Logistics 4.0: technologies, trends, applications and challenges

Abstract

Current logistics operations and information systems used cannot deal with the emerging challenges. Globalization, the rise of e-commerce, cyberthreats, cumbersome organizational structures, startups disrupting the business landscape and constantly higher customer demands push companies into adopting emerging technologies which enable them to increase digitalization and automation. These challenges have been exploiting the limits of currently utilized warehouse technologies and practices, highlighting the inefficiencies that exist. As for freight transportation, fleet management systems and routing software solutions are utilized at a great extend and success already, but one thing highlighted through the case studies analysis is the necessity for real-time monitoring and visibility throughout the goods’ journey from dispatching to the customer. The fourth industrial revolution, Industry 4.0, enables companies to proceed in digitalizing their operations, as building a flexible organizational structure is a challenge that needs to be addressed and adopting the digital enterprise model is a crucial step before implementing the new age technologies, as companies must add the elements of flexibility and adaptability in order to deal with the challenges at hand. Logistics 4.0, a term derived from the combination of Industry 4.0 technologies and innovations and their application on inbound and outbound logistics is a narrower concept than Industry 4.0, as it focuses on typical features, such as automation and digitalization. The technologies most commonly utilized are the Internet of Things (IoT), Big Data analytics, Augmented Reality (AR), Unmanned Aerial Vehicles (UAVs) and Advanced Robotics. IoT is the pinnacle of those technologies, as it enables new data streams creation from sources previously being non-exploitable and allows companies to monitor and control mechanizations, fleets etc. by a central system. Big Data analytics provide a powerful tool to companies, as the new data streams generated by IoT produce much greater amounts of data which common software cannot process. Advanced Robotics revolutionize logistics operations due to increasing automation. AR offers numerous advantages for warehouse workers distributors. Lastly, UAVs present a revolutionary technology in many different ways as they possess a wide array of applications, such as facility patrolling, warehouse assistance, stock counting and last-mile delivery. The Master thesis presents a framework that companies may follow for a Logistics 4.0 technologies implementation. The framework presents five necessary phases for the implementation, enabling the company to properly deal with the challenges that emerge. Resistance to change, high investment costs, HR-related issues, data privacy issues, IT infrastructure requirements, the public’s opinion about revolutionary technologies and regulations are challenges that must be dealt with for the implementation to be smoothly completed. The case studies analysis that follows showcase the advantages and benefits of implementing Logistics 4.0 technologies. Finally, the outcome of the Master thesis is that the framework may be tested in a real-world environment for further research on the subject.