Supply Chain and Digital Transformation in Japan

Abstract

Geopolitical risks, business globalization, increasing complexity of transactions have required companies to adapt to changes. This chapter examines the digital transformation of supply chains and digitalization challenges in Japan. Many companies seem to realize the importance of digital transformation; however, on their way to digitalization companies face numerous challenges like a shortage of human and financial resources, a lack of awareness and understanding of digital transformation processes, etc. Moreover, Japanese culture does not easily fit digital transformation which also slows down the pace of transformation. As a result, the supply chain processes in the Japanese manufacturing companies remain old-fashioned, fragmented, siloed, with a lack of global vision and proper understanding of potential risks. To meet the needs of diverse customers, ensure global supply, and compete in uncertain environment, the SCM of Japanese companies has to be digitally upgraded and become more complex to achieve end-to-end supply chain optimization and an advanced decision-making.