Implementation of digital technologies in logistics systems of low-income countries : an assessment based on case studies in Ethiopia

Abstract

Digital technologies have significant potential in enhancing logistics performance. However, the adoption of digital technologies is limited in low-income countries. Therefore, it is important to investigate their potential impact on logistics performance and how they can be introduced. Using Ethiopia as a case study, this thesis evaluated the possibilities of adopting digital technologies in logistics systems in low-income countries and analysed factors influencing their adoption. An assessment of current practices in digital technologies adoption in logistics identified transport and warehouse performance indicators (PIs) relevant to lowincome countries. In a logistics audit, the performance of the Ethiopian coffee and dairy supply chains was evaluated in terms of digital technologies implementation. A technology acceptance model (TAM) was then used to estimate stakeholder acceptance of digital technologies. Finally, a framework for digital technology adoption was developed. Security and order lead time were identified as important PIs in low-income countries. Further analysis revealed limited adoption of digital technologies in the coffee and dairy supply chains, although the coffee supply chain performed better in terms of digital technology implementation. Optimisation of facilities, routes and resources in the dairy supply chain led to reduced distance and travel time. Stakeholder perceptions of digital technologies and factors such as infrastructure, finance, technology access, human resources and supportive policies contributed to successful adoption. A framework for digital technology adoption using two approaches, gradual digitalisation and end-to-end digitalisation, was developed. These findings can assist policy-makers and practitioners in assessing the current adoption level and in identifying challenges to advance implementation of digital technologies in low-income countries.