Evaluation of Logistics 4.0 Potentials Based On Transportation Safety and Security for a Logistics Company

Abstract

Transportation sector faces growing pressure to handle the global trends while meeting the customer demands. Fourth Industrial Revolution (Industry 4.0) is one of these challenges and gained attraction by the researchers and practitioners of all sectors in recent years and expected to continue its challenging effect in the next decades. This revolution is named as Logistics 4.0 in the context of Industry 4.0 implications in logistics. This era prompts the logistics companies to transit to smarter facilities. In this paper, the problem is denoted as selection of the optimum logistics service provider (LSP) for a logistics firm regarding transportation safety, security, quality and cost criteria based on fourth industrial revolution. The LSP selection problem is to choose the appropriate LSP to meet the increasing demands and provide the good or service in the logistics chain. Analytic Hierarchy Process (AHP), which is one of the most widely used multi-criteria decision making methods (MCDM) is proposed to identify and rank the LSPs, and Fuzzy approach is also developed to obtain most important criteria and best LSPs. Safety and security criteria is obtained as two important criteria in the fuzzy approach with the percentage for selection of best LSP is % 83.7 while security is the most important criteria in the AHP with 0,568 score. Computational results are promising for the decision makers in terms of both solution simplicity and usefulness for logistics sector.