Digitalization in Logistics Operations and Industry 4.0: Understanding the Linkages with Buzzwords

Abstract

The new industrial revolution, Industry 4.0, requires digital transformation in all business operations including those of logistics. The digitalization in logistics operations, such as transportation, warehousing, inventory planning, sourcing, and return can provide firms high levels of flexibility and efficiency that are key to competitiveness in the era of Industry 4.0. In this regard, many buzzwords (technologies) are discussed in the discourses of Industry 4.0, emphasizing their key importance for the successful digitalization of logistics operations. However, the lack of clear understanding on these buzzwords and their interrelations is a barrier to firms’ determination of a clear road map for the digitalization process. For this reason, this study aims to initially introduce the Industry 4.0 enabling technologies (buzzwords), expected to be widely used in logistics operations in the immediate future, and then reveals the linkages between these technologies. To this end, this study applies the fuzzy-total interpretative structure modelling on the Industry 4.0 enabling technologies, which are big data analytics, internet of things, artificial intelligence, cloud technology, 3D printing, augmented reality, 5G connection, and autonomous vehicles. The results show that most Industry 4.0 enabling technologies are interdependent, but to different degrees. These results provide guidance on which technologies firms should primarily focus on to achieve digital transformation in logistics operations.