DIGITALIZATION OF SUPPLY CHAINS AS A FACTOR OF TRANSFORMATION OF BUSINESS MODELS

Abstract

The article examines how digitalization affects the structure and functioning of supply chains, as well as the transformation of traditional business models. It is noted that traditional methods of supply chain management often do not meet the requirements of the modern market, which is characterized by rapid changes in demand, growing competition and the need to ensure high transparency and efficiency of processes. The impact of digital technologies on modern business processes in the supply chain management system is considered, namely that the digitalization of supply chains offers a solution to these problems through the implementation of modern technologies such as the Internet of Things (IoT), artificial intelligence (AI), blockchain and big data. The main problem is the insufficient preparation of many companies for digital transformation. Therefore, many organizations face difficulties in integrating new technologies into their existing processes. This includes problems with the infrastructure, the lack of appropriate skills among employees, as well as difficulties in adapting the organizational culture to new conditions. The implementation of digital technologies also requires significant investment, which can be a barrier for small and medium-sized enterprises. The article explores how digitalization, in particular the introduction of the Internet of Things (IoT), big data and artificial intelligence, is fundamentally changing the way companies interact with their suppliers and customers. Digital tools have been proven to increase the efficiency, transparency and flexibility of supply chains, facilitating the adaptation of business models to rapidly changing market conditions; analyzed which changes affect the elements of current business models. Particular attention is paid to the challenges and risks associated with the integration of digital technologies into supply chains and recommendations are offered to overcome these obstacles. Based on the results of the study, it was concluded that the successful digitization of supply chains requires a strategic approach, which includes the development of qualified personnel, ensuring cyber security and readiness for organizational changes. Businesses that adapt to new digital realities gain competitive advantage and sustainability in the global market.