Supply Chain Innovation: The Core Capabilities Required and Expected Outcomes

Supply chain innovation comes with several benefits. Notably, it promotes agile response to customer demands, competitiveness and business continuity. However, what fundamental capabilities or competencies do businesses require to successfully achieve supply chain innovation? An in-depth desk research was conducted to investigate these capabilities in addition to the eventual business performance outcomes. A theoretical research model was developed, extending current literature relating to supply chain innovation. The model comprises of eight hypotheses that are split into two sets-capabilities (or competencies) required for successful supply chain innovation and positive outcomes driven by such innovation. Findings show that constant SC process improvements, collaboration and communication, new business models, demand management, and SC performance measurement contribute to consequently supply chain innovation. The resultant SC innovation capability results in greater SC agility and resiliency, value creation, and overall business sustainability.