Chapter 7 - The impact of digitalization on contemporary and future logistics

Abstract

Logistics as a sector has grown significantly in recent decades, both domestically and internationally. The digitalization of business systems and the use of Information and Communication Technology have had a major impact across the spectrum of logistics and supply chain management activities. A wide range of developments have already taken place and the pace of change is quickening. We chart the principal stages in the development of computer-based and digital logistics systems that have changed fundamentally how goods, information, and finance flow through the supply chain. Contemporary developments covered include cloud-based systems, digital platforms, Artificial Intelligence, the Internet of Things, Digital Twins, the physical Internet, and Industry 4.0. These technologies not only have the potential to support logistics operations but may also act as disruptors to established approaches, practices, and logistics systems. This chapter discusses how these technological developments, in parallel with economic drivers such as cost saving, the desire for speed and accuracy in delivery, and the imperative for sustainable logistics systems, are contributing to the rapid changes and adaptations taking place. Although there are significant hurdles to widespread adoption, digitally enabled logistics is likely to continue to improve supply chain transparency, operational efficiency, and responsiveness.