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The COVID-19 pandemic sparked significant digital transformation in supply chain management, though sustainability remains a challenge. This editorial presents scholarly research on digital transformation in logistics and proposes a novel framework to help the industry navigate disruptions caused by the pandemic and aid in recovery.
The logistics industry is rapidly advancing due to the adoption of new digital technologies and intelligent transportation systems, leading to streamlined processes and improved security. However, systemic barriers hinder this transformation. The emergence of Logistics 4.0 generates vast amounts of data, presenting both opportunities and challenges, particularly in upstream supply chains and digitalized manufacturing. Utilizing big data and digital twins enables informed decision-making, cost control, and improvements in energy efficiency and operational goals. Despite the benefits, challenges persist, including data fusion, integration of intelligent logistics with manufacturing, and business intelligence among supply chain partners. Addressing these challenges can yield competitive advantages for the logistics industry. Limited research exists on topics like big data analytics, prescriptive analytics, and machine learning applications in logistics, warranting novel research models grounded in theory. This special issue aims to publish original academic research on intelligent transportation and logistics 4.0, focusing on big data, artificial intelligence, machine learning, 5G, and innovative applications in downstream omni-channeling systems. The digitalization of supply chains is essential for reducing vulnerability to risks and enhancing competitive advantage and performance. Supply chain digitalization involves transitioning from analog to digital supply chains through the aggregation of data and promoting interconnectedness and transparent flow of information among suppliers and customers. Digitization improves communication, automation, and reduces errors in supply chain management.
Digital transformation refers to the shift towards utilizing digital technologies like IoT, cloud computing, big data, mobile, and social media to deliver products and services effectively. Proper execution of digital transformation strategies is crucial for success, as many organizations struggle due to misalignment. Sustainable practices are essential for effective supply chain digitalization, involving environmentally friendly approaches from product design to transportation. Sustainable digital supply chain management offers environmental, social, and economic benefits, including efficient resource utilization, transparency in sourcing, and reduced energy consumption. However, digital supply chains face challenges such as security threats and potential job displacement due to automation. Despite the potential, few firms have fully integrated digitalization and sustainability into supply chain management. Further research is needed to explore the intersection of digital transformation and sustainable supply chain management.
The accepted articles for this special issue, chosen through a rigorous peer review process, cover various aspects of supply chain digital transformation. They include a study on holonic architecture for supply chain performance in Industry 4.0, an analysis of inhibitors for Logistics 4.0 adoption in small and medium enterprises, and investigations into risks and technologies like blockchain combating drug counterfeiting. Other topics include the impact of Industry 4.0 on supply chain collaboration, design, and performance measurement. These papers stress the importance of a comprehensive approach to digital technology adoption in supply chains, highlighting practical challenges and opportunities. They underscore the significance of technologies like blockchain, IoT, and AI in improving visibility and efficiency while adapting to the evolving landscape of supply chain management. Overall, they provide valuable insights for organizations seeking to enhance their competitive edge and resilience in the digital era.
Based on existing literature, organizations primarily relied on traditional business models and firm-level resources before the pandemic, focusing on responsible logistics and supply chain strategies to minimize costs and environmental impact. Digitalization was limited, with few organizations embracing it. The COVID-19 pandemic disrupted global supply chains, prompting organizations to reassess their strategies, leading to increased adoption of digital technologies like blockchain and AI. This crisis also provided an opportunity for digital transformation, requiring organizations to rethink their strategies and adopt innovative business models. Post-pandemic recovery emphasizes leveraging digital capabilities for sustainable growth, focusing on investments in technologies like big data analytics and digital control towers for enhanced supply chain resilience and performance tracking. Organizations must also prioritize sustainable development goals, worker well-being, and environmental conservation in their digital transformation efforts, transitioning towards circular economy principles for long-term sustainability. Regulatory compliance and business process reengineering are crucial for successful digital transformation.
This paper is part of a special issue titled ‘Digital Transformation in Logistics: Logistics 4.0’, edited by Balan Sundarakani, Ioannis Manikas, and Angappa Gunasekaran. It presents review findings, a new framework for digital transformation in logistics and supply chain, and identifies emerging research questions, laying the groundwork for further study. The guest editors express gratitude to reviewers for their time, acknowledge Dr. Rohit Sharma’s support, and extend special thanks to Prof. Ming Lim and the editorial office of the International Journal of Logistics Research and Applications for their assistance throughout the publication process.
Source:
Balan Sundarakani, Ioannis Manikas & Angappa Gunasekaran (2024) The role of digital transformation in achieving sustainable supply chain management in Industry 4.0: an editorial review perspective, International Journal of Logistics Research and Applications, DOI: 10.1080/13675567.2024.2332123