The role of global data identification standards for supply chain visibility: the case of GS1

Abstract: Purpose. Supply chain visibility is among the top concerns expressed by many supply chain leaders. While the traditional enablers of supply chain visibility are information sharing, IT implementation, and relationships between supply chain partners; the role of global supply chain standards as an integral part of each of these enablers is often underestimated. The purpose of this thesis is to investigate the adoption and applicability of global supply chain standards within the provisions of supply chain visibility among various supply chain designs. Methodology. With the aim of theoretical replication, three case studies within the retail industry were conducted. Axfood and IKEA cases were analyzed as examples of opposite types of supply chain design and as companies with different degrees of implementation regarding their global data identification standards. The Clas Ohlson case was analyzed to illustrate a company with open paths in regards to its adoption of future global supply chain standards. In-depth, semi-structured interviews were performed directly with company representatives as well as with GS1, which is one of the assignors of this project. Finally, an analytical model for the potential adoption of global standards was developed. Findings. The results of case analysis clearly illustrate that global data identification standards are one of the pillars of supply chain visibility. Different practices of global standard adoption in different supply chain designs are explained by a different need for supply chain visibility among various supply chains. Moreover, the higher the degree of adoption of global standards, the higher the possibility of gaining strategic benefits. Practical implication. The model developed in this research aims to help logistics and supply chain managers estimate the need for supply chain visibility within their supply chains, and to also assess the potential adoption of global data identification standards within their supply chain practices. Originality/value. This study contributes to theory in such areas of research as supply chain visibility, standardization in supply chain management, and supply chain design. The main contribution is made to the resource-based view (RBV) theory, which according to supply chain visibility can be seen as both a strategic resource and a tool for efficiency optimization. A new term in supply chain design which suggests many-to-many and exclusive supply chain classifications is proposed, as is a framework for assessing the need for supply chain visibility. An analytical model for the potential adoption of global standards is also developed.