyond the Individual Firm ....................................................................... 67 5.2 Supply Chain Digitalisation Facilitates Value Co-Creation ...........................................................................68 5.2.1 Supply Chain Digitalisation Enhances Value Propositions .............................................................................. 69 5.2.2 Supply Chain Digitalisation Supports the Application of Knowledge and Skills ..................................... 70 5.2.3 Supply Chain Digitalisation is a Constituent of Resource Integration ......................................................... 72 5.2.4 Digitalisation Facilitates Interconnectedness in Global Supply Chains ....................................................... 73 5.3 Coming Back to the Conceptual Framework ..................................................................................................75 6 Conclusion .....................................................................................................................................................................76 6.1 Theoretical Implications ....................................................................................................................................77 6.2 Practical Implications .........................................................................................................................................78 6.3 Limitations and Future Research ......................................................................................................................78 7 Bibliography ...................................................................................................................................................................80 8 Appendices ....................................................................................................................................................................88 Appendix A. Interview Guide 1 – Focal Firm (English) ...................................................................................................88 Appendix B. Interview Guide 1 – Focal Firm (Swedish) .................................................................................................89 Appendix C. Interview Guide 2 – Service Providers (English) .......................................................................................90 Appendix D. Interview Guide 2 - Service Providers (Swedish) .....................................................................................91 Appendix E. List of Codes ..................................................................................................................................................92 V Table of Figures Figure 1 Self-constructed illustration of a supply chain ....................................................................................................................8 Figure 2 Internal and External SCM: Self-constructed inspired by Chopra and Meindl, (2013) ....................................... 12 Figure 3 The Digital Supply Chain Pillars (Mrozek et al., 2020) ................................................................................................... 16 Figure 4 Self-constructed conceptual model ..................................................................................................................................... 23 Figure 5 Example of the use of thematic analysis ............................................................................................................................ 31 Table of Tables Table 1 Supply chain definitions................................................................................................................................................................7 Table 2 Details of interviews and respondents.................................................................................................................................. 30 Table 3 Summary of empirical findings from the focal firms ....................................................................................................... 63 Table 4 Summary of empirical findings from the service providers........................................................................................... 64 VI List of Abbreviations AI Artificial Intelligence AIS Automatic Identification System API Application Programming Interface B2B Business to Business B2C Business to Customer CRM Customer Relationship Management DSC Digital Supply Chain DWS Dimension, Weight, and Sorting EDI Electronic Data Interchange ERP Enterprise Resource Planning G-D logic Goods-Dominant Logic IoT Internet of Things ISCM Internal Supply Chain Management PLM Product Lifecycle Management RFID Radio-frequency Identification S-D logic Service-Dominant Logic SaaS Software as a Service SCM Supply Chain Management SKU Stock Keeping Unit (Barcode) SRM Supplier Relationship Management TMS Transport Management System VII 1 Introduction Firms in a globalised world, with operations and activities globally dispersed through subsidiaries, suppliers, sub-suppliers, or other intermediaries have proven to have many benefits. Some of the main reasons for operating globally are usually based on reducing costs, regulatory reasons, access to new markets, or access to competence and resources that are not available in their domestic market (Buckley, Enderwick, & Cross, 2018). Aside from the benefits, there is also complexity associated with globalisation because coordination and organisation become dispersed across multiple countries and actors, as highlighted in recent years by disruptions such as COVID-19, Brexit, the Suez Canal bottleneck, and various trade disputes (Handfield, Graham, & Burns, 2020; Jabbour, Jabbour, Hingley, Vilalta-Perdomo, Ramsden, & Twigg, 2020; Javorcik, 2020; Shih, 2020). With firms having a global presence, various concepts for managing and organising globally dispersed activities have emerged. One of these concepts is the extension of the supply chain, namely the global supply chain (Buckley et al., 2018; Dicken, 2015). Global supply chains encompass several participants such as an ultimate supplier, supplier, focal firm, customer, ultimate consumer, and service providers, all involved in a sequence of activities in the upstream or downstream flow of a product or service that spans across international borders as well as intra- and inter-organisational boundaries (Branch, 2009; Hugos, 2003; Mentzer et al., 2001). To clarify the roles of the supply chain participants, a distinction can be made between supporting offerings and configuring offerings; the former is the main offering that sets the conditions and the latter supports it (Ramírez & Mannervik, 2016). In this study, the participant who sets the conditions for the global supply chain is referred to as the “focal firm”, while the other participants are providing supporting offerings for the global supply chain. Moreover, if global supply chains describe how firms engage and interact with one another and how activities are organised, supply chain management (SCM) in turn describes how these firms and activities are managed in relation to each other upstream and downstream in the global supply chain through various strategic decisions and practises (Blanchard, 2010; Branch, 2009; Chopra & Meindl, 2013). In addition to the complexity of organising globally, the rapid developments of new technologies, and with technology becoming more advanced and widely applicable, the concept of digitalisation has surged in the business environment and does not appear to be Page 1 of 92 slowing down soon as it has a lot of potential advantages. This has resulted in digitalisation becoming a priority in many firms' agendas (Muñoz-Villamizar, Solano, Quintero-Araujo, & Santos, 2019; Parviainen, Tihinen, Kääriäinen, & Teppola, 2017). Digitalisation is a multifaceted concept but in a business context generally refers to the adaptation, integration, and utilisation of digital technologies to improve internal and external business processes (Parviainen et al., 2017; Reis, Amorim, Melão, Cohen, & Rodrigues, 2020; Seyedghorban, Tahernejad, Meriton, & Graham, 2020). Digitalisation as a concept is also not limited to a single business activity or area, but rather is viewed as having a wide impact throughout the entire organisation and its supply chain (Rachinger, Rauter, Müller, Vorraber, & Schirgi, 2018; Tay & Loh, 2022). Digitalisation in the context of global supply chains is one of the areas that have received increased attention in recent years (Lasi, Fettke, Kemper, Feld, & Hoffmann, 2014; Tay & Loh, 2022). A Digital Supply Chain (DSC), which refers to a fully digital end-to-end supply chain, is thought to provide an opportunity for firms to inter alia reduce lead times, increase flexibility, offer customisation, and improve efficiency throughout the global supply chain (Alicke, Rachor, & Seyfert, 2016). Also, as has been emphasised, global supply chains are characterised by a high level of complexity whereas trust, traceability, transparency, integration, and stakeholder participation are common concerns. Digitalisation is considered a prominent concept in dealing with such concerns and in addition generating value (Agrawal & Narain, 2018; Chang & Chen, 2020). Generating value is critical for businesses in order to respond to changes in the market and ensure the long-term prosperity of the firm. Considering that global supply chains are in some way intertwined with all parts of the firm and that digitalisation provides opportunities for improvements, digitalisation of the global supply chain can be argued to play an important role in the value creation process (Alicke, Rachor, et al., 2016; Horvath, 2001; Jayaram, Kannan, & Tan, 2004). Traditionally, value creation has been considered to be firm-centric and transactional, with value created by the individual firm through various activities that result in an output that is exchanged in the market for financial compensation that benefits the firm (Haksever, Chaganti, & Cook, 2004; Lepak, Smith, & Taylor, 2007; Ramírez, 1999). However, another way of understanding how value is created is to consider the concept of value co-creation, which is customer-centric and relational, and value is always co-created together between the firm and its customer through interactions (Vargo & Lusch, 2004, 2016, 2008; Vargo, Maglio, & Akaka, 2008). Page 2 of 92 1.1 Problem Discussion The digitalisation of global supply chains can change the current understanding of global supply chains and how value is created, as it provides new opportunities for intra- and inter- organisational collaboration among supply chain participants and is suggested to generate benefits such as facilitating interaction and enhancing value propositions (Agrawal & Narain, 2018; Alicke, Rachor, et al., 2016; Chang & Chen, 2020; Kano, Tsang, & Yeung, 2020; Lenka, Parida, & Wincent, 2017; Parviainen et al., 2017; Queiroz, Pereira, Telles, & Machado, 2019). Current research has begun to explore the effects of digitalisation on global supply chains by discussing and highlighting the potential of digitalisation on both global supply chains and SCM, based on the characteristics of the enabling technologies. Nonetheless, despite efforts to uncover new knowledge on this topic, there appears to be uncertainty and a consensus on the lack of clarity in the field of supply chain digitalisation concerning value and effects (Ageron, Bentahar, & Gunasekaran, 2020; Büyüközkan & Göçer, 2018; Ivanov, Dolgui, & Sokolov, 2019; Kano et al., 2020; Makris, Hansen, & Khan, 2019). It has been suggested that digitalisation in various areas of the firm is to some extent limited since there appears to be an uncertainty in determining what form of digitalisation or technologies are beneficial for the firm to adopt, which subsequently also could require a need for new competencies to be developed as firms continue to digitalise (Rachinger et al., 2018). However, it is also argued that, although firms have begun to digitalise, further digitalisation of various aspects of firms will inevitably occur and be a significant driver of future competitiveness (Alicke, Dumitrescu, Lennartz, & Leopoldseder, 2018). Furthermore, there also appears to be a lack of clarity from a cost/benefit perspective in assessing the actual value derived from the enabling technologies shaping digitalised global supply chains (Makris et al., 2019). Finally, it has been recognised that because supply chain digitalisation is in its early stages, the value creation potential in relation to it remains unexplored and unclaimed (Büyüközkan & Göçer, 2018). These arguments imply that there is a desire for firms to further digitalise their global supply chains, but that the value creation potential of it to a large extent is unexplored which provides restrictions on how digitalisation is addressed and its benefits, as well as the implications for the global supply chains participants. (Büyüközkan & Göçer, 2018; Kano et al., 2020; Makris et al., 2019; Queiroz et al., 2019; Rachinger et al., 2018). Based on the lack of clarity on the value and effects of supply chain digitalisation, greater emphasis and attention should be paid to the digitalisation of global supply chains. We also Page 3 of 92 propose that the overlooked concept of value co-creation should receive further attention as this corresponds well with the notion of global supply chains, as a global supply chain containing multiple participants that interact and depend on each other to jointly benefit closely resembles the ideas of value co-creation (Chakraborty, Bhattacharya, & Dobrzykowski, 2014; Vargo & Lusch, 2004). The concept of value co-creation, however, has not received much attention in the literature on supply chain digitalisation. Furthermore, we argue that digitalisation and the development of digital technologies are continuously evolving and can be expressed and implemented to a varying degree in practice, implying that new research is required to update and further develop the field. Thus, we emphasise the importance of further exploring supply chain digitalisation and value co-creation, as global supply chains are important for creating value, and digitalisation is suggested to provide opportunities for improving global supply chains. 1.2 Purpose and Research Question Considering the above discussion, this study is concerned with contributing to the growing literature on supply chain digitalisation and more specifically aims to provide a deeper understanding of the utilisation of digitalisation within the field of SCM by documenting how this is addressed and affects value co-creation in global supply chains. To provide a specified understanding of the role of value-co-creation when digitalising global supply chains, we propose the following main research question: How is value co-creation affected by digitalisation in global supply chains? To answer the main research question, we also propose the following sub research question: How is digitalisation in global supply chains addressed? 1.3 Delimitations To conduct this study and generate an outcome relevant to the topic of interest within the given timeframe of five months, some delimitations have been made. Since both digitalisation and value are such broad and comprehensive concepts, the scope of this study has been narrowed to a focus on digitalisation and value co-creation in a global supply-chain Page 4 of 92 context. From this, the study is delimited to mainly focus on how value co-creation is affected by digitalisation in global supply chains, and how digitalisation in global supply chains is addressed, thus actively setting up boundaries around the area of interest to create a manageable condition to conduct this study while maintaining relevancy to the topic. Lastly, although this is a multiple case study in which it is advantageous to examine a large number of case companies, while still adhering to the essence of a multiple case study, this study is delimited to not include too many case companies and respondents as this could become problematic considering the time constraint. Page 5 of 92 2 Theoretical Framework 2.1 Global Supply Chains The structure and elements of global supply chains can differ depending on the firm, industry, business model, and other factors. However, in theory, global supply chains are often simplified by highlighting core characteristics that are commonly observed in global supply chains. The terms supply chain and SCM are not new and have been used since the 1980s. Before this, these concepts were known by different names such as logistics and operations, and over time, various definitions of supply chains have emerged (Hugos, 2003). In many cases, the term “global supply chain” is not explicitly used in the literature; rather, “supply chain” is used, which can refer to either a domestic or global supply chain. However, as evident in the definition provided by Branch (2009) (See Table 1), the core ideas of the supply chain as a concept remain constant, with an international dimension added to indicate its geographical reach. So, to establish an understanding of global supply chains, multiple definitions of supply chains in the literature are presented in Table 1. (Lee & Billington, “A supply chain is a network of facilities that performs the functions 1993: 835) of procurement of material, transformation of material to intermediate and finished products, and distribution of finished products to customer” (Beamon, 1998: 2) “A supply chain may be defined as an integrated process wherein a number of various business entities (i.e., suppliers, manufacturers, distributors, and retailers) work together in an effort to: (1) acquire raw materials, (2) convert these raw materials into specified final products, and (3) deliver these final products to retailers. This chain is traditionally characterized by a forward flow of materials and a backward flow of information.” (Mentzer et al., 2001: “…a supply chain is defined as a set of three or more entities 4) (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, and/or information from a source to a customer.” Page 6 of 92 (Christopher, 2011: 4) “A network of connected and interdependent organisations mutually and co-operatively working together to control, manage and improve the flow of materials and information from suppliers to end users.” (Corominas, 2013: “…a supply chain is the network of entities that collaborate in order 6831) to obtain, deliver and maybe recover a product or a set of products.” (Branch, 2009: 2) “…the sequence of events in a goods flow, which adds value to the value of a specific good. These events may include conversion, assembling and/or disassembling and movements and placements. The global supply chain crosses international boundaries.” (Blanchard, 2010: 6) “…the sequence of events and processes that take a product from dirt to dirt” Table 1 Supply chain definitions Based on the definitions in Table 1, we view global supply chains as a network of multiple globally dispersed participants required in fulfilling a customer request, collaborative, interdependent, and transformative by nature, connected by a sequence of unique activities and information, product, service, and monetary flows. Repeatedly occurring end-to-end in an upstream and downstream fashion with the integration of supply and demand from an initial source to an end-consumer, with the main purpose of efficiently providing the end-user with a final product or service of value. 2.1.1 Global Supply Chain Participants According to the definitions in Table 1 global supply chains include different participants with various functions who all participate and shape the global supply chain. However, who these participants are, and their relationship may vary in practice, but the most basic form is represented as including a supplier, a focal firm, and a customer. In an attempt to elaborate, an extended version of the global supply chain structure is typically illustrated as also including ultimate suppliers, ultimate consumers, and service providers (Hugos, 2003; Mentzer et al., 2001). In terms of participants, a distinction can also be made between the participant providing the main offering, which in this conceptualisation is the focal firm that sets the conditions for the other participants which provide supporting offerings in the global supply chain (Ramírez & Mannervik, 2016). These participants are highlighted in Figure 1, Page 7 of 92 where one can see an outline of the traditional supply chain structure The following sections go through these six types of participants in further detail. Figure 1 Self-constructed illustration of a supply chain Ultimate supplier and Supplier The suppliers are often considered to be in the initial step of the global supply chain as it is here the first inputs are made. In the case of which the focal firm is a product manufacturer, suppliers will play a significant role in the global supply chain by directly providing parts or semi-finished goods required for the focal firm to manufacture its products (Blanchard, 2010). Furthermore, the ultimate suppliers play a similar role but may not necessarily provide the focal firm directly. The ultimate supplier, on the other hand, is the supplier's supplier and is commonly thought to be at the very beginning of the global supply chain, producing raw materials for the suppliers to acquire (Mentzer et al., 2001). Page 8 of 92 Focal firm The focal firm can essentially be any type of organisation within the supply chain. In a global supply chain, the focal firm can be considered the firm that governs the global supply chain, design the main product or service offering, and sets the condition for the other supply chain participants (Ramírez & Mannervik, 2016; Seuring & Müller, 2008). Continuing the example above the focal firm in this case takes the role of a product manufacturer, relying on suppliers to provide inputs so that the focal firm can provide its own inputs. Once the focal firm has transformed the goods from its suppliers into finished products, the next step of the global supply chain is distributing the products to the focal firm’s customers (Hugos, 2003; Mentzer et al., 2001). Customer and Ultimate consumer The customers can be divided into two categories: customers of the focal firm and the ultimate consumer (Mentzer et al., 2001). The customer can be defined as a retailer who participates in the global supply chain as a direct customer of the focal firm and is in charge of bringing the finished products to the ultimate consumer. In turn, the ultimate consumer can be exemplified as the general public who is the end-user of the collective inputs and outputs of the global supply chain and can be thought of as the customers' customer. This is at the end of the global supply chain where the finished products are consumed (Hugos, 2003). Service Providers The service providers can be considered as the supply chain participants supporting parts of, or the whole global supply chain by allowing supply chain processes to occur through various means. Service providers can take many forms but are commonly presented as transportation providers, financial service providers, and IT providers (Hugos, 2003). Physical flows and exchanges between participants in the global supply chain occur regularly, as illustrated in the preceding example. These exchanges and flows between supply chain participants are unlikely to occur within a single facility, which necessitates the use of sea, air, or land transportation to move goods domestically and internationally. Similarly, as multiple transactions occur, financial service providers also play an important role in the global supply chain by providing services such as loans, credit ratings, and collection services. Lastly, as technologies advance, IT providers are increasingly playing a role in providing various systems and software solutions to enable the collection and utilisation of the data and information generated by the global supply chain (Blanchard, 2010; Hugos, 2003). Page 9 of 92 2.1.2 Global Supply Chain Flows As per the preceding discussion, the movement, exchange, or flow of products, services, financing, and information are core components of global supply chains. Upstream and downstream flows are the primary flows within global supply chains. The flow from a point of origin to an endpoint through the global supply chain moves downstream, while the opposite direction is an upstream movement (Mentzer et al., 2001). Upstream flows can for instance happen in the case of reverse logistics, which occurs when a supplier initially distributes and orders downstream in the global supply chain, but when the order is received, it does not meet the requirements, so the order is distributed upstream in the global supply chain back to the supplier (Rogers & Tibben-Lembke, 2001). The distinction between inbound and outbound flows is related to upstream and downstream flows as well as reverse logistics. These flows can be represented as an outgoing downstream order from a supplier and becoming an incoming order from the focal firm. In that case, there is an outbound flow from the supplier and an inbound flow at the focal firm. Moving downstream in the supply chain, an outbound flow from the focal firm will become the inbound flow of the next supply chain participant. However, considering the fact that movements and exchanges occur both up and downstream in global supply chains, the opposite can also occur under certain conditions (Branch, 2009). 2.2 SCM The key features of global supply chains have been outlined and illustrated using the definitions, participants, and flows. This allows us to continue exploring the concept of SCM, which we previously only loosely presented as the management of global supply chains through various strategic decisions and practices. However, SCM encompasses more than that which must be addressed. Multiple definitions of SCM have emerged over time, much like the multiple definitions of global supply chains. However, SCM appears to be even more fragmented, prompting attempts to develop a consensus definition and bridge the gap between theory and practice (Mentzer et al., 2001; Stock & Boyer, 2009). 2.2.1 Defining SCM SCM can be defined in several ways, one of which is as follows: “The management of a network of relationships within a firm and between interdependent organisations and business units consisting of material suppliers, purchasing, production facilities, logistics, marketing, and related systems that facilitate the forward and reverse flow of materials, Page 10 of 92 services, finances, and information from the original producer to the final customer with the benefits of adding value, maximizing profitability through efficiencies, and achieving customer satisfaction.” (Stock & Boyer, 2009: 706). Though such a definition provides an introduction to SCM in how it relates to global supply chains, it does not elaborate much on what the management aspect entails, which needs to be considered to provide a richer understanding of SCM. To understand SCM further, it is necessary to understand that global supply chains are a part of a firm’s underlying structure and can exist in one form or another, with or without active management. However, it has been proposed in the SCM literature that competition occurs not only between firms but also between global supply chains and that there is value to be gained from actively managing global supply chains. As a result, authors have described SCM in terms of efforts made to steer the global supply chain in the desired direction to influence its performance (Blanchard, 2010; Branch, 2009; Hugos, 2003). These efforts can in turn be described as coordinating activities such as production, means of transportation, location, and inventory levels, in relation to the supply chain participants to achieve a result that is consistent with the global supply chain objective (Hugos, 2003). Another way to describe SCM is in terms of procurement and supplier relations, to maintain and optimize the functioning of the flows in the global supply chain through effective supplier management, coordination, rigorous planning, and strategic sourcing (Monczka, Handfield, Giunipero, & Patterson, 2015). Lastly, SCM can be described as the facilitation of integration among supply chain participants and the joint coordination of the global supply chain in response to customer demand to strengthen its competitiveness (Stadtler, 2008). 2.2.2 Internal and External SCM A distinction can also be made between external and internal SCM. External SCM can be divided in terms of Supplier Relationship Management (SRM) and Customer Relationship Management (CRM), while internal SCM can be labelled as ISCM (Chopra & Meindl, 2013). As illustrated in Figure 2 SRM is concerned with managing upstream suppliers with a focus on processes such as sourcing, negotiating, procurement, supplier communication and collaboration, to facilitate and secure the supply of goods and services (Chopra & Meindl, 2013; Monczka et al., 2015). CRM is concerned with managing the downstream customers, with a focus on processes such as customer service, sales, marketing, tracking, and executing orders, to facilitate demand (Chopra & Meindl, 2013; Stadtler, 2008). ISCM is concerned Page 11 of 92 with managing internal operations and is the connection between SRM and CRM with a focus on processes such as SCM decisions related to strategic planning, supply and demand planning, and order fulfilment, to organise and coordinate the global supply chain's upstream and downstream flows from the individual firm’s position to increase the global supply chains performance (Chopra & Meindl, 2013; Hugos, 2003). Figure 2 Internal and External SCM: Self-constructed inspired by Chopra and Meindl, (2013) 2.2.3 Perceived Value The foundation for various decisions within SCM lies in what the customers of the global supply chain value. If customers are cost-conscious SCM decisions should be centred around making the global supply chain cost-efficient, if customers are driven by availability SCM decisions should be centred around making the global supply chain customer responsive. Having a pure customer-responsive or cost-efficient supply chain are two extreme ends and are also considered to constitute a trade-off, but consideration of the right balance between the two and their effect on each other influences the global supply chains performance as it is a reflection of customer demand (Hugos, 2003). However, another important aspect of cost- efficiency and customer responsiveness is that of leveraging information generated by the global supply chain to enhance SCM decisions. With technologies advancing and providing new means in which information can be captured and utilised among supply chain participants, there are arguments suggesting that a trade-off between cost-efficiency and customer responsiveness can be mitigated as both daily coordination and forecasting can become faster and more accurate (Chopra & Meindl, 2013; Hugos, 2003). SCM decisions where the interplay between cost-efficiency and customer responsiveness can be exemplified is inter alia with regards to production, inventory, transportation, and sourcing. With customers that value cost-efficiency, the SCM decisions for achieving this are Page 12 of 92 eliminating excess capacity in production, minimising inventory levels, sourcing from low- cost countries and transporting large quantities with a cheap mode of transportation. On the contrary, with customers that value responsiveness, the SCM decision for achieving this is that excess capacity in production is needed to respond to changes in demand, likewise, inventory should be held, sourcing should be done in closer proximity to customers, and a faster mode of transportation should be used (Blanchard, 2010; Chopra & Meindl, 2013; Hugos, 2003). It becomes clear that cost-efficiency and customer responsiveness in many cases are conflicting interests and constitutes a trade-off, the clearest example of this is with regards to inventory level whereas SCM either will emphasise that inventory should be held or not depending on what the customer values. However, with leveraging information and digital technologies new opportunities are presented which could influence the motivation for SCM decisions such as those concerned with inventory essentially both managing to generate cost-efficiency and customer responsiveness without a trade-off. 2.3 Supply Chain Digitalisation Digitalisation is transforming the way businesses operate. This is also true for global supply chains and SCM, and there is no doubt that digital transformation has great effects on supply chains (Büyüközkan & Göçer, 2018; Preindl, Nikolopoulos, & Litsiou, 2020). The changes in technology and digital improvements are said to prepare for a more interconnected way of doing business, with increased collaboration within the supply chain, and a more free flow of information between the company, its suppliers, and potential clients (Büyüközkan & Göçer, 2018; Nayal, Raut, Yadav, Priyadarshinee, & Narkhede, 2022; Preindl et al., 2020; Zhao, Chi, Zhu, & Hu, 2015). 2.3.1 Digital Supply Chain When discussing the digitalisation of supply chains, the term "Digital Supply Chain" (DSC) has been commonly used, a term with numerous definitions. In recent years, the understanding of the term has changed, as previously the term was used for describing the distribution of digital goods, such as when one could access or purchase tangible goods like music or books in a digital format (Susarla, Parameswaran, & Whinston, 2000). However, as technology has advanced in recent years, the phrase has come to be used more widely to describe the modern supply chain, which makes use of digital technology in various supply chain operations and processes. Some authors have stated that digital supply chains are “composed of systems … that support interaction between globally distributed organizations, Page 13 of 92 orchestrating the activities of the partners in supply chains. The activities include buying, making, storing, moving and selling a product” (Bhargava, Ranchal, & Ben Othmane, 2013: 1637). Other authors think of digital supply chains as not composed of systems, but more as a complete network. Kinnett (2015) defines it as an “intelligent, value-driven network that leverages new approaches with technology and analytics to create new forms of revenue and business value, through a centric platform that captures and maximizes the utilization of real- time information emerging from a variety of sources” (Kinnett, 2015, as cited in Garay- Rondero, Martinez-Flores, Smith, Caballero Morales, & Aldrette-Malacara, 2020: 899). The different definitions, however, include some shared aspects and principles. Reviewing the literature on supply chain digitalisation, Büyüközkan and Göçer (2018) developed a broader definition that encompasses all these various aspects that commonly go into the DSC. This definition seems to be the most accurate so far, as it considers many different aspects of the supply chain. The DSC is described by the authors as an “intelligent best-fit technological system that is based on the capability of massive data disposal and excellent cooperation and communication for digital hardware, software, and networks to support and synchronize interaction between organizations by making services more valuable, accessible and affordable with consistent, agile and effective outcomes” (Büyüközkan & Göçer, 2018: 165). In essence, supply chain digitalisation can take a variety of forms, as numerous innovations are affecting the DSC today. RFID (Radio-frequency identification), smart sensors, Artificial Intelligence (AI), Autonomous Vehicles, and other physical and digital technologies and innovations are transforming the supply chain (Büyüközkan & Göçer, 2018; Paksoy, Koçhan, & Ali, 2021). Many of these innovations and technological trends have many advantages in supply networks and it has a huge influence on the supply chain performance and management (Haddud & Khare, 2020). However, Büyüközkan & Göçer (2018) point out that the adoption and implementation of different digital technologies may not necessarily result in direct advantages, as the majority of the benefits come from the numerous solutions that emerge from DSC implementations rather than from the DSC itself. As was mentioned in chapter 2.2, SCM is an important process, because streamlining supply chain activities, and having an optimised supply chain can in turn increase production speed, improve customer satisfaction, reduce costs, and maximise profit. (Monczka et al., 2015; Stadtler, 2008; Stock & Boyer, 2009) With new trends emerging and supply chains facing such significant disruption, it has become evident that the traditional supply chain lacks the Page 14 of 92 key characteristics that are required, and that they must adapt and evolve to be successful in these fast-changing markets (Attaran, 2020; Büyüközkan & Göçer, 2018; Ghadge, Kara, Moradlou, & Goswami, 2020; Sinha, Bernardes, Calderon, & Wuest, 2020). In the latter years, many aspects of the traditional supply chain have become digitalised, through the implementation of various tools such as planning systems, automation, and digital communication. 57 per cent of supply chain industry experts have already adopted and incorporated new technologies into their supply chains. Furthermore, the adoption of new technology will increase in the following years (Statista, 2021). In essence, this means that digitalisation of the supply chain is no longer an option but rather a requirement for businesses that want to stay competitive (Alicke et al., 2018). However, it is also suggested that digitalisation is not as straightforward as merely digitalising because something is considered to be digitalisation, but rather that consideration needs to be taken to suitability and needs of the firm, and the firm also needs to possess the right knowledge to make use of digitalisation (Rachinger et al., 2018). This is also highlighted by Parviainen et al. (2017: 74), who look at digital technology as an enabler, and state that digitalisation is not about “turning existing processes into digital versions, but rethinking current operations from new perspectives enabled by digital technology”. So, in terms of supply chain digitalisation, the DSC is more than just digitising the existing supply chain and whether the products or services are physical or digital. Rather, the DSC refers to how the supply chain is managed, with the adoption of new management processes and systems which help increase efficiency and profitability in the supply chain (Büyüközkan & Göçer, 2018; Garay-Rondero et al., 2020). 2.3.2 The Digital Supply Chain Pillars As there are numerous technologies and digital systems applied in the digital supply chain there are also multiple ways to describe supply chain digitalisation. Mrozek et al. (2020) have developed a set of five pillars, that support digital technologies and their implementations in the supply chain. These pillars, which are shown in Figure 3 below are a fitting means of acquiring a better understanding of the DSC including the key drivers of supply chain digitalisation. As the pillars are interdependent, they cannot be seen in isolation. Page 15 of 92 Figure 3 The Digital Supply Chain Pillars (Mrozek et al., 2020) Data-driven digitalisation refers to the use and processing of data to improve the supply chain (Mrozek et al., 2020). Data can help create competitive advantages in various areas of the supply chain, such as customer service, operations planning, warehouse management and more (Alicke, Glatzel, Karlsson, & Hoberg, 2016; Capgemini, 2016). Cost- and efficiency- driven digitalisation refers to, as the name implies, technologies implemented in the supply chain that help improve efficiency and reduce costs, thereby maximising profit, for example, by implementing various technologies such as automated processes and intelligent, self- directed systems (Mrozek et al., 2020). Availability-driven digitalisation deals with the interconnectivity of the supply chain through the use of wireless technology, sensors and geo- localisation. Intelligence-driven digitalisation refers to the implementation and use of artificial intelligence to advance the supply chain (Mrozek et al., 2020). AI and Machine Learning can be used in almost all parts of the supply chain and can be used for countless purposes such as recognising patterns and predicting plausible scenarios in demand and capacity (Gesing, Peterson, & Michelsen, 2018). Security-driven digitalisation is the last pillar. As international trade and logistics have been more digitalised, there has been a growing dependence on new technologies and systems. As a result, this has increased the importance of cyber security and cyber resilience (Zomer, 2019). Moreover, Mrozek et al. (2020) state that the future digital ecosystem needs to be built in a manner that accommodates not only the current digital technologies but also the imminent upcoming technologies and systems. 2.3.3 Industry 4.0 The digitalisation of the supply chain and the notion of the DSC are closely connected to the concept of Industry 4.0. This fourth industrial revolution is the culmination of the Third Industrial Revolution and the Digital Revolution, both of which began in the mid to late twentieth century (Haddud & Khare, 2020; Paksoy et al., 2021) Industry 4.0 is a term that Page 16 of 92 was first introduced in Germany in 2011, as a part of the German government’s high-tech strategy. And was referred to as “the comprehensive transformation of the whole sphere of industrial production through the merging of digital technology and the internet with conventional industry” (Davies, 2015: 2). Although the term originated in Germany, it has now become a more widely used term and has become a popular topic of discussion in research, academic, and industry communities worldwide (Paksoy et al., 2021; Rojko, 2017). It is expected that Industry 4.0 will provide the groundwork for the new industrial revolution and, as a result, will have a significant impact on the global industry (Zhou, Liu, & Zhou, 2015). In essence, Industry 4.0 combines and connects digital and physical technologies which in turn gives more flexible, responsive, and interconnected businesses that are able of making more informed decisions (Hanley, Daecher, Cotteleer, & Sniderman, 2018) The term can be defined as “transforming businesses through the introduction of digitalization and the internet by adopting technological applications that lead to revolutionary improvements in the design and manufacturing processes, operations and services of manufacturing products and systems” (Haddud & Khare, 2020: 732). Due to Industry 4.0, organisations' manufacturing processes are undergoing fundamental changes, and the integration of new technology and digital systems into the production processes is causing a transformation of the manufacturing industry worldwide (Paksoy et al., 2021). However, although the concept of Industry 4.0 originated as a strategy for the industry and manufacturing sectors in Germany, it has now become a globally used term for a wide range of concepts (Lasi et al., 2014). The term has progressed to entail the digital transformation of the whole industrial and consumer markets, and can include technologies such as IoT, augmented reality, robots, cloud computing and Big Data analytics (Brunelli, Lukic, Milon, & Tantardini, 2020; Ghobakhloo, 2020). According to Hofmann and Rüsch (2017), it is difficult to find a unique and concise definition of Industry 4.0 and all of what it encompasses, because there are so many concepts, and the opinions among scholars and practitioners differ. However, while Industry 4.0 can be seen as an umbrella term for a wide range of concepts and technologies such as the ones mentioned above, efforts have been made to clarify the concepts and the enabling technologies, and some key aspects have been recognised. Ghobakhloo (2018) found that several researchers consider Industry 4.0 to be characterised by its design principles and technology trends and through an extensive literature review determined Industry 4.0 to be an Page 17 of 92 “integrative system of value creation that is comprised of 12 design principles and 14 technology trends” (Ghobakhloo, 2018: 914). Similarly, other research has also focused on the specific components, technologies and applications that are drivers in industry 4.0 (Xu, Xu, & Li, 2018). Hermann, Pentek, and Otto (2016), on the other hand, looked more at the main ideas under which the various technologies fall, to develop a better picture of Industry 4.0. And thereby identified four major components of Industry 4.0: (1) Cyber-Physical Systems, which combine the physical and virtual worlds. (2) Internet of Things, the interaction of 'things' and 'objects' with one another; (3) Internet of Services, the provision of services via the internet; and (4) Smart Factory, which assists people and machines in their jobs (Hermann et al., 2016; Hofmann & Rüsch, 2017; Preindl et al., 2020: 26). Essentially, the transformation from traditional to digital manufacturing, processes, operations and supply chains enables companies to combine and fully take advantage of their knowledge from humans, machines, analytics, and other insights to improve the decision- making process in the company (Cotteleer & Sniderman, 2017). Industry 4.0 is set to transform the traditional value chains and business models, resulting in more digitally interconnected processes and supply chains, which can provide significant benefits and opportunities for international businesses (Cotteleer & Sniderman, 2017), such as a reduction of labour costs, improved production planning, improvements in flexibility, more straightforward business processes and increased transparency in logistics processes, all in which will optimise the value creation within the company (Mohamed, 2018). 2.4 Value Co-Creation The concept of value co-creation has been discussed in various research fields, but it has gained popularity in the marketing literature, specifically in the context of the service- dominant logic (S-D logic) (Alves, Fernandes, & Raposo, 2016; Galvagno & Dalli, 2014). To understand the concept of value co-creation, the customer-centric view of the S-D logic where the connection to the customer is relational, can be used and contrasted with the firm- centric view of value creation in the goods-dominant logic (G-D logic), where the connection to the customer is transactional (Alves et al., 2016; Galvagno & Dalli, 2014). Page 18 of 92 In the S-D logic, the concept of value creation and the role of the customer has shifted significantly from the G-D logic (Vargo & Lusch, 2004, 2008). As per the G-D logic, value creation occurs in isolation at each individual firm by performing various activities that convert inputs into outputs that are eventually exchanged with the customer. With this perspective, the firm is the value creator, value takes the form of a physical product and its price, and the customer is the recipient who consumes and essentially destroys the value that the firm created. However, according to the S-D logic, customers always co-create value, thus extending the traditional view of value creation to value co-creation by taking into account an interactional element and dependence between the firm and the customer (Vargo & Lusch, 2004, 2008). This has later been expanded to include not only the firm and the customers as value co-creators, but rather that value can be co-created among multiple actors as well, implying that value is not created in isolation, or limited to two actors, but that value can be co-created in larger constellations (Vargo & Lusch, 2016). Central to the S-D logic is the distinction between operand resources and operant resources. Operand resources are more related to the G-D logic and refer to tangible assets, whereas operant resources are more related to the S-D logic and refer to intangible assets such as the application of knowledge and skills by various actors to act upon operand resources or other operant resources (Vargo & Lusch, 2004, 2016, 2008). For example, an operand resource such as a machine produced by a firm only represents a value proposition and holds little value in and of itself in the context of the customer without operant resources such as the customer's application of knowledge and skills to use it, and the integration of complementary resources such as fuel to power the machine, so there is an emphasis on value-in-use. With this in mind, value co-creation can be described as the customer's realisation of the firm’s value propositions in its context, through the application of knowledge and skills, and the integration of operant and operand resources from different sources (Vargo & Lusch, 2016; Vargo et al., 2008). 2.4.1 Value Co-Creation in Global Supply Chains With the participants directly involved in the global supply chains either having the role of a supplier or a customer depending on their positioning, the concept of value co-creation can be extended to global supply chains. To some extent, the concept of value co-creation is consistent with the SCM literature because it is centred around the inclusion of key actors and the establishment of relationships to mutually benefit through a relational exchange. Where Page 19 of 92 each participant's value propositions are leveraged to facilitate a value co-creation process, making the actors in the relationship active participants as co-creators of value (Chakraborty et al., 2014; Vargo & Lusch, 2004). At the same time, global supply chains are managed and connected inherently by a series of upstream and downstream relationships consisting of unique propositions (Dobrzykowski & Chakraborty, 2014). The SCM literature emphasises cooperation, integration, and collaboration among supply chain participants, providing a relational rather than a transactional perspective on how value is created (Beamon, 1998; Christopher, 2011; Corominas, 2013; Mentzer et al., 2001). This is also related to external SCM where there is an emphasis on joint coordination as well as upstream and downstream relationships (Chopra & Meindl, 2013; Monczka et al., 2015; Stadtler, 2008). The connection between SCM and value co-creation suggests that a more nuanced view of how value is created in global supply chains can be adopted. Where value is co-created by supply chain participants rather than separated into individual value-creating entities (Normann & Ramirez, 1993). Value co-creation in the global supply chain can be understood by drawing on the premise that value is co-created in interactions through the customers' realisation of the firm's value proposition through the application of knowledge and skills, and resource integration (Vargo & Lusch, 2016; Vargo et al., 2008). A supplier, for example, may present a value proposition in the form of a subcomponent that the supplier’s customer intends to use to assemble a machine that will eventually be sold to an ultimate consumer. However, without knowing how to correctly use the subcomponent, not having access to subcomponents from another supplier or the availability of logistics from service providers, and without the intention to provide its own value proposition downstream in the form of an assembled machine to the ultimate consumer, value is not co-created as the supplier’s value proposition is not realised by the customer, as the customer’s application of knowledge and skills, and resource integration are missing (Vargo & Lusch, 2016; Vargo et al., 2008). Value co-creation in the context of global supply chains can be conceptualised as occurring among individual supply chain participants by repeatedly providing and realising value propositions, but given the nature of global supply chains, value can also be co-created in larger constellations (Vargo & Lusch, 2016). Value co-creation can also be understood in a broader perspective in the global supply chain, where participants up until the point of Page 20 of 92 reaching the ultimate consumer jointly create a value proposition that eventually is realised by the ultimate consumer for the global supply chain to co-create value. 2.4.2 Digitalisation and Value Co-Creation Numerous technologies fall under the category of digitalisation, each with its own set of characteristics in terms of application and effect. Mrozek et al. (2020) present nine such technologies in the context of the global supply chain in terms of the value-adds they provide: advanced analytics, AI, IoT, blockchain, autonomous vehicles, additive manufacturing, geo- localisation, remote operations, and advanced robotics. Without going into further detail about these technologies they provide value-adds based on their characteristics and application in the global supply chain, the value-adds are many but can be broken down into the following categories: improved efficiency, cost reductions, error reduction, quality, security, enhanced productivity, customisation, reduction in lead times, and traceability (Mrozek et al., 2020). Moreover, considering the various definitions of digitalisation in global supply chains, some of the themes that emerge include digitalisation in terms of synchronising interactions, supporting interactions, value-driven networks, orchestrating activities and strengthening the integration among supply chain participants (Ageron et al., 2020; Bhargava et al., 2013; Büyüközkan & Göçer, 2018; Garay-Rondero et al., 2020). With an understanding of the value that can be derived from the technologies constituting digitalisation, as well as the themes within the definitions of digitalisation of global supply chains, it follows that when exploring value in the digitalisation of global supply chains, it is more relevant to consider value co-creation rather than its counterpart, as there is an emphasis on supply chain participants becoming more integrated, synchronised, and jointly benefitting from each other. This is further supported as it has been suggested that digitalisation can provide opportunities to increase the breadth and depth of the interactions needed for value co-creation to occur (Lenka et al., 2017). 2.5 Conceptual Framework To explore how digitalisation in global supply chains is addressed and affects value co- creation, a conceptual framework has been developed. The framework is based on the aforementioned theoretical framework and was developed with consideration of the key themes and ideas found in the literature on global supply chains, SCM, digital supply chains, and value co-creation. Page 21 of 92 What we have identified from the literature is that no firm operates in complete isolation and, in many cases, is also globally connected for a variety of reasons. The various definitions of a supply chain demonstrate this dependency beyond the individual firm and connection to other firms, and that a typical supply chain includes multiple participants with different roles connected through various flows such as products, services, finances, and information. Moreover, as established from the SCM literature, global supply chains are not truly self- sufficient, and competition occurs not just at the product or firm level, but rather at the supply chain level (Blanchard, 2010; Hugos, 2003; Mentzer et al., 2001). The recurring theme of SCM is that a variety of activities, coordination and management are essential for the global supply chain's operation and performance. SCM can be expressed differently but include the participants’ internal and external SCM to facilitate flows and to increase cost-efficacy and/or customer responsiveness in order to improve the supply chains performance (Chopra & Meindl, 2013; Hugos, 2003; Mentzer et al., 2001; Stadtler, 2008; Stock & Boyer, 2009). Furthermore, since major changes are occurring as digital technologies evolve, they present both challenges and opportunities for global supply chains (Büyüközkan & Göçer, 2018; Preindl et al., 2020). With this changing environment, SCM as traditionally conceptualised will eventually become insufficient for the supply chain competitiveness, which is addressed by digitalisation through the integration of various digital technologies enabling SCM practises as well as the supply chain to evolve (Alicke et al., 2018; Büyüközkan & Göçer, 2018; Garay-Rondero et al., 2020; Mrozek et al., 2020). Lastly, when it comes to value, value is co-created by two or more actors, rather than created in isolation by an individual firm (Normann & Ramirez, 1993; Ramírez, 1999; Vargo & Lusch, 2016). Value co-creation is relational, collaborative, and interactive, which requires that the involved actors in the co- creation process contribute to the creation of value jointly, through various means, in order to mutually benefit from it (Callaway & Dobrzykowski, 2009; Chakraborty et al., 2014; Ramírez, 1999; Vargo & Lusch, 2016; Vargo et al., 2008). Figure 4 below shows the conceptual model, which illustrates the conceptual framework. In essence, the model can be viewed holistically as four interconnected parts: the global supply chain, value co-creation, SCM and digitalisation. The supply chain has been coupled with the notion that value is co-created among the supply chain participants. SCM has been incorporated as an influencing factor shaping the supply chain, and digitalisation has been incorporated as an influencing factor shaping SCM as well as the supply chain. Thus, providing a sufficient framework to address our research question. Page 22 of 92 The model is based on the previous figure depicting the supply chain, and the supply chain in this figure includes all actors from the ultimate supplier to the ultimate consumer, including the service providers. The blue arrows between the participants represent the inbound and outbound flow between each participant, just as the dark dotted lines connect the service provider to the other participants. Supply chain digitalisation is presented along with value co-creation as orange lines. Based on the theoretical framework we believe that the concept of value co-creation can occur among all participants and that it occurs relationally through interaction. Similarly, as digitalisation is considered to have a significant impact on the supply chain as a whole, as well as its management, it concerns all other parts of the framework that are relevant in light of the nature of the research question. Figure 4 Self-constructed conceptual model Page 23 of 92 3 Methodology 3.1 Qualitative Method There are essentially three research methods one can choose from, qualitative, quantitative, and mixed-method research (Williams, 2007). A qualitative research method is used since this study is exploratory and is concerned with providing an in-depth understanding of digitalisation in global supply chains with regard to value co-creation. The aim and research question of the study influenced our decision to adopt a qualitative research approach. This is common as it is suggested that the choice of method usually is derived from the research question that the study aims to answer with consideration of its formulation (Bell, Bryman, & Harley, 2019). The qualitative research method was deemed most suitable for our study, since the study is of exploratory nature, and the research question is formulated as a "how" question. Such questions are best addressed by using a qualitative research method, which does not seek to measure or quantify an outcome but rather is concerned with words and the understanding of the social world derived from interpretations that cannot easily be expressed and explained numerically (Ahrne & Svensson, 2015; Bell et al., 2019; Williams, 2007). As a result, our question provides an exploratory foundation interested in understanding a phenomenon. With the formulation of the research question and its content in mind, a qualitative method was chosen, which reflects how we collected and used data. 3.2 Abductive Approach Research approaches can be divided into three areas, the deductive, inductive, and abductive approaches. The chosen research approach reflects the authors' perspective on how the relationship between theory and empirics are viewed and handled, as well as the reasoning for how conclusions are drawn which shapes the direction of the study (Patel & Davidson, 2011). This study is not purely deductive nor inductive but has elements of both, and resembles more the abductive research approach, since the relationship between theory and empirics has not been separated, but rather has evolved together to some degree throughout the course of this study. This is consistent with one of the core characteristics of the abductive approach, which emphasises the movement back and forth between the realms of theory and reality (Bell et al., 2019). In studies that follow the abductive reasoning, the original framework is often adjusted or altered throughout the research process, as unexpected findings and new theoretical insights are discovered (Dubois & Gadde, 2002). As Page 24 of 92 we had limited knowledge of what would be uncovered during data collection and what aspects of our relatively broad theoretical foundation were suitable to include in light of our research question and empirics, abductive reasoning was deemed suitable as it allowed for flexibility between theory and empirics. The research process is to a large extent explained throughout the methodology chapter, which also outlines and motivates the study’s defining characteristic. Elaboration is justified, however, to provide further transparency. Following the abductive approach, this study began with the identification of two topics, namely supply chain digitalisation and value. These topics were interesting in a contemporary context, prompting us to further explore the literature to specify the purpose of our research. To fulfil the purpose of this study, a theoretical framework was developed. This was done by outlining relevant aspects of each theoretical field, which eventually resulted in the development of a conceptual framework to guide the analysis. Then, early in the research process, potential case companies were identified and approached, and the interview guides (see appendices A-D) were formulated with the research question and theoretical framework in mind. Most of the interviews were recorded and transcribed, and a thematic analysis was conducted to identify themes pertinent to the research question, which formed the base for the presentation of the empirical findings. With the empirical findings in place, we were able to apply the conceptual framework to analyse and draw conclusions from our findings. Although the research process presented here appears to be rather linear, it is important to note that alterations were made throughout the course of the study, and the theoretical framework and conceptual model were revised, following the abductive approach. For instance, a distinction between the focal firm and service providers based on Ramirez and Mannervik (2016) was added as it was deemed necessary to include in the theoretical framework as a clear empirical distinction was noted. Similarly, in deciding how the notion of value eventually was conceptualised, we moved between the concept of value creation and value co-creation multiple times before eventually deciding on the latter based on Vargo and Lusch (2004, 2016, 2008) conceptualisation as this appeared to be more relevant in a supply chain digitalisation context. 3.3 Multiple Case Study Research Design To get a better understanding of the general phenomenon of supply chain digitalisation, and to address our research question, we found a multiple case study design to be best suitable for Page 25 of 92 our study. Multiple case studies are studies in which multiple cases are examined jointly, in order to explore or investigate a phenomenon (Bell et al., 2019; Cassell, Cunliffe, & Grandy, 2018). A multiple case study research design allows us to be more involved with the research participants and to gain a deeper understanding of their different perspectives and thoughts, allowing us to obtain detailed and high-quality information about real-life cases involving supply chain digitalisation. Furthermore, the use of a multiple case design allows us to compare and contrast the findings across the research population, allowing us to identify both unique and general findings (Bell et al., 2019; Yin, 2018). According to Yin (2018), case studies as a research method enable you to have a more comprehensive and in-depth focus on a "case", while still maintaining a holistic and real-world point of view. Furthermore, case studies allow you to make a unique contribution to knowledge by using empirical evidence from “real people in real organisations” (Myers, 2019). Although single case studies can give a detailed description of a specific event or phenomenon, multiple case studies are more robust and more accurate as multiple sources of evidence are used (Eisenhardt & Graebner, 2007; Yin, 2018). 3.3.1 Case Selection The case companies were identified based on prior knowledge, recommendations, and a comprehensive internet search. To determine the companies’ relevance for this study and the research question several criteria were used. The companies had to be in a position where it; sets the condition in their supply chain or be involved in the global supply chain of others, has an international presence, and some indication of digitalisation in their supply chain was also required. By going through the companies’ websites and annual reports, we were able to confirm or reject the criteria, in some cases, initial meetings were also held to ensure the suitability for our research question. Subsequently, individuals with relevant experience at each company were identified and contacted who would presumably have great knowledge in the field of supply chain digitalisation. Of the initially identified companies, six participated through the representation of twelve individuals. A detailed view of the companies and respondents can be found in Table 2 in chapter 3.4.2. The case selection process in this study can be described in terms of sampling, and based on the identification, criteria, and sorting of the case companies’ the case selection can be described as non-probability sampling and more specifically purposive sampling. This form of sampling implies that cases, as well as participants, are sought out strategically with Page 26 of 92 consideration to the underlying purpose and research question to ensure the cases' relevancy (Bell et al., 2019). Non-probability sampling is not random it is subjective which could result in biases influencing the study. But according to Eisenhardt and Graebner (2007: 28), the use of “….highly knowledgeable informants who view the focal phenomena from diverse perspectives” is an efficient method for reducing bias in the collection of interview data. Such a diverse perspective can be argued to be achieved as the six case companies are by themselves rather diverse considering industry and size. Moreover, the case companies are also diverse with regards to their role within their respective supply chains, providing a variety of perspectives from the viewpoint of the respondents on the topic. Lastly, to accurately present the cases a distinction is made as previously outlined between the participant who provides the main offering and the participants who provide supporting offerings. With that in mind, the case companies: Jotun, Parker Hannifin, and Stadium can be considered to provide the main offering thus setting the condition in their respective supply chains. While the case companies: Postnord, Flexport, and Transporeon, are service providers that can be considered to provide the supporting offering to the main offering in their respective supply chains. 3.4 Data collection The empirical data in this study is mostly based on primary data, mainly in the form of verbal data derived from interviews with employees from the different case companies where the interviewees provided their insights on the topic of what was being asked based on their experiences at their respective company. Collecting primary data in the form of interviews are favourable in case studies as this provides an opportunity for the researchers to collect data that is focused on the topic of the case study (Yin, 2018). Some secondary sources have also been used in the empirical findings, these secondary sources are information found on the case companies’ websites and have been used to complement the primary data. Moreover, during a couple of interviews, internal PowerPoint presentations were also shared to highlight certain aspects of what was being explained, further strengthening what was said during the interviews. 3.4.1 Semi-Structured Interviews As we are doing an exploratory study and are more interested in exploring the topic broadly rather than asking closed-ended questions, the best fitting method of data collection was qualitative interviews. This is commonly used in qualitative research and case studies as it Page 27 of 92 provides flexibility (Bell et al., 2019; Yin, 2018). More specifically, due to the complexity of the topic and our exploratory focus, we determined that semi-structured interviews were the best approach for the data collection in our study, as this enabled us to acquire a deep understanding of the respondents' thoughts and ideas, by allowing for flexibility in our questioning while maintaining a structure. As discussed in the previous section, we made a distinction between focal firms and service providers. Therefore, we also made two separate interview guides customised for each category, these interview guides can be found in Appendices A-D. The interview guides would serve as the foundation for all respondents, but the interview was shaped to some extent by the responses we received to the questions that were asked. Following the semi- structured interview approach, we could adapt to the conversation as we did not have to strictly adhere to the interview guide but rather deviate from it when it was necessary (Bell et al., 2019). Semi-structured interviews also allow us to ask follow-up questions and verify the responses given, as well as suggest additional explanations if we want the interviewees to explain or further develop previous responses (Saunders, Lewis, & Thornhill, 2019; Yin, 2018). 3.4.2 Interview Setting and Respondents As shown in Table 2 below, the interviews were all held between the 3rd of March 2022 and the 11th of April 2022. The interviews lasted for approximately 30-60 minutes. All interviews were held digitally, except the ones done at Jotun Sweden, which was conducted at their offices in Gothenburg, Sweden. The language in the interviews differed from firm to firm, and some interviews were held in Swedish, while others were held in Norwegian and English. This did not pose any difficulties because both authors are fluent in English and, moreover, the authors are of different nationalities, one Swedish and one Norwegian. The findings reflect the authors' interpretation and translation of the interviews. The interviews conducted online were conducted through the cloud-based video communications platform Zoom. Traditionally, face-to-face interviews have been seen as the gold standard, and using platforms such as Zoom may be regarded as less ideal for qualitative interviewing than face-to-face meetings. Some have argued that there is a lack of reflection and reflexivity regarding online interviewing and that there is an issue in establishing rapport and trust (Bell et al., 2019; Fielding, Lee, & Blank, 2016). However, according to Archibald, Ambagtsheer, Casey and Lawless (2019), using communication such as video conferencing Page 28 of 92 platforms has advantages such as ease of use, interactivity and convenience. Additionally, advantages such as flexibility, time and cost savings and safety have also been highlighted (Bell et al., 2019). Besides, video interviews have been shown to facilitate personal connections between participants, and it is indeed possible to establish and maintain rapport in online interviews (Archibald et al., 2019; Fielding et al., 2016). Furthermore, it can be argued that as a result of the COVID-19 pandemic, which forced businesses to adopt these digital technologies very quickly, people have gotten accustomed to using a variety of platforms and digital communication tools in their work- and everyday life. Thus, it can also be assumed that their digital skills and competencies have accordingly grown (Lobe, Morgan, & Hoffman, 2020). As a result, we determined that the benefits of online interviews outweighed the disadvantages and decided to conduct most of our interviews digitally, not only because people have become more familiar with the technology in recent years, but also because it was convenient, timesaving and because our interviewees were geographically dispersed, with some in Sweden and others in Norway, Germany, or Denmark. The digital interviews were recorded through the local recording function in Zoom with permission from the interviewee. This allowed us to be more engaged in the interview, and so that we could concentrate on listening and asking follow-up questions, rather than being concerned with taking notes or making specific remarks, which can be a source of distraction for both the interviewee and interviewers. The interviews we had at Jotun Sweden, were not recorded, as we did not have permission for this. Hence, during these two interviews notes were taken, which soon thereafter were reviewed and elaborated on in accordance with the notes and what was remembered from the interviewees. Page 29 of 92 Company and Name Industry Position at Date of Length of Language of Respondent Company interview Interview Jotun Chemicals Supply Chain 17 Mar. 22 40 min Swedish Mikael Manager Jotun Chemicals Warehouse Clerk 17 Mar. 22 20 min Swedish Kristian Jotun Chemicals Logistics and 07 Mar. 22 53 min Norwegian Erik Distribution Manager Jotun Chemicals Group Technical 10 Mar. 22 45 min Norwegian Fredrik Director – Operations Parker Hannifin Manufacturing Supply Chain 09 Mar. 22 50 min Swedish Pernilla Manager Parker Hannifin Manufacturing Production 09 Mar. 22 62 min Swedish Lars Development Engineer Stadium Retail Supply Chain 18 Mar. 22 36 min Swedish Daniel Director Postnord Logistics Logistics Advisor 03 Mar. 22 55 min Swedish Jörgen Transporeon Logistics Business 11 Mar. 22 63 min Swedish Marcus Development Manager Transporeon Logistics Senior Sales 14 Mar. 22 28 min English Ewa Executive Flexport Logistics General Manager 11 Mar. 22 53 min English Jaap Scandinavia Flexport Logistics Communications 11 Apr. 22 35 min English Daniel Manager Europe Table 2 Details of interviews and respondents 3.5 Thematic Analysis As data have been collected through semi-structured interviews which subsequently were recorded and transcribed, this generated a vast dataset of unstructured data. While the collected data provides richness it also provides complexity. This complexity needs to be managed in order to navigate and interpret the unstructured data which can be done through different data analysis methods (Bell et al., 2019; Yin, 2018). The data analysis in this study was conducted by using thematic analysis, which is concerned with the identification of themes within large datasets (Bell et al., 2019; Nowell, Norris, White, & Moules, 2017). A Page 30 of 92 theme can be thought of as an identifiable category in a dataset with relevance to the topic of a study (Bell et al., 2019). According to Bell et al. (2019), thematic analysis is unique in the sense that a standardised approach is lacking and rather have been used in a variety of ways. However, Nowell et al. (2017) suggest that thematic analysis is an ongoing process that consists of becoming familiar with the data, coding the data based on various characteristics, searching for themes within the coded data, and defining the themes. In this study, the thematic analysis was conducted using the software NVIVO which all the transcriptions were uploaded to. We first began with familiarizing ourselves with the transcription, this was done by both authors as each transcription was read through multiple times and discussed to get a deep understanding of the contents. Codes were then developed to categorise various sections of the transcriptions that were considered relevant for the research question and theory. The codes were developed with the influence of the topics in the interview guides. The full list of codes can be found in Appendix E. These codes were in turn used to identify themes in the transcripts which enabled us to manage the data and base the contents of our empirical findings on. In Figure 5 an example is provided of the authors' thought process behind the thematic analysis, where codes were developed based on certain sections of the transcriptions forming a theme, which was incorporated into the findings. Figure 5 Example of the use of thematic analysis Page 31 of 92 3.6 Quality of Study A central aspect in any form of research is ensuring that high quality is maintained throughout the research process since deficiencies in the quality can question the accuracy and legitimacy of the research. For the research to maintain a desired level of quality it is necessary to consider various quality criteria. Different quality criteria can be used to assess whether the research is sufficient or not in terms of its quality (Bell et al., 2019; Yin, 2018). As research can be conducted in multiple ways assessing the quality is not a standardised process. It is common to make a broad distinction between qualitative and quantitative research when assessing the quality of the research. Due to the method's obvious differences, this has raised the question of whether the same quality criteria can be applied. Traditionally research has been tested against the research’s reliability and validity, this has however been criticised as these criteria are considered to be more appropriate for quantitative research. This has led to the development of alternative criteria such as trustworthiness for qualitative research (Bell et al., 2019; Golafshani, 2003). Four criteria make up trustworthiness: credibility, transferability, dependability, and confirmability. We have used these four criteria to ensure the quality of our study. 3.6.1 Credibility Credibility refers to how believable the findings of the study are, and whether the statements of the respondents accurately reflect what they intended. This is significant when doing qualitative research, as there could be many plausible explanations and versions of a social reality (Bell et al., 2019; Saunders et al., 2019). To achieve a more credible result, both authors have collaboratively been participating throughout the whole study. Perhaps most importantly, this has been the case during the interviews and transcribing process, in which both authors participated and then internally analysed the acquired data to sort out and prevent any misinterpretations. After collecting and assessing the data, we carried out respondent validation, which allowed the respondents to review and corroborate our interpretations and findings, while also allowing them to express any potential concerns regarding our interpretations of the cases (Bell et al., 2019). Moreover, Yin (2018) highlights the importance of using multiple sources of evidence to allow for triangulation to reduce biases and ensure the quality of the study. With this in mind, we sought to acquire access to at least two employees at each company, this was partially realised as we managed to interview two or more employees at most of the case companies which provided multiple sources of evidence allowing for triangulation. Additionally, as some of the interviews included the Page 32 of 92 sharing of internal PowerPoint presentations by the respondent, we believed this also allowed for triangulation and enhanced the credibility of the findings as an additional source of evidence was provided. 3.6.2 Transferability Transferability is concerned with the generalisability of the research’s findings and refers to whether the findings can be applied to other contexts. This poses a challenge for qualitative research because qualitative research is more about depth than breadth as found in quantitative research. Nevertheless, this should not be seen as affecting or compromising the quality of qualitative research considering generalisability in a traditional sense is not the objective (Bell et al., 2019: 365; Yin, 2018). However, a distinction can be made between analytical and statistical generalisability, the former applies to qualitative research and case studies where analytical generalisations can be made. According to Yin (2018: 349), analytical generalisation is “The logic whereby case study findings can apply to situations beyond the original case study, based on the relevance of similar theoretical concepts or principles.”. But recognising the limitation of statistical generalisability in this qualitative research is critical, and it has been kept in mind throughout the study. However, we suggest that this study is sufficient in terms of transferability because the multiple case study method is concerned with a smaller sample size, allowing us to provide a rich description of each case to address our research question. Furthermore, because our study comprised a relatively wide group of cases, in terms of geography and industry, transferability could potentially be applicable and attained in various contexts. To further facilitate the transferability of the study, we have, as suggested by Bell et al. (2019), provided detailed insights into the research process, the case selection, the data collection, respondents, and so on. Providing these detailed descriptions gives others enough information about our study to make decisions regarding the potential transferability of our findings to other contexts. 3.6.3 Dependability Dependability can be seen as a parallel to the concept of reliability found in quantitative research and refers to whether the findings are likely to appear at other times (Bell et al., 2019). This can be a challenge in qualitative research as it often deals with observations in the social world that change over time (Yin, 2018). Likewise, this challenge is reflected in this study, as it is concerned with an evolving concept, namely the digitalisation of global supply chains which at the same time is shaped by the respondents’ current interpretations Page 33 of 92 and experiences with the topic which are likely to change over time. Following Saunders et al. (2019), this has been done by documenting the whole research process, including the changes, to give a trustworthy and reliable description of the whole process. Furthermore, the interviews were recorded and transcribed, and the interview guides are also presented in detail. This enables an accurate representation and allows others to evaluate and assess the research process (Saunders et al., 2019). 3.6.4 Confirmability Confirmability refers to the objectivity, whether or not the researchers' values have influenced the study and if the researchers have remained objective throughout the study (Bell et al., 2019). We accounted for this throughout the study, and our analysis and interpretations are completely based on the data obtained, and we made every effort not to allow any personal values to influence our outcomes. As this thesis has jointly been written by two authors, we have continually been able to review each other’s interpretations to ensure confirmability. One approach was to have ongoing internal discussions about our analyses and interpretations to ensure that our results were not skewed by personal preconceptions. Though being able to discuss internally has been beneficial, external scrutiny has also contributed to account for confirmability. This was done by having seminars regularly with the master thesis groups and our thesis supervisor helped reduce bias and highlight any anomalies regarding objectivity. 3.6.5 Ethical Considerations The moral principles that guide researchers in conducting and reporting research in an ethical manner are referred to as research ethics. Potential ethical issues can occur at every stage of the research process (Bell et al., 2019; Saunders et al., 2019; Vetenskapsrådet, 2021). Therefore, making ethical considerations throughout the research process is of great importance in ensuring the quality of our study. Bell et al. (2019: 114), present four key principles of ethical research, these include “whether there is harm to participants, whether there is a lack of informed consent, whether there is an invasion of privacy, whether deception is involved in the research”. In our study, we have accounted for potential ethical issues, and been transparent with our participants throughout the whole process. Regarding the aspect of avoidance of harm to participants, this can take the form of physical harm, psychological harm or emotional harm. Page 34 of 92 However, it is not always possible to predict if there is a risk of harm to the participants (Bell et al., 2019). Nevertheless, by accounting for issues in confidentiality and anonymity we mitigated and minimised potential harm and risk to our participants. When it comes to the principle of voluntary informed consent, Bell et al. (2019: 118) describe this as “ensuring that prospective research participants are given as much information as possible about a study in order to be able to make an informed decision about whether or not they wish to participate in it”. This has been addressed by providing the participants with as much information about the research topic and process as possible during the process of requesting access from them. Moreover, we held online meetings with participants who wanted further and additional information, discussing all aspects of their potential involvement and answering questions. In addition, as recommended by Bell et al. (2019), we informed participants about the potential use of recording equipment. Furthermore, we respected the participants' privacy and gave them the option to avoid answering certain questions if they so desired, as well as the option to turn on a backdrop filter on Zoom to avoid invading their personal space. The last ethical principle relates to the prevention of deception and the risk that researchers misrepresent their research and findings. As deception can take the form of assumed consent, where an agreement to participate causes the researcher to assume that data may be examined, used, kept, and published as they desire without confirming this with the subject (Bell et al., 2019; Saunders et al., 2019). This was clearly addressed throughout the study by being transparent and asking our participants and getting explicit answers regarding how the data and recordings we obtained will be used. Page 35 of 92 4 Empirical Findings The empirical findings are presented with a distinction made between focal firms and service providers, with Jotun, Parker Hannifin, and Stadium categorised as focal firms that provide the main offering and set the conditions in their respective supply chains. Postnord, Transporeon, and Flexport, are categorised as service providers that provide supporting offerings for the focal firm. The reason for this distinction is explained throughout the thesis, but the main takeaway is that there is a significant difference between the roles of Jotun, Parker Hannifin, and Stadium and the roles of Postnord, Transporeon and Flexport in a global supply-chain context. This chapter begins by presenting the findings for each focal firm and then continues with presenting the findings for each service provider. 4.1 Jotun Jotun is one of the world’s leading manufacturers of paints and coatings. They are a global actor with over 10,000 employees, and thirty-nine factories located across the world, mainly in the Middle East and Asia, but also in all of the other continents. The company is family- owned and family-controlled, and its headquarter is located in Sandefjord, Norway. They mainly produce for local markets and are big within the marine industry. We interviewed two people at the headquarters in Sandefjord, namely Fredrik and Erik. Erik is the Logistics and Distribution Manager for the Nordics, and Fredrik is the Group Technical Director – Operations. Also, two people from the Swedish division were interviewed: Mikael and Kristian. Mikael is the Supply Chain Manager for Jotun Sweden, while Kristian is a Warehouse Clerk, who is involved in the daily operations of the warehouse. 4.1.1 Jotun’s Supply Chain and SCM Jotun operates with its own companies around the world. So, in most countries where a certain amount of paint is sold, a factory will be established at some point, and the paint will be produced and delivered locally. This is a strategic decision as Jotun seeks to grow organically rather than through acquisition. These companies operate independently and have their own management, but they operate under a set of procedures and routines that are dictated by the headquarters in Norway. Jotun buys all its raw materials, from over five hundred different suppliers with a separate purchasing department that controls purchasing. A big part of the raw materials is controlled Page 36 of 92 globally by raw material purchasers. When it comes to raw material handling and storage, this takes place at the factories for the most part. Jotun also produces a few raw materials themselves, but by far most of the products are semi-finished or finished products used in paint production. After the filling and packing, the products go either to storage or directly to the customer. The parts of the supply chain that Jotun handles, are mostly everything in between the raw material warehouse to the actual finished goods warehouse. Then the mode of transport differs from country to country, and from customer to customer, but mostly third parties are used in transportation. The factory in Norway produces approximately fifty million litres of paint per year, where a small part of it is exported to subsidiaries, but the majority is deliveries to customers in Norway and Scandinavia. In the Nordic countries, the supply chain is set up a bit differently. In Norway, the main customers are the wholesale customers, which are for example large construction product companies that buy in bulk and large volumes. These few customers stand for approximately 80 per cent of the volume and have their own supply chains and customers that they deliver to. Some of them have fully integrated chains, such as Coop, which only have their own stores they deliver to, and also, other wholesalers are more independent, and who supply to other types of free chains. In Sweden and Denmark, the supply chain is set up a bit differently, without the wholesaler. In Denmark, the goods are packed in Sandefjord and sent directly to the store in Denmark. The same goes for Sweden, where there are also trailers sent from Norway daily, to the warehouse in Gothenburg, and then from there on to the customers. This is a very different setup because there are a lot of smaller deliveries in comparison to Norway whereas they sell almost only whole pallets. When it comes to the management of the supply chain, there are several support systems in place, such as planning, maintenance, and ensuring the best possible safety, which is critical in paint production because it involves a lot of chemicals. The raw materials part of the supply chain is primarily negotiated on a central level, as a framework contract alongside the transportation. As a result, local businesses will only communicate with companies that have already signed contracts and are approved suppliers. The approval process for raw material suppliers is critical for everything from quality and compliance to health, safety, and the environment, as well as sustainability. Another aspect that is managed centrally in Jotun is the production of some special products that can only be produced in certain countries. Page 37 of 92 However, the main rule is that the factories manage their own operations and produce what they need themselves for their own market, based on dissents given by corporate. Both the Group Technical Director and the Logistics and Distribution Manager recognise that although Jotun has performed quite well during the pandemic, some of the biggest challenges connected to the supply chain and SCM are the aftermath of COVID-19, the access to raw materials, the shortage of transport services, and other factors such as Russia’s invasion of Ukraine. 4.1.2 Supply Chain Digitalisation at Jotun Jotun works actively with digitalisation and has done so for several years, and they were for example quite early in building a fully automated warehouse in Sandefjord. With that said, they do not have an overarching goal or a digitalisation plan and consider themselves followers rather than trendsetters in that aspect and have a goal to keep up with digital development rather than to be in the forefront, and also purchase most of their solutions rather than developing them in-house. What they see as an important opportunity with digitalisation, is that it allows for a fairly good opportunity to standardise the most important systems. They have, for example, implemented a standardised ERP (Enterprise resource planning) system, which is implemented in almost all of the Jotun companies. This digital system includes everything from inventories, production data and transaction data to mention a few. The Group Technical Director acknowledges that Jotun has some form of digitalisation in all steps of the supply chain, but their digitalisation efforts differ throughout the supply chain, and also from county to country. The larger digital systems are standardised and implemented throughout Jotun, and then there are smaller systems and solutions which are managed and operated locally. An example of this is their transport management. The Group Technical Director does not see Jotun for example investing in a large fleet management system that will be used in Jotun and all the subsidiaries unless it can be incorporated into their existing ERP system, because the situation is so different in each country. So, for example in the Middle East, both developing and operating can be done at a fraction of the price of what can be done in for example the Nordics. Also, depending on the geographical dispersity there will be different requirements and needs. In production, a lot has been automated and digitalised. Whereas Jotun used to make the paint on recipes and weigh it like a baking recipe, most of it is now automated and digital, and some robots even control the production itself - addition of the various raw materials takes Page 38 of 92 place via a separate system called WorkFlow, which has the recipe in it and makes the paint. It adds raw materials, determines stirring times, and other things like that. These kinds of robots are something Jotun is becoming more interested in working with. The Logistics and Distribution Manager says: “We call it automation, but we are now working with robots more and more, for example, such intelligent robots that can replace humans, particularly regarding the type of activities that are about physical jobs like stacking paint and palletising. We are conducting some of these experiments right now, with new robots taking over more and more of those processes. It's a bit new to us, and it's a bit demanding in terms of programming.” [Authors’ translation]. This is an area where they anticipate some challenges and difficulties. The Logistics and Distribution Manager recognises that a shift in the workforce is required, in order to succeed with these types of projects. Previously, there was a demand for jobs such as mechanics, but now there will be greater demand for information technicians and people with other competencies and qualifications. Other aspects of the supply chain which has been digitalised are the communication, both internal and with subsidiaries and transport. Microsoft Office and Teams are used in all locations of the subsidiaries. Also, there are some digital systems in place for their carrier, where they can exchange messages and documents through EDI (Electronic Data Interchange), which gives transparency between Jotun, the carrier, and the customer. 4.1.3 Value of Supply Chain Digitalisation - Jotun The biggest effects of digitalisation for Jotun in the factories and warehouses are first and foremost fewer errors and strain on people in places with a lot of physical labour. In turn, this reduces sick leave and injuries. Automation and smart factories also have a big impact on staffing. So, in the long run, this is a significant benefit because it can help reduce the workforce, thereby lowering the expenditure incurred. Furthermore, other benefits that come with digitalisation are increased efficiency and flexibility. Which will create value for both the customer and for Jotun. Furthermore, digitalisation improves flexibility by for example having the option of, if necessary, very quickly finding out where the goods are located, where they have raw materials etc. so they can quickly re-route raw materials from one company to another. Page 39 of 92 Using EDI creates value for both the Jotun, the supplier, and the customer. It allows the receiving of market information, communicating with customers, taking orders and so on, everything becomes more efficient and flexible. Where previously there was needed staff to sit down and take orders, this now happens automatically. This in turn is of great value, both in terms of staffing and in terms of mistakes. For the customer, it is also beneficial and the flow especially between Jotun as a supplier and the wholesale customers becomes much more efficient where they have EDI. Also, when it comes to transport and logistics, digitalisation has great value for both Jotun and for the carrier who receives all the information electronically. This avoids manual handling of the information and gives both customers, the carrier and Jotun the track and trace benefit. The carrier has all the papers and communication digitally, such as transport documents, import documents, export documents and others, which are then also available for the customer as well. Furthermore, by communicating digitally both internally and externally, it contributes to cost reductions and allows supply chain participants to be more flexible, in the sense that it offers the possibility to quickly set up meetings and communicate despite large distances. The Logistics and Distribution Manager says: “You almost forget, but just a few years ago we might not have been able to sit like this and have an interview in this way. … So, that part has changed drastically in the last 2- 3 years. Now, we have good opportunities to have video meetings through Teams, with both our customers and our subsidiaries. Not to mention any meetings that may have required us to travel internationally to for example Dubai in the past, now we can rather meet digitally. It is much more efficient and sensible to attend digital meetings. At least sometimes, we must not forget that relationships and people meeting are also important in some contexts” [Authors’ translation]. The Group Technical Director also emphasises that it is difficult to say what are the direct digitalisation effects, and what are effects of other changes in the company. Because digitisation is an integral part of everything Jotun does, and everything they have done in the last 10 years, one cannot completely separate one from the other. However, what they see is that the effects come over time. At the beginning of every major change, such as the implementation of an ERP system, everything seems very cumbersome. And perhaps includes a lot more steps and bureaucracy than the same process has done before. So, in the beginning, one does not see the positive effects or value of these digitisation efforts. But as Page 40 of 92 people get used to it, and you get to implement it everywhere in the company and standardise the processes around it, then the benefits and value of it become clear. The Group Technical Director says that: “People learn to work with it, you may decrease staffing instead of increase because you find smarter solutions and the suppliers develop together with you. Then suddenly you are in a situation where you get a lot of the effects parallelly. You get the effect of simple reporting, standardized data, standardized processes, and maybe even simplified processes.” [Authors’ translation]. Nevertheless, although digitalisation can bring benefits such as increased transparency, efficiency, and flexibility, this is not the main thing that makes Jotun’s supply chain resilient in situations like a pandemic or a war. The biggest benefit, the Group Technical Director sees is the geographical dispersity and the autonomy each subsidiary has. With local production having large decision-making authority, this is what has the fastest effect when it comes to supply chain disruptions. 4.2 Parker Hannifin Parker Hannifin is an American manufacturer in the B2B segment headquartered in Cleveland but with its operations globally dispersed. The firm has approximately 58,000 employees and is a component manufacturer that specialises in motion and control technologies. Parker Hannifin has multiple subsidiaries that are dispersed globally, one of these subsidiaries is Parker Hannifin Manufacturing Sweden AB based in Trollhättan hereinafter referred to as Parker, while references to the whole corporation will be referred to as Parker Hannifin. Parker manufactures hydraulic motors and hydraulic pumps for industrial vehicles, and although these components are manufactured in Sweden most of them are exported globally. Two interviews were conducted, the first interview was conducted with Lars, who is the Production Development Engineer at Parker, which provided more of an internal perspective on the subsidiary’s supply chain. The second interview was conducted with Pernilla, who is the Supply Chain Manager at Parker, which provided more of an external perspective on the subsidiary’s supply chain. 4.2.1 Parker Hannifin’s Supply Chain and SCM Manufacturing hydraulic pumps and motors are the core of Parker’s operations, to do so the subsidiary procures raw materials such as cast iron which is processed into various Page 41 of 92 components. A lot of the components are produced in-house to ensure quality, but the subsidiary also procures finished components if they are deemed less crucial for the final output. Parker’s suppliers are dispersed where some are in the US, Japan, and South Korea, but most of the raw materials and components are sourced in Sweden and the rest of Europe, to reduce lead times. Once the components have been procured and produced, they are assembled to create the hydraulic motors and pumps that eventually are delivered to the customers, which mostly are dispersed across Europe, Asia, Australia, and North America. To manage its supply chain, Parker uses sales and operations planning, broken down into different levels. The sales and operations plan begins with the budget and expectations set by Parker Hannifin’s headquarters each fiscal year. To manage the expectations, they are broken down monthly, weekly, and daily to understand what needs to be done and how it can be achieved. To do so various paraments are considered with regards to the internal and external operations to estimate future demand and the possibility to meet the demand. The parameters inter alia include market trends, expected demand, capacity, and availability of raw materials, which eventually will result in a short-term forecast being created to plan and base decisions on. As a subsidiary the company structure is organised in a way in which Parker does not own its facility, is not able to enter contracts with suppliers by itself, and is not selling directly to customers, which to some degree has shaped its supply chain. What the company structure essentially entails is that Parker’s facility is owned and controlled by Parker Hannifin’s European office in Switzerland. On the supplier side, this means that while Parker is responsible for the negotiation and all preparation in coming to an agreement with a supplier, they do not have the mandate to sign anything as this is handled by the Swiss part of the firm. On the customer side, Parker Hannifin has a central sales organisation, so Parker does not sell anything directly to its customers. However, Parker has a customer service department as a part of their supply chain, but instead of being connected directly to their customers, the department is connected indirectly through serving the sales organisation that becomes some sort of an internal customer for Parker. As Parker does not directly sell to their actual customers there is a limited interaction. However, depending on the importance of the customer and the requirements they have, this usually results in a closer and more direct relationship between Parker and the customer, where large customers usually visit the subsidiary. With the larger customers and orders, Page 42 of 92 delivery plans are often also provided to be able to plan for and execute the orders according to requirements. On the other hand, smaller orders are dealt with accordingly with orders being transmitted continuously through EDI from the sales organisation to Parker. Regarding the suppliers, the relationship is more direct where raw materials and components are procured on a daily or weekly basis. To ensure the quality of the suppliers and their ability to supply the right quantities in time there is a direct dialogue with the suppliers, and audits are also made to ensure contractual compliance. However, one of the main challenges today in Parker’s supply chain is that there is limited transparency further upstream in the supply chain which makes it difficult to plan and proactively take measures when disturbances occur. 4.2.2 Supply Chain Digitalisation at Parker Hannifin It is acknowledged that Parker Hannifin is operating in a traditional industry which partially has influenced the current state of the digitalisation at Parker Hannifin as a whole and subsequently also at Parker. But with technologies evolving Parker is exploring the possibilities and suitability of further digitalisation in their supply chain. To do this the subsidiary is in the process of developing a digitalisation plan to explore the usefulness and applicability of various technologies for the subsidiary to determine whether investments in these technologies would be financially sound from a cost/benefit perspective. The plan is not complete, but Parker also works with a lot of projects for various purposes. One of the ongoing projects is concerned with improving the internal logistics through automation since the movement of materials to a large extent is handled manually, and to achieve this Parker has begun to implement transportation robots to facilitate this automation. Moreover, the subsidiary is also involved in an R&D project with a research institute where they inter alia are looking into the potential application of RFID technology at Parker. Furthermore, the Production Development Engineer also highlights that Parker is working with the Lean philosophy, which emphasises the removal of unnecessary steps in a process. He states that this philosophy is incorporated into Parker's core, so this also affects how Parker addresses digitalisation. If a new technology is to be incorporated, it also has to increase efficiency or improve some sort of process and simplify. Not just implement new tools, but make sure these tools are actually improving something. He gives an example of how previously management would be resistant to adopting new technology, and highlights Page 43 of 92 “We couldn’t just introduce a technological step that solves a problem, but rather simplify the process instead. There are good things in that reasoning, but somewhere you work with the process so much that you actually benefit from automating these processes instead and thereby improve them” [Authors’ translation]. Aside from the ongoing digitalisation projects, Parker has for a long time also been using an overarching ERP system and EDI. EDI has primarily been used in relation to the sales organisation and the suppliers to transmit information, communicate, and place orders. EDI is currently fully integrated between Parker and the sales organisation so all the information and related documents regarding the incoming customer orders are managed through EDI and integrated into the ERP system. However, in relation to the suppliers, an EDI integration with Parker is not as widespread, some suppliers use EDI and some do not, which makes the order process towards suppliers less standardised. This can become problematic as Parker also uses a supplier portal based on EDI where the subsidiary uploads and updates their forecasts, fixed orders, and delivery plans, which enables a form of self-service for the suppliers as they can access and use the information to supply Parker according to demand. As hydraulic pumps and motors consist of multiple individual components, Parker also uses a pick by voice system in the assembly process to provide support for its employees in identifying and gathering the right components from inventory. As implied by the name pick by voice essentially means that instead of having a list of multiple components and their location, pick by voice communicates verbally with the employee to ensure that the right components and the right quantities for a specific assembly task are picked from inventory. How this works is that a certain task is scanned into the pick by voice system, and the employee then uses a headset where the system will go through each component that should be gathered by providing verbal information regarding the component's article number, shelf number, compartment number, and quantity. For confirmation, the employee then communicates back to the system by repeating the quantities they have taken and the compartment number, in which the system either will provide a conformation whether the right components and quantities have been picked or not. 4.2.3 Value of Supply Chain Digitalisation - Parker Hannifin As Parker for a long time has had an overarching ERP system, and EDI for suppliers and the sales organisation it is difficult to imagine a scenario without such technologies. Though a full EDI integration towards some suppliers is lacking, there is a desire to develop this as it is Page 44 of 92 believed to not only benefit the suppliers and Parker but also affect the customers, as improvements upstream are thought to lead to improvements downstream. Some of the notable effects have been that EDI has made information more accessible and accurate as information flows becomes standardised and faster, in relation to the supplier portal greater transparency is also provided. This enables Parker as well as its suppliers to improve their supply and demand forecasting and respond accordingly, which has had positive effects on maintaining the desired inventory level. The Supply Chain Manager describes: “If you look at the suppliers, this has created more of an even input for them but also that they actually can trust the information they receive from us, so the reliability increases…. in a sense it is about another freedom for them in how they order and plan, that has been a great advantage and we have also noticed that this has resulted in a very good delivery security.” [Authors’ translation]. When it comes to changing current processes and methods by investing in technologies to become more digitalised, The Production Development Engineer emphasises that three parameters are in many cases used to evaluate whether such investments and changes have been successful. These parameters include safety and ergonomics, product quality, and productivity. When evaluating the implementation of the pick by voice system improvements in all these parameters were found. Safety and ergonomics improved, since prior to using the system a lot of picking errors occurred which resulted in the employees going back and forth between the inventory and assembly multiple times to gather all the necessary components. Product quality improved, not only in terms of the final characteristics of the hydraulic motor or pump but also in the sense that the customers were able to get their orders fulfilled faster as errors decrease. Similarly, the productivity also increased, since the pick by voice system has resulted in higher accuracy, essentially meaning that the employees can pick more components in a shorter timeframe. Another benefit of the system has been that greater control over inventory levels has been achieved since there is a confirmation from the system once components are picked which subsequently registers the quantity removed from the compartment. 4.3 Stadium Stadium is a Swedish sport and sports-fashion retailer in the B2C segment based in Norrköping with over 180 physical stores dispersed across Sweden, Finland, and Norway. In addition to the stores, e-commerce is also becoming a large part of Stadium’s operation. The Page 45 of 92 firm sells sporting equipment and sportswear under its own brands as well as external brands. Though Stadium’s customer base is concentrated in Scandinavia, the firm is also connected globally as its supplier base mainly is concentrated in Asia. The interview was conducted with Daniel, who is the Supply Chain Director at Stadium and a part of the executive group and has the overall responsibility of managing and developing Stadium’s end-to-end supply chain. 4.3.1 Stadium’s Supply Chain and SCM For Stadium’s own brands the firm has a large supplier base dispersers across Asia but with a concentration in China where most of the suppliers operate. The suppliers consist of factories that produce the various products Stadium sells under their own brands. Stadium designs its own products, but production is outsourced to the suppliers where Stadium procures the capacity needed in the factories for its products. However, Stadium remains in close collaboration with its suppliers when it comes to production, but also with regards to how packaging and placements within containers are done. When production is done Stadium is responsible for organising the transportation from the factories in Asia to Sweden. This is done through DB Schenker which in turn uses various shipping companies to facilitate the transportation of the products from Asia to Norrköping’s harbour which eventually is picked up and delivered by trucks to Stadiums distribution centres. As most of Stadium’s products are transported from Asia to Sweden by cargo ships, the ongoing container shortage is projected to have major consequences for Stadium since transportation costs increases, while at the same time ensuring seasonal product availability becomes difficult as lead times increase. At the same time Stadium is experiencing a growth both from its in-store sales and e-commerce which has provided the need for Stadium to expand to an additional distribution centre, which has been easier said than done as constructing such facilities also takes time. Norrköping plays an important role in Stadium’s supply chain since the firm currently has three distribution centres, which all are located there. The distribution centres in Norrköping act as a central hub which all products go through before going out to the stores in Sweden, Finland, and Norway, or directly to the customer. This is the case for the external brands as well where Stadium directly procures finished products from these suppliers without any involvement in the design and production, but once these products reach the distribution centres Stadium takes over the responsibility. The distribution centres differ with regards to Page 46 of 92 the degree of automation where one is completely automated, one is completely manual, and one is semi-automated. The three distribution centres are currently managed by Postnord, which also is responsible for the distribution to all of Stadium’s stores and larger parts of the e-commerce distribution directly to customers. 4.3.2 Supply Chain Digitalisation at Stadium For a long time, Stadium has used an ERP system to support and manage its supply chain. The system is inter alia used to set refill levels and execute customer orders. Provided that there is stock on hand warehoused in the distribution centres the system automatically triggers the customer order. Similarly, if the refill level is passed for a product, the system automatically signals that an order towards the suppliers should be placed. However, Stadium does not have an all-encompassing system that integrates all participants in the end-to-end supply chain, but they are currently looking into the possibility of using a product lifecycle management (PLM) system to be able to go further upstream in the supply chain. Stadium has recently implemented RFID in their supply chain, which is an identification technology that predominantly has been used in the stores for its identification and tracking capabilities. This enables them to quickly and more frequently determine individual stores’ inventory balances, where a certain product is in the store, when a product needs to be replenished in the store’s sales area, and whether a product is in the stores stock or needs to be ordered from the distribution centre. Further utilisation of RFID for in-store purposes is also considered such as smart fitting rooms and mirrors but is not something that currently is in place in the stores. Also, at Stadium’s distribution centres RFID tunnels are being tested whereas the contents and quantities of inbound and outbound orders instantaneously can be determined. RFID is not a new technology but has not been adopted by Stadium previously since it has been considered immature, expensive, and less accessible in the past. For Stadium’s own brands the RFID tag is applied to the products at the suppliers in Asia, and for the external brands most of the suppliers now also apply the RFID tag before reaching the distribution centres, but for those who lack the ability, the RFID tag is applied at the distribution centres before reaching the stores. For the E-commerce side of Stadium, the return process has also undergone changes. Traditionally all their outgoing packages to the customers have included a return label, where the customers’ purchase is refunded within a couple of days when the package physically has been returned. Instead of receiving a return label, Stadium’s customers now receive a text Page 47 of 92 message containing a link that eventually provides a QR code that the customer shows to their local postal service provider in exchange for a return label. However, more importantly, this has allowed Stadium to collect vast amounts of data from the customers with regards to why they return certain products and their return behaviour. 4.3.3 Value of Supply Chain Digitalisation - Stadium Though the utilisation of RFID technology is relatively new for Stadium and is something that continuously is being explored regarding its application in the supply chain, the current implementation has shown to have had an effect and yielded benefits for Stadium’s supply chain. With RFID, Stadium has gone from having a 70% correct inventory accuracy to 99,5% correct inventory accuracy in its stores. This becomes important when replenishing the stores to maintain the desired inventory level. As the desired inventory level can be maintained at the stores with RFID this also increases Stadium’s margins as the right products are sold in the right place at the right time, which reduces the risk of needing to put products on sale at a decreased price. RFID has also enabled Stadium to enhance the customer experience as it provides visibility for the employees about individual products’ location and quantity in the store. For example, it is important for Stadium to consistently have products displayed and available in the store’s sales area to enhance the customer experience. With RFID, if certain products in the sales area begin to be sold out, the employees get notified that the product needs to be replenished and moved from the stores stock to the sales area to ensure product availability for its customers, the Supply Chain Director emphasises: “The implementation of RFID in all our physical stores has been a huge game-changer for us as it has allowed us to have a perfect inventory balance in all our physical stores. This means that we avoid a lot, we have the products in the sales area when the customers want them, we see that the turnover rate increases, we improve our margins, and we increase customer satisfaction.” [Authors’ translation]. Aside from the value provided for Stadium and its customers, the implementation of RIFD has also proven to influence the external brands' suppliers as the benefits of RFID in Stadium's stores are not limited to its own brands that they sell but also encompass the external brands. When Stadium maintains a high inventory accuracy and makes sure that all its products do not spend more time than needed in stock and instead ensure product availability in the store's sales area, this becomes valuable for the external suppliers as well, the Supply Chain Director says: Page 48 of 92 “We have sat down with many of our external suppliers and told them about the journey we have made because they also want to make that journey and be a part of it by applying and using RFID both in their warehouses and distribution. … So, all of a sudden, logistics and this type of digitalisation becomes a part of the partnership with these suppliers, they see it as valuable.” [Authors’ translation]. On another note, Stadium also has digitalised its return process which has allowed for valuable data to be collected about its customers’ return behaviour. Stadium can collect data and interact with its customers in the return process, and provided that the customer does not have an abusive return behaviour and is perceived to be a valuable Stadium member, the customer’s purchase can be refunded instantaneously before Stadium even receives the returned package. This facilitates an opportunity for Stadium to create a situation where the return process not only leads to a product being returned but also a situation where the risk of losing the customer is mitigated as the customer instead can make a new purchase at the same time. To provide such an opportunity it is emphasised that some sort of digitalisation is a prerequisite. Stadium also views a further digitalisation of its supply chain to have great potential in increasing the supply chains resilience, as they recognise the value of being able to have reliable forecasts to make wise decisions in the supply chain to mitigate impacts of disruptions and respond to changes in customer demand, which is believed to be enabled by digitalisation and more specifically with AI. 4.4 Postnord Postnord is a Swedish service provider of logistics solutions in the B2B and B2C segment headquartered in Stockholm and with operations dispersed across Scandinavia where most of its customers also are located. As a provider of logistics solutions, the firm’s position in a supply-chain context is unique, since Postnord in a sense does not have a traditional supply chain but rather is concerned with facilitating solutions for their customers’ supply chains. The interview was conducted with Jörgen, who is a Logistics Advisor at Postnord’s unit for strategic business development and works with advising some of Postnord’s largest customers. Page 49 of 92 4.4.1 Postnord’s Role in the Supply Chain From Postnord’s perspective, a distinction is made between the sending customers and the receiving customers. The former is Postnord’s customers, and the latter is the customers of Postnord’s customers, in turn, Postnord’s core business is to facilitate the logistics necessary from the sending customers to the receiving customers. Though the sending customer is Postnord’s actual customer, from Postnord’s perspective the sending customer more resembles that of a supplier due to the unique position of Postnord in a supply-chain context. In the sending customers’ supply chains Postnord’s services are often referred to as last-mile delivery. But from the perspective of Postnord, this essentially constitutes their entire supply chain since the firm has its own activities that take place in connection to the transportation they facilitate. While last-mile delivery in the sending customers’ supply chains seems straightforward, Postnord’s involvement includes more than that. Postnord’s involvement begins with the input from the sending customers, these inputs are various goods that the sending customers have generated in their supply chains that need to be delivered to their customers. As Postnord has multiple sending and receiving customers in different locations, deliveries typically do not go directly from the inventory of the sending customers to the receiving customers’ location but are sorted and broken down on a geographical level before reaching their destination. When orders have been placed by the receiving customers and packaged by the sending customers, Postnord usually comes and pick up the orders. The orders are then transported by Postnord to one of its central terminals where they are sorted based on region and reloaded onto trucks with other orders going to the same region. When this is done, the orders are transported to one of Postnord’s regional distribution centres where the orders once again are sorted and reloaded onto trucks, but this time on a local level. Once this is done, Postnord initiates what they refer to as their last-mile delivery as it is here the final delivery from one of Postnord’s local facilities is made either directly to the receiving customers’ location or to a local delivery point, which marks the end of Postnord’s involvement. Besides this Postnord also provides other solutions where the firm becomes even more involved and integrated with its sending customers' supply chains, this is for instance the case with Stadium where Postnord not only facilitates the transportation but also manages all their distribution centres and exclusively are responsible for the delivery to Stadium’s stores and most of its e-commerce. Page 50 of 92 Some of the main challenges today in the sending customers supply chains is that the complexity has increased where one of the most important aspects is to maintain product availability since customers can be lost if the product is not in the right place at the right time. The complexity lies in, that multiple channels are being used to reach the receiving customers, quantities have increased, the product flow is differentiated, and customer requirements are changing. When the complexity increases for the sending customers, the complexity for Postnord also increases due to their involvement in their customers’ supply chains. To mitigate this complexity Postnord has a desire to work even closer upstream with its sending customers to be able to provide a condition where it is possible to improve the receiving customers’ experience downstream. 4.4.2 Supply Chain Digitalisation at Postnord For a long time, Postnord has worked with automation in their facilities, digitising transportation documents and information, and improving last-mile delivery through adopting digital tools such as hand computers and route optimisation software. Today Postnord’s facilities are to a large extent automated through various robots and shuttle machines, this is also something that its customers to a larger extent are adopting in their own warehouses. But although automation is in place, the terminals and warehouses are not completely autonomous as there still is a dependence on manual labour to perform a variety of tasks. In connection to the automation of terminals, Postnord is also looking at wider technological advancements to explore the suitability of various technologies for its operations. One of these technologies has been machine learning, which has been used to identify large quantities of unstructured information on parcels such as handwritten addresses to further automate the sorting process at its terminals. Moreover, 3D printing is also a technology that Postnord uses, though on a much smaller scale and currently only implemented at one of their subsidiaries as the suitability is low for Postnord’s core business. While Postnord makes efforts to become more digitalised in its own operations, as a part of its customers’ supply chains Postnord also becomes involved in the digitalisation of its customers to some extent. As an example, the Logistics Advisor describes: “ … maybe the customer has an IoT solution in their coffee machines showing how much the consumption is, and then when it drips down to a certain order point or consumption point, we come and deliver the coffee.” [Authors’ translation]. Page 51 of 92 As a logistics provider, Postnord is also dependent on information from its customers, which is one of the reasons the firm wants to work even more upstream with its customers to be able to generate a better outcome at the end of the supply chain. Information is today to a large extent transmitted through APIs (Application Programming Interface) from Postnord’s systems to its customers’ systems and vice versa, but a complete system integration is not in place. Receiving the necessary information early on from its customer does not only enable Postnord to better execute its activities but also enables them to provide insights to the receiving customers regarding their orders. In recent years Postnord has developed a mobile phone app for the receiving customers to get information about their orders. In the app the receiving customers can inter alia, track the progress of their orders, expected delivery time, where it is going to be delivered, as well as see the dimensions of the package. To provide such insights, Postnord has worked a lot with how the information can be captured and displayed accurately in the app. Once an order is placed and prepared at the sending customer, information is generated and eventually transmitted to Postnord. Something that has been increasingly used in the interface between the Postnord and the sending customers is DWS (Dimension, Weight, and Sorting) technology. This provides Postnord with information regarding the dimension of an order before picking it up from the sending customer, such information is valuable for Postnord to know at an early stage to determine the most suitable delivery option. Moreover, when the order eventually makes its way through Postnord’s different terminals traditional barcodes are used and automatically scanned along the way, which acts as a checkpoint that provides information regarding the location of the order at a certain point in time which is uploaded together with the dimensions of the order to the app for the receiving customer to view. 4.4.3 Value of Supply Chain Digitalisation - Postnord For Postnord a large part of digitalisation is becoming more connected with its sending customers to utilise information to facilitate a better, faster, and more differentiated product flow to enhance the receiving customers’ experience. For Postnord the flow of information is now more connected to transportation than ever before. In the paper-based world where information was transmitted and shared at a slower pace, this also meant that logistics from the sending customer through Postnord to the receiving customer occurred at a slower pace. But as a consequence of various technological developments, this has provided the prerequisites to enable a faster and more precise information flow which has had a positive Page 52 of 92 effect for Postnord, its sending customers, and the receiving customers as lead time have been reduced. The shorter lead times have also been a consequence of the increased automation of warehouses and terminals as larger quantities at a faster pace can be packaged and sorted which also is being enhanced by technologies such as machine learning to further automate Postnord’s operations. What Postnord has experienced through becoming more digitalised is that their productivity has increased, which in turn also has been an effect of their customer digitalisation as this has allowed them to increase their efficiency. Another effect of digitalisation that Postnord emphasises is that the receiving customers’ experience has increased as logistics become more responsive as lead times reduce, but also more informative as greater insights are provided regarding the status of the sending customers’ orders. For Postnord this has inter alia become evident through their app which provides various types of features. As mentioned, one of these features is that the actual size of an order is displayed relative to a person’s size, which provides the receiving customer with an idea of the dimension of the order before it is received, allowing the receiving customer to plan before Postnord has made the final delivery. Such information is useful as it is believed to enhance the customer experience since limited information in that regard can become problematic for the receiving customer. For example, if the package is very big and the receiving customer does not know this, the customer might decide to pick it up at the delivery point with a bicycle, but once the customer arrives and sees the package it is too big for the customer to transport it home with a bicycle. With Postnord’s app, such a scenario can be avoided by informing the receiving customer at an earlier stage, so by digitalising in such a way Postnord recognises that it has a positive effect as it enhances the customer experience. 4.5 Transporeon Transporeon is a global logistics company based in Germany. The company is a software company that was founded in 2000 and now employs over 1,200 people worldwide. Transporeon is growing fast and has received the Deloitte Technology Fast 50 Award five years in a row, the Forbes Diamond Award in Poland and the Gartner Magic Quadrant (Transporeon, 2022a). Transporeon is a cloud-based transportation sourcing and management platform. They connect more than 120,000 carriers with 1,300 industrial and commercial companies. Two interviews were held with Transporeon, one with Marcus, who works as a Business Development Manager – Freight Procurement, and Ewa, who is a Senior Sales Executive – Pulp, Paper, and Packaging. Page 53 of 92 4.5.1 Transporeon’s Role in the Supply Chain In short, one can say that Transporeon in a sense work as a connector or a network link, facilitating communication between buyers and sellers (i.e., the companies that buy the transport and the carriers who perform the transport), and this was the main idea behind the company. But now, the company has grown into what is essentially a TMS (Transport management system) for its customers. The Business Development Manager describes Transporeon’s involvement in the supply chain as: “So, from the moment you think you need to purchase transportation…. to the point where you purchase it, to the point where it is set up, to the point where you follow it from A to B … to the point where you handle the invoice, and finally, to the point where you analyse what we have done and what can we do better?” [Authors’ translation]. Transporeon offers the same services to all their customers but is in a sense similar to a modular business in that they provide customers with varying needs throughout the supply chain with the add-ons they require. So, although the base offering is the same, the platform is so flexible, that the different customers’ interfaces can in practice look vastly different and because Transporeon is a SaaS business, as long as the customer has purchased the service, they will always have the latest software update. Furthermore, there are approximately twelve to fifteen different modules available on the platform from which customers can select and in sense build their own platform per their needs. Then, the customer can integrate this into their existing TMS, and use Transporeon as the communication platform, to facilitate the connection between the customers’ TMS and suppliers' TMS. 4.5.2 Supply Chain Digitalisation at Transporeon It is recognised that the logistics industry has been rather traditional and that the development towards the digitalisation of logistics has moved at a slow pace though there is value to be obtained. This is something Transporeon addresses through its service offering, where the main proposition consists of its cloud-based platform. The platform facilitates a connection between the supply and demand of logistics and includes a variety of modules Transporeon’s customers can utilise on the platform to digitalise the logistics process in their supply chains. The solutions provided by Transporeon thus are a part of the digitalisation of the logistics industry and subsequently also becomes a part of the digitalisation in its customers’ supply chains. When it comes to digitalisation, Transporeon uses the newest technologies and works Page 54 of 92 actively with predictive analytics, and Transporeon considers itself a trendsetter and one of the front runners in the industry. As stated by the Business Development Manager: “I would say that we are the digitalisation. And when it comes to supply chain logistics, that is what we provide, the use of new technologies.” [Authors’ translation]. They also do not only digitalise the processes of the customer and give them merely a platform, but also utilise data to help give better predictions, and provide tools to the customer such as inter alia freight procurement, analytics, real-time visibility, and carbon visibility features. Regarding real-time visibility, trucks are connected to the Transporeon platform, which facilitates continuous visibility and transparency between all the involved supply chain participants. To provide visibility data is gathered and combined from multiple sources such as the telematics systems of the trucks, their customers, the carriers, and firms that provide map services. With all this data combined and displayed on Transporeon’s platform, transparency is achieved in its customers' logistics process. Furthermore, Transporeon utilises advanced algorithms and automation in the procurement process enabled by AI and machine learning. Having these tools available on Transporeon’s platform, the customer is better prepared and can make better decisions. However, the Senior Sales Executive recognises that supply chain digitalisation is not merely about digitising the data, but also about optimising and utilising it correctly; so, Transporeon also supports operations and helps optimise the operational processes. 4.5.3 Value of Supply Chain Digitalisation – Transporeon The effects of a digital supply chain can, according to the Senior Sales Executive, be summarised as sort of an efficiency gain throughout the whole supply chain, provided that all the participants are connected through a transparent solution. Transporeon makes things visible, and this is of great value because if you have the data, you also have the knowledge. And information and knowledge is key. The Business Development Manager agrees that this efficiency gain is one of the biggest advantages of having a digital supply chain. Moving from analogue to digital communication cuts out a lot of steps and saves a lot of time. The Business Development Manager provides an example of this within the area of freight procurement: “There are usually a lot of steps, and it will be much faster then... If we only talk about procurement, for example, we calculate quite roughly if you go from manual to our E- Page 55 of 92 procurement, you save 30% of the time because you do not need to remind, or control that the system handles everything administratively. You set it up once and then everything runs on its own, and it becomes much faster to work, so it is time-saving in the sense that you can save that type of resources.” [Authors’ translation]. Another effect of a digitalised supply chain that creates value for the different parties involved in the supply chain is transparency and visibility. Having all the data available digitally, it becomes much more traceable. For example, for the purpose of an audit. You can then go back in the documents years later, and everything you need will be available. Furthermore, with this traceability, all suppliers have the same information, so there is no lost information or confusion between any of the supply chain participants. The Senior Sales Executive explains: “Basically, you can incorporate all of them in your supply chain and make the operations of the processes visible… and they have one single source of truth regarding the order, the delivery or whatsoever. And you can incorporate them so that once you manage your delivery or your suppliers, you are better also in producing and outbound. Because, if you only have visibility in inbound you just won half of the medal or half of the prize. But you need the visibility in inbound.... to make use of it also for the outbound.” Moreover, the Senior Sales Executive explains that this visibility also gives other advantages. A digital supply chain allows for transparency and visibility throughout the whole chain, so you can mitigate the risk, and the idle times and plan more precisely because you have all the information available. Additionally, this connectedness between all the participants in the supply chain can even allow the possibility of managing a longer supply chain. “Also having connected the suppliers, and … very often to our shippers you have let’s say, the possibility to manage a longer supply chain even. Because you have many of your partners already integrated into the whole supply chain. And they all benefit from this.” Additionally, it is apparent from Transporeon’s website, that other benefits of a digitalised supply chain are the elimination of manual work, reduced labour costs, more optimised internal and external processes, and helping solve the language barrier in global supply chains (Transporeon, 2022b). Page 56 of 92 4.6 Flexport Flexport is a freight forwarder company, with headquarters in San Francisco and regional headquarters for Europe is in Amsterdam. The company was founded in 2013 and has been present in Scandinavia for 2-3 years. Flexport started up as a customs broker but started leveraging technology to bring visibility into the flows in the market, and quickly morphed into building up an online collaborative platform for global trade. Now, Flexport moves freight globally for their customers either by air, by sea, by rail or by truck. They are also still a licensed customs broker, so they clear freight for customs as well. So, everything that a global freight forwarder does, but as a hybrid of a technology company and a freight forwarder. Two interviews were conducted, with Jaap, the General Manager for Scandinavia, and Daniel, who is the Communications Manager for Europe. 4.6.1 Flexport’s Role in the Supply Chain What Flexport is essentially doing in their customers' supply chain is attacking the lack of transparency with deep visibility. Flexport is cloud-based and only consists of one platform, which is where the customers work and where suppliers work. It is an integrated platform, so that there is kind of a Facebook feed per shipment, and you do not have to send emails and excel files that are already outdated the moment you send or receive them. The platform has end-to-end visibility and can see what is happening with the cargo in real-time, not just at a container level, but broken down into purchase orders, but also at SKU levels. Flexport’s role in the customer’s supply chain is really to make the process as easy as possible, where you eliminate unnecessary steps and make the process seamless. The General Manager believes that the process nowadays is overly complicated and involves many problems. He highlights this and Flexport’s role in the supply chain with an example: “Let's say you have a factory in Chongqing where you produce glasses, and you want to ship it to Jönköping. You have at least 15 to 20 different companies or entities touching either your goods or your data flows, so there are at least 15 to 20 handover points. Firstly, you can think about your factory in Chongqing. There you have a trucker that picks it up from your factory and brings it to the dock to go onto a barge. Then you have the bargeboards, it goes into the barge provider, and gets uploaded to the port of Shanghai. At the port of Shanghai, they have the shipping line, then you have the customs broker, then you have the port of Gothenburg. … You have your freight Page 57 of 92 forwarder, you have your insurance company, you have your trucker, and you have your destination warehouse. So, in the end, there are a lot of different actors in that chain. They use their own systems, they use their own documents. Sometimes they have physical documents or PDFs or excel files that are being sent around and it is overly complicated. … Flexport’s role is really to make that as easy as possible.” The General Manager also emphasises that every industry and company is different, thus customers also have different needs when it comes to their supply chain and logistics. Flexport addresses this by taking its time while communicating with customers and entering new partnerships. This is something the General Manager believes is one of the things that they do differently, and which sets Flexport apart from others. They do not merely push out offers and pricing sheets and say: We do not merely send out pricing sheets and tell people, "OK, for $1000, we can move you from Gothenburg to Shanghai." They instead try to understand their client’s problems, and logistics and supply chain concerns, and then work out what kind of solutions are ideal, because it is usually a mix of various factors that are required. Flexport, in a way, functions as a form of mass customization for its consumers. Whether their customer is transporting wood logs from Sweden or importing medical devices from the United States, they will have the same requirement for visibility and control. So, the base is the same for every customer, but how the remainder is put together differs from one to the next. 4.6.2 Supply Chain Digitalisation at Flexport Flexport’s main offering is a digital platform. Therefore, they address digitalisation quite actively and want to be viewed as a trendsetter when it comes to new technologies and digitalisation. The Communications Manager believes the freight industry to be quite far behind in terms of the wave of digitalisation, and most of the tasks are still done in an old fashioned, analogue way. “I think as the industry is still on the first steps of being more digital, there's a lot of our work that needs to be done by a normal employee that’s like handling the data, looking at sheets, putting in some information about the freight.” The Communications Manager believes that it is high time to accelerate the digitalisation efforts and start moving faster. He thinks that the same drivers found in the industry 4.0 discussions and literature, which other industries started to look at ten years ago, can be Page 58 of 92 applied to freight forwarding as well. Companies such as Flexport are highly needed and are helping push the industry in the right direction. And, as the trendsetters, they are essentially setting a new standard for the whole industry. However, the General Manager recognises that this role as the trendsetter might change as the digital landscape evolves rapidly. “So, first and foremost, we are one of the front runners when it comes to the digital transformation of freight forwarding. But we are also very aware that the tech landscape goes very fast, so we might be the front runners today, but in a couple of years from now we might not be, so we are always on our toes. The key thing is that we continue to attract the right tech talents, and of course also logistics talents, but the tech talents to keep us ahead of the curve.” As a means of keeping up with this, Flexport has launched its own mini venture capital arm, to invest in log tech start-ups. Also, they are constantly looking into new opportunities along with investors. The General Manager believes this to be very important in order to continue being one of the front runners when it comes to supply chain digitalisation. The General Manager states: “To us, it's really around partnering with new players, staying curious, learning from our competitors, being humble about what you're achieving yourself, and who your competitors are, and never rest. Because if you become complacent, that is the moment that you are no longer becoming relevant.” To facilitate the solutions Flexport provide for its customers on their cloud-based platform, they rely on the gathering and utilisation of large amounts of data. For instance, for Flexport to provide real-time traceability and transparency in their customers' supply chains, data is collected from multiple sources and integrated into the platform. When tracking ocean freight, Flexport tracks containers by firstly confirming that the container has boarded the ship, this is confirmed by having data transmitted from the shipping company to Flexport. However, this information only provides insights that the container has boarded the ship, but not its actual location. So, another source of data is required to identify the container’s location, to do so there is a data feed Flexport utilises by tapping into the AIS (Automatic Identification System) of the individual ship which transmits the coordinates of the ship to Flexport’s platform. Another way data is collected is through Flexport’s mobile phone app used by truckers, where Flexport tracks the location of the trucker through the app. Once Page 59 of 92 delivered the trucker will take a picture of the delivery as a receipt which is uploaded to the platform through the app for the involved actors and receiving customer to view. 4.6.3 Value of Supply Chain Digitalisation - Flexport One of the most noticeable and key benefits of digitalising the supply chain through Flexport, according to the Communications Manager, is the efficiency gain and the time-saving aspect of having all communication and information available on a single platform, which also in turn reduces costs. He gives the example of a client who saved forty thousand emails per year after implementing Flexport’s solutions. “So, if you look at the time, how long does it take to write an email? And if you are saving like, almost 40,000 emails a year going back and forth, like, where is my stuff, can I have the number, addressing the carriers and so on. So, all this communication that goes along from within these different parties, that saves a lot of time. And if you save time, you save costs, right?” Transparency is also highlighted by both the General Manager and the Communications Manager as one of the most significant benefits of a digital supply chain. By making use of the available data and information, one is better equipped to make more educated and strategic decisions. Information and transparency both increase the resiliency of the supply chain and make you more prepared for every situation. The Communications Manager states: “If you have more insights on certain processes. And you have really good insights on a process … of course, that helps. If you have no information at all, you cannot make any decisions. … So, if people have all the right information to avoid an unhappy situation, it builds resiliency.” In essence, having a platform such as Flexport that digitalises the whole supply chain brings value to all the parties involved, everything from the customer to the supplier and carrier. Flexport is using the data available, which benefits the whole supply chain, and bring together everyone involved so they are all on the same page. The portal shows valuable insights, which may vary depending on the role in the supply chain, and if you have integrated it into an existing ERP system, or solely using the Flexport platform. But, as the General Manager highlights, having all the information and insights you need right there on Page 60 of 92 the same platform, is highly valuable when it comes to decision-making, and allows the company to not spend too many resources on the logistics part. “It allows companies to grow faster, not to spend so much time on their logistics, and also integrate our technology because it's modern into their ERP systems and circumvent some of those expensive integration costs you have with traditional companies”. 4.7 Summary of Empirical Findings Two tables are presented below where a summary of the empirical findings and key takeaways are highlighted from the case companies. Table 3 highlights the findings from the focal firms and Table 4 highlights the findings from the service providers. Page 61 of 92 4.7.1 Findings - Focal Firms Jotun Parker Hannifin Stadium Supply chain Chemicals B2B supply chain, Manufacturing B2B supply chain. Retail B2C supply chain. Products either selling to wholesalers or Products include hydraulic pumps include sports equipment and to retailers. Products include and motors. sportswear. paint and coatings. Relationship Direct relationship to suppliers. Direct relationship to suppliers. Direct relationship to suppliers. to suppliers Main suppliers include raw Main suppliers include suppliers of Main suppliers include suppliers material suppliers and raw materials and suppliers of of external brands and suppliers packaging. components. of Stadium’s own brands. Relationship Direct relationship with Indirect relationship with Direct relationship with to customers customers. Interaction with both customers. Main form of customers. Interaction either wholesaler and retailers. interaction occurs through the occurs through e-commerce or central sales organisation. Stadium’s physical stores. Addressing Works actively with digitalisation Actively considering ways to Actively considering a further supply chain but does not have an further digitalise its supply chain. digitalisation of its supply chain. digitalisation overarching goal or digitalisation Currently in development of a Currently looking into a PLM plan. digitalisation plan, and ongoing system and a further expansion projects. of their recent RFID implementation. Current supply ERP system, EDI, web order ERP system, EDI, supplier portal, RFID, ERP system, e-commerce, chain portal, automation, intelligent pick by voice, and transportation and the digitalisation of the digitalisation robots, digital communication robots. return process. both internal and with suppliers and carriers Value of Less errors in production and Less errors in assembly process, Inventory accuracy, product supply chain warehouse, less strain and inventory accuracy, productivity, visibility, efficiency, transparency, digitalisation injuries on people, transparency, efficiency, ergonomics, customer retention, profitability, for focal firm impact staffing, reduced costs, transparency, access to reliable increased margins and turnover. increased efficiency, improved information, improved forecasting. flexibility, less expired products Value of Transparency, improved Product quality, lead time Improved in-store interaction, supply chain flexibility, better availability of reductions, product availability, product availability and access, digitalisation products, better flow of customer satisfaction. instant refunds, enhanced for customers communication customer experience. Value of Transparency, improved Transparency, information Less time in stock, more supply chain flexibility, better forecasting, and reliability, self-service, improved exposure to customers, digitalisation option to re-route raw materials forecasting, supplier satisfaction. opportunities for learning and for suppliers collaboration, supplier satisfaction. Page 62 of 92 Challenges in Raw material access, Limited transparency upstream in Rising logistics costs, ensuring the supply shortage of transport services, the supply chain beyond tier 1 seasonal product availability, chain unforeseen events such as suppliers. lack of capacity. COVID-19 and war, access to right knowledge Table 3 Summary of empirical findings from the focal firms Page 63 of 92 4.7.2 Findings – Service Providers Postnord Transporeon Flexport Role in supply Facilitation of logistics and Works as a network link and Providing an end-to-end chain transportation solutions between facilitates communication platform giving shippers greater sending and receiving party. between buyers and sellers, visibility and control. Also customer can either use the provides a standalone customs Transporeon platform or brokerage service. integrate the system in their existing TMS. Relationship to Direct relationship with the Direct relationship with customer Mainly work as a connection supply chain sending and receiving parties, and carrier, by facilitating the between participants, with a participants through the facilitation of communication between the direct relationship with customer logistics between them. participants through its platform. and carrier, as a freight forwarder. The customs brokers are in direct contact with other supply chain participants. Addressing Working actively with Consider itself a trendsetter and Strive to be in the forefront of supply chain digitalisation by considering innovator, addressing supply technological developments, digitalisation wider technological chain digitalisation actively trendsetter, addressing supply developments and its suitability chain digitalisation actively for Postnord. Current supply Automation, shuttle machines, Cloud based platform, Cloud based platform, chain robots, machine learning, APIs, incorporating market intelligence incorporating data and digitalisation DWS technology, and mobile and data into the platform, information into the platform, phone app. automation, AI, machine learning mobile phone app Value of supply Reduction in lead times, tracking, Increased efficiency, saving time, Increased efficiency, saving time, chain product visibility, transparency, saving costs, transparency, saving costs, transparency, better digitalisation increased quality of delivery, visibility, better decision making prepared for every situation, for participants productivity, access to documentation information. Challenges in Managing multiple channels and Lack of connectivity, lack of Product flow (getting the the supply larger quantities, changes in transparency, lack of automation, shipments from A to B), external chain customer requirements, sustainability, analogue processes factors and unforeseen events differentiated product flow, ensuring product availability. Table 4 Summary of empirical findings from the service providers Page 64 of 92 5 Analysis 5.1 Supply Chain Digitalisation is Addressed in Various Ways The empirical findings clearly show that how companies view, and address digitalisation varies greatly, both for focal firms and for service providers. Companies such as Jotun and Parker are considered to be laggers or followers and address digitalisation merely because they should, as a means to keep up with competitors and do not have digitalisation as a part of their core business. Other companies, such as Flexport and Transporeon are considered trendsetters and have digitalisation and technological innovation as part of their core business and value proposition. However, although the findings show that how companies view and address digitalisation differs, all the case companies acknowledge that digitalisation and specifically digitalisation of the supply chain is in most cases beneficial and highly necessary. This implies that there is an awareness in the case companies about the importance of exploring opportunities in further digitalising their supply chains to remain competitive. This resonates with the idea that digitalisation is no longer an option for businesses seeking to remain competitive in fast-changing markets, but rather a requirement (Alicke et al., 2018). However, this also implies that exploring opportunities for further digitalising their supply chains is not always a priority and can be approached differently, as has been established above in the case companies’ current digitalisation efforts where some can be labelled as trendsetters and others as followers in that regard. The findings also suggest that there is a difference between how firms adopt digitalisation within the organization, compared to how they view it with respect to the global supply chain. For example, although Jotun has begun to utilise digital communication technologies for internal collaboration to the point where much of the internal communication now is digital, it is not certain or evident from the findings that this technology adoption was done with the overall supply chain efficiency in mind, even if it in actuality has proven to have had a positive effect on their supply chain. Furthermore, one aspect of this brought up by Jotun, is that in many circumstances, it is easier to adopt new technology where one sees direct benefits. As digital communication is one of the things that almost everyone uses every day, it is easier to both utilise and see the immediate benefits. This resonates with the idea that it is not as straightforward as merely digitalising because something is considered to be digitalisation, but rather that consideration needs to be taken to the suitability and needs of the firm and whether the firm has the means to make use of it (Rachinger et al., 2018). This Page 65 of 92 implies that firms in many cases will accept familiar technologies with well-known benefits faster than other innovative technology or tools which are new and unfamiliar, both in terms of utilisation, benefits, and value, which in turn can be argued to affect how companies address and adopt digitalisation. On another note, as proposed by the SCM literature, competition can occur not only at the firm level, but also at the supply chain level, and there is value to be gained from actively managing the global supply chain (Blanchard, 2010; Branch, 2009; Hugos, 2003). This can be connected to the digitalisation of firms. Thus, one can argue that it also becomes important to look at digitalisation from a global supply chain perspective, and not just at the firm level. Looking back at the definition of DSC provided in the theoretical framework, it is described as an “intelligent best-fit technological system that is based on the capability of massive data disposal and excellent cooperation and communication for digital hardware, software, and networks to support and synchronize interaction between organizations by making services more valuable, accessible and affordable with consistent, agile and effective outcomes” (Büyüközkan & Göçer, 2018: 165). However, while the case companies have all implemented and adopted some form of digitalisation, this does not fully reflect the multiple aspects highlighted in the DSC definition. Rather, certain features of the definition can be observed in the findings such as the utilisation of data, digital communication, and software and hardware integrations, suggesting that none of the case companies fully can be described in terms of having a DSC, although they have digitalised parts of their supply chains and experienced similar benefits which are described in the DSC literature. 5.1.1 Firm Characteristics and Industry Affects the Mode of Supply Chain Digitalisation The empirical findings show that although all the case companies have digitalised their supply chain to some degree, their mode of digitalisation varies. Both Jotun and Parker, as more traditional production, and manufacturing firms, have made use of, and are curious about robots and AI. While Stadium as a sports retailer with a close connection to its customers has made use of technologies such as RFID to manage its inventory balance. Also, what is common for all the focal firms’ modes of digitalisation, is that they utilise technology such as an overarching ERP system and EDI which facilitates better communication and collaboration between supply chain participants. The findings from the service providers are similar, and they also reveal that the mode of digitalisation differs from firm to firm. Flexport Page 66 of 92 and Transporeon, both being cloud-based service providers, has very similar modes of digitalisation, focused on the collection and utilisation of data and market intelligence to provide their platform to the customer, with the use of AI. Postnord, on the other hand, as a more traditional logistics company, has a different mode of digitalisation, with automation, robots, machine learning, DWS technology and APIs, as Postnord is involved in the supply chain in a different way than Flexport and Transporeon. In that regard, it becomes apparent that the form of digitalisation to some degree varies from firm to firm but also from industry to industry. This makes sense considering some of the components of industry 4.0 mentioned by Hermann et al. (2016), namely cyber-physical systems, the internet of things and smart factories, which arguably are more relevant technologies for companies such as the focal firms considering their role in the supply chain, and less important for cloud-based software companies such as Flexport and Transporeon. 5.1.2 Supply Chain Digitalisation Goes Beyond the Individual Firm Supply chain digitalisation is more than digitising the existing supply chain and entails a shift in management and completely new ways of thinking so that one can utilise the technology in a way that increases efficiency and profitability in the supply chain as well as creates value for all stakeholders (Büyüközkan & Göçer, 2018; Garay-Rondero et al., 2020). It is suggested by Büyüközkan and Göçer (2018) that the adoption and utilisation of various digital technologies may not always result in direct benefits, as the majority of the benefits stem from the new solutions and new ways of operating that emerge when implementing new technologies and systems in the global supply chain, and not from the mere digitalisation itself. This corresponds well with our findings, as both Jotun and Parker mentioned that while incorporating new technologies and systems, there were also many changes done in the company. In Jotun’s case, it was difficult to isolate the effects that were directly connected to digitalisation and see immediate results and benefits, as digitalisation was connected to almost all the changes in the company in the last ten years. With implementing new digital systems that range over whole supply chains and transitioning from a traditional to a digital supply chain, there is a need for a large amount of data (Büyüközkan & Göçer, 2018). In the empirical findings, it was apparent that the companies all value the transparency and visibility digitalisation can enable, which can lead to many other benefits such as better product availability, improved forecasting, better efficiency and so on. Correspondingly, one can suggest that digitalisation often goes beyond the individual Page 67 of 92 firm, and the digitalisation efforts of a company can intentionally or unintentionally affect other supply chain participants. For instance, in the case of Stadium, they implemented RFID solutions which helped them gain a perfect inventory balance, increased turnover rate, improved margins and increased customer satisfaction. In addition to the direct benefits this brought to Stadium and its operations, the introduction of this also affected their suppliers in the sense that they would notice some of the same benefits which resulted in a closer collaboration between Stadium and its suppliers. The fact that a company’s digitalisation efforts can affect the other supply chain participants than anticipated, whether intentional or not, can be connected to the conceptual framework, developed with a background of the theoretical framework. From the findings, we indeed see that digitalisation can happen at each stage in the global supply chain, as proposed in the conceptual framework, and that it strengthens the integration of the supply chain participants allowing for a more interconnected supply chain. The different modes of digitalisation, as well as the notion that digitalisation extends beyond the individual firm (see chapter 5.1.1), can be further explained by connecting them to the digital supply chain pillars proposed by Mrozek et al. (2020), which explains the building blocks that enable and support digital technologies and their application in global supply chains. The five pillars of supply chain digitalisation include data-driven, cost and efficiency- driven, availability-driven, intelligence-driven, and security-driven digitalisation, and they are all interconnected (Mrozek et al., 2020). Moreover, they can help explain how digitalisation affects other supply chain participants as well as the ones intended. For example, as mentioned in the example of Jotun and Parker, they have implemented automation in their production, and are primarily digitalising from a cost and efficiency-driven perspective. However, as these pillars are so interrelated, cost and efficiency-driven digitalisation is highly dependent on other factors such as data and connectivity. The same is true in other cases such as for Transporeon and Flexport, which primarily focuses on availability-driven digitalisation and are aiming for connectivity, which again relies heavily on data and security. Based on the above discussion, it is evident from these examples that a firm's digitalisation efforts can affect but also provide digitalisation for the other supply chain participants. 5.2 Supply Chain Digitalisation Facilitates Value Co-Creation In accordance with the S-D logic provided by Vargo and Lusch (2004, 2016, 2008), there is a connection in the findings to the concept of value co-creation since there is an emphasis on an Page 68 of 92 interactional element and interdependence between the case companies and the supply chain participants, where a reciprocal relationship is acknowledged for the functioning and performance of the supply chain. This becomes apparent when considering the mode of digitalisation and implications for the supply chain, where the common theme emerging from the findings is that the case companies are not isolated. But directly or indirectly affect the other participants through their digitalisation efforts by improving upstream and downstream interactions, implying that the supply chain digitalisation of the case companies has an influence on value co-creation to some extent. This is in line with Lenka et al., (2017) who suggests that digitalisation can provide opportunities to increase the breadth and depth of the interactions needed for value co-creation to occur among the involved co-creators. This also resonates with the idea that supply chain digitalisation facilitates the condition for creating a more integrated, synchronised, and mutually benefiting global supply chain (Bhargava et al., 2013; Büyüközkan & Göçer, 2018; Garay-Rondero et al., 2020). Drawing on the conceptualisation by Vargo and Lusch (2004, 2016, 2008) on value co-creation as the provision and realisation of value propositions by two or more actors through the application of knowledge and skills, and resource integration, the influence of supply chain digitalisation on value co-creation in the findings can further be explored. 5.2.1 Supply Chain Digitalisation Enhances Value Propositions Though a value proposition in and of itself does not mean that the firm has created value it is a core requisite for value to be co-created, since the value proposition refers to the product or service offering provided by the firm, where value is co-created once the proposition is realised by the customer (Vargo & Lusch, 2016; Vargo et al., 2008). It is also suggested that supply chain digitalisation provides opportunities for improvements through efficiency gains and other attributes impacting the provision of product or service offerings (Mrozek et al., 2020). Thus, it can be argued that providing a compelling value proposition is central to the co-creation of value in global supply chains and can be enhanced by supply chain digitalisation. This is reflected in the findings where the focal firms describe supply chain digitalisation as a means of directly or indirectly enhancing their current value propositions through improvements to internal processes and external relations. For instance, by digitalising their return process Stadium gains valuable insights by gathering data, allowing them to segment customers based on their return behaviour and provide those with a healthy behaviour an instant refund so a new purchase can be made. Moreover, by Page 69 of 92 having an EDI integration with some of their suppliers and a supplier portal, Parker has experienced improvements to the supplier’s delivery security, resulting in the maintenance of desired inventory levels which sets the condition for Parker to supply their customers efficiently. Similarly, by having an EDI integration with its customers, there is an efficiency in being a customer at Jotun as there is a standardisation in the information exchange and communication. Like the focal firms, supply chain digitalisation as a means of enhancing current value propositions is also reflected in the findings regarding the service providers but with a slight distinction following the logic of Ramirez and Mannervik (2016). Where the service providers are more inclined to describe supply chain digitalisation as a means of directly or indirectly adding to the value proposition of their customers (focal firm) through their service offerings. For instance, by having an app and integrating information regarding the delivery process, Postnord can provide valuable insights from its customers to the receiving customer by making logistics informative and transparent. Moreover, by providing their platform, Flexport improves the logistics process of its customers by digitalising it, and as a result, less attention and resources are required for logistics, which customers may then dedicate to other activities. A similar situation is found regarding Transporeon and their platform where their service offering adds to the value proposition of their customers by digitalising the logistics process. 5.2.2 Supply Chain Digitalisation Supports the Application of Knowledge and Skills The application of knowledge and skills refers to the ability of the firm to generate the value proposition and the customers’ ability to utilise the value proposition (Vargo & Lusch, 2016; Vargo et al., 2008). Also, in a global supply-chain context, firms can have multiple roles in relation to the situation they are in and the supply chain participant they interact with. This is apparent when considering the fundamental structure of the global supply chain where one supply chain participant has the role of a supplier in a downstream relationship while at the same time having the role of a customer in an upstream relationship (Hugos, 2003; Mentzer et al., 2001). This idea can be extended to the case companies, in relation to the application of knowledge and skills with an emphasis on the focal firms. Though this idea also can be extended to the service providers they are predominantly considered in terms of suppliers in a supply-chain context due to their unique role, thus providing rather than realising value proposition, while the focal firm can be considered to do both (Blanchard, 2010; Hugos, Page 70 of 92 2003; Vargo & Lusch, 2016). Nevertheless, as discussed in the previous chapter 5.2.1 the focal firms were mainly considered in their role as the supplying party, thus applying their knowledge and skills to generate value propositions for their customers to realise. However, by considering the focal firms as customers in relation to the upstream suppliers, their ability to utilise the value proposition of their suppliers to co-create value in relation to supply chain digitalisation can be analysed. Regarding supply chain digitalisation, it has been suggested that the digitalisation of supply chains and various processes enables firms to take advantage of their resources in a better way (Cotteleer & Sniderman, 2017). Similarly, it has also been argued that the implementation of different digital technologies does not necessarily result in direct advantages, but rather provides the opportunity for solutions to emerge which can help in gaining such advantages (Büyüközkan & Göçer, 2018; Garay-Rondero et al., 2020). This would imply that supply chain digitalisation acts as support in the resource utilisation of the supply chain participants. With this in mind and considering that the application of knowledge and skills inter alia refers to the ability of the customer to utilise a value proposition for the realisation of it (Vargo & Lusch, 2016; Vargo et al., 2008). It can be argued that for value to be co-created the customer need to apply their knowledge and skills to the supplier’s value proposition, and that supply chain digitalisation provides support in facilitating the interaction in which the customer applies their knowledge and skills to the value proposition. This is reflected in the finding in the case of the focal firm being a customer, where the digitalisation efforts made by the focal firms by itself does not allow them to utilise their suppliers' value propositions but rather provide a means by which their application of knowledge and skills is supported to do so more efficiently. For instance, considering Stadiums recent RFID implementation, their application of knowledge and skills on its suppliers' value proposition is being supported, as this have given Stadium greater control over its inventory balance resulting in greater product availability. As this has happened, it has also been recognised by the suppliers that this is valuable, resulting in a collaboration where many of the suppliers now apply RFID tags before delivering their products to Stadium. Another example is found in Jotun where the production process is automated through semi or fully autonomous robots, assisting in the conversion of raw materials provided by the suppliers, instead of manually handling the production of paint as has been done traditionally, essentially supporting Jotun’s ability to utilise their suppliers Page 71 of 92 value proposition in their context. Similarly, in Parker, it is clear that their ability to utilise their suppliers' value propositions is not dependent on their pick by voice system, but rather has been leveraged to support the employee’s ability to handle the suppliers’ product offerings in the assembly process. Though there is an emphasis in this chapter on the case companies labelled as focal firms having the role of customers concerned with realising the value proportion of their suppliers supported by supply chain digitalisation. The same observation can also be made regarding the service providers but from a different perspective. This is evident when considering the platforms provided by Transporeon and Flexport, as though this constitutes their value propositions it essentially also constitutes a part of the supply chain digitalisation of their customers, which in turn also have proven to provide the customers with support like that observed in the above examples. 5.2.3 Supply Chain Digitalisation is a Constituent of Resource Integration While the application of knowledge and skills refers to an operant resource, resource integration refers to the combination of operant and operand resources from different sources necessary to integrate in order to make use of the value proposition for the co-creation of value (Vargo & Lusch, 2016; Vargo et al., 2008). These aspects are closely related to each other, and the logic for resource integration has partially been highlighted in chapter 5.2.2. Where it was established that supply chain digitalisation functions as a support for the application of knowledge and skills of the customer in relation to the value propositions of the suppliers. But in and of itself is not sufficient for the co-creation of value as several complementary resources in addition to those supported by supply chain digitalisation also were needed to realise the value proposition. Considering the concept of industry 4.0, there is a resemblance as it in many cases addresses an integration or merger of new technologies and digital systems with pre-existing means (Davies, 2015; Haddud & Khare, 2020; Paksoy et al., 2021). At the same time supply chain digitalisation has been described in terms of making use of a wide variety of digital technologies in various supply chain processes, subsequently influencing the management and performance of the global supply chain (Büyüközkan & Göçer, 2018; Mrozek et al., 2020). Thus, it can be argued that supply chain digitalisation is a constituent of the customer’s resource integration by providing complementarity that combined with other operant and operand resources provide the means for value to be co- created. Page 72 of 92 This resonates with the findings and is perhaps best illustrated from the perspective of the service providers as their digitalisation efforts to a large extent are reflected in their customers’ supply chains by becoming a part of their resources to make use of its suppliers’ value propositions. This also relates to chapter 5.2.1 where it was found that the service providers are inclined to add to their customers' value propositions through their own service offerings. For instance, the service offering provided by Transporeon concerning digitalising supply chain logistics, which closely resembles that of a complete TMS, does in fact represent a value proposition in relation to its customers, but at the same time also a resource that works in relation to other resources deployed by its customers to realise value propositions. A similar example is found in Flexport where their platform becomes a part of the digitalisation of its customers, by integrating it into the customers' supply chain, improving the logistics process and providing complementarity for the customers' other resources for them to make use of their suppliers’ value propositions. Though Flexport and Transporeon’s digitalisation efforts and involvement in the supply chain of its customers differ compared to Postnord, the same idea applies and is well illustrated by their involvement in Stadium’s supply chain. So, while Stadium’s RFID utilisation and other digitalisation efforts have proven to be beneficial, they are not solely responsible for the realisation of the suppliers’ value propositions, but rather provide support in the application of knowledge and skills. For this to be realised other resources also need to be integrated such as logistics and related solutions which Postnord, directly and indirectly, provides for Stadium to reach its customers and have been enhanced by the current digitalisation efforts made by Postnord. Thus, through its service offering, Postnord’s digitalisation efforts become a constituent of Stadium's resources needed to make use of and realise its suppliers’ value propositions. This also resonates well with the idea that value co-creation can occur in larger constellations as the relationship between Postnord and Stadium highlights the reciprocal nature and interactional element between Stadium, its suppliers, its customers, and Postnord (Vargo & Lusch, 2016). 5.2.4 Digitalisation Facilitates Interconnectedness in Global Supply Chains According to the contemporary view of the S-D logic, value always is co-created between two or more participants in interactions through the provision and realisation of value propositions through the application of knowledge and skills, and resource integration (Vargo & Lusch, 2016; Vargo et al., 2008). This view is supported by the empirical findings. Page 73 of 92 However, the findings have also provided evidence that supply chain digitalisation affects value co-creation. It has been found that supply chain digitalisation enhances value propositions (see chapter 5.2.1), supports the customers' application of knowledge and skills (see chapter 5.2.2), and is a constituent of resource integration (see chapter 5.2.3). Aside from this, it has been suggested that digitalisation provides the means by which SCM can be improved by inter alia facilitating opportunities for increased collaborations, information exchange, and data utilisation (Büyüközkan & Göçer, 2018; Lenka et al., 2017). This also resonates with the idea that as digital technologies provide new means in which information can be captured and utilised among supply chain participants, both daily coordination and forecasting become faster and more accurate, allowing the supply chain to both improve its cost-efficiency as well as customer responsiveness (Chopra & Meindl, 2013; Hugos, 2003). Thus, the effects observed by supply chain digitalisation on value co-creation could arguably be attributable to such improvements to the case companies' internal and external SCM by creating efficiencies and facilitating an interconnectedness in their respective supply chains. Considering some of the digitalisation efforts made by the case companies the reasoning behind such an argument becomes clear. For example, the use of EDI, digital communication tools, and other digital systems, has allowed Jotun to automate large parts of their communication and information exchange in relation to suppliers, carriers, and customers. Similarly, through EDI and their supplier portal, Parker can provide and receive reliable information in relation to its suppliers and create a situation where the suppliers can respond in accordance with demand. Moreover, through its ERP system, there is automation in the order process at Stadium, and with the current RFID implementation, the inventory accuracy has been improved allowing for greater control of supply and demand planning, as well as increasing the customer responsiveness. Regarding the service providers, the findings are similar, as they too rely on the interplay among the participants and utilise or even provide digitalisation to improve this interplay. For instance, through automation, machine learning, and information exchange through APIs Postnord manages to improve its own operations in turn also improving the interface between themselves, their customers, and the receiving customer as lead times are reduced and transparency increases. Furthermore, through their cloud-based platform and modules, Transporeon is described as providing digitalisation and improving SCM practices by digitalising the logistics process for its customers, by inter alia facilitating analytics and communication between carriers and their customers. Similarly, Flexport also becomes a part Page 74 of 92 of their customer's digitalisation through their cloud-based platform improving the interplay between their customers and other supply chain participants, by inter alia facilitating deep visibility and connectivity in the logistics process. 5.3 Coming Back to the Conceptual Framework The proposed conceptual framework (see chapter 2.5) is a comprehensive model with four interconnected components, namely the supply chain, SCM, digitalisation, and value co- creation. The supply chain is linked to the idea that value is co-created among supply chain participants. SCM is incorporated as an influencing factor affecting the supply chain, and digitalisation is incorporated as an influencing factor shaping both SCM and the supply chain. Based on this, our initial thoughts were that value co-creation exists among all participants and that it occurs relationally through interaction, and that digitalisation has a substantial influence on the global supply chain as well as its management. It has been found that although digitalisation in global supply chains is addressed in different ways, supply chain digitalisation affects value co-creation. The analysis shows that supply chain digitalisation affects value co-creation in the sense that it enhances value propositions, supports the application of knowledge and skills, and becomes a constituent of resource integration, and that these effects can be attributable to the influence of supply chain digitalisation on SCM. In line with the conceptual framework, the analysis has demonstrated that value co-creation not only can occur between the firm and its customer, but rather extends this in a supply-chain context to several participants such as the supplier, focal firm, customer, and service provider through the provision and realisation of value propositions. Additional support for the conceptual framework is also established as the analysis has shown that supply chain digitalisation improves SCM and that its effects are not constrained to the individual firm but rather go beyond it, as it intentionally or unintentionally transcends inter- organisational boundaries. The analysis suggests that the conceptual model is still supported, and it is not necessary to make any adjustments to the model. However, what is not covered in the conceptual framework is a connection between digitalisation, SCM, and value co- creation. We find that although the model is still supported, our understanding of digitalisation in connection to value co-creation has been somewhat altered. It has become clear that there is a connection between supply chain digitalisation and value co-creation, digitalisation influences the global supply chain as well as SCM, and this influence, in turn, affects value co-creation in the global supply chain. Page 75 of 92 6 Conclusion This thesis aimed to provide a deeper understanding of the utilisation of digitalisation within the field of SCM and has examined how digitalisation in global supply chains is addressed, and how value co-creation is affected by digitalisation in global supply chains. To make such an examination a comprehensive conceptual framework grounded in the theory of supply chains, SCM, supply chain digitalisation, and value co-creation was developed. The conceptual framework builds on the ideas: that there is an interconnectedness in the supply chain, that value is co-created among the supply chain participants, that SCM influences the supply chain, and that digitalisation influences SCM. The thesis is a multiple case study which has included six case companies that based on their involvement in their respective supply chains were distinguished as focal firms or service providers. The empirical findings were analysed in relation to the conceptual framework to identify how digitalisation is addressed and affects value co-creation in global supply chains. The results from this study indicate that supply chain digitalisation is considered beneficial and necessary for remaining competitive, yet how digitalisation is addressed in global supply chains varies to a large extent. It is evident that the case companies address supply chain digitalisation, either actively, by making digitalisation and technological innovation a core part of the business, or passively, where supply chain digitalisation is a concern but at the same time not a priority. It is also indicated that supply chain digitalisation can be addressed indirectly, as although it is not always evident that digitalisation efforts are done with a clear connection to the supply chain, it can still have a positive impact on the supply chain. Moreover, the results highlight that the mode of supply chain digitalisation can be expressed differently, and it is indicated that firm characteristics and industry have an influence on this difference. Also, it has been shown that familiarity with technologies can affect how firms address and adopt digitalisation in global supply chains. Furthermore, it is evident that the effects of supply chain digitalisation are not always a direct consequence of the implementation of digital technologies but rather a consequence of the changes and solutions that emerge because of it. Lastly, it is apparent from the results that supply chain digitalisation is not constrained to the individual firm but intentionally or unintentionally extends throughout the supply chain, affecting other participants as well. Page 76 of 92 It is also evident from the results that supply chain digitalisation affects value co-creation. Firstly, it is established that value co-creation is affected by supply chain digitalisation as it provides the means for enhancing value propositions through improvements to internal processes and external relations. Secondly, it is found that supply chain digitalisation affects value co-creation as digitalisation provides support in facilitating the interaction in which the customer applies their knowledge and skills for the realisation of a value proposition. Thirdly, supply chain digitalisation affects value co-creation by being a constituent of the customer’s resource integration that provides complementarity to other resources for the value proposition to be realised and for value to be co-created. Finally, it is indicated that these effects on value co-creation are not directly related to the digitalisation efforts of the firm, but rather attributable to improvements to internal and external SCM stemming from supply chain digitalisation by creating efficiencies and facilitating an interconnectedness between the supply chain participants. 6.1 Theoretical Implications Previous literature has explored supply chain digitalisation in the terms of the potential and opportunities of digitalising global supply chains and SCM based on the characteristics of the enabling technologies. However, there is a lack of clarity in the field of supply chain digitalisation concerning its value and effects (Ageron et al., 2020; Büyüközkan & Göçer, 2018; Ivanov et al., 2019; Kano et al., 2020; Makris et al., 2019). Considering this, our study contributes to this lack of clarity and provides an understanding of the effects of digitalisation in global supply chains by adopting a more nuanced view on value creation, taking a value co-creation perspective on digitalisation in global supply chains. Furthermore, this study contributes to the existing knowledge on supply chain digitalisation by providing an understanding of how digitalisation can be addressed in global supply chains. Finally, by coupling the fields of SCM, supply chain digitalisation and value co-creation, a conceptual framework that captures the interconnectedness of the global supply chain as well as highlights the interplay between SCM, supply chain digitalisation and value co-creation has been proposed. This adds to the fields of SCM, supply chain digitalisation, and value co- creation by providing a framework which helps to better understand and sufficiently analyse how digitalisation is addressed and affects value co-creation in global supply chains. Page 77 of 92 6.2 Practical Implications The practical implication of this study resides within the notion that the digitalisation of global supply chains presents an opportunity for value co-creation. Following the idea that value is co-created and mutually benefitting, it becomes important for firms to consider their interconnectedness to the whole supply chain and recognise the dependence between the participants. With this in mind, and as supply chain digitalisation is found to have positive implications for facilitating value co-creation, this study highlights the importance for practitioners to explore opportunities in further digitalising their supply chains for the individual firm as well as the other supply chain participants to benefit. Finally, this study illustrates the importance of addressing digitalisation actively and has shown that practitioners must be aware of the benefits of a DSC, and approach digitisation with the entire global supply chain in mind, rather than implementing digital tools focusing on the specific benefits of digitalisation. 6.3 Limitations and Future Research This study and its results are subject to certain limitations. The first limitation is regarding the number of case companies, where six case companies have been included, which the results are based upon. This finite amount of case companies limits the statistical generalisability of the results but considering that this study has managed to provide a rich description of each case company, and in diversity has found similarities between them, analytical generalisability can be argued for. Nevertheless, it is advised that future research should be conducted on a larger number of case companies to further strengthen the analytical generalisability. Another limitation is regarding the number of interviewees. Although we managed to interview two or more individuals from most of the case companies, we only interviewed one individual at two of the case companies, this provides limitations for triangulation. Though we have managed to account for this to some degree through various means, future research should consider increasing the number of interviewees until a saturation can be confirmed. Also, the selection of interviewees could have been more diverse, as we largely sought persons with knowledge of the supply chain and digitalisation, with positions such as supply chain manager, general manager, and sales executive. However, doing so may also result in not interviewing people with sufficient knowledge in the field. Future research should include a more diverse selection of respondents, with a mix of people from the types of positions mentioned, as well as more operational and technical positions. Page 78 of 92 This may give additional insights and a different image of the situation. Furthermore, though most case companies were multinational, operating globally, or having global supply chains, one of the case companies were only present in the Nordics. Future research focusing on global supply chains should target case companies with a more extensive international presence. Finally, as digitalisation is a broad term that encompasses multiple digital technologies, of which this study has covered several, we recognise the opportunity to add to the body of research on the DSC by adopting a different focus, narrowing it down to some of the many digital technologies. Also, as the analysis shows that though the case companies have made some digitalisation efforts none of the case companies have a full DSC, as described in the literature, thus it would be interesting for future research to target companies that have a clearer DSC in relation to how it would affect value co-creation. Page 79 of 92 7 Bibliography Ageron, B., Bentahar, O., & Gunasekaran, A. 2020. Digital supply chain: challenges and future directions. Supply Chain Forum: An International Journal, 21(3): 133–138. Agrawal, P., & Narain, R. 2018. Digital supply chain management: An Overview. IOP Conference Series: Materials Science and Engineering, 455(1): 1–6. Ahrne, G., & Svensson, P. (Eds.). 2015. 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Digitalisation of supply chains 6) How does your company work with digitalisation and new technologies? 7) Has your company implemented digital systems or platforms that spread across the supply chain? a) If not - How do you see your company working with this in the future? Both short term and long term. 8) Can you describe your supply chain in terms of how digital technologies are applied in the supply chain? Effects of a digitalised supply chain 9) What effects have you noticed by having implemented these digital technologies into the supply chain? a) Advantages/disadvantages? 10) Have you experienced changes to your SCM practices in relation to the adaptation of new technologies in the supply chain? 11) How do these technologies contribute to the value creation process? a) How do these technologies create value for your company? b) How do these technologies create value for the customers? c) How do these technologies create value for the suppliers? d) Do these technologies create value in other stages of the end-to-end supply chain? Future developments 12) Does a more digitalised supply chain make your organization more prepared for supply chain disruptions in the future? 13) How do you see your company working with digitalisation in the future? Both short term and long term. 14) What do you think will be the key technologies shaping the future of supply chains? Both short term and long term. 15) Is there something you would like to add? or is there a question that you think we should have asked you but didn't? Page 88 of 92 Appendix B. Interview Guide 1 – Focal Firm (Swedish) Allmänt 1) Kan du berätta lite om dig själv? 2) Kan du beskriva ditt företag och din roll på företaget? Försörjningskedjan/styrningen av försörjningskedjan 3) Kan du beskriva eran försörjningskedja från början till slut? a) Vilka är de huvudsakliga aktörerna? 4) Hur styr ni eran försörjningskedja internt och externt? a) Hur arbetar ni med leverantörer? b) Hur arbetar ni med kunderna? 5) Vad finns det för utmaningar och möjligheter i eran nuvarande försörjningskedja? Digitalisering av försörjningskedjan 6) Hur arbetar ditt företag med digitalisering och nya teknologier? 7) Har ditt företag implementerat digitala system eller plattformar som sprider sig över hela försörjningskedjan? a) Om inte – Hur ser du på att ditt företag arbetar med detta i framtiden? Både kortsiktigt och långsiktigt? 8) Kan du beskriva er försörjningskedja i termer av hur digitala teknologier tillämpas i försörjningskedjan? Effekter av en digitaliserad försörjningskedja 9) Vilka effekter har du märkt av genom att ha implementerat dessa digitala teknologier i försörjningskedjan? a) Fördelar/Nackdelar 10) Har du upplevt förändringar i er styrning av försörjningskedjan i förhållande till anpassningen av nya teknologier i försörjningskedjan? 11) Hur bidrar dessa teknologier till processen för värdeskapande? a) Hur skapar dessa teknologier värde för ditt företag? b) Hur skapar dessa teknologier värde för kunderna? c) Hur skapar dessa teknologier värde för leverantörerna? d) Skapar dessa teknologier värde i andra delar av försörjningskedjan som helhet? Framtida utvecklingar 12) Gör en mer digitaliserad försörjningskedja din organisation mer förberedd på störningar i försörjningskedjan i framtiden? 13) Hur ser du på ditt företags arbete med digitalisering i framtiden? Både kortsiktigt och långsiktigt. 14) Vad tror du kommer att vara nyckelteknologierna som kommer forma framtida försörjningskedjor? Både kortsiktigt och långsiktigt. 15) Finns det något du skulle vilja tillägga? eller finns det en fråga som du tycker att vi borde ha ställt till dig som vi inte gjorde? Page 89 of 92 Appendix C. Interview Guide 2 – Service Providers (English) General 1) Can you tell us about yourself? 2) Can you describe your company and your role? Supply chain/SCM 3) Can you describe your role in the end-to-end supply chain? 4) How do you work with your customers' supply chains? 5) What are some current challenges and opportunities in your customers' supply chains? Digitalisation of supply chains 6) How does your company work with digitalisation and new technologies? 7) What digital solutions does your company provide for your customers' supply chains and how are they applied? 8) Do you provide the same products and services to all your customers? a) Example? Effects of a digitalised supply chain 9) What effects have your customers noticed by having implemented your solutions into the supply chain? a) Advantages/disadvantages? 10) Are your customers changing their SCM practices in relation to the adaptation of your solutions in the supply chain? 11) How do your solutions contribute to the value creation process? a) How do your solutions create value for the customers? b) How do your solutions create value for the suppliers? c) Do these solutions create value in other stages of the end-to-end supply chain? Future developments 12) How do you see your company working with the digitalisation of supply chains in the future? Both short term and long term. 13) What do you think will be the key technologies shaping the future of supply chains? Both short term and long term. 14) Is there something you would like to add? or is there a question that you think we should have asked you but didn't? Page 90 of 92 Appendix D. Interview Guide 2 - Service Providers (Swedish) Allmänt 1) Kan du berätta lite om dig själv? 2) Kan du beskriva ditt företag och din roll på företaget? Försörjningskedjan/styrningen av försörjningskedjan 3) Kan du beskriva er roll i försörjningskedjan från början till slut? 4) Hur arbetar ni med era kunders försörjningskedjor? 5) Vad finns det för utmaningar och möjligheter i era kunders nuvarande försörjningskedjor? Digitalisering av försörjningskedjan 6) Hur arbetar ditt företag med digitalisering och nya teknologier? 7) Vilka digitala lösningar erbjuder ditt företag för dina kunders försörjningskedjor och hur tillämpas de? 8) Erbjuder ni samma produkter och tjänster till alla era kunder? a) Exempel? Effekter av en digitaliserad försörjningskedja 9) Vilka effekter har era kunder märkt av genom att ha implementerat era lösningar i försörjningskedjan? a) Fördelar/Nackdelar? 10) Ändrar era kunder sin styrning av försörjningskedjan i förhållande till anpassningen av era lösningar i försörjningskedjan? 11) Hur bidrar era lösningar till processen för värdeskapande? a) Hur skapar era lösningar värde för kunderna? b) Hur skapar era lösningar värde för leverantörerna? c) Skapar dessa lösningar värde i andra delar av försörjningskedjan som helhet? Framtida utvecklingar 12) Hur ser du på ditt företags arbete med digitalisering i framtiden? Både kortsiktigt och långsiktigt. 13) Vad tror du kommer att vara nyckelteknologierna som kommer forma framtida försörjningskedjor? Både kortsiktigt och långsiktigt. 14) Finns det något du skulle vilja tillägga? eller finns det en fråga som du tycker att vi borde ha ställt till dig som vi inte gjorde? Page 91 of 92 Appendix E. List of Codes - About company - Supply Chain - Role in Supply Chain - SCM - Relationship to suppliers - Relationship to customers - Relationship to other supply chain participants - Digitalisation of the supply chain - Effects of a digitalised supply chain - Value of digitalised supply chain for customers - Value of digitalised supply chain for suppliers - Value of digitalised supply chain for others - Challenges in the supply chain - Supply chain resiliency - Future developments Page 92 of 92