Understanding the Diffusion of a Mobile Application for Supply Chain Management: A System Dynamics Approach

An appropriate information and logistics structure is of paramount importance for the local fresh food supply chain, which is characterized by market fragmentation and little coordination among suppliers and customers. Mobile communication technologies can help meet this goal because of their large diffusion and real time information management. In this context, a System Dynamics model is developed to study the diffusion pattern and the impacts of a new application for mobile devices supporting supply chain operations. To this end, a reference supply chain in Northern Italy has been considered. The base application and the integration of three additional features assisting in the management of product traceability, electronic payments, and timesensitive deliveries are analyzed. Simulation results provide insights into the dynamics of adoption of the mobile service and help derive business policies to disseminate its diffusion. Key-Words: local fresh food, mobile applications, supply chain management, information flow, innovation diffusion, System Dynamics, Bass model