This article was first published on Dr. Craig Wright’s blog, and we republished with permission from the author. Read Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7, Part 8, Part 9, Part 10, Part 11, Part 12, Part 13, Part 14, Part 15, Part 16, and Part 17.
Wang et al. (2020) look at the development of the Internet of things (IoT) as the structure for creating more efficient logistics systems. By separating the development of solutions into remark computational cloud-based services, Wang et al. (2020) present a series of methodologies used for integrating and controlling remote systems, calculating optimal paths and integrating IoT-based packing and distribution systems with robotics. The approach to developing new technologies is handled differently by Gupta et al. (2022).
In exploring the project changes that occurred during the COVID-19 pandemic, Gupta et al. (2022) have prioritized the strategies that could lead to impacting the barriers against innovation. In doing so, the authors have explored the various entry barriers and oppositional strategies against introducing economic changes to the supply-chain industry. The book chapter by Wagner and Kurpjuweit (2023) extends the research into logistics systems and the focus on innovation by exploring the value added by logistics start-ups.
Wagner and Kurpjuweit (2023) categorize logistics start-up corporations and demonstrate how they change the strategies of incumbent players within the industry. Such a disruptive change creates value and opportunities as start-ups utilize different skill sets and deliver a more entrepreneurial orientation than existing logistics corporations. Likewise, Ugochukwu et al. (2022) have noted how innovative technologies associated with blockchain technology can address several issues, including transparency and the immutability of records. The authors do so by reviewing the concept of smart logistics and extending the idea of industry 4.0 to demonstrate the opportunities in multiple interconnected industries.
Finally, Cherchata et al. (2022, p. 10) argue that innovations and logistics management provide opportunities that “exhibit a qualitative increase in the efficiency of processes or end production” in a manner required by the market. Overall, the authors demonstrate that the introduction of disruptive technologies provides opportunities for the development of new product offerings and the capture of market share. Simultaneously, enterprises adopting innovative strategies are likely to continue to grow but must keep a close eye on the cost and risk associated with implementing such disruptive changes.
Annotated Bibliography
Wang, J., Lim, M. K., Zhan, Y., & Wang, X. (2020). An intelligent logistics service system for enhancing dispatching operations in an IoT environment. Transportation Research Part E: Logistics and Transportation Review, 135, 101886. https://doi.org/10.1016/j.tre.2020.101886
The growth of global e-commerce has created a growing need to integrate small-scale logistics distribution on a widespread basis. As Wang et al. (2020) show, the e-commerce industry has radically disrupted the delivery of goods and services, with many distributions now being made directly to the consumer, rather than going through intermediaries such as department stores. The nature of the change creates new opportunities, and continues the development of innovation within the logistics industry. In particular, coordinating customers and integrating cloud technology and robotics with delivery systems could increase efficiency and minimize waste.
Wang (2020) demonstrates that there is further scope for innovation. The paper documents the algorithmic design of novel distribution systems, including verification and routing algorithms. The research begins by analyzing the existing literature around intelligence-based systems, including machine learning and the methodological analysis of delivering such systems, noting the complexity attributable to the travelling salesman problem. Finally, the problem definition and methodology integrate a proposed automated cloud-based system with robotics.
Most critically, the authors integrate a combination of logistics algorithms developed in computer science, including those for routing packets over circuit networks. The design objective is to ensure that the issues are addressed with “customer waiting time [as] an important index, which is used to measure the coordination between order-pickup robot, customer and cloud technology” (Wang et al., 2020, p. 8). The paper presents a series of analytics conducted using solutions to problems in computer science that can be solved using external computation.
Gupta, H., Yadav, A. K., Kusi-Sarpong, S., Khan, S. A., & Sharma, S. C. (2022). Strategies to overcome barriers to innovative digitalization technologies for supply chain logistics resilience during pandemic. Technology in Society, 69, 101970. https://doi.org/10.1016/j.techsoc.2022.101970
Gupta et al. (2022) investigate the role of introducing disruptive technologies, while focusing on a disruptive event in exploring the effects of logistics and business changes during the global pandemic. While presenting a multi-criteria decision-analysis method based on a Bayesian decision system, the authors determine “the five primary barriers to implementing innovative digital technologies” (Gupta et al., 2022, p. 1). The research focuses on developing nations, including India, but integrates strategic outcomes that will apply across multiple industries in developing and developed nations.
The authors determine that high initial investment costs, a lack of monetary resources and capital, and inadequate information technology infrastructure are three primary problems when it comes to implementing digitization technologies. In addition, uncertainty and a lack of understanding concerning the benefits obtained from digital investment further impede the development of innovative solutions in this field. Lastly, a lack of internet connectivity poses limited problems globally but significant issues within developing nations such as India.
The paper presents a comprehensive supply-chain management literature review by analyzing digitization technologies and resilience systems, demonstrating that multiple research gaps apply. In addition, data complexity and managerial resistance to change pose roadblocks to implementing new techniques. The paper is important as it captures both the uncertainty and a path towards implementing solutions by integrating the concerns of existing managers and building technological solutions that are not technically difficult to implement.
Wagner, S. M., & Kurpjuweit, S. (2023). Startups in the Logistics Sector: Value Propositions and Potential Impact. In R. Merkert & K. Hoberg (Eds.), Global Logistics and Supply Chain Strategies for the 2020s: Vital Skills for the Next Generation (pp. 225–242). Springer International Publishing. https://doi.org/10.1007/978-3-030-95764-3_13
Wagner and Kurpjuweit (2023, p. 225) demonstrate that with the “acceleration of digitisation in Aurelius of life, consumers are used to easily book flights or hotel rooms or to just compare prices on almost every product online.” Yet, such integration of digitization technologies has not occurred in the logistics industry, with the booking of global shipping sometimes taking several days. Consequently, the industry is open for disruptive change and the integration of systems that allow corporations to book freight using real-time quotations, in a manner analogous to how Airbnb disrupted the hotel industry.
The chapter investigates the structure of logistics start-ups and the potential organizational handicaps new ventures face. During the process, the authors document the main value propositions available to start-up firms in the industry. Doing so allows the development of a categorization framework, incorporating the opportunities through changing procedures and processes for intermediation platforms, software providers, and hardware technologies. Such an approach could also extend into developing new hardware systems, such as one mentioned by Wang et al. (2020), integrating robotics and IoT infrastructures.
The findings demonstrate that principal areas exist as open opportunities for start-ups with high value propositions and high potential impact. Additionally, partnering with incumbent players provides further opportunities for start-ups to increase capacity and improve the overall customer experience, while leveraging the existing infrastructure and extending the effect of offering new disruptive technologies. Such an approach would mitigate the weaker carrier positions and relationships, allowing the incumbent player to gain new opportunities while opening paths towards new efficiencies and increasing price transparency on the market.
Ugochukwu, N. A., Goyal, S. B., & Arumugam, S. (2022). Blockchain-Based IoT-Enabled System for Secure and Efficient Logistics Management in the Era of IR 4.0. Journal of Nanomaterials, 2022, 1–10. https://doi.org/10.1155/2022/7295395
Ugochukwu et al. (2022, p. 1) start by noting that “[l]ogistics as part of the supply chain can be defined as a strategic management process of procurement, movement and storage of goods, parts and finished products, and the related information flows through the concerned organization and its marketing channels.” As a result, considered changes in trade technologies and deployment strategies can create disruption and lead to business openings and opportunities that change the existing incumbent players.
In the study, Ugochukwu et al. (2022, p. 2) demonstrate how the fundamentals of logistics management necessitate developing a systematic approach across “the whole process involved in how goods are obtained, stored and delivered to the final destination.” With this, the authors approach the concept of logistics technology as a means of finding new solutions through digitizing existing systems and integrating new technologies, including IoT and cloud computing. The literature review associated with the analysis demonstrates how disruptive technologies can significantly shift industry focus and lead to openings within the market that new players can exploit.
The authors extend the scenario into providing a five-layer integrated blockchain-based system incorporating IoT-enabled logistics and a strategically focused management framework. The proposed system demonstrates how small, incremental changes can lead to global gains. Finally, the authors present integrated research demonstrating how industrywide savings can be achieved. Unfortunately, they base their findings on Ethereum smart contracts, ignoring the scalability problems with the platform (Bez et al., 2019).
Cherchata, A., Popovychenko, I., Andrusiv, U., Gryn, V., Shevchenko, N., & Shkuropatskyi, O. (2022). Innovations in Logistics Management as a Direction for Improving the Logistics Activities of Enterprises. Management Systems in Production Engineering, 30(1), 9–17. https://doi.org/10.2478/mspe-2022-0002
As with other researchers in the field, Cherchata et al. (2022) have approached the concept of innovation within the logistics industry by analysing the economic costs of integrating technological solutions. Yet, unlike other researchers, Cherchata et al. (2022) have approached the development of innovation strategies as a business process exercise. In other words, the authors have not looked at tactical approaches to technological innovation, but instead taken a management approach to develop solutions through the “appliance [SIC] of well-known idea of the system of balanced indicators BSC… But modified and adapted to the estimation of logistics activity itself as accompanying the operational activities of a production economic… Business process” (Cherchata et al., 2022, p. 16).
Such an approach allows management to focus on applying frameworks, rather than a specific technological product or solution. By analysing a series of studies focused on supply-chain management, the researchers have attempted to simulate the management of a large firm and to analyze and develop formations that could improve management efficiency. The scenario extends to the reporting of systems in accounting and the development of principles within the management structure of an organization that is focused on delivering optimal results.
The approach selected by Cherchata et al. (2022) examines the role of the logistics service in a process-metrics enterprise organization structure and how each area can be focused to deliver entrepreneurial activities. Overall, examining business processes without attempting to sell a particular technology as an overall solution provides an interesting approach, allowing management to better understand how to implement technology and analyze why it is necessary for the organization.
References
Bez, M., Fornari, G., & Vardanega, T. (2019). The scalability challenge of ethereum: An initial quantitative analysis. 2019 IEEE International Conference on Service-Oriented System Engineering (SOSE), 167–176. https://doi.org/10.1109/SOSE.2019.00031
Cherchata, A., Popovychenko, I., Andrusiv, U., Gryn, V., Shevchenko, N., & Shkuropatskyi, O. (2022). Innovations in Logistics Management as a Direction for Improving the Logistics Activities of Enterprises. Management Systems in Production Engineering, 30(1), 9–17. https://doi.org/10.2478/mspe-2022-0002
Gupta, H., Yadav, A. K., Kusi-Sarpong, S., Khan, S. A., & Sharma, S. C. (2022). Strategies to overcome barriers to innovative digitalisation technologies for supply chain logistics resilience during pandemic. Technology in Society, 69, 101970. https://doi.org/10.1016/j.techsoc.2022.101970
Ugochukwu, N. A., Goyal, S. B., & Arumugam, S. (2022). Blockchain-Based IoT-Enabled System for Secure and Efficient Logistics Management in the Era of IR 4.0. Journal of Nanomaterials, 2022, 1–10. https://doi.org/10.1155/2022/7295395
Wagner, S. M., & Kurpjuweit, S. (2023). Startups in the Logistics Sector: Value Propositions and Potential Impact. In R. Merkert & K. Hoberg (Eds.), Global Logistics and Supply Chain Strategies for the 2020s: Vital Skills for the Next Generation (pp. 225–242). Springer International Publishing. https://doi.org/10.1007/978-3-030-95764-3_13
Wang, J., Lim, M. K., Zhan, Y., & Wang, X. (2020). An intelligent logistics service system for enhancing dispatching operations in an IoT environment. Transportation Research Part E: Logistics and Transportation Review, 135, 101886. https://doi.org/10.1016/j.tre.2020.101886
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