Digital supply chain

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The digital supply chain is a new media term which encompasses the process of the delivery of digital media, be it music or video, by electronic means, from the point of origin (content provider) to destination (consumer). In much the same manner a physical medium must go through a “supply chain” process in order to mature into a consumable product, digital media must pass through various stages in processing to get to a point in which the consumer can enjoy the music or video on a mobile device, computer, or television set.

A broader definition of the term "digital supply chain" is given in a book chapter by Tony Hines^[1] where the term was coined in 2001 to explain a transformation from what he called analogue supply chains to his new conception - the digital supply chain. This contribution recognised that digital supply chains were configured to distribute goods or services that had previously been supplied in physical form. Examples given included books, music and film. However, Hines also expanded the definition to include business to business services and he gives the example of fashion design and product development conducted digitally. This digitalisation of hitherto physical form (which he called analogue supply chains) removed time, distance and cost from the supply chain. Hines gives a number of examples. Hines gives further examples of how information has replaced inventory by designing digital supply chains you can read more in his Supply Chain Strategies^[2] book published by Routledge.