The Impact of Digital Capabilities on the Transition to a Low-Cost Supply Chain: Evidence from Moroccan manufacturing firms

Abstract

This article examines digital capabilities as strategic drivers for low-cost supply chains in Moroccan manufacturing firms. As global competition intensifies and pressing cost considerations arise, businesses adopt digital technologies like cloud computing, IoT, AI, and predictive analytics to enhance efficiency, responsiveness, and cost-effectiveness (Liu et al., 2023; Ngo et al., 2023). Empirical investigations remain scarce in emerging economies, particularly in North Africa, to measure how digital maturity translates into performance betterments in the supply chain (Weerabahu et al., 2023).

Qualitative feedback from managers shows that while technology investment must be made, organizational readiness—digital literacy, training, and change management—needs equal consideration to fully realize digital transformation benefits (Gupta et al., 2020; Calle et al., 2020). The article concludes with recommendations for strategic digital roadmaps, government policy support, and frameworks for developing digital capabilities for firms to lean on during the transition into cost-efficient supply chains.