Digitalization can significantly enhance sustainability in supply chains, especially in the least developed countries (LDCs). Technologies like artificial intelligence (AI), blockchain, and the Internet of Things (IoT) offer opportunities to improve efficiency, reduce waste, and increase transparency. This digital transformation is crucial for addressing sustainability concerns while promoting economic, social, and environmental benefits.
Successful digitalization initiatives in LDCs illustrate its potential. For instance, Bhutan’s digital auction system for potatoes has improved price transparency and reduced transaction costs, benefiting local farmers. Similarly, Vanuatu’s Electronic Single Window project streamlined bio-security certificate issuance, cutting paperwork and CO2 emissions significantly. Timor-Leste’s digitization efforts have similarly reduced physical trips and CO2 emissions.
In Cambodia, an Electronic Advanced Data interface supports efficient e-commerce transactions for small businesses. Digital tools have also been pivotal in Bangladesh, where the Centre of Innovation, Efficiency and Occupational Safety and Health Improvement (CEOSH) trains workers in technologies like AI and blockchain to enhance production and compliance.
Supply chain transparency has been enhanced through digital traceability systems. Ethiopia’s project for coffee traceability improves trust and certification, while Nepal’s digital tools have increased tea export prices by improving traceability. In Rwanda, blockchain technology aids women coffee farmers, boosting income and supporting economic growth.
Despite these advancements, challenges remain, especially with the large offline population in LDCs. Ensuring digital inclusion and scaling successful initiatives are crucial for maximizing the benefits of digitalization in sustainable supply chains.