UNIVERSITY OF THE AEGEAN

ENGINEERING SCHOOL

DEPARTMENT OF FINANCIAL AND MANAGEMENT ENGINEERING

MSc in

FINANCIAL AND MANAGEMENT ENGINEERING

(MSc-Ο.∆Ι.Μ)

“Logistics 4.0: Technologies, Trends, Applications and Challenges”

AUTHOR: Dimitrios Karabourniotis

SUPERVISOR: Dr. Vasilis Zeimpekis

CHIOS, 2018

1
Preface

“When something is important enough, you do it even if the odds are not in your favor.”

-Elon Musk

This master thesis has been performed at the Department of Financial and Management
Engineering of the University of The Aegean. It has been supervised by Dr. Vasileios
Zeimpekis.

Chios, 2018

Dimitrios Karampourniotis

2
Acknowledgements

First, I would like to thank my supervisor, Dr. Vasileios Zeimpekis for his endless support and
professional advices. In addition, I would like to thank my fellow colleague Georgios
Vasileiou for helping me in refining my writing skills.

Finally, I would like to thank my parents and my girlfriend for their unconditional support
and encouragement.

3
Είμαι συγγραφέας αυτής της Μεταπτυχιακής Διπλωματικής Εργασίας και κάθε βοήθεια την
οποία είχα για την προετοιμασία της είναι πλήρως αναγνωρισμένη και αναφέρεται στην
εργασία. Επίσης, έχω αναφέρει τις όποιες πηγές από τις οποίες έκανα χρήση δεδομένων ή
ιδεών, είτε αυτές αναφέρονται ακριβώς είτε παραφρασμένες. Επίσης, βεβαιώνω ότι αυτή η
εργασία προετοιμάστηκε από εμένα προσωπικά, ειδικά για τη συγκεκριμένη μεταπτυχιακή
διπλωματική εργασία.

4
Table of Contents

Preface ..............................................................................................................................................2
Acknowledgements..........................................................................................................................3
Table of Contents .............................................................................................................................5
List of Figures ...................................................................................................................................9
List of Tables ...................................................................................................................................11
Nomenclature ................................................................................................................................12
Abstract ..........................................................................................................................................14
Επιτελική Σύνοψη ..........................................................................................................................15
Chapter 1 Introduction ...............................................................................................................17
1.1 The Role of Information Technology in Logistics Operations .....................................17
1.2 Scope and Objectives of the Thesis ..............................................................................18
1.2 Methodology .................................................................................................................19
1.4 Thesis Outline ................................................................................................................19
Chapter 2 Logistics Operations: Processes and Characteristics ..................................................21
2.1 Introduction ...................................................................................................................21
2.2 Supply Chain and Logistics Management.....................................................................21
2.3 Warehousing and Storage ............................................................................................22
2.3.1 The role of a Warehouse ......................................................................................23
2.3.2 Warehouse Operations.........................................................................................23
2.3.3 Receiving and Storing ...........................................................................................24
2.3.4 Replenishment and Order Picking........................................................................25
2.3.5 Packing ...................................................................................................................29
2.3.6 Dispatching ............................................................................................................29
2.3.7 Warehouse Management System ........................................................................31
2.4 Transportation ...............................................................................................................33
2.4.1 Transport Modes ..........................................................................................................33
2.4.2 Line Haul Transportation .............................................................................................36
2.4.3 City Logistics/Last Mile Delivery ..................................................................................37
2.4.4 Fleet Management .......................................................................................................38
2.4.5 Routing and Scheduling ...............................................................................................39
2.4.6 Information Systems in Freight Transportation ..................................................40
2.5 Reverse Logistics ...........................................................................................................40
2.5.1 Reverse Logistics Process .....................................................................................41

5
 2.5.2 Priorities and Issues......................................................................................................42
2.6 Issues and Challenges ...................................................................................................42
2.6.1 Higher Customer Demands ..................................................................................42
2.6.2 Organizational Structures .....................................................................................43
2.6.3 Globalization..........................................................................................................43
2.6.4 Startups and Logistics Industry Disruption ..........................................................43
2.6.5 The Rise of E-Commerce.......................................................................................44
2.6.6 Cybersecurity.........................................................................................................44
2.7 Summary ........................................................................................................................45
Chapter 3 Industry 4.0 ...................................................................................................................46
3.1 Background ....................................................................................................................46
3.1.1 Industry 1.0 ...........................................................................................................46
3.1.2 Industry 2.0 ...........................................................................................................47
3.1.3 Industry 3.0 ...........................................................................................................47
3.2 Industry 4.0 ....................................................................................................................48
3.2.1 Necessity for Industry 4.0 Technologies ..............................................................48
3.2.2 Issues raised from Industry 4.0 Adoption ............................................................49
3.2.3 Issues arising in HR Sectors ..........................................................................................50
3.2.4 New Organizational Structures ............................................................................50
3.3 Logistics 4.0 and Emerging Technologies.....................................................................52
3.3.1 Internet of Things (IoT) .........................................................................................54
3.3.2 Big Data..................................................................................................................55
3.3.3 Advanced Robotics................................................................................................56
3.3.4 Augmented Reality (AR)........................................................................................57
3.3.5 Unmanned Aerial Vehicles...................................................................................57
3.4 Summary ........................................................................................................................58
Chapter 4 Industry 4.0 on Logistics Operations ........................................................................59
4.1 Introduction ...................................................................................................................59
4.2 IoT and its Applications on Logistics Operations .........................................................59
4.2.1 IoT in Warehouse Operations ..............................................................................60
4.2.2 IoT Applications on Freight Transportation .........................................................64
4.2.3 IoT-enabled Last-Mile Delivery.............................................................................66
4.3 Big Data in Logistics .......................................................................................................67
4.3.1 Data-Driven Business ............................................................................................69
4.3.2 Big Data for Greater Customer Service ................................................................70
4.3.3 Big Data Analytics and Fleet Management ..........................................................72

6
 4.4 Advanced Robotics in Logistics Operations .................................................................73
4.4.1 Robotics in Warehouse Operations .....................................................................73
4.4.2 Robotics revolutionizing Distribution and Delivery .............................................75
4.5 Unmanned Aerial Vehicles in Logistics Operations .....................................................77
4.5.1 UAVs Intralogistics Applications ...........................................................................77
4.5.2 UAVs for Security in Large-Scale Facilities ...........................................................78
4.5.3 UAVs in Urban Delivery.........................................................................................78
4.5.4 UAVs in Rural Delivery ..........................................................................................79
4.6 Augmented Reality in Logistics Operations .................................................................81
4.6.1 Augmented Reality in Warehouse Operations ....................................................81
4.6.2 AR in Freight Transportation ................................................................................84
4.6.3 AR in Delivery ........................................................................................................84
4.7 Logistics 4.0 Implementation Framework....................................................................85
4.7.1 The Framework .....................................................................................................86
4.7.2 The Emerging Challenges .....................................................................................88
4.7.3 Implementing UAVs for Inventory Management ................................................90
4.8 Summary ........................................................................................................................92
Chapter 5 Case Studies in Logistics Operations ...........................................................................94
5.1 Introduction ...................................................................................................................94
5.2 Case Study 1: Bobcat and SmartLIFT Technology ........................................................94
5.2.1 The Challenge ........................................................................................................95
5.2.2 The Solution ..........................................................................................................95
5.2.3 The Results ............................................................................................................96
5.3 Case Study 2: DHL’s Weighing Forks on a Forklift Truck .............................................96
5.3.1 The Challenge ........................................................................................................96
5.3.2 The Solution ..........................................................................................................96
5.3.3 The Results ............................................................................................................97
5.4 Case Study 3: Vision Picking at the Inter Arizona Distribution Center .......................97
5.4.1 Vision Picking vs RF Picking at the Intel Arizona Distribution Center .................98
5.4.2 The Results ............................................................................................................98
5.5 Case Study 4: DHL’s Dynamic Inventory Control .........................................................99
5.5.1 The Challenge ........................................................................................................99
5.5.2 The Solution ..........................................................................................................99
5.5.3 The Results ............................................................................................................99
5.6 Case Study 5: The InventAIRy Project by Fraunhofer IML...........................................99
5.6.1 The Challenge ..................................................................................................... 100

7
 5.6.2 The Solution ....................................................................................................... 101
5.6.3 The Benefits........................................................................................................ 101
5.7 Case Study 6: Maintenance on Demand (MODE) ..................................................... 101
5.7.1 The Logistics Challenge ...................................................................................... 101
5.7.2 The Solution ....................................................................................................... 102
5.7.3 The Benefits........................................................................................................ 102
5.8 Case Study 7: DHL and the SmartTruck ..................................................................... 103
5.8.1 The Challenge ..................................................................................................... 103
5.8.2 The Solution ....................................................................................................... 103
5.8.3 The Benefits........................................................................................................ 103
5.9 Case Study 8: UPS Leveraging Big Data Analytics ..................................................... 104
5.9.1 UPS Big Data Projects......................................................................................... 104
5.9.2 Results and Goals ............................................................................................... 104
5.10 Case Study 9: Jack in the Box investing in Delivery Robots ...................................... 104
5.10.1 Investment in Autonomous Delivery Robots .................................................... 104
5.10.2 Future Investments ............................................................................................ 105
5.11 Case Study 10: Amazon’s Drone Deliveries .............................................................. 105
5.11.1 Investing in UAVs ............................................................................................... 105
5.11.2 Advantages ......................................................................................................... 106
5.12 Summary ......................................................................................................................... 106
Chapter 6 Conclusions ............................................................................................................. 107
6.1 Main Findings ............................................................................................................. 107
6.2 Conclusions ................................................................................................................. 109
6.3 The Way Forward ....................................................................................................... 110
References ................................................................................................................................... 111

8
List of Figures
FIGURE 1.1 A FLOW CHART DEPICTING THE METHODOLOGY FOLLOWED IN THE MASTER THESIS................................... 19
FIGURE 2.1 LOGISTICS MANAGEMENT AS A CRUCIAL PART OF SUPPLY CHAIN MANAGEMENT. (IIBM LMS, 2018). ....... 22
FIGURE 2.2 THE FUNCTIONS LISTED ABOVE SORTED BY CHRONOLOGY (RIGHTWAREHOUSE.COM, 2018)....................... 24
FIGURE 2.3 WMS ADDS THE ELEMENT OF AUTOMATION TO WAREHOUSE OPERATIONS, THUS INCREASING PRODUCTIVITY
AND EFFICIENCY (SCHMIDTHK.COM, 2018). ............................................................................................ 32
FIGURE 2.4 FREIGHT TRANSPORT MODE OF CHOICE BY PERCENTAGE WORLDWIDE (SAFETY4SEA., 2018). ................. 34
FIGURE 2.5 A GEOGRAPHICAL VIEW OF URBAN LOGISTICS, COMPRISED OF CITY LOGISTICS, URBAN GOODS DISTRIBUTION
AND LAST MILE DELIVERY (MALINDRETOS, 2015)...................................................................................... 38
FIGURE 2.6 THE REVERSE LOGISTICS PROCESS (BENTZ, 2015). ............................................................................. 41
FIGURE 2.7 GLOBAL RETAIL E-COMMERCE SALES GROWTH THROUGH THE YEARS (VUPUNE.AC.IN., 2018). .................. 44
FIGURE 3.1 COST REDUCTION PERCENTAGE EXPECTED FOR COMPANIES INVESTING IN DIGITALIZATION BY 2020, GROUPED
BY INDUSTRY (PWC, 2016). ................................................................................................................. 49
FIGURE 3.2 GRAPH SHOWING THE AMOUNT CONNECTED DEVICES, SHOWCASING THE FACT THAT THERE IS STILL A LOT MORE
TO BE SEEN (BICHENO, 2015). .............................................................................................................. 55
FIGURE 3.3 BIG DATA ANALYTICS' WORLDWIDE REVENUE BASED ON A SURVEY BY IDC (SHIRER AND GOEPFERT, 2017). . 56
FIGURE 3.4 PROJECTED SIZE OF AR MARKET IN 2022 COMPARED TO 2018 BASED ON A SURVEY CONDUCTED BY IDC
(MURRAY, 2018)............................................................................................................................... 57
FIGURE 3.5 EXPECTED GLOBAL DRONE SPENDING FOR 2017-2021 BASED ON A SURVEY CONDUCTED BY GOLDMAN
SACHS, GROUPED BY COUNTRY (GOLDMAN SACHS, 2018). ........................................................................ 58
FIGURE 4.1 THE IOT “ECOSYSTEM”, COMPRISED OF THREE MAIN COMPONENTS, WHICH ARE SENSOR-EMBEDDED OBJECTS,
WIRELESS NETWORKS AND INFORMATION SYSTEMS. ................................................................................... 59
FIGURE 4.2 THE IOT-ENABLED WAREHOUSE, WITH MULTIPLE APPLICATIONS, SUCH AS CONDITION MONITORING, SMART
INVENTORY MANAGEMENT, SMART VENTILATION ETC. (HECTOR, 2018). ....................................................... 61
FIGURE 4.3 AN RFID TAG STORES DATA REGARDING THE OBJECT IT IS EMBEDDED TO ELECTRONICALLY. THE WIRELESS
READER TRACKS AND IDENTIFIES THE TAG WITH THE USE OF ELECTROMAGNETIC FIELDS (WEST, 2017)................. 62
FIGURE 4.4 DISPLAYS HOW IOT REVOLUTIONIZES TRANSPORTATION OPERATIONS BY FEATURING ALL OF THE ADVANTAGES
AND CAPABILITIES DISCUSSED ABOVE: MONITORING OF VEHICLE CONDITION STATUS, THE DRIVER’S VITALS, SHIPMENT
ID REPORTING ETC. (MACAULAY ET AL., 2015). ....................................................................................... 65
FIGURE 4.5 SHOWS HOW IOT REDEFINES LAST-MILE DELIVERY. FEATURES DISPLAYED: A) AUTOMATIC ORDER PLACEMENT,
B) FLEXIBLE ADDRESS, C) DELIVERY NOTIFICATION, D) RETURNED GOODS REQUEST, E) COLLECTION ROUTE
OPTIMIZATION (MACAULAY ET AL., 2015)............................................................................................... 66
FIGURE 4.6 THE LARGE DATASETS ARE DECOMPOSED AND BROKEN DOWN INTO SMALLER DATASETS IN ORDER TO BE
PROPERLY PROCESSED, WHICH IS THE MAPPING PROCESS. MAPPING IS FOLLOWED BY THE REDUCE PHASE, WHERE
RESULTS ARE COMBINED TO PRODUCE POWERFUL INSIGHTS (ALI ET AL., 2016). .............................................. 68
FIGURE 4.7 THE BIG DATA ECOSYSTEM, STARTING FROM THE RETRIEVAL OF DATA FROM MULTIPLE DATA SOURCES AND
REACHING TO POWERFUL INSIGHTS. ........................................................................................................ 68
FIGURE 4.8 GOODS TO PICKER TECHNOLOGY: KIVA MOVING A COLLECTION OF ITEMS (KIM, 2015). ............................ 74
FIGURE 4.9 FETCH AND FREIGHT ENABLING FULL AUTOMATION OF THE PICKING OPERATION AND OFFERING A PICKER-TO-
GOODS SOLUTION (IEEE SPECTRUM, 2015). ........................................................................................... 74
FIGURE 4.10 BAXTER, DESIGNED BY RETHINK ROBOTICS COMPANY, ASSISTS IN PACKING AND SORTING ACTIVITIES AND
TASKS (BALINSKI, 2014). ..................................................................................................................... 75
FIGURE 4.11 BASED ON ELECTRIC POWER TO FUNCTION, EXOSKELETON SUPPORT FOR WORKERS AIDS THEM IN DAY-TO-DAY
TASKS OR HEAVY AND LARGE ITEM CARRYING. SUCH EXOSKELETON SUPPORT IS DEVELOPED BY PANASONIC (BURGESS,
2016). ............................................................................................................................................. 75
FIGURE 4.12 THE DHL PARCEL ROBOT IS A PROTOTYPE DEVELOPED BY DHL AND ASSOCIATES (BONKENBURG, 2016),
WHICH ASSISTS IN UNLOADING AND LOADING OF GOODS (I-SCOOP.EU, 2018). ............................................... 76
FIGURE 4.13 UAVS DEVELOPED BY MIT RESEARCHERS CAN READ RFID TAGS USING EXISTING RFID-READING SYSTEMS IN
THE WAREHOUSE, MEANING THAT THERE IS NO NEED FOR THEM TO CARRY A READER (LUMB, 2017). ................. 78
FIGURE 4.14 AN EXAMPLE OF THE AR HEADSET DISPLAYING INFORMATION REGARDING SHELF NUMBER, BARCODE, AISLE,
STOCK NUMBERS ETC. (HCI.VT.EDU, 2018). ............................................................................................ 81

9
FIGURE 4.15 DISPLAYS THE AR HEADSET WORN BY WORKERS AND SHOWS ITS FEATURES, SUCH AS THE DISPLAY AND THE
CAMERA (INTEL, 2015). ...................................................................................................................... 82
FIGURE 4.16 THE FRAMEWORK A COMPANY SHOULD FOLLOW IN ORDER TO SUCCESSFULLY IMPLEMENT LOGISTICS 4.0
TECHNOLOGIES. .................................................................................................................................. 87
FIGURE 4.17 DISPLAYING THE ISSUES AND CHALLENGES OF THE LOGISTICS 4.0 IMPLEMENTATION (GIALOS AND ZEIMPEKIS,
2018; BARRETO ET AL., 2017). ............................................................................................................ 89
FIGURE 4.18 FRAMEWORK ABOUT UAVS IMPLEMENTATION FOR INVENTORY MANAGEMENT. ................................... 91
FIGURE 5.1 SHOWING THE LOCATIONS OF THE INDIVIDUAL SUPPORTING TECHNOLOGIES ON A TELEHANDLER BOBCAT
V417 (ONESTOPRENTALSALES.COM, 2018). ........................................................................................... 96
FIGURE 5.2 THE RWV WEIGHING FORKS (RAVAS, 2018). .................................................................................. 97
FIGURE 5.3 THE DIFFERENCES BETWEEN THE TWO PICKING METHODS WERE REPORTED BY WORKERS WITH THE FLEXIBILITY
AND EFFICIENCY THAT THE SMART GLASSES OFFER BEING UNANIMOUSLY APPLAUDED (INTEL, 2015). .................. 98
FIGURE 5.4 THE INFORMATION ON THE RIGHT CONCERNS THE AISLE AND THE SHELF FOR LOCATING THE ITEM, WHILE THE
INFORMATION ON THE LEFT CONCERNS THE ITEM CODE, THE QUANTITY TO BE RETRIEVED AND THE DELIVERY NOTE TO
BE PUT ON THE BOX (INTEL, 2015)......................................................................................................... 98
FIGURE 5.5 THE INVENTAIRY BONN TEST COPTER (AIS.UNI-BONN.DE, 2016)...................................................... 100
FIGURE 5.6 THE INVENTAIRY COPTER IN A PANOPA LOGISTIK WAREHOUSE (AIS.UNI-BONN.DE, 2016). .................... 100
FIGURE 5.7 MANY COLLABORATING PARTNERS OFFERED THEIR EXPERTISE IN DEVELOPING THE MODE PROJECT. AS SEEN IN
THIS FIGURE, THE DAMPER SYSTEM, THE FUEL INJECTOR AND THE OIL SYSTEM HAVE BEEN EMBEDDED WITH SENSORS
WHICH SEND THE DATA TO THE CENTRAL SYSTEM, WHICH SEQUENTIALLY TRANSMITS THEM TO A REMOTE USER
(AVONWOOD, 2013). ....................................................................................................................... 102
FIGURE 5.8 THE DELIVERY ROBOT, CALLED HAPPY, DEVELOPED BY DOORDASH AND MARBLE (MASHABLE, 2017). ...... 105
FIGURE 5.9 THE OCTOCOPTER UTILIZED FOR THE PRIME AIR SERVICE BY AMAZON (SPARY, 2015). ........................... 106

10
List of Tables
TABLE 2.1 A SUMMARY OF THE PICKING METHODOLOGIES SEEN IN THIS CHAPTER (RUSHTON ET AL., 2014).................. 27
TABLE 2.2 A COMPARATIVE TABLE FOR VOICE, LIGHT AND RF SCANNER PICKING TECHNOLOGIES CURRENTLY USED
(BCPSOFTWARE.COM, 2018). ............................................................................................................... 29
TABLE 2.3 COMPARING MODES OF TRANSPORT ACROSS FOUR CRUCIAL VARIABLES. .................................................. 36
TABLE 3.1 HISTORY OF INDUSTRIAL REVOLUTIONS (COLLINS, 2017; HAMMEL SCALE, 2018).................................... 46
TABLE 3.2 ISSUES RAISED FROM INDUSTRY 4.0 ADOPTION (RENJEN, 2018). .......................................................... 49
TABLE 3.3 EMERGING TECHNOLOGIES OF LOGISTICS 4.0 (DHL, 2015; ORACLE, 2018; MALEK ET AL., 2017). ............ 53
TABLE 4.1 IOT SUBSIDIARY TECHNOLOGIES AND THEIR USES IN LOGISTICS OPERATIONS (MACAULAY ET AL., 2015; ZHONG
ET AL., 2017). ................................................................................................................................... 62
TABLE 4.2 COMPARES RFID TAGS TO BARCODES UTILIZATION IN THE WAREHOUSE. ................................................. 63
TABLE 4.3 THE IMPACT AND THE RESULTS OF IMPLEMENTING IOT-BASED SOLUTIONS (NEWCASTLE SYSTEMS, 2017;
DATEX, 2018; ZHONG ET AL., 2017; GREGOR ET AL., 2017; MACAULAY ET AL., 2015). ................................ 64
TABLE 4.4 DESCRIBING THE IMPACT OF IOT TECHNOLOGIES ON FREIGHT TRANSPORTATION (DELOITTE, 2018; MACAULAY
ET AL., 2015; MALEK ET AL., 2017; ZHONG ET AL., 2017). ....................................................................... 66
TABLE 4.5 COMPARISON BETWEEN DATA WAREHOUSE AND BIG DATA. ................................................................ 70
TABLE 4.6 HOW BIG DATA AFFECT THE WAY LOGISTICS COMPANIES DO BUSINESS (ANSHARI ET AL., 2018; KIRKOS, 2015;
MALEK ET AL., 2017).......................................................................................................................... 70
TABLE 4.7 DESCRIBING BIG DATA’S IMPACT ON CUSTOMER SERVICE (JESKE ET AL., 2013; ANSHARI ET AL., 2018). ....... 72
TABLE 4.8 HOW BIG DATA ANALYTICS AFFECT FLEET MANAGEMENT AND ENABLES NEW FEATURES AND CAPABILITIES (JESKE
ET AL., 2013; BEN AYED ET AL., 2015). ................................................................................................. 73
TABLE 4.9 THE LOGISTICS OPERATIONS TO BE DISCUSSED, REVOLUTIONIZED BY ADVANCED ROBOTICS. .......................... 73
TABLE 4.10 COMPARATIVE TABLE OF THREE LAST-MILE DELIVERY METHODS, DELIVERY CARS, E-CARGO BIKES AND DELIVERY
ROBOTS. ........................................................................................................................................... 76
TABLE 4.11 HOW ADVANCED ROBOTICS REVOLUTIONIZE LOGISTICS OPERATIONS (BURGESS, 2018; ROMEO, 2017). .... 77
TABLE 4.12 COMPARES CONVENTIONAL INVENTORY MANAGEMENT TO SMART INVENTORY MANAGEMENT WITH THE
UTILIZATION OF UAVS. ........................................................................................................................ 78
TABLE 4.13 DISPLAYING UAVS' IMPACT ON LOGISTICS OPERATIONS (DHL, 2014; SANDLE, 2017; TREBILCOCK, 2018).80
TABLE 4.14 THE LOGISTICS OPERATIONS TO BE DISCUSSED, REVOLUTIONIZED BY AR. ................................................ 81
TABLE 4.15 COMPARES PICKING TECHNOLOGIES AND SHOWCASES HOW AR-BASED VISION PICKING IS SUPERIOR............ 82
TABLE 4.16 DESCRIBING THE BENEFITS FOR INTEGRATING AR IN WAREHOUSE OPERATIONS (GLOCKNER ET AL., 2014;
STOLTZ ET AL., 2017; MERLINO AND SPROGE, 2015). .............................................................................. 83
TABLE 4.17 DESCRIBING HOW AR REVOLUTIONIZES FREIGHT TRANSPORTATION OPERATIONS AND WHAT ARE THE BENEFITS
(GLOCKNER ET AL., 2014; MERLINO AND SPROGE, 2015). ........................................................................ 84
TABLE 4.18 COMPARES GPS TO VPS.............................................................................................................. 85
TABLE 4.19 PRESENTING AR'S APPLICATION FOR LAST-MILE DELIVERY (GLOCKNER ET AL., 2014). .............................. 85
TABLE 4.20 SUMMARIZING THE TECHNOLOGIES THAT DRIVE LOGISTICS OPERATIONS TOWARDS AUTOMATION AND
DIGITALIZATION (GIALOS AND ZEIMPEKIS, 2018; NORONHA ET AL., 2016). .................................................. 93
TABLE 5.1 DISPLAYING THE CASE STUDIES TO BE REVIEWED AND WHICH TECHNOLOGIES ARE PRESENT IN EACH SITUATION 94
TABLE 5.2 COMPARING WAREHOUSE OPERATIONS PRE AND POST SMART WEIGHING FORKS INSTALLATION (RAVAS, 2018).
....................................................................................................................................................... 97
TABLE 5.3 DISPLAYING HOW UAVS TRANSFORM INVENTORY MANAGEMENT (FEDERAL MINISTRY FOR ECONOMIC AFFAIRS
AND ENERGY, 2015). ........................................................................................................................ 101

11
Nomenclature
AR Augmented Reality

AS/AR Automated Storage/ Automated Retrieval

ASN Advance Shipping Notice

BI Business Intelligence

CRM Customer Relations Management

EDI Electronic Data Interchange

EPOS Electronic Point of Sale

ERP Enterprise Resource Planning

EU European Union

FIFO First in First Out

GDPR General Data Protection Regulation

GPS Global Positioning System

GSM Global System for Mobile Communication

HR Human Resources

ICT Information and Communication Technology

IT Information Technology

IoT Internet of Things

KPI Key Performance Indicators

LLOP Low-Level Order Picking

MODE Maintenance on Demand

M2M Machine to Machine

M2P Machine to Person

NPS Net Promoter Score

NPT Network Planning Tools

ORION On-Road Integrated Optimization Network

OT Operational Technology

POD Proof of Delivery

PSS Product-Service System

QSR Quick Service Restaurant

RF Ring Finger

12
RORO Roll-on Roll-off

RFID Radio Frequency Identification

SCM Supply Chain Management

SKU Stock Keeping Unit

UAV Unmanned Aerial Vehicle

VNA Very Narrow Aisle

VPS Visual Positioning System

VR Virtual Reality

WIP Work-in-Progress

WMS Warehouse Management System

3PL Third Party Logistics

13
Abstract
Current logistics operations and information systems used cannot deal with the emerging
challenges. Globalization, the rise of e-commerce, cyberthreats, cumbersome organizational
structures, startups disrupting the business landscape and constantly higher customer
demands push companies into adopting emerging technologies which enable them to
increase digitalization and automation.

These challenges have been exploiting the limits of currently utilized warehouse
technologies and practices, highlighting the inefficiencies that exist. As for freight
transportation, fleet management systems and routing software solutions are utilized at a
great extend and success already, but one thing highlighted through the case studies
analysis is the necessity for real-time monitoring and visibility throughout the goods’ journey
from dispatching to the customer.

The fourth industrial revolution, Industry 4.0, enables companies to proceed in digitalizing
their operations, as building a flexible organizational structure is a challenge that needs to
be addressed and adopting the digital enterprise model is a crucial step before
implementing the new age technologies, as companies must add the elements of flexibility
and adaptability in order to deal with the challenges at hand.

Logistics 4.0, a term derived from the combination of Industry 4.0 technologies and
innovations and their application on inbound and outbound logistics is a narrower concept
than Industry 4.0, as it focuses on typical features, such as automation and digitalization.
The technologies most commonly utilized are the Internet of Things (IoT), Big Data analytics,
Augmented Reality (AR), Unmanned Aerial Vehicles (UAVs) and Advanced Robotics. IoT is
the pinnacle of those technologies, as it enables new data streams creation from sources
previously being non-exploitable and allows companies to monitor and control
mechanizations, fleets etc. by a central system. Big Data analytics provide a powerful tool to
companies, as the new data streams generated by IoT produce much greater amounts of
data which common software cannot process. Advanced Robotics revolutionize logistics
operations due to increasing automation. AR offers numerous advantages for warehouse
workers distributors. Lastly, UAVs present a revolutionary technology in many different ways
as they possess a wide array of applications, such as facility patrolling, warehouse assistance,
stock counting and last-mile delivery.

The Master thesis presents a framework that companies may follow for a Logistics 4.0
technologies implementation. The framework presents five necessary phases for the
implementation, enabling the company to properly deal with the challenges that emerge.
Resistance to change, high investment costs, HR-related issues, data privacy issues, IT
infrastructure requirements, the public’s opinion about revolutionary technologies and
regulations are challenges that must be dealt with for the implementation to be smoothly
completed.

The case studies analysis that follows showcase the advantages and benefits of
implementing Logistics 4.0 technologies. Finally, the outcome of the Master thesis is that the
framework may be tested in a real-world environment for further research on the subject.

14
Επιτελική Σύνοψη
Η υφιστάμενη κατάσταση στον τομέα των λειτουργιών των Logistics και τα πληροφοριακά
συστήματα που χρησιμοποιούνται δεν μπορούν να αντιμετωπίσουν τις προκλήσεις που
προκύπτουν. Η παγκοσμιοποίηση, η άνοδος του ηλεκτρονικού εμπορίου, οι απειλές εκ του
διαδικτύου, οι πολύπλοκες οργανωσιακές δομές, οι νεοσύστατες επιχειρήσεις που
διαταράσσουν το επιχειρηματικό τοπίο και οι συνεχώς υψηλότερες απαιτήσεις των
πελατών ωθούν τις εταιρείες στην υιοθέτηση αναδυόμενων τεχνολογιών που τους οδηγούν
προς την ψηφιοποίηση και την αυτοματοποίηση.

Αυτές οι προκλήσεις φανερώνουν τις αδυναμίες των υφιστάμενων τεχνολογιών που

χρησιμοποιούνται στην αποθήκευση. Όσον αφορά τις εμπορευματικές μεταφορές, τα
συστήματα διαχείρισης στόλου και οι λύσεις λογισμικού δρομολόγησης χρησιμοποιούνται
ήδη σε μεγάλη έκταση και με επιτυχία, αλλά ένα πράγμα που επισημαίνεται στην ανάλυση
μελετών περίπτωσης είναι η αναγκαιότητα παρακολούθησης και ορατότητας σε
πραγματικό χρόνο καθ’όλη τη διάρκεια του ταξιδιού των εμπορευμάτων μέχρι τον πελάτη.

Η τέταρτη βιομηχανική επανάσταση, εν συντομία Industry 4.0, επιτρέπει στις επιχειρήσεις

να προχωρήσουν στην ψηφιοποίηση των λειτουργιών τους, καθώς η δημιουργία μιας
ευέλικτης οργανωτικής δομής και η υιοθέτηση του ψηφιακού επιχειρηματικού μοντέλου
είναι ένα κρίσιμο βήμα πριν την εφαρμογή αναδυόμενων τεχνολογιών.

Τα Logistics 4.0, ένας όρος που προκύπτει από το συνδυασμό των τεχνολογιών και
καινοτομιών του Industry 4.0 και της εφαρμογής τους στις εισερχόμενες και εξερχόμενες
λειτουργίες logistics, επικεντρώνεται σε τυπικά χαρακτηριστικά όπως αυτοματοποίηση και
ψηφιοποίηση. Οι τεχνολογίες που χρησιμοποιούνται συνήθως είναι το Διαδίκτυο των
πραγμάτων (IoT), τα Big Data analytics, η επαυξημένη πραγματικότητα (AR), τα μη
επανδρωμένα σκάφη (UAVs) και η προηγμένη ρομποτική. Το IoT επιτρέπει τη δημιουργία
νέων ροών δεδομένων από πηγές οι οποίες προηγουμένως ήταν μη εκμεταλλεύσιμες,
καθώς και την παρακολούθηση και τον έλεγχο μηχανισμών, στόλων κλπ. από ένα κεντρικό
σύστημα. Τα Big Data αποτελούν ένα ισχυρό εργαλείο για τις εταιρείες, καθώς οι νέες ροές
δεδομένων που παράγονται από το IoT παράγουν πολύ μεγαλύτερα σετ δεδομένων τα
οποία δεν μπορούν να επεξεργαστούν με χρήση κοινού λογισμικού. Η προηγμένη
ρομποτική φέρνει την επανάσταση στις λειτουργίες logistics λόγω της αύξησης της
αυτοματοποίησης. Το AR προσφέρει πολυάριθμα πλεονεκτήματα στους εργάτες μίας
αποθήκης, καθώς και στους διανομείς. Τέλος, τα UAVs διαθέτουν ευρύ φάσμα εφαρμογών,
όπως περιπολία εγκαταστάσεων, απογραφές και παράδοση τελευταίου μιλίου.

Η μεταπτυχιακή εργασία παρουσιάζει ένα πλαίσιο το οποίο οι εταιρείες μπορούν να

ακολουθήσουν για την εφαρμογή τεχνολογιών Logistics 4.0. Το πλαίσιο αυτό παρουσιάζει
πέντε απαραίτητες φάσεις για την εφαρμογή, επιτρέποντας στην εταιρεία να αντιμετωπίσει
σωστά τις αναδυόμενες προκλήσεις. Η αντίσταση στην αλλαγή, το υψηλό κόστος
επένδυσης, τα θέματα που σχετίζονται με το ανθρώπινο δυναμικό, τα ζητήματα ιδιωτικού
απορρήτου των δεδομένων, οι απαιτήσεις σε λογισμικό και υλισμικό, η γνώμη του κοινού
σχετικά με τις επαναστατικές τεχνολογίες και οι νομοθεσίες αποτελούν προκλήσεις που
πρέπει να αντιμετωπιστούν για την ομαλή ολοκλήρωση της εφαρμογής τεχνολογιών
Logistics 4.0.

Η ανάλυση των μελετών περίπτωσης που ακολουθεί μετέπειτα, παρουσιάζει τα

πλεονεκτήματα και τα οφέλη της εφαρμογής τεχνολογιών Logistics 4.0. Τέλος, προτείνονται

15
τρόποι αξιοποίησης του πλαισίου που αναπτύχθηκε σε αυτή την μεταπτυχιακή εργασία με
τεστάρισμα του σε αληθινό περιβάλλον.

16
Chapter 1 Introduction
Supply chain management has been continuously becoming more complex (Doz, 2017).
There is a need for faster and more individualized services due to the increased customer
demand regarding delivery time and availability (Witkowski, 2017). Furthermore,
globalization keeps on being a significant drive, security awareness has become a trend due
to cyber threats, social and environmental challenges emerge (e.g. the aim for less CO2
emissions) (DHL, 2016) and the rise of e-commerce pushes companies to consider
integrating emerging technologies which shall drive them towards digitalization and
innovation (Doz, 2017). However, companies should consider making fundamental changes
to their organizational structures in order to prioritize the optimization of their logistics
operations and add elements such as flexibility and adaptability in order to insert smoothly
into the digital age and implement emerging technologies (Noronha et al., 2016). Industry
4.0 and especially Logistics 4.0 (i.e. technologies that support the digital transformation of
logistics operations) facilitate those changes and allow companies to completely digitize and
automate several operations and processes.

1.1 The Role of Information Technology in Logistics Operations

The role of Information Technology has become more critical nowadays than ever before
due to the need for digitalization and innovation being more prominent. Logistics operators
and companies with in-house logistics have been using technological aids and systems such
as Voice Picking, Warehouse Management Systems, Fleet Management Systems, Routing
software solutions, etc., however these technologies and systems cannot always face
challenges, such as the aforementioned globalization, cyber-threats, e-commerce’s rise and
increased customer demands (Baretto et al., 2017). For example, a worker wearing the
voice-picking wearables still has to hold a handheld scanner and wears a ring-scanner in
order to confirm his every move, thus reducing his productiveness.

Logistics 4.0 offers a solution, in most cases, as its technologies facilitate greater
digitalization and automation in logistics operations, such as the above, thus driving
companies towards the digital age with increased capabilities for innovation (Hülsmann,
2015). As a result, Logistics 4.0 can be defined as a data-driven logistics concept in which
individual subsystems interwind and communicate in order to create a digital network that
enables increased efficiency and productivity (Szymanska et al., 2017). It operates under the
same principles as Industry 4.0, but with different component parts, as it utilizes smart
means, such as containers, vehicles, pallets, and transportation systems. By creating the
digital network, Logistics 4.0 offers supply chain managers, shippers, drivers, freight
forwarders etc. real-time visibility and traceability, thus enabling the optimization of logistics
operations, such as warehousing and freight transportation (Hoey, 2018). A digital supply
chain produces immediate results which can be seen due to real-time data processing
offering greater and more responsive insights (PwC, 2016). For example, in an IoT-based
warehouse all goods are embedded with sensors, so that managers can monitor their
condition (e.g. temperature) and location, which means that if a product was on the verge of
being damaged managers would know early enough to develop countermeasures and take
precautions (Hoey, 2018).

Other technological applications such as Augmented Reality devices (e.g. for Vision picking)
can recognize the surroundings and display visual information to the operator while enabling
scanning without a handheld device, thus reducing travel time through the warehouse and

17
decreasing the risk for injury while simultaneously optimizing the worker’s productivity,
making vision picking faster than other picking technological aids (DHL, 2015; Goettler,
2018). Another revolutionary technology which was briefly mentioned above is The Internet
of Things and its subsidiary technologies, such as sensor technology, with the ability to
connect individual components of the supply chain together into a central system in order to
enable digitalization and optimize processes (Macaulay et al., 2015). IoT enables the creation
of multiple data streams which results in a more massive amount of data being available,
which deems Big Data analytics the most suitable solution, as it enables real-time data
processing of datasets much bigger in variety, velocity, volume and size, thus optimizing
decision making and generating greater insights (Jeske et al., 2013). Advanced Robotics can
streamline day-to-day processes and tasks in the warehouse, while they can aid in
optimizing package delivery (Bonkenburg, 2016). Finally, unmanned aerial vehicles (UAVs)
present an opportunity to totally transform delivery processes, while enabling intralogistics
applications, such as facility overwatch and labor assistance (DHL, 2014).

1.2 Scope and Objectives of the Thesis

The main scope of this Master thesis is threefold: a) review the current logistics operations
with emphasis on the Information Systems used, b) investigate how logistics operations may
be transformed by adopting logistics 4.0 technologies such as IoT, Big Data, Advanced
Robotics, Augmented Reality, and UAVs and, c) propose a framework that a company may
follow in order to digitally transform its logistics operations and then showcase an
application of that framework for an implementation of UAVs in a warehouse.

The individual objectives of the thesis are as follows:

1- Review the current status of warehouse and freight transportation operations.

2- Present current information systems used in logistics operations and examine their
inefficiencies, thus highlighting the need for Logistics 4.0 technologies.
3- Make an in-depth explanation of emerging Logistics 4.0 technologies and determine
in which way they may revolutionize warehouse and freight transportation
operations.
4- Examine ten (10) individual case studies in which companies have successfully
implemented the technologies mentioned above and showcase their results.
5- Propose a framework of how warehouse and transport operations can be
transformed via Logistics 4.0 technologies and showcase an example of applying the
framework for the implementation of UAVs for inventory management and facility
patrolling.

18
1.2 Methodology
The methodology that was followed for the preparation of this Master thesis is as follows:

The first step was to describe all the strengths and weaknesses of current logistics
operations, how they are performed and present the information systems used along with
their inefficiencies, as well as the technologies utilized. It is evident that warehouse
operations are still largely manual in nature with many workers spending valuable labor time
in repetitive tasks and activities, thus decreasing productivity and operational efficiency
(Bonkenburg, 2016). On the other hand, freight transportation has accepted automation at a
faster rate, although implications regarding routing, scheduling and last-mile delivery are still
posing as a huge challenge (Malindretos, 2015).

The next step was to present and describe emerging Industry 4.0 technologies and their
application on logistics operations (i.e. Logistics 4.0 technologies in warehousing and freight
transportation). The emerging technologies mentioned above have the potential to drive the
logistics industry towards digitalization and automation, which will sequentially lead to
increased productivity and operational efficiency (Noronha et al., 2016).

Then, a framework under which companies need to operate in order to adopt Logistics 4.0
technologies was developed with an example of the framework in a UAVs warehouse
implementation. Finally, ten (10) case studies were chosen to be examined, five (5)
regarding warehousing and five (5) regarding freight transportation, which showcase the
effectiveness and impact Logistics 4.0 technologies have on logistics operations.

Describe logistics operations (warehouse and

transportation/distribution), present the way
they are executed, the information systems
used and their inneficiencies

Review emerging Industry 4.0 technologies

and how they can be applied on Logistics
Operations (i.e. Logistics 4.0 technologies in
warehouse and transportation)

Develop a framework with the main

elements that should be taken into
consideration for the smooth digitalization of
logistics operations and showcase an
application of that framework

Present ten (10) case studies that describe

how logistics 4.0 technologies have been
adopted successfully in logistics operations

Figure 1.1 A flow chart depicting the methodology followed in the Master thesis.

1.4 Thesis Outline

The master thesis is comprised of six (6) main chapters. Each chapter’s content is analyzed as
follows:

The first chapter is a general introduction to the main theme of the thesis. The methodology
followed throughout the Master thesis is presented.

19
The second chapter is examining currently performed logistics operations and information
technology systems utilized. An analysis of the technologies used was also performed,
showcasing their limitations.

The third chapter is a historic review of the industrial revolutions and a more comprehensive
introduction to the Logistics 4.0 technologies mentioned above. Each industrial revolution is
described, leading up to Industry 4.0.

The fourth chapter is a more in-depth analysis of how Logistics 4.0 technologies
revolutionize warehouse and freight transportation operations. A framework for Logistics
4.0 adoption was also developed with an application displayed, regarding the
implementation of UAVs for inventory management and warehouse patrolling.

In the fifth chapter, ten (10) case studies were analyzed, five (5) dealing with warehouse
operations and five (5) regarding freight transportation. The outcome of implementing
Logistics 4.0 technologies is reviewed in each case.

Finally, the sixth chapter summarizes the advantages of implementing these emerging
technologies and reviews the conclusions of the Master thesis, as well as the way forward
for the logistics industry.

20
Chapter 2 Logistics Operations: Processes and Characteristics
2.1 Introduction
Technology is evolving in a very fast rate and along with it supply chain and logistics
management need to constantly adapt in order to enable the integration of new
technologies and practices. Current logistics operations have their advantages, but the
increasingly higher customer demands, globalization, the need for reformed organizational
structures, startups constantly innovating with new business models to disrupt the logistics
industry, the rise of e-commerce and cybersecurity awareness are all great issues
demanding attention, thus challenging the way logistics companies do business.

In this chapter we will do a thorough review of the way warehouse and transportation
operations and processes are handled, the information systems that connect those
processes together and enable better flow of information and the technologies that
accompany those information systems, leading in improved efficiency in warehouse and
transportation operations. Finally, we will bring forth the issues that have emerged in the
last decade, specifically the ones above, and explain how they increase the need for
companies and organizations to incorporate Logistics 4.0 technologies and practices.

2.2 Supply Chain and Logistics Management

Logistics, as a term, was first used in military operations. “Strategy is art of handling troops
in the theatre of war; tactics that of handling them on the field of battle… The French have a
third process, which they call logistics, the art of moving and quartering troops…” (Lummus,
Vokurka and Krumwiede, 2001). Today we use that term in a different sense. We define
logistics as the management of the flow of goods from the point of origin to the point of
consumption, given that the requirements of the consumer are met, with the involvement of
information processing being a lot more prominent these days.

Supply chain management (SCM) is a much broader term including all the logistics processes
mentioned above and is used to define all inbound and outbound logistics processes, linking
all the different departments of the company and external partners (e.g. 3PLs), information
systems providers, suppliers and carriers. It is a network of organizations and companies,
dependent on each other, utilizing their combined expertise in order to manage and monitor
the flow of goods and information from the supplier to the end user (Christopher, 2011),
coordinating processes across finance, marketing, sales, production and information
technology (IT) (CSCMP, 2018).

21
 Figure 2.1 Logistics Management as a crucial part of Supply Chain Management. (IIBM LMS, 2018).

For industries, logistics support the optimization of production and distribution processes
based on a variety of resources through management techniques for promoting the
efficiency and competitiveness of enterprises (Tseng, Yue, & Taylor, 2005). Logistics can be
described as a two-parter channel as follows:

1. The physical channel

Logistics services support the movement of materials and products from the point of
production to the point of consuming, as well as associated waste disposal and reverse
flows. These services are comprised of physical activities (e.g. receiving, storing, order
picking, transportation etc.) (Galindo, 2016).

2. The information channel

The uninterrupted flow of goods is naturally dependent on the correct flow of information,
ranging from the procurement procedures to last-mile delivery processes (Galindo, 2016).
The physical and the information channels are interdependent and that is why physical
activities would be unable to be completed without information processing, which
showcases the connection between the two and their importance in today’s digital world.

2.3 Warehousing and Storage

The warehouse has evolved from the perception of being a repository to forming an integral
part of the supply chain, as it is involved in numerous stages of sourcing and production, all
the way up to distribution and delivery, ranging from the handling of raw materials to the
distribution of finished products to the end customer (Rushton et al., 2014).

Warehouses can be grouped by type, depending on their importance and nature within the
supply chain (Christopher, 2011) as seen below:

1- Their Function
2- Segmentation
3- Stage in the Supply Chain

22
 4- Product Type
5- 3PL owned or Private owned
6- Covering Area
7- Whether they are Manual or Automated in Nature
8- By Height
2.3.1 The role of a Warehouse
The prime objective of a warehouse is to support the uninterrupted movement of goods
through the supply chain to the end customer (Rushton et al., 2014). In past decades,
warehouses were viewed as stockholding points in an attempt to match supply and demand,
while also acting as a buffer between manufacturers and wholesalers, resulting in limited
stock visibility and a slow flow of information (Richards, 2018). This resulted in companies
and organizations keeping excess amounts of stock in warehouses, with a negative effect on
operational, holding and logistic costs.

Holding inventory is a crucial role of the warehouse as it affects a number of operations and
activities, such as better customer service and prevention of the fluctuation of demand
affecting production and sales, while also being of great importance to the costs written
above. This leads us to another role a warehouse performs, which is the role of the
consolidation center, bringing together several product lines which customers would rather
have delivered together than separate (Richards, 2018). Warehouses also perform as
distribution centers, which can be defined as specialized buildings stocked with products
which are to be distributed to retailers, costumers etc. (Supply & Demand Chain Executive,
2008).

Another vital role a warehouse performs is to serve as a trans-shipment point, basically used
for serving outlying regions of a country. Small warehouses are used for sortation into small
vehicle loads, which are then ready for delivery (Ballou, 2014).

Finally, the role of the returned goods center is vital to reverse logistics operations and
processes, handling returned goods in an efficient and environment-friendly way. Reverse
logistics have been of a continuously increasing importance due to the rise of e-commerce,
along with a drive for environmental legislation (Bentz, 2015), in which product lines, single
products or a batch of goods sometimes are retrieved from a point within the supply chain
as damaged, expired, or to be re-manufactured (Rosier and Janzen, 2008).

2.3.2 Warehouse Operations

For a warehouse to perform efficiently, nine principles should be followed (Malindretos,
2015):

1- Automation
2- Customer Service
3- Ergonomics
4- Flexibility
5- Identification of Demand
6- Space Utilization
7- Systems Control

23
 8- Unit Load
9- Work Productivity
Typical functions, seen among manual and automated warehouses are as follows:

1- Receiving: Incoming transported goods are received and identified, with the
support of an information system.
2- Put-Away: Goods are then transferred to pre-defined, or not, reserve storage
areas, which normally hold the largest amount of inventory.
3- Order Picking: The process of extracting goods from picking slots.
4- Sorting: When multiple orders are received, it is beneficiary to pick them all at
once and have them sorted out later, before dispatching.
5- Packing: Goods need to be assembled or packed together after picking. This
process may involve added value services, such as kitting and labelling
(Malindretos, 2015).
6- Dispatching: Goods are marshalled together to form vehicle loads which are
then loaded to outbound vehicles in order to move onto the next node in the
supply chain (Rushton et al., 2014).

Figure 2.2 The functions listed above sorted by chronology (Rightwarehouse.com, 2018).

2.3.3 Receiving and Storing

Warehouse operations can be paralleled to a chain. This means that if all subsequent
activities are successful, then processes are carried out more efficiently. Receiving processes
is the first piece of that chain of processes and should be carefully planned out, as several
tasks need to be done with precision and agility (Ballou, 2014). The prime objective of a
correctly designed receiving process is to proceed to the put-away process with minimum
effort and time spent, which is why logistics companies are so keen on constantly innovating
and optimizing their practices and methods.

Upon unloading, goods are checked for their condition (e.g. temperature), quantity and
quality. Poor quality (e.g. for loose packages) is dealt with by re-palletizing. A common
method used is the transmitting of an advance shipping notice (ASN) by electronic data
interchange (EDI) in order to be linked to the corresponding purchase order. The goods are
then cross-checked against the ASN for that vehicle (Rushton et al., 2014). It should be noted

24
that most warehouses book incoming vehicle loads in advance in order to support the
correct allocation of resources to the activity and optimize receiving processes.

Storing is the next step after goods have been received and sorted. Unit loads must be
checked before put-away (e.g. Palletized products are weighed, and dimension checked) to
exclude pallets that don’t fill the requirements and send them for manual rectification
(Rushton et al., 2014).

2.3.4 Replenishment and Order Picking

The process that succeeds receiving and put-away processes is the replenishment of the
picking face. This process’s effect on accuracy and efficiency is of great importance, as an
order depends on the replenishment of the picking slots for the operations to proceed as
they would (Rushton et al., 2014). Should the replenishment process not occur, the order
requiring the stock keeping unit (SKU) cannot be completed (Rushton et al., 2014). Various
methods of checking the quantities left can be used for replenishment to take place,
although defining an exact amount of quantity of goods left as a trigger point increases the
risk of either replenishing too soon, or too late. That is the kind of situation in which a real-
time computer system aids in replenishing at the right time with the right amount of
quantity.

Storage is followed by order picking, a key warehouse operation that accounts for about
55% of the labor costs (Aalhysterforklifts.com.au., 2013). Its main objective is the extraction
of specific goods from inventory to form a shipment with three key principles in mind:
accuracy, good or higher quality and punctuality (Rushton et al., 2014). In very specific cases
(e.g. an order of pallet quantities), the goods are directly pulled from the reserve storage
areas and moved directly to the marshalling area.

In terms of what percentage each operation is still manual, order picking comes first by far,
as it has the higher percentage of manual effort out of all the warehouse operations. That is
why many technological advancements have been centered around aiding in the order
picking processes, such as voice-picking and light-picking, technologies which are utilized
alongside a warehouse management system and other information systems in an attempt to
boost productivity and accuracy.

Picking productivity is mostly relying on four main factors (Rushton et al., 2014):

1- Information Technology
a. -Information Systems in the Warehouse
b. -Technological Aids such as Voice Picking or RF-scanner
2- Equipment
a. -Type of Trucks
b. -Whether there is Ground-Level or high-Level Picking
c. -Category of Picking Process (e.g. picker-to-goods or goods-to-picker).
3- Management
a. -Replenishment and Storage
b. -Industrial Relations

25
 c. -Workload Balance
d. -Leadership
4- Operational Requirements
a. -Scale of Operation
b. -Size of Items
c. -Product Range
d. -Specific Requirements (e.g. barcodes)
e. -Items per Order
Various picking methodologies have been applied through the years, each being suitable for
specific order requirements such as size, volume and product characteristics (Ballou, 2014).
Discrete order picking is the most common for its simplicity mostly, where the picker pulls
one order, one line at a time. Orders are not scheduled and may be picked anytime during a
shift on a particular day. Although simple and easy to understand, this method has a serious
disadvantage when it comes to travel time, deeming it inefficient in most cases (Wheeler,
2018).

Zone picking is a methodology in which the warehouse is split in zones, where order pickers
are dedicated to their respective zone. Typically, a warehouse management system (WMS)
examines each order line and identifies where the picking the face for that specific SKU is
located (Rushton et al., 2014). A serious disadvantage of this method is the possibility of one
zone being overwhelmed with a great amount of orders received, which creates work
imbalances among the different zones (Rushton et al., 2014).

Close control management of warehouse operations such as marshalling is enabled by the

wave picking method (Myerson, 2015). Wave picking is very similar to discrete picking in
that one picker picks one order, one SKU at a time. The main difference between the two is
the scheduling window. In wave picking, orders may be scheduled to be picked at specific
times of the day, which is usually done to coordinate and maximize the picking and shipping
operations.

Batch picking is when the picker picks multiple orders at the same time, one SKU at a time.
The advantage in the method is the fact that when multiple orders include the same SKU,
the picker only needs to travel to the location of that specific SKU once. This results in a
boost in productivity and efficiency (Myerson, 2015).

Cluster picking is a methodology of picking into multiple order containers at a time. The
containers could be either totes containing order batches, discrete order shippers, or
discrete order totes (Myerson, 2015).

Combinations of the different methodologies such as zone-batch picking and zone-batch-

wave picking are less commonly used. Following is a table which summarizes the eight most
commonly used picking methodologies.

26
 Table 2.1 A summary of the picking methodologies seen in this chapter (Rushton et al., 2014).

Picking Methodologies
Picking Characteristics
Picking Strategy Pickers per Order Lines per Pick Periods per Shift
Discrete Picking One One One
Batch Picking One Multiple One
Zone Picking Multiple One One
Wave Picking One One Multiple
Cluster Picking One One One
Zone-Batch Multiple Multiple One
Zone-Wave Multiple One Multiple
Zone-Batch-Wave Multiple Multiple Multiple
Order picking equipment, suitable for the methodologies above, can be classified under
three main categories, which are picker-to-goods, goods-to-picker and automated systems.

Picker to goods has the picker travel to the goods in order to pick them. Three factors come
into play here (Rushton et al., 2014):

1- Storage Equipment (e.g. shelves, flow racks or push back racks)

2- Equipment the picker picks to (e.g. trolleys)
3- Equipment the picker picks on to (e.g. wooden pallet)
For ground-level picking, trolleys and roll-cage1 pallets are usually utilized and, although
manual in nature, tend to achieve high pick rates under the appropriate circumstances.
Higher level picking is achieved through the use of free-path high-level picking trucks, which
with the use of an elevating cab position, lift the picker to the ideal height for picking
(Rushton et al., 2014). The disadvantage of high-level picking is that they achieve lower
picking rates when compared to ground-level picking effectiveness. An upgrade to free-path
high-level picking trucks are the fixed-path trucks, which run on a bottom rail and are guided
by a top rail, thus allowing for faster processes. Pick cars are one step ahead, essentially
being special fixed-path high-level picking trucks that straddles a horizontal conveyor2
running the length of the aisle (Rushton et al., 2014).

Picker to goods is the standard working concept, but costs a lot of time and resources, which
means that a significant reduction of time and money spent could potentially lead to greater
efficiency and profit.

1
A trolley, or a pick-cart, usually has a shelf or shelves upon which the picker places the goods. Roll-
cage pallets are normally taller and have wire mesh on three sides with an optional mesh door on the
fourth side. Low-level order picking trucks (LLOPs) are electrically powered trucks usually used for
picking from ground floor pallet locations (Rushton et al., 2014).
2
A conveyor is a mechanical system that aids workers in goods handling, moving them from location
to location. It is ideal for the handling of heavy/large items.

27
Moving goods to picker is a picking methodology that allows for greater efficiency because it
enables automation and warehouse control systems to be fully utilized. Goods to picker
systems are always best approached holistically, with process driving equipment selection or
automation, not the other way around (Stone, 2015).

These solutions rarely work for every area of a facility, or for every SKU in the distribution
center. It’s all about blending the right solutions. Automated systems have proved to be a
catalyst for logistics companies, as it greatly increases potential productivity, efficiency and
accuracy in warehouse operations (Rushton et al., 2014).

Carousels include a range of types including horizontal, vertical, and vertical lift modules.
They can be tied into enterprise resource planning (ERP) systems, WMS and warehouse
control systems whether the carousel is in a large integrated system or a point of
automation within a larger operation. They are usually deployed for component or item
level picking. Manual picking can’t match carousels for speed (about 600 lines per hour), but
they come at a cost, as they are expensive, but less costly than comparable automation.
They are best paired with voice or light directed picking systems (Stone, 2014).

An automated storage and retrieval system (AS/AR) tie the entire facility together, usually
connected to an ERP system or a WMS, with a big range of capabilities like tying into
conveyor systems and the control of sorting transfer and automated guiding vehicles
(Voortman, 2004).

In the last decade or so, the industry has been changed by the proliferation of goods-to-
picker robots such as Kiva Systems or automated sorters like A-frame Sorter. These systems
tend to deliver storage units along complex paths, to stationary pickers (Stone, 2015). They
usually operate without human intervention.

The systems reviewed above are typically equipped with technological supporting
technologies. New order picking technological aids have been introduced since the third
industrial revolution. Paperless picking is making things easy in terms of labor work and cost
and comes without the increased possibility of errors due to the lack of paper. The cheapest
solution, as seen in Table 2.2, is the Ring/Finger scanner, a gadget that can be used in
conjunction with a smartphone or a terminal, offering completely hands-free capabilities. RF
systems eliminate the data entry and all paper-handling tasks (Lucasware.com, 2018). Pick
by light is a picker-to-goods technological aid that leads the picker with the use of led panels
mounted on the shelves, displaying the exact quantity that needs to be picked. Pick by voice
technology is using voice recognition, allowing the pickers to communicate with the WMS
and as a result get all the details they need with the use of a microphone and earphones
(Zeimpekis, 2018). A portable terminal which is always connected to the WMS through a W-
LAN is necessary for pick-by-voice technology to be utilized. However, since scanning may
add an additional verification step in every task, some warehouses actually lose in
productivity when moving from paper-based picking to a scan-based process, especially
among top performing pickers (Lucasware.com, 2018).

28
 Table 2.2 A comparative table for Voice, Light and RF scanner picking technologies currently used
(bcpsoftware.com, 2018).

Voice Picking Light Picking RF Scanner

Accuracy Very High High High

Productivity gained 25% 40% 15%

over paper-based
picking

Replenishment YES NO YES

Stock count YES NO YES

Heavy or Large YES NO NO

items picking

Dealing with frozen YES YES NO

products

Cost Medium High Low

2.3.5 Packing
After order picking is completed, goods are packed and added-value services like labelling,
kitting and assembly take place. Goods are picked simultaneously and then get sorted, in
order to bring them together for packing (e.g. Items picked are conveyed to a sorter that
brings various goods together for a specific order and then conveyed to an individual
packing station) (Saghir, 2004).

Packing stations are specifically designed to boost the worker’s efficiency, due to packing
taking a lot of time to be completed. The table on which the work is done is adjusted to the
appropriate ergonomics, while mechanical equipment, like conveyors, and computer
systems provide details through a monitor aid in the process (Rushton et al., 2014).
Automated equipment, usually integrated into the conveyors, such as labelers, sealers and
closing machines are enabling immediate follow-up processes like sealing and labelling.
Another technological aid which helps lower transport costs, is the specialist packing
machines. These machines construct cartons to perfectly fit different customer orders.
When packing is done, goods are sent to yet another sorter in order to sort postcodes,
carriers, regions or vehicle loads (WERC, 2007).

2.3.6 Dispatching
What follows is the dispatching of the goods, which have been placed in or onto unit loads.
This is an operation that can be completed with a manual, or an automated way. Goods are

29
moved to the marshalling areas which are allocated based on the outgoing vehicle schedule
(Rushton et al., 2014).

Vehicles mostly leave at the same time of day, according to the schedule, which means that
loading is an activity that needs to be completed with speed, reliability and accuracy. Pre-
loading drop trailers and swap bodies help workers catch up with less hurry, resulting in a
smaller possibility of errors to occur (Malindretos, 2015). Another quite important factor to
take under consideration is coordination, where good coordination results in better area
usage, so that the load doesn’t take up extra marshalling space.

Equipment necessary for dispatch processes to proceed range from boom conveyors to
automated loading systems. Below is a list of handling equipment (Malindretos, 2015):

1- A boom conveyor, which extends into the vehicle or the container, where
warehouse staff is tasked with lifting the goods off the conveyor.
2- Pallet trucks, which are best utilized for rear loading.
3- Fork-lift trucks ideally used for side unloading (e.g. curtain-sided vehicles).
4- Automated loading and unloading systems that can load and unload all pallets on
the vehicle at the same time.
5- Automated tote bin loaders are only applicable when goods are dispatched in tote
bins (e.g. A telecommunications company being supplied with smartphone
accessories).
Loading bays equipment usually used (Loading Bay Equipment, 2018):

1- Dock levelers are permanently fitted at each bay, forming a minor inclination slope
to match the height of each vehicle. Dock levelers need to be as long as the biggest
vehicle expected to arrive at any given time.
2- Doors retracted above the opening when in use and normally fitted with windows so
that they enable workers to see if there is a vehicle in the bay or not.
3- Dock shelters and seals offer weather protection in order to prevent any goods
damaging, like getting full of dust or wet, depending on the situation.
4- Bumpers are almost always used to minimize the shock load to the building
structure when a vehicle reverses up to the bay.
5- Lights are commonly used to give the driver indications as to the readiness of a
vehicle to drive away, which results in a reduction of accidents, and provide
illumination at night.
6- Vehicle restraints are used to restrain the wheels of a vehicle until it is safe to drive
away.
7- Bollards are used to assist the driver in parking as centrally in the bay as possible.
The warehouse’s layout plays a huge part in how successful receiving and dispatching
processes are. Parameters that need to be taken into account are all external areas within
the perimeter fence, such as vehicle roadways, parking areas and ancillary areas (Zeimpekis,
2018). There are three possible ways the loading/unloading bays can be laid out (Ballou,
2014):

1- A through flow can allow for better flow of goods within the warehouse, with goods
sequentially moved from receiving to storage, then to picking, then to sortation,

30
 packing and dispatch. A through flow is commonly used when the number of bays is
too great to fit on one side. It’s best suitable for live storage3 racking.
2- U-flow is ideal for cross-docking and drive-in racking4, as it minimizes the distance
goods need to travel. This major advantage U-flow of goods is best seen in an
inventory-holding warehouse where receiving and dispatching happens at different
times of the day.
3- Finally, the L-flow allows for receiving and dispatching areas to be forming an L-
shape layout among them, suitable mostly for back to back5 and very narrow aisle
(VNA) racking6.
Vehicle bays must be designed in a way that facilitates loading and unloading, so that they
can optimize warehouse receiving and dispatching processes. When a vehicle bay is level
intake, it enables better unloading for side-unloading vehicles. This process may take place
inside the building, with a precaution for fumes and rising temperature, or outside (e.g.
under a canopy). Another design that is commonly seen is the raised dock. With it, the floor
is at the same level as the bed of the vehicle, allowing for direct access of a truck (e.g. a lift
truck) (Rushton et al., 2014). This design is suitable for end-unloading, while a minor
adjustment to the degrees between raised docks and the building is needed to enable side-
unloading too. Receiving and dispatching areas in total, need to be designed in a way that it
perfectly communicates with both suppliers and customers, as it represents a direct physical
interface.

2.3.7 Warehouse Management System

Managing large warehouses with a very complex network of activities and processes is quite
challenging. Information technology’s role throughout the supply chain has proved to be one
of the most important ones and its involvement in warehouse management is as crucial
nowadays as ever. All different processes and tasks completed day-in and day-out are
becoming more challenging as years pass, and information systems in the warehouse are
able to fully support warehouse operations, enabling workers to complete tasks and
activities with greater efficiency.

3
In live storage racking goods are handled according to the FiFo principle (First in-First out). The
goods are loaded into the rack on one side and unloaded at the other side. This provides a very
satisfactory flow of goods (e.g. for handling goods with a limited storage life). The live storage racking
is fitted with brake rollers at regular intervals so that goods can be safely transported (Eab.info, 2018).
4
This system is based on the storage by accumulation principle, which enables the highest use of
available space in terms of both area and height. Drive-in racking is designed for the storage of
homogenous products. It accommodates a large number of pallets for each SKU (Mecalux.com, 2018).
5
Back-back Racking Systems are built by putting two modules back-to-back and interconnecting them
together. Each pallet can easily be placed and transported independently. It allows operating a
forklift. Bay height and beam length adjusted Back-to-Back Racking System’s satisfy customer’s need
and expectations, which has the widest range of use from the smallest warehouses to the largest up
to complex logistics centers (Temesist® Endüstriyel Depo Ve Raf Sistemleri, 2018).
6
Very Narrow Aisle racking commonly referred to as VNA is an effective method of increasing pallet
storage with in a given area with the advantages of selective racking. This system requires a special
fork lift which reduces the aisle space by a minimum of 40% compared to traditional fork lifts. This
system still provides 100 % product selectivity and utilizes the vertical space for pallet storage
(Konstant.com, 2018).

31
A WMS interfaces with the company’s ERP or legacy system in order to access valuable
information, such as purchase orders, thus increasing the efficiency of warehouse
operations, by storing all kinds of information (e.g. goods received or dispatched) and giving
access to warehouse staff at any given time (Rushton et al., 2014). Another capability of the
system is to give instructions to subsidiary systems like voice picking equipment or an AS/AR
control system (Malindretos, 2015).

Figure 2.3 WMS adds the element of automation to warehouse operations, thus increasing productivity and
efficiency (Schmidthk.com, 2018).

Warehouse management systems have a wide range of functionality with the added benefit
of enabling users to turn on or off for specific applications (e.g. In electronics, batch
traceability of components is providing workers valuable information). Warehouse activities
are covered by WMS’s capabilities and functionality as shown in the examples below
(Rushton et al., 2014):

1- Receiving: Advanced shipping notes (ASNs), quality sampling, dimension and weight
checking
2- Put-away: Best storage location algorithms
3- Replenishment: Trigger points, order-based replenishment
4- Picking: Picking route optimization
5- Added value services: Kitting, labelling, assembling
6- Packing: Correct carton size identification
7- Cross-docking: Planning, labelling
8- Sortation: Grouped by order, vehicle, geographic destination
9- Dispatching: Marshalling lane control, documentation, ASNs transmitting
10- Stock counting: Full count

32
Data capturing is another quite important factor for greater efficiency in warehouse
operations and bar codes are the most common way of doing that. A bar comprises of a
number of vertical or horizontal bars of varying thickness and each combination of bars
represents a number or a letter. These codes are specifically designed, so that the first few
bars indicate the symbology, a term commonly used among organizations for various
purposes (Ballou, 2014). The next few bars indicate the national coding authority, the
manufacturer, the product number and finally a check digit. Scanners are used to read bar
codes for direct input of information in computer systems. Common applications of bar
codes are bar code checking when picking and reading labels when sorting.

Radio frequency identification (RFID) is seeing a growth in popularity, despite being available
for decades. Its main purpose is the identification of items with the use of radio waves
(Rushton et al., 2014). Some common applications for RFID are the tracking of unit loads,
and other item level purposes. The four components of an RFID system are:

1- Tags affixed to the goods or containers, comprised of the combination of microchips

and an antenna with a battery most of the times.
2- Antennas receives the data from the tag.
3- Readers read the data transmitted by the antenna.
4- Host stations contain the application software and relays the data to the server.
Without information technology in the warehouse, logistics and supply chain management
would not have evolved at all. In order to have an uninterrupted flow of goods, data
capturing and processing play a vital role.

2.4 Transportation
Transportation is the next step in supply chain operations and one of the main reasons for
civilization evolution and commerce growth through the years, as the transportation of
goods isn’t just a service to be taken lightly. Many different processes and activities need to
be perfectly coordinated in order for transportation to be successful.

2.4.1 Transport Modes

There are 5 transport modes currently used for freight transportation:

 Maritime Transportation
 Air Transportation
 Pipeline Transportation
 Rail Transportation
 Road Transportation

33
 Figure 2.4 Freight transport mode of choice by percentage worldwide (SAFETY4SEA., 2018).

1- Sea-freight has been around for thousands of years and is the oldest mode of
transportation, while still retaining the number one spot for the mode of choice
internationally. In this mode of transport both the conventional load and the unit
load (container) are relevant. Sea-freight has its advantages, but they come along
with some disadvantages that other transport modes have resolved, as listed below
(Rushton et al., 2014):
a. Cost. Sea-freight is the cheapest way of transporting goods, as cargo ships
can carry quite large packaged consignments that are going long distances.
b. Availability. Services are widely available.
c. Speed. Maritime transport is the slowest mode of freight transport.
d. Delay problems. Unexpected delays due to bad weather, pre-shipment
delays and delays at discharge ports are the three major delay factors to be
seen.
e. Damage. This mode is more prone to damage for products and packaging.
2- Pipeline transportation is the mode of choice when it comes to oil and gas
transportation as 70% of domestically produced petroleum products in the U.S. are
transported by pipeline (Hansen and Dursteler, 2017). Pipelines are large projects
and have high upfront costs while it can also take significant time to obtain
necessary permits. Even after construction is completed, pipelines can be costly to
maintain (Smith and Christopher, 2014). The characteristics of pipeline
transportation are as follows:
a. Cost. Quite costly.
b. Availability. Services not widely available.
c. Speed. One of its strongest points.
d. Delay problems. Usually none.
e. Damage. Pipeline transportation is the safest transport mode.

34
3- Air freight has grown rapidly in recent years. Improved handling systems, greater
cargo space, integrated unit loads, and scheduling have skyrocketed air freight as
the mode of choice. Still, its high costs have kept it low at 3.6% when compared to
sea-freight’s 46.0%, as seen in figure 2.3 (SAFETY4SEA, 2018). A list of the
characteristics of air freight can be seen below:
a. Cost. The most expensive mode of transport and air freight’s greatest
disadvantage.
b. Availability. Air freighting of products allows for great market flexibility as
any number of countries and markets can be easily reached.
c. Speed. Air transport is the quickest mode of transport, but that advantage
can be lost due to delays. Ideal for short-life products and emergency
supplies.
d. Delay Problems. Airport congestion, paperwork delays, customs delays and
bad weather (e.g. fog) can be delay factors.
e. Damage. Over the years air-freight has grown into one of the safest modes
of transport.
4- Rail transport is the most conventional form of transport. International trade trains
cross Europe at relatively low speeds, while having the advantages of safety and
being a non-polluting means of transport. The railway infrastructure covers a large
part of the European union (EU) and that is why the EU did take an important
initiative in March 2003, enabling private operators to exploit the existing
infrastructure and to compete with state-owned railway companies for freight
services transport (Malindretos, 2015). Its characteristics are listed below:
a. Cost. Costs are relatively high due to the need for more than one transport
mode.
b. Availability. One of its greatest disadvantages due to lower flexibility of its
itinerary.
c. Speed. Quite slow, but relatively faster than sea-freight.
d. Delay problems. One of its strongest advantages, because of very low
chances of a scheduling department getting delayed.
e. Damage. A safe transport mode.
5- 42.7% of freight transport happens via road freight transportation (SAFETY4SEA,
2018). One of the most important transport modes for national movements within
individual countries. Road freight is always the mediator when it comes to
intermodal transport due to its flexibility and adaptability to land transportation and
a fully-grown road network. Roll-on roll-off services (RORO) enable road freight in
the UK for example (Rushton et al., 2014). Its characteristics are as follows:
a. Cost. Low costs with a caution for fuel management and empty-body
movement.
b. Availability. As previously stated, road transport is the mode of choice when
it comes to nationwide freight transportation, but it shows its limitations
when it comes to international freight transportation, where it needs to be
combined with one or more different modes.
c. Speed. This variable is quite complex to determine, as the factors having a
role in road freight’s speed of transportation are numerous.

35
 d. Delay problems. With the use of fleet management systems which will be
examined later in the chapter, and routing algorithms, drivers can now avoid
delay problems created (e.g. road congestion).
e. Damage. Another variable that can clearly be said to have been dealt with
due to more efficient packaging processes.
Below is a comparative table of the transport modes (excluding Pipeline transport):

Table 2.3 Comparing modes of transport across four crucial variables.

Road Rail Air Sea

Cost Low Medium High Low

Security Medium High High Medium

Availability High High High High

Type of Cargo All Heavy and Small to All but more

Large loads medium loads, suitable for
Emergency heavy and large
Supplies loads

2.4.2 Line Haul Transportation

Line haul transportation is the transportation of goods from one location to the next, which
typically happens via semi-trailer trucks or rail cars. There is a great variety of line haul
vehicle types, as seen below, depending on the cargo (wewilltransportit.com, 2015):

1- Refrigerated Freight – Used for moving goods that need to be refrigerated.

2- General Freight – A basic container used to ship anything.
3- Livestock Hauler – Used to transport live animals from one location to another with
safety.
4- Grain Hauler – Grain haulers are used to transport grain from a farm to a processing
facility.
5- Tankers – Used to transport anything in liquid or gas form.
6- Doubles – A semi-trailer truck hauling two freight containers.
7- Triples – A semi-trailer truck hauling three freight containers.
8- Turnpike Duty or Double – Another method of pulling two containers with a single
semi-trailer truck.
9- Bulk Hauler – Used to transport milk or smaller dry foodstuffs in bulk.
10- Auto Hauler – A carrier used to transport multiple automobiles.
11- Flat-bed – A flat shipping surface use to ship cargo that cannot fit in a container.
In order for line-haul transportation and transportation in general to be performed
successfully, end-to-end visibility is to be considered as one of the most crucial factors for
monitoring transportation and distribution. Monitoring shipments enables visibility through
the supply chain and the only way this was happening through the years was due to data

36
capturing from multiple systems and sectors of the supply chain (Savi, 2013). As a result,
companies were unable to monitor and control costs relative to inventory, manufacturing,
transportation etc.

Monitoring the location and the movement of containers is the way to obtain visibility into
each distinct logistics process (Savi, 2013). Three areas benefitting from container
management are inventory, replenishment and cost monitoring. Companies carry inventory
in the form of raw materials, work-in-progress (WIP) and finished goods (Rushton et al.,
2014). With real-time visibility into the location and condition of the containers, as well as
the inventory they hold, companies can achieve greater confidence in supplier delivery
schedules, inventory consumption and finished goods production schedules. (Ballou, 2014).

Another benefit of end-to-end supply chain visibility is in the management and control of the
reusable containers themselves. Let’s use an automotive manufacturing company as an
example. Manufacturers use specialty racks for shipping automotive parts. Not only are
these racks expensive, but they are also essential for moving parts and finished goods (Savi,
2013). If the right container is not available at the right location at the right time, it can lead
to expensive last-minute transportation (relocation) costs and in extreme circumstances, not
having these specialty racks available can even stop the assembly line (Savi, 2013).

Unfortunately, these assets are also prone to misuse and loss. Some industry estimates state
that between 15-20% of the total container stock is stolen and/or lost each year (Savi, 2013).
With better visibility of the container stock and their locations, companies can better utilize
these assets through faster relocation and fulfillment. This improved asset utilization will
help companies optimize their processes, meaning fewer total assets are required to
maintain and run their operations (Antich, 2013).

2.4.3 City Logistics/Last Mile Delivery

The interest in transportation and distribution services in non-urban areas is a given, but an
increase in these services in urban areas has been declared in the last decades due to a
massive shift towards urbanization (Taniguchi, 2012). City logistics is a term first defined by
Taniguchi in 1999, as “the process for totally optimizing the logistics and transport activities
by private companies in urban areas while considering the traffic environment, the traffic
congestion and energy consumption within the framework of a market economy”.

The transport mode of choice in urban areas and cities is dominantly road freight, while
other alternative methods have been utilized through the years, such as rail, underground
systems and rivers (Tadic et al., 2015). The issues and challenges here are many and there
has been an impressive amount of research and development in the city logistics area of
research. Environmental awareness and road congestion have been the most difficult
obstacles to overcome (Cardenas Barbosa, 2017).

Facility location for example, is a crucial factor, as many different variables depend on it (e.g.
distance to be covered and accessibility) (Savelsbergh and Woensel, 2016). The better the
network, the better the performance, meaning better distribution and delivery times,

37
reduced carbon footprint and smaller probability for road congestions (Cardenas Barbosa,
2017).

The intra-city transport of goods is performed with the use of lighter and smaller vehicles in
order to reduce the carbon footprint and increase agility within the city structures, while
bigger and heavier vehicles are used outside the city limits (Visser and Binsberger, 2018).
Distribution centers strategically located around the city enable for this method of
transportation to be utilized. The larger vehicles arrive at the distribution centers, goods are
then marshalled and sorted, with the next step being loading them in the smaller vehicles in
order to distribute the goods within the city (Trebilcock, 2015).

Last-Mile Delivery is the final step in city logistics. It is a term derived from “last mile”, which
is borrowed from telecommunications network, and delivery, the act of delivering
something (e.g. goods, letters etc.). The importance of the term comes from the multi-hub-
and-spoke networks topology which can be compared to the structure of a tree (Faccio and
Gamberi, 2015). As the network advances to the final customer, it becomes more populated
and inefficiencies are easier to occur. There are indications that as much as 28% of the
transport costs can be related to the last mile delivery or first mile pickup (Cardenas
Barbosa, 2017). As a result, we define last mile delivery as the final leg of transporting the
goods to the point of consuming.

Figure 2.5 A geographical view of urban logistics, comprised of city logistics, urban goods distribution and last
mile delivery (Malindretos, 2015).

As previously stated, research and development on city logistics and urban distribution is
continuously getting traction. Fleet management systems currently used for these
operations enable better distribution and delivery, not just for urban areas, but also for
inter-urban and international transportation.

2.4.4 Fleet Management

Fleet management is the function that coordinates and facilitates various transport related
activities with the aim of reducing operational costs through the management of assets used
in each of the transport modes (White, 2015):

1- Ships
2- Aircrafts

38
 3- Vehicles for work purposes
4- Rail Cars
5- Commercial Motor Vehicles
Through the years fleet management information systems have been developed in order to
enable managers to efficiently monitor, control and administer transport operations.
Specialized database packages have also been developed with the goal of optimizing fleet
management processes and related activities (Rushton et al., 2014). Functions that depend
on those databases and extract information from the data are:

1- Maintenance Scheduling. Monitoring the condition of mechanical parts of a

vehicle, managing its carbon footprint, scheduling repairs and maintenance
checks based on service history and analyzing costs based on maintenance or
repair routines (Rushton et al., 2014).
2- Vehicle Parts Control. Enabling the oversight of stock quantity for various spare
parts requirements, including the stock location and stock reports.
3- Fleet Administration. This function is always included in packages in order to
ensure the legality and worthiness of vehicles (White, 2015).
4- Fleet Costing. A function that provides information related to fleet and vehicle
costs.
5- Tachographs. These are used for monitoring the driver’s hours of driving and
resting, the distances travelled by individual vehicles, speed ranges throughout
travels and fuel consumption (Guide to Digital Tachographs, 2006).
Digital tachographs are fitted on goods vehicles that are subject to tachograph rules and
have been brought into service since 1 May 2006. It is a digital version of the analogue
tachograph system. The digital system records information on a range of vehicle and driver
activities. Data is stored in the vehicle unit memory and on driver cards (Guide to Digital
Tachographs, 2006). Information extracted are used to produce key performance indicators
(KPIs) for the vehicle fleet (e.g. tonnes per mile, fuel costs, miles/kilometers per gallon etc.).

Another way of monitoring and controlling fleets is through telematics, which can be defined
as the combination of telecommunications systems and information technology. A very well-
known application of telematics is the global positioning system (GPS), which aids in
navigation of commercial vehicles while also boosting security due to enabling
administrators to know the exact location of the vehicle (Rushton et al., 2014). Instructions
may be given to remote assets regarding the vehicle’s temperature, fuel consumption and
parts performance, thus allowing drivers to avoid damages and reduce vehicle emissions as
well as improving efficiency (The Ultimate Guide to Fleet Telematics, 2018).

2.4.5 Routing and Scheduling

Vehicle routing and scheduling are fleet management capabilities, which have been a topic
worth of research and discussion. Through the years a huge number of algorithms have been
developed to offer solutions but the number of parameters one must consider are far too
great in number.

Usual routing and scheduling problems are:

39
 1- Resource Planning. Refers to requirements regarding the transport fleet.
2- “What if” Planning. Identification and measurement of the effects of change on
logistics operations (Rushton et al., 2014).
3- Planning fixed-route Schedules. Involves the longer-term aspects of routing and
scheduling for regular deliveries of products (e.g. retail delivery operations and milk
delivery) (Rushton et al., 2014).
Various methods are used for routing and scheduling problems, depending on the nature
and complexity of each individual problem. Such methods include algorithms used to
optimize transport operations by providing smallest-distance solutions for cost efficiency
and maximum profits.

In order for said algorithms and information systems to be able to provide the best possible
solutions for routing and scheduling problems, data have to be extracted from multiple
areas such as distance factors, driver constraints, vehicle restriction, route factors, average
speed on a variety of roads, unit loads and demand data (Rushton et al., 2014).

2.4.6 Information Systems in Freight Transportation

As previously stated, fleet management information systems assist managers in monitoring,
controlling and administering vehicle fleets effectively. Other information systems and
applications utilized for freight transportation are:

1- International Trade Management Systems. Specialist software packages available to

control the international movement of goods, including features to assist with
documentation requirements, finance and monitoring of progress (Ballou, 2014).
2- Supply Chain Event Management Systems. Systems monitoring the progress of
orders and warning managers for possible potential issues (Rushton et al., 2014).
3- Electronic Point of Sale (EPOS). A common application used in retail stores around
the world, used to facilitate easier payment processes (Rushton et al., 2014). Goods
marked with bar codes are scanned and then the system tallies the price and
records the transaction.
4- Proof of Delivery (POD). It is an essential component of the delivery process as it
serves as an important acknowledgement to mark that the delivery has been
completed (CarPal Fleet, 2018). By using the POD feature, not only do companies
have the assurance that packages were successfully delivered, but also track the
progress of the delivery. This aids companies in identifying potential issues before
they become major liabilities (CarPal Fleet, 2018). Recipients must sign for receipt of
the mail indicating the date when the mail item was delivered to them. A copy of the
Proof of Delivery receipt is provided to the sender.

2.5 Reverse Logistics

Up until now we have seen current logistics operations and information systems utilized
regarding forward logistics, meaning the transportation of goods from the point of origin to
the consumer. Reverse logistics refers to the process of planning, implementing and
controlling flows of raw materials, work-in-progress and final products from a

40
manufacturing, consuming or distribution point, to the point of recovery or disposal (Rosier
and Janzen, 2008). The different categories of returns are (Malindretos, 2015):

1- Commercial Returns. Returns for which there is an immediate demand at another

market location or segment (e.g. customer dissatisfaction, catalogue sales, and
overstocks etc.).
2- Repairable Returns. Defects and suspect components from field repair activities or
products under warranty. Customer is usually entitled to a replacement product.
3- End-of-use Returns. Returned products/components which are no longer of use to
the original owner, but for which new customers can be found.
4- End-of-life Returns. Items of no remaining use, which are processed due to
contractual or legislative obligations.
5- Recalls. Products recalled by the manufacturer due to a condition or defect that
could affect its safe operation.
2.5.1 Reverse Logistics Process
Returned goods go through the following activities based on the return type (Rosier and
Janzen, 2008):

1- Product is retrieved from the market. Factors that should be monitored are
quality, timing, quantity and composition of the returned goods.
2- Transportation, consolidation, transshipment and storage are examples of
processes that need to be followed backwards and transport the goods to the
point where the repair or disposal shall take place (Malindretos, 2015). Quality
and composition are the two factors that indicate the route the returned goods
will take within the supply chain network.
3- The type of recovery will be decided (e.g. re-use, repair, recycling etc.) (Bentz,
2015).
4- The materials, work-in-progress items or goods return into a forward supply
chain.

Resell
Retrieve Transport Receive Inspect Sort Recycle
Scrap

Figure 2.6 The reverse logistics process (Bentz, 2015).

41
2.5.2 Priorities and Issues
Recently, reasons for the process of re-processing are piling up, which essentially include the
actions of recycling, reselling and scrapping (Bentz, 2015). Because of various investigations
having shown that various products, such as electrical appliances, are of economic and
environmental interest, reprocessing and recycling routes should be followed. The natural
priority is to reduce waste. Then the goal is to exhaust all possibilities for reprocessing and
re-using, and finally for recycling, as raw material or WIP products in order to re-
manufacture the goods and put them back in the forward supply chain (Malindretos, 2015).

Some major issues that have arisen lately are summarized below:

1- The electricity consumed during the recycling process is important. Renewable

energy can be a solution for energy spent in the recycling process.
2- The water spent to clean the materials at recycling centers can reach several tons
daily.
3- Fuel consumption is required to transport the materials to the Recycling Centers.
This issue is a major field of research for Reverse Logistics.
Therefore, the question of recycling should be approached holistically, as the final process of
organization management of returned goods, because recycling is not an end-to-end goal.

2.6 Issues and Challenges

The logistics industry has been growing rapidly for quite some time now and technology,
while having a high growth rate, has always been an integral part of logistics operations
(Scriosteanu and Popescu, 2018). Nowadays various issues and challenges have emerged,
that push logistics companies to re-organize how they do business. Issues may be external to
logistics, such as deregulation, or derive from changes within logistics, such as the
integration of information technology (Rushton et al., 2014). Higher customer demands, the
rise of e-commerce, globalization and urbanization, cybersecurity and new business models
driven by startups are just some of the issues that need to be addressed. Warehouse and
transportation operations reviewed earlier in this chapter, need to be evolved in order to
resolve these issues and drive the logistics industry forward.

2.6.1 Higher Customer Demands

Customer service is one of the most important factors in a company’s growth and
prosperity. Competitive success is greatly influenced by customer satisfaction and
companies that fail to recognize that are in danger of being unsuccessful. Service is a factor
of differentiation that has proved to be the key to a customer’s decision to choose one
brand over the other (Rushton et al., 2014). The ability to satisfy customer requirements is a
challenge that all companies must face (Rushton et al., 2014). Major factors contributing to
the rise of this challenge are listed below:

1- A rapid growth in customer expectations through the years.

2- Buyers recognize the importance of customer service.
3- Markets have become service-sensitive.
4- Immediate product availability has become vital.

42
 5- Customer relationships have become a priority for most companies.
2.6.2 Organizational Structures
For many years logistics was not recognized as a discrete function within organizational
structures, resulting in problems surfacing through processes such as distribution and
storage. In addition to that, many companies could not re-organize their structure in order
to integrate logistics as a discrete function, leading to major problems within (Jan, 2016).
Companies and organizations which successfully recognized the logistics sector, did so in a
way that was rendering the communication lines unclear (Rushton et al., 2014). This issue
resulted in inefficiency and higher operational costs, while proving to be damaging for their
reputation.

Incorporating new business models within their business strategies and recognizing the
importance of logistics is the first step towards a successful supply chain (Galindo, 2016).
The way logistics operations are organized has to be process-oriented and not structure-
oriented, with key changes like emphasizing on the customer and the internal processes
needed to be optimized in order to achieve customer satisfaction, while a reduction in
operational costs will be immediately felt within company walls (Jan, 2016).

2.6.3 Globalization
Logistics will be greatly influenced by a global shift in the economic power of the emerging
seven countries over the next years as well as regional changes, especially in Asia-Pacific
which has quickly grown to now account for 50% of international trade (Noronha et al.,
2016). Key developments worth highlighting are the major investments being made by the
Chinese government in trade lanes to Europe.

Logistics will also experience a systemic change in terms of workforce and technology
adoption, as it will be challenged by increasing competition as well as a growing shortage of
skilled workers. Macroeconomic volatility and shifts in trade patterns will result in the
rebalancing of global logistics and trade. In addition, structural changes in terms of
workforce demographics and technological innovation will determine the shape and the rate
of evolution within logistics (Grapht, 2018).

2.6.4 Startups and Logistics Industry Disruption

Logistics can be confidently said to be the backbone of international trade, but at the same
time has been a fragmented industry with a slow adoption rate of new technologies. The
underdeveloped market potential along with the potential of harnessing technology
advancements makes this industry a target for disruption (Utterback and Acee, 2003).
Established companies are often left with legacy IT systems that make globally streamlined
IT services quite difficult to achieve.

In summary, whether startups are able to disrupt established industry giants or not, remains
to be seen. It has already been felt in some service segments, but logistics providers do not
have to take a reactive approach to startups (Noronha et al., 2016). Some are already
partnering with startups, while others are acquiring startups or are even breeding their own

43
startups in in-house incubators (Grapht, 2018). Thus, they themselves can drive rapid
innovation and disrupt the logistics industry.

2.6.5 The Rise of E-Commerce

E-commerce presents a fundamental shift in how business is done. Instead of the traditional
way of companies pushing goods to physical stores, e-commerce allows customers and
consumers to customize their baskets according to their needs and have it delivered to their
favored destination (Monahan and Hu, 2018). In bottom line, customers need companies to
be quick and increase their logistics performance more than ever before, evidenced by the
continuous rise of e-commerce, as seen in figure 2.8 (Robinson, 2018). This has created a
structural forced change in underlying logistics operations and processes, forcing logistics
companies and organizations to consider the integration of technologies that will bring them
towards digitalization and automation, such as the Internet of Things and Advanced
Robotics, technologies which will be reviewed in a later chapter.

E-Commerce Sales Worldwide (in millions of U.S.

dollars)
$3
E-Commerce Sales Worldwide in

$2.45
$3 $2.20
$1.89
$2
$1.59
$2 $1.32
$millions

$1.08
$1

$1

$0
2013 2014 2015 2016 2017 2018
Year

Figure 2.7 Global Retail E-commerce sales growth through the years (Vupune.ac.in., 2018).

2.6.6 Cybersecurity
Another unresolved issue are cyberthreats. High-profile data breaches and hacking of data
systems as well as even physical objects (such as cameras and self-driving cars) are a
worrying reminder of the continuously growing security vulnerabilities of the digital world
(Noronha et al., 2016). In increasingly IT-rich supply chain networks, eliminating security
threats and dangers has become a top priority in order to avoid harmful cyber-attacks that
could result in entire operations being in a standstill. In parallel, continued global market
volatility and regional instability have led to tightened security regulations that require
higher levels of supply chain transparency and integrity more than ever (PwC, 2016).

A step towards protecting customer data is the general data protecting regulation (GDPR),
which replaced the Data Protection Directive 95/46/EC and was designed to harmonize data
privacy laws across Europe, to protect all EU citizens data privacy in order to reshape the
way organizations approach data privacy (EU GDPR Portal, 2018).

44
2.7 Summary
In chapter 2, we delved into how current logistics operations are performed. Logistics
operations consist of many processes and activities, all interlinked, resulting in the need for
transparency and integrity. Higher customer demands and e-commerce are forcing
companies and organizations to rethink their strategies and consider integrating logistics 4.0
technologies in order to be able to cope with the requirements. Cybersecurity has become a
trend due to digitalization that is brought forward as the topic of the decade. These issues
have brought forward the ever-existing problem of organizations and companies not
completely integrating logistics as a discrete function within their structures.

In the next chapter, we will see how industrial revolutions have always driven the industry
forward by revising Industry 1.0 through Industry 3.0. Finally, we will examine how Industry
4.0 is signaling the uprising of technologies and practices such as the Internet of Things, Big
Data, UAVs etc., technologies that drive the logistics industry towards digitalization and
automation.

45
Chapter 3 Industry 4.0
An industrial revolution can be defined as a series of events and facts that have a significant
impact on both the society and the economy, while changing the industrial landscape with a
transition to more efficient tools and practices (West, 2017; Deganutti, 2017). Such
revolutions have taken place throughout the last four centuries, with the events of Industry
1.0 taking place during the 18th and 19th century. Each of those periods were marked by the
widening of the economic scales, the birth of new social classes and the invention of tools
and practices that were revolutionizing industries (Mokyr, 1998).

3.1 Background
Now we have reached the period in time where we can talk about a fourth industrial
revolution, or Industry 4.0. The events and changes that are bound to arrive will digitalize
the industrial world and alter the industrial landscape in ways that previous events did not.
This chapter describes how things have changed throughout these industrial revolutions and
how Industry 4.0 affects today’s world. Finally, certain technologies that arrive with Industry
4.0 are reviewed, while analyzing the alterations that need to take place in the
organizational structuring of corporations.

Three periods in time have been described as industrial revolutions, either due to a
disruption in industrial production or an evolution in processes and operations (Galindo,
2016). Mechanization, steam and water power were the facilitators for Industry 1.0, mass
production for Industry 2.0 and the introduction of automation and information technology
(West, 2017; Schrauf and Bertram, 2016), as seen in table 3.1.

Table 3.1 History of Industrial Revolutions (Collins, 2017; Hammel Scale, 2018).

Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0

(1760-1870) (1870-1970) (1965-Today) (Today-.)
The introduction of Mass production The introduction of IoT and more
mechanical and creation of new IT and electrical disruptive
production enabled jobs enabled by the systems contributed technologies and
by steam and water introduction of to further applications driving
power electrical power automation of industries towards
production digitalization and
further automation
3.1.1 Industry 1.0
It was between 1750 and 1840 when a transformation in manufacturing and production
took place (Schrauf and Bertram, 2016). The transition from hand production methods to
machines, the improved water efficiency and the birth of new industrial manufacturing and
iron production processes (Deganutti, 2017) were the main pillars of the first industrial
revolution.

Thousands of factories and textile mills were built, which were relying on large numbers of
workers and machinery in order to manufacture large amounts of goods (Easton and Saldais,

46
2013), while the development of ships and rail networks further enhanced the commerce
industry. New sources of power were established, such as steam power and electricity,
which resulted in a total transformation of the manufacturing, agricultural and
communications industries (Galindo, 2016).

All of those advancements and improvements led to the mechanization of transportation

(Hobsbawm and Wringley, 1999; Galindo, 2016). In addition, telegraphs and telephone
systems supported greater efficiency and speed in the transportation of goods (Hobsbawm
and Wringly, 1999).

3.1.2 Industry 2.0

Following the events and breakthroughs made throughout the period of the first industrial
revolution, technological advancements and pathbreaking inventions took place in energy,
materials, chemicals and medicine (Mokyr, 1998) around 1870, resulting in huge shifts in
production effectiveness, due to a boom of innovation in research and development. The
second industrial revolution can be said to be more of a continuation of Industry 1.0, rather
than a revolution on its own, characterized by the effect electrification had on production
and automation (Schrauf and Bertram, 2016) and the beginning of mass production (West,
2017).

The main difference between Industry 2.0 and Industry 1.0 was that the advancements
leaned a lot more on science (Mokyr, 1998). Scientific base was the key to determining the
plan or the tasks needed in order to utilize energy and materials correctly and get the
results, while reducing the waste of materials and energy. For example, with the concepts of
engineering and thermodynamics, advancements in manufacturing industries were much
more possible to occur (Mokyr, 1998).

Production changes mostly occurred in the technology sector. Electrical power and
telephone networks were added to a group of systems already used before 1870, consisted
of railroad and telegraph networks, as well as gas, water supply and sewage systems (Mokyr,
1998).

Industry 2.0 also had a significant impact on the transportation industry, as railroads became
faster and more comfortable. A truly groundbreaking change to railroads was the application
of new power sources, most notably the Diesel engine (Mokyr, 1998), invented by Rudolf
Diesel. The central feature of said engines is the well-known compression-induced
combustion. In maritime transport, the invention of the steam turbine by Gustav de Laval
and Charles Parson in 1884 led to a revolution at sea (Mokyr, 1998), which led to more
efficient, faster and quieter travels.

3.1.3 Industry 3.0

Following Industry 2.0 and the advancements it brought in production and automation, the
third industrial revolution was characterized by the development of digital fabrication
devices and the democratization of production (Naboni and Paoletti, 2015) and was based
on the convergence of communication and energy (Rifkin, 2011). Its two greatest

47
technological breakthroughs were the digital computer and the industrial robots (Schrauf
and Bertram, 2016; Galindo, 2016; West, 2017).

The unification of the internet and renewable energy enabled the integration of new
production systems, with communication technology being greatly influenced by the 20th
centuries’ innovators, such as Steve Jobs (Rifkin, 2011).

These advancements led to an increased automation in production, with automotive

industries being the first to experiment with the use of information technology systems and
robotics (West, 2017). As a direct result of Industry 3.0, new job positions and an increased
gap in wages range were only natural to come. The first programming jobs appeared and the
information and communications technology (ICT) sector started to form (Rifkin, 2011).

To sum it up, each industrial revolution appears to be either an evolution to the previous
revolution, or a revolution bringing abrupt changes to the industrial world.

3.2 Industry 4.0

Industry 4.0 can be defined as the current trend towards automation and digitalization with
emerging technologies such as the Internet of Things, Big Data, Advanced Robotics,
Augmented Reality and Unmanned Aerial Vehicles, which will be reviewed later in the
chapter (West, 2017; Vaidya et al., 2018). The constant evolution of production systems,
transportation processes and the designing of advanced software solutions, along with
issues such as the higher customer demands, cyberthreats, globalization, the continuous rise
of e-commerce and the emergence of new business models disrupting the industries were
pushing for what is now called the fourth industrial revolution (Baretto et al., 2017).

3.2.1 Necessity for Industry 4.0 Technologies

Industry 4.0’s main objective is the fulfillment of individual customer requirements with
accuracy and efficiency (Vaidya et al., 2018). Its main characteristics are digitalization and
automation with Internet of Things (IoT) and Big Data leading the way for technologies
which enable a transparent and uninterrupted flow of information, which is vital for today’s
companies and organizations (West, 2017).

The focus in Industry 4.0 is on cyber-physical systems. Such systems are able to optimize the
receiving and transmitting data processes, due to the utilization of sensors and the internet.
By doing so, communication between human and machine or physical items is achieved
(West, 2017), and real-time decision-making can be supported. Such sensors are embedded
in equipment.

In order to support such great loads of data, Big Data technologies are incorporated, with
new software solutions being able to process such great amounts of raw data (Vaidya et al.,
2018). Then comes the simplification of the user’s interfaces, which increases a worker’s
mobility and productivity (West, 2017). Advanced Robotics and augmented reality (AR)
revolutionize security, warehousing, transportation and manufacturing. These technologies
will be introduced in subchapter 3.3.

48
Industry 4.0 and the technologies mentioned break plateaus and set new limits for
corporations (Vaidya et al., 2018). It also allows for startups to disrupt industries and triggers
changes in existing companies’ business strategies and models (Ibarra et al., 2018) by
providing the perfect platform for innovation. As competition intensifies and globalization
keeps on affecting international companies, innovation becomes a necessity in order to keep
on creating competitive advantages (Vaidya et al., 2018).

Aside from innovation in automation, digitalization is the other major aspect of Industry 4.0
(West, 2017). As of today, 80% of information and communications companies have
digitalized their processes, while companies in the electronics and electrical systems
industry lead the way with a digitalization7 of rate of 89% (Geissbauer et al., 2014). The
manufacturing and engineering industry follow with an 85% digitalization rate, while the
automotive industry is just as close with an 84% respectively (Geissbauer et al., 2014).
Digitalization rate, as seen in figure 3.1, has a direct impact on cost reduction for industries.

Cost Reduction Percentage (By 2020)

Cost Reduction Percentage (%)

4,2%
[VALUE]%[VALUE]%[VALUE]%[VALUE]%
[VALUE]%[VALUE]%[VALUE]%
[VALUE]%[VALUE]%

Industry

Figure 3.1 Cost reduction percentage expected for companies investing in digitalization by 2020, grouped by
industry (PwC, 2016).

3.2.2 Issues raised from Industry 4.0 Adoption

Table 3.2 Issues raised from Industry 4.0 adoption (Renjen, 2018).

Issues
Cyberthreats Talent Labor Organizational Cost
Acquisition Structures
Exposure of Need for Fear of job The need for High investment costs

7
Digitalization is consisted of customer-oriented processes, such as e-commerce, digital marketing,
social media managing and customer experience improvement through personified and customized
offers (Schrauf and Bertram, 2016).

49
 personal or skillful positions reformed
corporate employees lost organizational
information structures
The rapid digitalization and the rate at which the business landscape is changing makes
cyberthreats an issue, but according to Dr. Kurt Altenegger, “The cyber risk is not necessarily
higher in an Industry 4.0 environment, as new cyber security will be introduced at the same
pace as Industry 4.0 applications”. The priority for most companies isn’t just preventing
cyber-attacks, but also learning how to deal with them (Schlaepfer et al., 2014).

Another issue is about the readiness of any company’s IT infrastructure (Schlaepfer et al.,
2014). The necessity of talented and skillful employees was mentioned earlier and as
evidenced, rapid digitalization will challenge that. The biggest issue, as it stands, is the
impact Industry 4.0 will have on HR and labor and organizational structures (Ermolaeva,
2017).

3.2.3 Issues arising in HR Sectors

It is a common belief that IoT and Advanced Robotics will lead to mass unemployment, but
that is not the case (Franklin, 2018). We are led to a time when hybrid jobs will dominate the
job landscape. For example, someone working in the healthcare industry will need to be re-
skilled and as a result his job will be more accurately described as being in the IT-Healthcare
industry (Franklin, 2018). Of course, low skills jobs will be the first to be replaced according
to a report by consulting firm Zinnov, although it is noted that it will be matched by job
creation in other areas (Franklin, 2018).

On the other hand, a study conducted by the World Economic Forum stated that the
transition to Industry 4.0 will result in a loss of at least 5.18 million jobs of non-technical
nature in 15 major developed and emerging countries (World Economic Forum, 2016). The
skills that are mostly sought after are mathematical and analytical skills in a combination
with a familiarity with computers (Coutinho, 2017).

The shifts in labor and industry are coming at a rapid pace and HR is very important in
managing the changes and aiding in a smooth transition for employees (Shamim et al.,
2016). HR should reform some traditional practices and emphasize on a flexible job design,
an engaging and swift training curriculum, and finally, boost the employee’s morale with the
utilization of performance appraisal and personal development consulting sessions (Shamim
et al., 2016; Franklin, 2018).

3.2.4 New Organizational Structures

Besides the issues in HR sectors, the changes that are about to arrive due to industries
entering the Industry 4.0 era, push corporations into new ways of doing business (Jakes,
2016). The necessary steps a corporation should follow in order to cope with the rapid

8
7.1 million jobs, mostly of administrative and white-collar office nature, will be lost and 2.1 million
jobs will be created related to science and mathematics (DW.com, 2016).

50
digitalization of the business landscape and achieve innovation are as follows (Ibarra et al.,
2018; Baretto et al., 2017; Mrugalska and Wyrwicka, 2017):

1- Standardization of systems and connections.

2- An investment in research and human resources. Employers carefully and accurately
trained to use and navigate through the plethora of systems and processes provide a
huge advantage to companies.
3- Understanding and respecting legal frameworks.
4- New business models, due to the increasing customer demands, leading from the
mass production phase to the mass customization one.
By summarizing the features mentioned above, three approaches are identified as to the
direction of a new business model that enables a company to adapt to the rapid
digitalization (Ibarra et al., 2018):

1- A service-oriented approach. A product-service system (PSS) concept that describes

the development, realization and offering of product-service bundles to the
customer.
2- A network-oriented approach. Horizontal and vertical integration of the value chain,
as a way to expand a company’s boundaries.
3- A user-driven approach. More responsive manufacturing processes resulting in a
better alignation of user-driven design and customer value creation.

Industry 4.0 enables startups and small-size companies to try such new business models
with a tendency towards disruption of the industrial landscape (Noronha et al., 2016). But
traditional organizational structures appear to be inflexible and that is because they are
usually multilayered in nature, deeming them unsuitable for a company with the goal of
achieving full digitalization (Ermolaeva, 2017). Corporate organizational structure should be
designed in a way that helps companies achieve their objectives (Jakes, 2016), while also
adapting to the circumstances at hand.

Companies and organizations need to be more flexible and adaptive to change, as today’s
fast changing environment requires innovations in all sectors (Ermolaeva, 2017). A priority
has to be given to decreasing management stages to two or three (Jakes, 2016). The
following organizational structures seem to be the most suitable for the new era of industry,
in order to help companies go full digital (Jakes, 2016; Ibarra et al., 2018; West, 2017):

1- Lean Organizations. Characterized by a flat structure with suppressed hierarchical

levels and teams that work with many tasks, often utilizing the Kaizen methods9.
2- Fractalization. Essentially a company broken into many pieces performing
independently.

9
The Kaizen method is a management concept conceived in Japan. Its main mantra is the continuous
development and the founding elements of it are team work, discipline, improved morale, quality
circles and suggestions for improvement (Valuebasedmanagement.net, 2016).

51
 3- Amoebas. A loosely bounded organizational network without hierarchical
arrangements. They function independently with full responsibility to the
corresponding entrepreneur.
4- Network Organizations. Formed by agreements between small and middle-size
companies with participants being connected to each other.
5- Virtual Organizations. A combined effort of a number of smaller companies that
agree on the use of shared information channels. There is no leadership and no
hierarchy, just separated companies responsible for their actions.
Those organizational structures are quite suitable for the new era of Industry 4.0. They
benefit the companies in cutting time intervals, reducing operational and transactory costs,
while optimizing productivity (Ermolaeva, 2017). But more actions are required for a
company to build a digital profile, able to cope with the higher demands (PwC, 2016). Said
actions are as follows (PwC, 2016; Ermolaeva, 2017; Jakes, 2016):

1- An investment in data analytics and utilization of Big Data technologies.

2- A regional segmentation, in order to simultaneously adapt to globalization, but also
satisfy distinct demands.
3- Build digital trust based on transparency, legitimacy and effectiveness.
4- Companies need to educate staff about digital technologies and applications of
Industry 4.0 and build the digital culture within the company infrastructure.
5- Investment in Industry 4.0 technologies.
Industry 4.0 and its technologies offer solutions to issues and challenges that companies
were previously having trouble with. Issues pointed out by skeptics are manageable
considering that companies have realized that necessary steps need to be taken in order to
adapt to the changes, as currently used practices and technologies have their disadvantages.
An industry heavily affected by Industry 4.0 is the logistics one. Logistics 4.0 boosts end-to-
end visibility and traceability through the supply chain, optimizes production and
streamlines processes (Mrugalska and Wyrwicka, 2017; PwC, 2016).

3.3 Logistics 4.0 and Emerging Technologies

Logistics 4.0 is a term derived from the combination of Industry 4.0 technologies and
innovations and their application on inbound and outbound logistics (Barreto et al., 2017). A
narrower concept than Industry 4.0, Logistics 4.0 focuses on typical features, such as
automation and digitalization (Szymanska et al., 2017). The technologies most commonly
utilized are the Internet of Things, Big Data analytics, Augmented Reality (AR), Unmanned
Aerial Vehicles and Advanced Robotics.

Logistics 4.0 technologies and systems implementation has several advantages, which are
the following (Szymanska et al., 2017; Galindo, 2016; West, 2017; Gesing et al., 2018):

1- Standardization of several Logistics Functions

2- Streamlining of Processes
3- Greater Flow of Information
4- Cybersecurity
5- Optimization of Production
6- Lower Operational Costs

52
 The disadvantages that come with Logistics 4.0 implementations are as follows (Szymanska
et al., 2017; Barreto et al., 2017; Gialos and Zeimpekis, 2018):

1- High Investment Costs

2- Cumbersome Organizational Structures
3- Fear of Cyber Threats
4- HR Implications
5- Resistance to Change
6- IT Supply Network Possession Requirement
7- Requirement for Highly Skilled Workers
The technologies analyzed next aim at replacing processes which do not need operational or
decision-making processes from workers (Galindo, 2016). The following subchapter provides
a deeper explanation of said technologies.

Emerging technologies support logistics operations in ways that currently utilized

technologies cannot. As a result, the technologies explained here are key to companies and
organizations growing past the issues and challenges that have occurred and move towards
digitalization and automation. The following table presents a summary of the technologies
analyzed in this chapter.

Table 3.3 Emerging technologies of Logistics 4.0 (DHL, 2015; Oracle, 2018; Malek et al., 2017).

Technologies Description Impact

IoT Connecting physical objects and IoT totally changes the business
machinery to a central control system, landscape by increasing digitalization
usually monitored through a device and automation in operations and
such as a smartphone. processes.
Big Data Analytics Access to amounts of data far greater Increased accuracy in decision-
than what was previously available, making, greater operational
which enable more accurate analytics- transparency, optimized customer
insights. service, greater efficiency in resource
planning and better precision at
scheduling.
Advanced Robotics Robots and machinery which learn on Huge impact on warehousing and
their own through machine learning and operations management in general.
deep learning algorithms, monitored
through devices such as laptops and
smartphones. Designed to replace
processes and tasks demanding
precious amounts of time and effort
from workers.
Augmented Reality Information accessible through a device Optimizing and achieving greater
worn on the head and displayed efficiency in everyday processes and
through an interface. activities.

53
 UAVs Unmanned aerial vehicles designed to Huge impact on distribution and
receive and deliver items, aid in delivery, while also elevating security
intralogistics activities and patrol levels for facilities and warehouses.
remote facilities.
3.3.1 Internet of Things (IoT)
The internet has grown large so rapidly that it has become a household term and according
to the latest report from Global Digital, internet users have surpassed the 4 billion line. The
Internet is centered around the concept of connection, with smartphones, laptops, PCs,
smartwatches etc. all connected to it in order to send, receive, process and store data.

IoT is the next step for the concept of connection, allowing for devices previously unthought
of, such as lights, doors, refrigerators, drones etc. to be controlled by the user with one
central device to monitor their action, which is usually a smartphone or a computer
(Macaulay et al., 2015), allowing for a machine-to-person (M2P) or a machine-to-machine
(M2M) link. The connection to physical objects through the internet allows users to enjoy its
full potential for the support of their business, transparency in operational processes and
better monitoring and controlling of devices and objects at work etc. (Macaulay et al., 2015).

As a result, IoT can be defined as the convergence of information technology (IT) operational
technology (OT) (Macaulay et al., 2015). It presents a technology transition that will have
huge implications on everything, ranging from daily activities (e.g. sortation of items) to
business level operations. Taking advantage of sensor technology and Big Data analytics, IoT
offers several advantages for companies, such as operations visibility and production
efficiency, thus creating new sources of value (Macaulay et al., 2015; Deloitte, 2018).
According to a DHL & Cisco report, the logistics industry is estimated to provide $1.9 trillion
dollars of value by the end of the decade showcasing the impact IoT will have on the
business landscape (Macaulay et al., 2015).

Another advantage IoT offers to business and logistics companies is the impact it has on
decision making. By connecting assets and objects, vast amounts of digital information now
become available, enabling for faster and more accurate decision making (Macaulay et al.,
2015; Malek et al., 2017). As a result, that allows for more adaptive customer experience,
optimized operations and processes, faster cycle times and reduced costs (Liu, Zhang and
Wang, 2018; Malek et al., 2017). But in order to obtain these vast amounts of new data and
intelligence, IoT utilizes many different technologies including wireless local (e.g., Bluetooth,
RFID, Zigbee, Wi-Fi), mesh network and wide area connections, such as 4G, as well as wired
connections (Zhong, Xu and Wang, 2017).

Of course, IoT also includes more consumer-oriented devices10, embedded technologies, and
apps (e.g. the thermostat monitor). An important element of this is the incorporation of
controllers and actuators (Arduino is a well-known example), so that an action taken in the

10
These devices are usually programmed with the use of the C programming language, which is
preferred due to it not requiring a lot of processing power (Curry, 2016). Other languages used for
developing IoT applications for more complex tasks, such as a thermostat monitor, are C++ and Java.

54
digital world, such as a user clicking a link in an application (IoT Agenda, 2018), can result in
a corresponding action in the physical world (e.g. an alarm sounds, a lever flips, an assembly
line comes to a halt etc.).

All those features of IoT mentioned above and the advancements that it can bring in
industries are still in pubertal stage. Roughly 1% of the world’s physical objects have been
connected to the internet, which means that in the following years IoT is going to play a
huge part in the shaping of the industrial and non-industrial world (Macaulay et al., 2015).

$80 75.44
Connected Devices (in billions)
$70
62.12
$60
51.11
$50
42.62
$40 35.82
30.73
$30 26.66
23.14
20.35
$20 17.68
15.41

$10

$0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Figure 3.2 Graph showing the amount connected devices, showcasing the fact that there is still a lot more to be
seen (Bicheno, 2015).

3.3.2 Big Data

As already seen, IoT enables the creation of new sources of data and intelligence. This leads
us to an obstacle of sorts, in the fact that data have become way too large to be handled by
common software solutions and its impact on the way companies do business will not have
the same effect without the utilization of Big Data analytics (Jeske et al., 2013; Lachhab et
al., 2018). That is due to a change in two very important data characteristics. The first is the
fact that with more devices being connected and sensor technology continuously on the rise,
more data streams are being generated and as a result, there is an increase in the velocity of
data aggregation and processing (Jeske et al., 2013). Secondly, data has become greatly
varied, with newly generated data originating from various distinct sources, such as e-
commerce catalogs, surveillance cameras, internet surfing, forums etc. (Jeske et al., 2013).
These unstructured data sources result in a much higher data type variety, further
implicating matters. Conclusively, Big Data can be defined as data containing greater variety
along with increasing volume and velocity (Oracle.com, 2018).

The advantage of these massive volumes of data is that they can be used to address business
problems which companies wouldn’t have been able to tackle before (Lachhab et al., 2018).
As already seen, companies and organizations around the world are focusing on minimizing
risks and taking accurate decisions (Jeske et al., 2013; Oracle, 2018). Data-driven insights and

55
Big Data influenced decision-making are longed for in an industry such as the logistics one, in
order to increase the profits and decrease the risks (Jeske et al., 2013). Big Data’s worldwide
revenue can be seen in the figure below.

Big Data Analytics Worldwide Revenue (in billion of

U.S. dollars)

2020* [VALUE]$

2019* [VALUE]$
Year

2018 [VALUE]$

2017 [VALUE]$

$- $50 $100 $150 $200 $250

Big Data Analytics Worldwide Revenue

Figure 3.3 Big Data analytics' worldwide revenue based on a survey by IDC (Shirer and Goepfert, 2017).

But achieving the desired results through the processing of large datasets containing
important intel is one thing. Finding value in big data is equally crucial. It is an entire
discovery process that requires experienced analysts, business managers and executives
who ask the right questions, recognize patterns, make informed assumptions, and predict
behavior (Oracle.com, 2018). These functions are enabled by Business Intelligence (BI)
technologies which support in extracting, wrangling and analyzing data in order to produce
insightful reports (AWSmarketplace, 2017). The advantages brought by Big Data can be felt
in operations and production efficiency, customer service, maintenance and work schedules,
real-time routing optimization, machine preparations, finance and many more sectors and
departments within a company structure (Lachhab et al., 2018).

3.3.3 Advanced Robotics

Robotics have been a topic of discussion for decades. Starting from sci-fi films and pure
imagination, advanced robotics have reached the point where they have become reality.
Surgeries aided by robot arms, robot kitchens, fully walking robots aiding nurses in bringing
food to patients, robots in factories supporting the workers in heavy-items activities and
many more applications have been seen in this decade.

Investment in robotics research has been at its highest point from the beginning of this
decade with the U.S. government having invested more than $96 million in it (Bonkenburg,
2016). In April, Japan’s prime minister announced the creation of the Robot Revolution
Initiative Council with a plan to quadruple robotics sale from $5 to $20 billion by 2020
(Bonkenburg, 2016). Other sources of funding for a new era of robotics have been
corporation giants Amazon and Google. Amazon bought Kiva in 2013 with a total cost of
$775 million (Bonkenburg, 2016), but according to Amazon exec Dave Clark, in the first two
years of their deployment Kiva robots had cut operating expenses by 20%, which translated
in $22 million of cost savings for each fulfillment center (Kim, 2015). Google on the other

56
hand, bought eight robotics startup companies with a focus on a branch of artificial
intelligence, called deep learning (Bonkenburg, 2016; Gesing et al., 2018).

3.3.4 Augmented Reality (AR)

Augmented Reality, a relative to Virtual Reality (VR), enables the virtual appearance of
digital information onto the physical world, providing information usually on a screen or a
remote monitor (Müller, 2018; DHL, 2015).

In a report by SAP, AR and VR are expected to reach adoption levels of 20% by 2019, while
15% of all field-technicians will be utilizing AR technologies by 2020 (Müller, 2018). AR’s
projected market size in 2022 is expected to be 7,75 times bigger than in 2018, as seen in
figure 3.6 (Murray, 2018).

Its use in business operations is of great importance, despite it being adopted at a slow rate
(Müller, 2018). It can provide new ways in data-handling, increase activity-related efficiency
by interacting with the physical world and simplify work-related tasks (DHL, 2015). Given a
window of 3-5 years, AR is expected to be integrated in any assisting device and data
exporation processes (Müller, 2018). Its efficiency when used in warehouse operations will
be explained in the next chapter.

Projected Size of AR Market ( 2018 vs 2022) in billion

U.S. dollars
Projected Size of AR Market in

$250
[VALUE]$
$200
$bilions

$150

$100

$50 [VALUE]$

$-
2018* 2022*
Year

Figure 3.4 Projected size of AR market in 2022 compared to 2018 based on a survey conducted by IDC (Murray,
2018).

3.3.5 Unmanned Aerial Vehicles

UAVs have been used for years in military and non-military operations. The main types of
engine used today in non-military UAVs are the electric engine and the internal-combustion
engine (DHL, 2014). The electric engine is environmentally friendly and makes no noise
compared to the internal-combustion engine, making it a better choice in densely populated
areas. It is relatively inexpensive to charge the battery, but battery weight is a drawback and
UAV range can be limited by the battery’s capacity (DHL, 2014). Hybrid systems have been
developed, combining the best of both worlds. The internal-combustion engine is used for

57
longer distance flights, and the electric engine is used for take-off and landing in areas
requiring quiet operation.

There are numerous advantages coming with the use of UAVs. They are great for security
around facilities and delivery of items in remote locations or in a city center, while they can
aid in intralogistics activities. A disadvantage is that UAVs regulation is a difficult matter to
resolve, as public concerns about security (DHL, 2014) and their integration in a controlled
airspace is a pressing matter, as more and more logistics companies and other organizations
start utilizing UAVs for their activities. As a result, their adoption rate is not increasing at the
expected rate, as evidenced in the figure concerning the expected worldwide drone
spending for 2017 to 2021 (Dukowitz, 2018).

$20 Global Drone Spending in billion U.S. dollars by Country

[VALUE]$
Global Drone Spending in $billions

$18
$16
$14
$12
$10
[VALUE]$
$8
$6 [VALUE]$
[VALUE]$
[VALUE]$
$4 [VALUE]$
[VALUE]$
[VALUE]$
[VALUE]$
[VALUE]$
[VALUE]$
[VALUE]$
[VALUE]$
[VALUE]$
$2 [VALUE]$
[VALUE]$
$-

Region

Figure 3.5 Expected Global Drone Spending for 2017-2021 based on a survey conducted by Goldman Sachs,
grouped by Country (Goldman Sachs, 2018).

3.4 Summary
This chapter described how the world has evolved from Industry 1.0 up to the era of
Industry 4.0. The issues that some skeptics have raised were pointed out and evidence says
that these issues are resolvable. Then, Logistics 4.0 was introduced and its technologies
were examined in general.

In the next chapter, we will see how Logistics 4.0 technologies revolutionize the logistics
industry, with an analysis on how they affect warehouse and transportation operations and
processes performed, thus driving it towards digitalization and automation. Then, a Logistics
4.0 technologies implementation framework will be introduced with an example presented
regarding UAVs implementation for inventory management and facility patrolling.

58
Chapter 4 Industry 4.0 on Logistics Operations
4.1 Introduction
The impact Industry 4.0 will have on the business world was analyzed in chapter 3, as well as
the emerging issues and the requirements for an organization to adopt digitalization and
automation strategies. Finally, Logistics 4.0 was introduced along with its emerging
technologies.

This chapter describes how Logistics 4.0 technologies will affect logistics operations, with
emphasis on warehousing, freight transportation and distribution. Current technologies,
systems and logistics operations are not able to cope with the challenges at hand (Schrauf
and Bertram, 2016), such as the increased customer demands, the rise of e-commerce,
cyber threats and globalization.

As for today’s logistics operations, plenty of the processes performed remain manual or
semi-automated in nature (Gregor et al., 2017). Integrating Logistics 4.0 concepts and
transforming the organizational structure enables corporations to constantly evolve and
keep up with the ever-changing industrial environment (Noronha et al., 2016).

The Logistics 4.0 concepts and technologies that will be described, as presented in chapter 3,
are as follows:

 Internet of Things and its subsidiary technologies (e.g. RFID, sensors etc.)
 Big Data
 Advanced Robotics
 Unmanned Aerial Vehicles
 Augmented Reality
4.2 IoT and its Applications on Logistics Operations
The Internet of Things is expected to transform the logistics industry due to its capability of
allowing the connection of objects to the internet with the use of RFID tags, wireless
networks and information systems, as seen in figure 4.1. IoT’s prospects for logistics
operators and business customers are beyond significant (Macauley et al., 2015). Its positive
effects can be witnessed across the supply chain, including warehouse operations, freight
transportation and distribution and delivery (Macaulay et al., 2015; Gregor et al., 2017).

Figure 4.1 The IoT “ecosystem”, comprised of three main components, which are sensor-embedded objects,
wireless networks and information systems.

IoT aids in real-time monitoring of assets, maintenance time-intervals, boosting precision

and speed in warehouse operations (e.g. picking), optimizing last-mile delivery processes,
lowering operational costs, optimizing productivity and providing intel in order to make

59
greater use of data analytics (Macaulay et al, 2015; Galindo, 2016; Karakostas, 2016).
Operations for which IoT’s impact will be thoroughly analyzed are as follows:

 Picking
 Inventory Management
 Receiving
 Dispatching
These warehouse operations are still mostly manual or semi-automated in nature (Field,
2015). At average, logistics costs of activities involving human action are estimated to be
$25-35 per hour, while the same activities based on IoT operating concepts showed a cost
saving of 80-90% and a performance growth of 20-30% (Gregor et al, 2017). Another
important result was the reduction of risk of fault, a factor playing a noteworthy role in
manually performed activities (Gregor et al., 2017).

Such activities are ones performed for picking processes. In the traditional way a list of items
would be given to the picker and then he would walk around the warehouse in order to pick
said items with either the support of a WMS, picking aiding technologies (e.g. voice picking)
or completely not (Field, 2015; Rushton et al., 2014). But with the implementation of IoT,
such processes are transformed by getting completely digitized and partially automated
(Field, 2015). Now, the list of items would be automatically sent to cart-like robots, which
would perform the picking activities and deliver the items to the workers (Macaulay et al.,
2015).

Another major value proposition of IoT is the monitoring of items, equipment and workers in
order to increase safety and efficiency (Macaulay et al., 2015). For example, after the
dispatching processes are completed, sensor technology can be utilized to monitor the
pallet’s movement and exact location, enabling real-time monitoring and the transmission of
information previously unavailable (Field, 2015).

So, as evidenced in the previous example, by connecting different assets across the entire
supply chain in a way that has a meaningful impact, IoT offers logistics companies greater
automation and generates data by said connections, which provide the stepping stone to
reach greater levels of operational efficiency and more accurate insights (Macaulay et al.,
2015).

4.2.1 IoT in Warehouse Operations

Warehouses have always been the “heart” within a supply chain, being vital to the flow of
goods and information (Zeimpekis, 2018). Nowadays, it can become a key to achieving a
competitive advantage for logistics companies and IoT applications are ideal for that
continuously changing technological environment that warehouses are defined by (Shields,
2017). The following figure depicts an IoT-enabled warehouse:

60
Figure 4.2 The IoT-enabled warehouse, with multiple applications, such as condition monitoring, smart inventory
management, smart ventilation etc. (Hector, 2018).

The factors that make a warehouse the perfect environment for implementing an IoT
framework are of equal importance and value (Macaulay et al., 2015). On average,
thousands of variable types and goods are stored in a warehouse, while their placement
must be specifically picked in order to enable the highest efficiency levels in extracting,
processing and delivering processes (Macaulay et al., 2015). In addition, a modern-day
warehouse contains many physical objects and machinery that, once connected and
optimized through IoT technologies, can offer significant new data streams, as seen in figure
4.2. Such objects can be pallets, forklifts etc., or even the warehouse infrastructure itself
(Zhong et al., 2017).

The following table describes the IoT subsidiary technologies utilized.

61
 Table 4.1 IoT subsidiary technologies and their uses in Logistics Operations (Macaulay et al., 2015; Zhong et al.,
2017).

Technologies Uses
Sensors Monitoring of different assets and
generating data streams that enable real-
time decision making and more accurate
insights.
Microprocessors Tailored to allow optimal performance and
efficiency of various systems.
Actuators Components responsible for controlling a
mechanism.
Wireless Connection Enabling the connection between machines
and workers. Now, with the arrival of 5G
networks, IoT-based solutions are even
more accessible.
Semiconductors Materials with an electrical conductivity
value falling between that of a conductor
and that of an insulator.
Wireless Readers RFID readers attached to a machine.
Logistics operators carry mobile readers,
because of constant movement. Wireless
communication devices strategically
installed ensure signal coverage and
greater transparency.
The adoption of pallet and item-level universal tagging with the utilization of low-cost
identification devices, such as RFID11, shown in figure 4.2, strengthens the path towards an
IoT-driven smart-inventory management (Macaulay et al., 2015). It provides real-time
visibility for a more efficient inventory management, preventing situations, such as an out-
of-stock one, that would otherwise prove to be quite costly for companies (Macaulay et al.,
2015).

Figure 4.3 An RFID tag stores data regarding the object it is embedded to electronically. The wireless reader tracks
and identifies the tag with the use of electromagnetic fields (West, 2017).

11
RFID has been around for decades, but it has gone through a huge rise in popularity recently, due to
Industry 4.0 (West, 2017).

62
Another cost and time-saving advantage is the data captured during the receiving processes,
with the wireless RFID readers capturing data related to volume and dimensions (Zhong et
al., 2017). During the dispatching processes, these readers eliminate the possibility of error
due to a thorough scanning of the pallets (Macaulay et al., 2015). Finally, stock levels are
automatically updated (Field, 2015). The following table compares RFID to barcode
utilization.
Table 4.2 Compares RFID tags to Barcodes utilization in the warehouse.

Barcode RFID
Read Range Ranging from several inches to several Up to 100+ feet, depending
feet on the tags used
Read Rate One at a time Up to 1000s simultaneously
Read Speed Seconds Milliseconds
Reliability
Data Capacity
Legend : Low : Medium : Medium to High : High
Throughout the duration of these processes, sensor technology allows for optimal asset
monitoring and controlling (Deloitte, 2018). By connecting all assets to a central system, IoT
allows for a full utilization of sensor technology’s capabilities (Deloitte, 2018). A variety of
sensors can be deployed to monitor the movement and location of items and pallets, while
other sensors can be used for controlling and monitoring sorting systems and warehouse
vehicles (Deloitte, 2018), thus facilitating predictive maintenance and resulting in the
prevention of failures and extended damages (Macaulay et al,2015) by warning managers
for any necessary preventive actions. Another major advantage gained by the utilization of
sensor technology is the monitoring of a pallet’s or a package’s condition (e.g. temperature
and humidity), thus enabling greater quality and customer service (Deloitte, 2018).

Connecting all assets to a central system and optimizing the transmission and receiving of
data is based on wireless networks and stable connectivity (Shields, 2017). The standard
mobile networks utilized are the 4G LTE (Ericsson, 2017). But the fifth-generation mobile
network, shortly named 5G, will be able to send data ten times faster (Shields, 2017). This
overlaps with the revolution IoT is bringing to warehouse operations and creates significant
prospects for the future, as it is expected that 5G usage will have reached 15% of the world
population by 2022 (Ericsson, 2017; Shields, 2017).

By summing it all up, the following table describes the impact IoT and its logistics
applications have on warehouse operations.

63
Table 4.3 The impact and the results of implementing IoT-based solutions (Newcastle Systems, 2017; Datex, 2018;
Zhong et al., 2017; Gregor et al., 2017; Macaulay et al., 2015).

IoT Applications on Warehouse Operations

Operations Impact Results
Receiving  Accurate Inspection  Lowered Time
 Thorough Intervals
Accountability  Reduced
 Real-time Visibility Operational Costs
and Traceability  Increased Labor
 Compliance with Performance
Labelling Standards  Optimization of
Processes and
Activities

Putting Away  Real-time  Reduced

Monitoring of Operational Costs
Location and  Efficient Space
Condition Utilization
 Optimizing
Productivity
Picking  Performance  Reduced
Monitoring Operational Costs
 Warehouse  Reduced Time spent
Navigation walking and
 Knowledge of Exact searching
Location for Items  Automation
and Goods
Packing  Knowledge of  Compliance with
Item’s Conditions at Regulations
any given Time  Quality Assurance
Dispatching  Real-time  Compliance with
Monitoring Regulations
 Accurate Scheduling  Efficient Truck
 Thorough Space Utilization
Accountability when Loading
 Reduced Risks  Prevented Damages
to Goods
 Reduced
Operational Costs
 Optimized
Productivity
4.2.2 IoT Applications on Freight Transportation
Logistics providers transport goods by air, sea, rail, road and pipeline, through widely
distributed networks that depend on an uninterrupted flow of information (Deloitte, 2018).
IoT and its subsidiary technologies aid in streamlining several processes and achieving
greater efficiency through automation and digitalization (Macaulay et al., 2015). The
transportation operations to be analyzed are as follows:

 Fleet Management
 Asset Management

64
  Loading/Unloading of Goods
 Last-Mile Delivery
IoT is set to expand the track and trace concept by making it more accurate, predictive and
secure (Macaulay et al., 2015). Monitoring the location and the condition of a shipment
provides further real-time visibility and traceability during transportation, preventing thefts
and damages (Deloitte, 2018). This is made possible through the use of telematic sensors in
trucks and sensor-embedded tags on goods which are then transmitting data about the
location and the condition (Deloitte, 2018).

Sensors are already utilized for fleet management by many logistics providers with great
success (Macaulay et al., 2015). IoT can expand their use by collecting the information,
extracted from every truck, for example, into a central system which then identifies the
most suitable routes for each truck, thus reducing deadhead kilometers, cutting fuel costs
and optimizing fleet efficiency (Zhong et al., 2017; Macaulay et al., 2015).

Another significant advantage of IoT and the use of sensor technology is the predictive
nature it adds to asset management (Zhong et al., 2017). The most common reasons a truck
needs maintenance are material degradation and various mechanical damages
(Nearsay.com, 2018). A truck with embedded sensors placed around the most regularly
problematic areas and a telematic unit connected to a central system is enabled to
autonomously decide the circumstances of a required maintenance by alerting the driver
and the maintenance crew, as seen in figure 4.5 (Macaulay et al., 2015).

IoT is also improving work conditions for drivers, specifically long-distance ones who are
susceptible to sleep deprivation, dehydration and exhaustion (Crizzle et al., 2017). Cameras
in the vehicle are able to detect signs of said implications and alert the driver in order to
warn him (Macaulay et al., 2015). Figure 4.5 sums the above IoT-enabled features with the
example of a line-haul transportation operation.

Figure 4.4 Displays how IoT revolutionizes transportation operations by featuring all of the advantages and
capabilities discussed above: Monitoring of vehicle condition status, the driver’s vitals, shipment ID reporting etc.
(Macaulay et al., 2015).

To sum it all up, freight transportation is a continuously evolving and expanding area of the
supply chain with numerous amounts of factors affecting its efficiency (Kappauf, Lauterbach

65
and Koch, 2012). The following table describes the impact of IoT technologies on freight
transportation.
Table 4.4 Describing the impact of IoT technologies on freight transportation (Deloitte, 2018; Macaulay et al.,
2015; Malek et al., 2017; Zhong et al., 2017).

IoT’s impact on Freight Transportation

Freight Transportation Areas Impact
Fleet Management  Optimized Routing
 Fuel Management
 Reduced Deadhead Kilometers
Asset Management  Optimized Asset Utilization
 Predictive and Autonomous
Maintenance
 Vehicle Up Time Increased by
~30%12
Transportation of Goods  Real-time Visibility and Traceability
preventing Thefts and Damages
 Increased Accuracy and Speed
Health and Safety  Prevention of Collisions and Delays
 Optimized Processes
4.2.3 IoT-enabled Last-Mile Delivery
Last-mile delivery is the last part of the supply chain, thus making it a crucial one. In the
latest years, urbanization, e-commerce and increased consumer demands have resulted in a
rise of complexity levels of last-mile delivery (Pronello et al., 2017). IoT offers solutions
which serve both the end customer and logistics providers, by creating new streams of
communication between the two and enabling the birth of new business models (Macaulay
et al., 2015). Such an example can be seen in figure 4.6, featuring the capabilities of an IoT-
based last-mile delivery operational framework.

Figure 4.5 Shows how IoT redefines last-mile delivery. Features displayed: a) Automatic order placement, b)
flexible address, c) delivery notification, d) returned goods request, e) collection route optimization (Macaulay et
al., 2015).

12
Results backed by a project ran by Volvo, DHL and others (Macaulay et al., 2015).

66
One IoT-enabled solution is about optimizing the collection routes for workers picking mails
and items from mail boxes by the placement of sensors inside as seen in figure (Macaulay et
al., 2015). Enabled by the global system for mobile communication (GSM) technology,
sensors transmit a signal, alerting workers in case that the mail box is empty (Newatlas.com,
2018). Proximity sensors are then used to alert the consumer for any mail or item placed in
the mail box, or simply report condition status (e.g. humidity) inside it, as seen in figure 4.6
(Macaulay et al., 2015).

Another revolutionary solution IoT is deeming possible is the anticipatory delivery services
(Macaulay et al., 2015). The most commonly used example is that of the smart fridge, which
tracks and predicts low stock of goods and then automatically replenishes with an online
delivery (Macaulay et al., 2015). An algorithm developed by Amazon enables logistics
providers to predict an order by a consumer and as a result, they move the predicted order
at a location close to the consumer’s address, thus reducing lead time on delivery
(Supplychain247.com, 2018). In addition to that, through IoT-enabled smart-devices and the
advancements in delivery methods and practices, consumers can now alter the designated
address and time slots, even when the parcel is on its way (The Communications Logistics,
2018). In order to allow consumers to have real-time visibility and traceability, RFID or
similar sensory tags and printed NAC smart labels are used (Deloitte, 2018;
Supplychain247.com, 2018).

Finally, IoT has a positive impact on reverse logistics (Liu et al., 2018). Consumers can track
the movement of delivery people and vehicles in order to return an item (Macaulay et al.,
2015), although this advancement comes with a disadvantage. The fact that returning goods
is facilitated allows consumers to return them more often, which is costly for logistics
companies (Supplychain247.com, 2018). Specifically, 11% of sales took the reverse trip in
2017 (Supplychain247.com, 2018). Amazon took an initiative by banning shoppers who
returned items too often (Supplychain247.com, 2018).

A summary of the advantages brought by IoT implementations are as follows (Macaulay et

al., 2015; Supplychain247.com, 2018; Deloitte, 2018):

1- Real-time Visibility and Traceability for Consumers

2- Flexible Delivery Address and Time Slot
3- Easily Returned Goods
4- Optimized Collection Routes
4.3 Big Data in Logistics
The logistics industry is one in which Big Data analytics has numerous applications (Marr,
2016). Analytics have been a part of logistics management for a long time, but Big Data
applications can provide real-time analytics by the extraction and processing of huge and
constantly growing non-structured datasets as seen in figures 4.7 and 4.8 (Garcia Marquez
and Lev, 2017).

67
 Figure 4.6 The large datasets are decomposed and broken down into smaller datasets in order to be properly
processed, which is the mapping process. Mapping is followed by the Reduce phase, where results are combined
to produce powerful insights (Ali et al., 2016).

The following figure maps the Big Data technological ecosystem.

Figure 4.7 The Big Data ecosystem, starting from the retrieval of data from multiple data sources and reaching to
powerful insights.

The advantages of Big Data analytics for the logistics and transportation industry are listed
below (Garcia Marquez and Lev, 2017; Ben Ayed et al., 2015; Pyne and Rao, 2016):

1- Real-time analytics from data generated by a wide network of sensors and GPS
devices
2- Big Data-enabled storing and processing of very large and unstructured datasets
3- Advancements in routing and scheduling
4- Greater insights
5- Greater customer service

68
4.3.1 Data-Driven Business
With IoT applications and the constant increase in connected devices, more data are being
generated by the second (Serrato and Ramirez, 2017). Big Data analytics can provide a
competitive advantage for logistics companies utilizing Big Data applications for their
businesses (Jeske et al., 2013).

Increasing operational efficiency is the first objective of Big Data analytics implementation
(Kirkos, 2015). A key competitive advantage for logistics providers lies in the way resources
are handled (Jeske et al., 2013). For example, a shortage translates into poor customer
service and a surplus into reduced profitability (Malindretos, 2015). In order to optimize
resources utilization, logistics providers should make use of Big Data analytics. By
incorporating such technologies, companies are enabled to improve the reliability of their
strategic and operational resource planning (Jeske et al., 2013), while being flexible enough
to differentiate their plan according to the circumstances at hand (Ben Ayed et al., 2015).

At the strategic level, results by the utilization of Big Data analytics lead to decisions
regarding the long-term future of the company, such as an investment in warehouse
equipment, distribution centers, information systems etc. (Jeske et al., 2013). In addition to
that, Big Data’s predictive character, driven by advanced regression and modelling
algorithms, enables companies to reduce risk and achieve a more dynamic approach to their
resource planning (Ben Ayed et al., 2015). For example, Big Data-enabled forecasting may
predict a future state of over-capacity, thus allowing companies to make any corrective
decision (Jeske et al., 2013; Malek et al., 2017).

At operational level, small-scale daily tasks and activities are managed (Jeske et al., 2013). By
IoT-enabled real-time monitoring and the utilization of Big Data analytics, resource
utilization is optimized (Jeske et al., 2013) and supply chain management becomes more
responsive, adaptive and flexible (Seratto and Ramirez, 2017; Malek et al., 2017). For
example, the prediction of upcoming congesting on routes allows for an optimized routing
process which increases operational efficiency (Jeske et al., 2013).

Another key area in which Big Data’s impact is felt is market intelligence (Jeske et al., 2013).
By using regression analysis, logistics providers can generate forecasts based on large
shipment records datasets, thus predicting demand (Anshari et al., 2018).

Big Data’s effect also extends to supply chain forecast (Ben Ayed et al., 2015). By tracking
the type and volume of goods transported worldwide grouped by region and country,
logistics providers are enabled to forecast regional demand and adapt accordingly (Jeske et
al., 2013).

When comparing traditionally utilized data warehousing to Big Data solutions, as seen in
table 4.5 (e.g. data lakes, data swamps, etc.), the advantages are clear, although companies
should consider utilizing both ways of storing and processing data as both short-term and
long-term decision making is equally important (Craig, 2016).

69
 Table 4.5 Comparison between Data Warehouse and Big Data.

Data Warehouse Big Data

Readiness
Greater Insights
Security
Cost $$$ $$
Legend : Medium : Medium to High : High
$$: Medium $$$: High
To sum it all up, the following table describes how Big Data affects different areas of
business operations.
Table 4.6 How Big Data affect the way logistics companies do business (Anshari et al., 2018; Kirkos, 2015; Malek
et al., 2017).

Big Data Driven Business

Area Impact
Resource Planning  Optimized Risk Management
 Greater Insights and Long-Term
Decision Making
 Optimized Resource Utilization
 Responsive, Adaptive and Flexible
SCM
Market Intelligence  Greater Insights
 Forecasts based on Big Data
analytics
 More accurate Demand Forecasting
Supply Chain Forecast  Adaptability
 Accurate Regional and Country
Demand Forecasting
4.3.2 Big Data for Greater Customer Service
Big Data applications and technologies revolutionize strategies related to customer service
(Anshari et al., 2018) by enabling mass customization and personalization of sales (Jeske et
al., 2013). Customer relationship management (CRM) strategies tend to be more successful
when supplied with large amounts of data (Anshari et al., 2018). Listed below are ways in
which Big Data analytics are revolutionizing CRM strategies, thus enabling companies to
cope with the greater customer demands (AWSmarketplace, 2017; Jeske et al., 2013):

1- Personalization and mass customization

2- Aggressive marketing through push notifications enabled by Big Data insights
3- Real-time decision making for greater customer experience
4- Anticipatory delivery services
According to a survey conducted by Deloitte, 62% of corporations consider customer service
to be a crucial factor in achieving a competitive advantage (Deloitte.com, 2018). This is
evidence that more than half logistics companies realize that customer relations are quite
valuable and that customer value is enhanced by the use of Big Data analytics (Anshari et al.,
2018). For logistics providers such value can be created by data extracted from distribution
networks and data mining of shipment records (Jeske et al., 2013).

70
Another issue that Big Data applications can resolve is retaining existing customers (Jeske et
al., 2013). The reason why retaining customers is challenging lies in the fact that there are
more than a few indirect touch points for them (e.g. website visits, mobile applications, call
centers etc.) (Malindretos, 2015). Big Data analytics enable logistics providers to merge
different data sources together and extract valuable insights about customer satisfaction,
service quality, customers on the brink of leaving and identifying elements that keep a
customer loyal (Jeske et al., 2013). For example, when a customer lowers his shipment
volumes but keeps his sales records positive or at least stable, then that is a sign of his
dissatisfaction and the situation requires the coordination of a retention program
customized around that customer’s needs (Jeske et al., 2013).

In order to achieve valuable customer insights, the multiple data sources that logistics
providers should extract information from are as follows (Jeske et al., 2013):

1- Service Quality Levels Records (e.g. the net promoter score (NPS))
2- Public Customer Information
3- Shipment Records (e.g. type of goods, volume, frequency, time to arrival etc.)
4- Complaints Management
Another key way in which Big Data creates value for logistics companies is through customer
profiling (Anshari et al., 2018). Customer profiling can be defined as a way of picturing
individual customers by grouping them by goals, characteristics and market size (Anshari et
al., 2018).

By creating customer profiles, companies can adjust all the parameters of customer service
according to the individual customer (Anshari et al., 2018), thus achieving a competitive
advantage through leveraging personalization (Jeske et al., 2013).

One example of successful customer profiling is the application of Big Data analytics by Rolls
Royce (Anshari et al., 2018). By sensor installation and Big Data analytics, they could predict
an aircraft engine breakdown with great precision. By doing that, they were able to sell a
combined bundle of the engines and the monitoring services which were generating profit
based on the utilization of said engines by the customers (Anshari et al., 2018). The result
was that more than 70% of the annual revenue was generated by this service (Anshari et al.,
2018), showcasing Big Data’s impact.

To sum it all up, the following table describes the impact Big Data has on customer service.

71
 Table 4.7 Describing Big Data’s impact on customer service (Jeske et al., 2013; Anshari et al., 2018).

Big Data’s Impact on Customer Service

How? Impact
Revolutionizing CRM Strategies  Overcoming previously unresolved
customer service issues
 Brand name strengthening
Focus on extracting valuable Insights by  Personalization and mass
analyzing Data from multiple Data Sources customization
 Real-time decision making resulting
in greater customer service
Customized and Personalized Customer  Increased customer satisfaction
Retention Programs  Real-time decision making resulting
in greater customer service
Customer Profiling  Greater customer service
 Increase in revenue
 Anticipatory delivery services
4.3.3 Big Data Analytics and Fleet Management
The facilitation of real-time monitoring and decision-making presents a huge benefit for fleet
management (Merchant Fleet Management, 2015). Such factors are enabled by Big Data
analytics. With the use of sensor technology, telematics and Big Data analytics, drivers and
managers can now monitor fuel consumption, check vehicle condition status of mechanical
parts and have a more direct oversight of the vehicle’s movement (Ben Ayed et al., 2015). As
a result, fuel management is optimized, predictive maintenance is enabled and the driver’s
vitals can be monitored throughout the travels (Jeske et al., 2013).

Another advantage of Big Data analytic is its contribution to the classic travelling salesman
problem (Jeske et al., 2013). Big Data enables rapid data processing, thus creating a dynamic
approach towards routing and re-routing issues (Jeske et al., 2013). By tapping into multiple
data sources and through swift data processing, re-routing, in case of blocks, congested
roads or natural disasters, and the optimization of delivery based on the vehicle load are
enabled (Ben Ayed et al., 2015).

To sum it all up, the following table presents how Big Data enables features and capabilities
that were previously unavailable using Logistics 3.0 technologies.

72
Table 4.8 How Big Data Analytics affect fleet management and enables new features and capabilities (Jeske et al.,
2013; Ben Ayed et al., 2015).

Big Data Analytics in Fleet Management

Areas of Impact Impact
Fuel Management  Reduced Operational Costs
Predictive Maintenance  Reduced Operational Costs
 Optimization of Vehicle Utilization
Driver’s Vitals and Vehicle Movement and  Optimization of Performance
Condition Monitoring  Optimization of Vehicle Utilization
 Reduced Operational Costs
Rapid Data Processing and Data Mining  Dynamic Re-Routing in case of
through Multiple Data Sources Leading to congestion, natural disasters etc.
more Dynamic Routing and Scheduling  Optimization of Routing and
Scheduling according to Multiple
Factors
4.4 Advanced Robotics in Logistics Operations
Another core Logistics 4.0 technology that was generically presented in chapter 3 is
Advanced Robotics, which, in conjunction with IoT, opens up a wide array of possibilities for
the future of logistics operations, due to them driving the logistics industry towards
automation, as many day-to-day warehouse and transportation processes and activities can
be fully or partially automated in order to achieve optimization and greater efficiency
(Romeo, 2017). The operations and activities to be discussed are summarized at the
following table:
Table 4.9 The logistics operations to be discussed, revolutionized by advanced robotics.

Warehouse Operations Freight Transportation

Picking Unloading/Loading Goods
Packing Last-Mile Delivery
Receiving and Dispatching
4.4.1 Robotics in Warehouse Operations
According to a 2016 survey conducted by St. Onge Company, around 75-80% of warehouse
operations are manually performed, while 15% of them are mechanically assisted (Michel,
2016). That leaves a considerably small ~5% of completely automated operations and
processes (Bonkenburg, 2016; Michel, 2016).

There are numerous day-to-day standard activities and processes which, once automated,
can offer multiple benefits, such as smaller time intervals, reduced operational costs and
enhanced productivity (Romeo, 2017).

For picking and packing, most processes and activities are repetitive and are most suitable
for automation (Bonkenburg, 2016). Robotics such as Kiva, seen in figure 4.9, are able to
move collections of items or an entire shelf from picking slots to sortation areas, thus saving
huge amounts of time and worker’s effort (Kim, 2015). Then, robotic arms, such as Robo-
Pick, can automatically identify items brought from the picking slots and sort them out
(Bonkenburg, 2016).

73
 Figure 4.8 Goods to picker technology: Kiva moving a collection of items (Kim, 2015).

Another system for picking items, an opposite to the goods-to-picker systems described
above, is the mobile picking robots, with cameras and sensors mounted on it in order to
facilitate a more direct picking process (Bonkenburg, 2016). Such an example is Fetch and
Freight, two robots developed by Fetch Company, which can collaboratively pick items from
picking slots and directly place them in tote bins, as seen in figure 4.10 (IEEE Spectrum,
2015).

Figure 4.9 Fetch and Freight enabling full automation of the picking operation and offering a picker-to-goods
solution (IEEE Spectrum, 2015).

Another advantage advanced robotics have when utilized in warehouse operations is adding
the element of customization to packing processes (Michel, 2016). For example, when a
consumer visits a super market and sees an offer of a 50% discount for beef, the activity of
changing stickers and packages is one that comes with operational and time-related costs
(Bonkenburg, 2016).

With advanced robotics such as Baxter, shown in figure 4.11, a robot developed by Rethink
Robotics Company to aid workers in simple tasks (Balinski, 2014), packing processes are
partially automated, increasing efficiency and speed, thus reducing operational costs and
time spent (Fitzgerald and Quasney, 2018).

74
 Figure 4.10 Baxter, designed by Rethink Robotics Company, assists in packing and sorting activities and tasks
(Balinski, 2014).

Further and more expanded applications of advanced robotics are expected to be utilized in
the future, with fully automated distribution and sorting centers totally transforming
warehouse operations (Balinski, 2014). Such centers are expected to be equipped with all
the applications described above, with the addition of UAVs, exoskeleton support for
workers, seen in figure 4.12, and swarm robots, all connected to one IoT-enabled central
system (Bonkenburg, 2016). Such facilities will be totally digitalized and automated, bringing
operational efficiency, flexibility and productivity to a new level (Fitzgerald and Quasney,
2018).

Figure 4.11 Based on electric power to function, exoskeleton support for workers aids them in day-to-day tasks or
heavy and large item carrying. Such exoskeleton support is developed by Panasonic (Burgess, 2016).

4.4.2 Robotics revolutionizing Distribution and Delivery

Robotics applications are also suitable for logistics operations outside the warehouse. One
thing most imported goods have in common is that they are made in Asia, which means that
shipments arrive to their destination in a standard shipping method (Bonkenburg, 2016).
This means that upon arrival, unloading the goods, sorting them to and stacking them on
pallets are processes that require a lot of time and effort (Bonkenburg, 2016). Robotics
enable speed and efficiency by automating these processes. For example, a robot such as
the Parcel Robot, shown in figure 4.12, can identify the optimal sequence in which to unload

75
the goods and then place them on a conveyor to transport them to the sorting center (I-
scoop.eu, 2018).

Figure 4.12 The DHL parcel Robot is a prototype developed by DHL and associates (Bonkenburg, 2016), which
assists in unloading and loading of goods (I-scoop.eu, 2018).

Finally, another significant advancement advanced robotics initiated is in delivery

(Bonkenburg, 2016). Starship Technologies have developed small robots which can carry up
to two average weight shopping bags and deliver parcels to an address picked by the
consumer, who can also track the robot’s movement through an app on any smart device
(Burgess, 2018). These self-driving robots utilize sensor technology, GPS tracking, radar and
mounted cameras in order to move autonomously (Burgess, 2018). Table 4.10 compares
delivery robots to more ready-to-deploy delivery solutions, such as e-cargo bikes and the
common delivery cars.
Table 4.10 Comparative table of three last-mile delivery methods, delivery cars, e-cargo bikes and delivery robots.

Delivery Cars E-Cargo Bikes Delivery Robots

Readiness
Eco-Friendliness
Avoidance of
Congestion
Weight Capacity
Cost $ $$ $$$
Legend : Low : Medium : Medium to High : High
$: Low $$: Medium $$$: High
The following table summarizes the advancements advanced robotics offer to logistics
operations.

76
 Table 4.11 How advanced robotics revolutionize Logistics operations (Burgess, 2018; Romeo, 2017).

Advanced Robotics and their Impact on Logistics Operations

Warehouse Operations Transportation and Delivery
How? Impact How? Impact
Automation in  Speed and Automation in  Reduced
Picking Efficiency in Loading and Operational costs
Individual Unloading  Optimized
Processes Goods Processes
 Reduces Rate of  Reduced effort by
Errors Workers
 Increased Labor  Optimized
Productivity Stacking and
Unloading/Loadin
g Sequence
Collaborative  Reduced Time Self-Driving  Faster and more
Effort in spent Robots agile Delivery
Packing  Reduced  Flexible Address
Operational Costs  Real-Time
monitoring of
Parcel’s location
Development  Revolutionizing
of Fully Warehouse
Automated Operations by
Distribution turning them fully
and Sorting Digital and
Centers Automated
4.5 Unmanned Aerial Vehicles in Logistics Operations
UAVs, empowered by the IoT framework, offer logistics operations significant benefits for
plant security, warehouse processes facilitation, inventory monitoring and remote and very
populated areas delivery (DHL, 2014). The following applications will be discussed:

 Intralogistics Applications
1- Inventory Management
2- Processes and Activities Facilitation
3- Large-Scale Facilities Security and Safety
 Urban Delivery
 Rural Delivery
4.5.1 UAVs Intralogistics Applications
UAVs in the warehouse facilitate processes efficiency by delivering items or tools fast
without a worker having to leave his post and pause his task (H.ESSERS, 2018). Another
advantage is the inventory check, with the drone taking a picture of the inventory which is
then digitally processed for counting (Trebilcock, 2018). A comparison to traditional
inventory management practices is shown in table 4.11. This prevents any human mistakes
or mismatches, adding operational efficiency and increased productivity to the wide array of
benefits that logistics operations get from the use of UAVs (Sandle, 2017).

77
Table 4.12 Compares conventional inventory management to smart inventory management with the utilization of
UAVs.

Inventory Management: Conventional Warehouse (Semi-Automated) vs Smart

Warehouse (Automated)
Reach Trucks, Pallet UAVs
Stackers, etc.
Readiness
Real-Time Visibility -
RFID Compatibility -
Cost $$ $$$
Legend : Low : High
$$: Medium $$$: High

Figure 4.13 UAVs developed by MIT researchers can read RFID tags using existing RFID-reading systems in the
warehouse, meaning that there is no need for them to carry a reader (Lumb, 2017).

4.5.2 UAVs for Security in Large-Scale Facilities

Security and safety are valuable UAVs applications which are most suitable for large
warehouses, enabling the monitoring of a number of building sites at the same time, while
also offering safety services to customers (Bonkenburg, 2016). Results from UAVs patrolling
the warehouse premise are a reduction in theft, intrusion prevention, gatekeeping, value-
added-services for customers, on-site repairs for difficult to reach areas and guidance for
incoming vehicles (H.ESSERS, 2018; DHL, 2014).

4.5.3 UAVs in Urban Delivery

UAVs offer a solution to many implications urbanization creates for the logistics industry
(Bonkenburg, 2016). The rise of e-commerce, congested roads, pollution etc. are issues that
cause major problems to ground-level delivery (Savelsbergh and Woensel, 2016). By taking
delivery to sky-level, UAVs by-pass the issues mentioned above and allow faster and more
efficient delivery.

78
An example of UAVs delivering an item can be the delivery of a book. After calculating all
parameters (e.g. road congestion, weather conditions etc.) a UAV picks up a designated
shipment automatically and takes off to the point of delivery (DHL, 2014). At the same time,
consumers can track their shipment through a smart device via GPS (DHL, 2014).

4.5.4 UAVs in Rural Delivery

UAVs offer several capabilities for rural delivery (DHL, 2014). Reaching remote areas such as
mountains, islands etc., which lack the properly functioning infrastructure of a city enables
logistics companies to reduce costs and become more flexible when it comes to delivery
(Bonkenburg, 2016).

Numerous possibilities can be exploited. For example, during an emergency situation, UAVs
can deliver pharmaceuticals at any given time (DHL, 2014). UAVs can also be considered as
an extra service for any customer that requires a fast and unscheduled delivery (DHL, 2014).
The following table summarizes how UAVs revolutionize warehouse and transportation and
delivery operations and processes.

79
 Table 4.13 Displaying UAVs' impact on Logistics operations (DHL, 2014; Sandle, 2017; Trebilcock, 2018).

UAVs Impact on Logistics Operations

Intralogistics Applications Facility Security and Safety Urban Delivery Rural Delivery
Applications Impact Applications Impact Applications Impact Applications Impact
Moving small Items Increased Labor Simultaneous Increased Security Avoidance of Faster and more Delivery to Remote More Efficient
and Tools in the Productivity Building Site and Safety Congested Efficient Delivery Areas and Flexible
warehouse And Efficiency monitoring Roads Delivery

Inventory Real-Time Value-added- Added Security for Eco-Friendly Less Air Pollution Emergency Delivery Delivery of
Management Monitoring of service for Customers and Pharmaceuticals
Inventory Levels Customers New Value and other
Streams Created Emergency
Supplies

Error Prevention Reduced Errors On-Site Repairs Increased Automated Greater Unscheduled Greater
and Mismatches Efficiency and fast Customer Service Customer Delivery Customer
Frequency Increased Delivery Service
Productivity
- - Guidance for Greater Customer - - - -
Incoming Service
Vehicles Faster and
Optimized
Processes

80
4.6 Augmented Reality in Logistics Operations
AR is a revolutionary enabler for supply chain and logistics management, as it supports
numerous operations and offers several benefits (Merlino and Sproge, 2015). Those benefits
can be seen in warehouse operations, freight transportation and goods delivery (Glockner et
al., 2014). The operations and processes to be discussed are as follows:
Table 4.14 The logistics operations to be discussed, revolutionized by AR.

Warehouse Operations Freight Transportation

Picking Asset Management
Inventory Management Fleet Management
Receiving Loading/Unloading of Goods
Dispatching Last-Mile Delivery
4.6.1 Augmented Reality in Warehouse Operations
One of the most studied warehouse operations that accounts for more than 50% of
warehousing costs is picking, deeming it an ideal operation for AR implementation, due to
the plethora of information that can be digitized (e.g. Count of inventory, item location, aisle
navigation etc.) (Stoltz et al., 2017). For example, vision picking has the picker wearing the
necessary equipment and helps guide him to the exact location of an item as seen in figure
4.15, which once retrieved is checked by the WMS for successful retrieval and automatically
updates inventory (Merlino and Sproge, 2015).

Figure 4.14 An example of the AR headset displaying information regarding shelf number, barcode, aisle, stock
numbers etc. (Hci.vt.edu, 2018).

Such systems have been developed by big companies, such as SAP and Intel. The following
figures show how the smart glasses function.

81
Figure 4.15 Displays the AR headset worn by workers and shows its features, such as the display and the camera
(Intel, 2015).

The benefits for picking operations are as follows (Glockner et al., 2014):

1- Object Recognition
2- Scanning
3- Navigation
4- Connection with the WMS
5- Hands-free Integration
6- Error Reduction
Results showed a 40% reduction in errors when AR was utilized (Glockner et al., 2014). Table
4.14 displays a comparison between four picking methodologies and technologies. It is
worth noting that AR has the potential to showcase similar benefits for other operations,
such as storing, receiving and dispatching (Stoltz et al., 2017).
Table 4.15 Compares picking technologies and showcases how AR-based vision picking is superior.

Pick-by-Voice Pick-by-Light Pick-by-RF Scan Pick-by-Vision

Usefulness
Error Rate
Ergonomics
Navigation
Safety
Cost $$ $$$ $ $$
Legend : Virtually Zero : Medium : Medium to High : High
$: Low $$: Medium $$$: High
Aside from the aforementioned operations, a warehouse also functions in a similar way to a
city (Stoltz et al., 2017), evidenced by its unique and complex structure and the variety of
processes and operations, thus making AR a perfect technological aid in order to increase
digitalization and streamline processes and tasks (Merlino and Sproge, 2015). As a result, a
reduction in time needed for individual processes to be performed occurs, which
sequentially brings operational costs down (Stoltz et al., 2017).

One more advantage of AR is predictive maintenance. In previous subchapters, IoT’s and Big
Data’s impact on maintenance and optimization of resource utilization was analyzed, but AR
is similar to an interface, displaying critical information to the user about the individual

82
robotic and mechanical equipment (e.g. conditions such as temperature and humidity)
(Mourtzis et al., 2017; Stoltz et al., 2017).

In the following table, a summary of AR’s applications on warehouse operations is

presented, along with the benefits of integrating AR technology.
Table 4.16 Describing the benefits for integrating AR in warehouse operations (Glockner et al., 2014; Stoltz et al.,
2017; Merlino and Sproge, 2015).

AR Applications on Warehouse Operations

Operations Applications Benefits
Receiving  Checking Incoming  Reduced
Goods Operational Costs
 Directions for  Reduced Time
Arrangement of Intervals
Unloading  Optimization of
Sequence Receiving Processes
 Guiding Drivers
Storing  Guiding to Exact  Reduced Time spent
Locations  Optimization of Put-
 Check for Away Processes
Replenishment
Requirements
 Displaying Item
Details
Picking and Packing  Displaying Route  Optimization of
and Location for Picking Processes
Specific Items  Cut Time Intervals
 Indication of  Avoidance of
Optimal Retrieval Congested Aisles
Sequence  Operational
 Displaying Item Efficiency and
Details and Reduced Costs
Conditions
Dispatching  Displaying Workers  Reduced
own Vitals and Operational Costs
Performance  Optimization of
Indexes Space Utilization in
 Indication of the Vehicle
Optimal Positioning  Increased Safety for
for Goods to be Sensitive Packages
Distributed
 Indication of
Cardboard Type to
be Used
 Showing how to
place Orders in a
Vehicle depending
on Order Type, Size,
Destination and
Sensitivity

83
4.6.2 AR in Freight Transportation
AR’s applications extend to freight transportation with various benefits, including the
optimization of several operations and processes (Glockner et al., 2014).

Until recently, most collectors would manually count pallets and parcels or individually scan
the barcode on each one with a handheld device (Glockner et al., 2014), leading to
unnecessarily long and costly processes. With AR, the worker can perform a throughout 3D
scan of items and pallets, saving a lot of labor time, resulting in an optimization of said
processes (Glockner et al., 2014). In addition, any damages or loose packages can be
detected early enough to prevent any disadvantageous incidents (Glockner et al., 2014).

Moreover, AR can inform drivers about the whereabouts and condition of goods in the
truck, display their own physical condition, alert them for any possible vehicle damage and
show them fuel levels at any given time without requiring any head or hand movement
(Merlino and Sproge, 2015).

Another area in which AR implementation can have very advantageous effects for logistics
companies is dynamic traffic support (Glockner et al., 2014). Having already showcased IoT
and Big Data applications on freight transportation and how they enable real-time decision
making and dynamic scheduling and routing, AR systems have the potential to be the most
ideal driver assistance technological aid (Merlino and Sproge, 2015). By drawing information
regarding traffic, congestion in roads, unexpected events, route to a destination and exact
locations on the windshield of the vehicle or on specially modified glasses, such as the
Google Glasses (Glockner et al., 2014). Aside from the real-time information processing, an
additional advantage of AR in contrast to the conventional navigation systems is that the
driver doesn’t lose his focus by looking at a screen outside his field of vision (Glockner et al.,
2014).

To sum it all up, the following table describes how AR digitalizes transportation operations.
Table 4.17 Describing how AR revolutionizes freight transportation operations and what are the benefits
(Glockner et al., 2014; Merlino and Sproge, 2015).

AR revolutionizing Freight Transportation Operations

How? Benefits
Throughout 3D Scanning of Items  Reduced Time spent
 Optimization of Loading and
Unloading Processes
Prevention of Damages, Vehicle and  Reduced Errors
Personal Health Monitoring  Damage Prevention
 Optimized Labor Productivity
Enabling Real-Time Decision Making and  Dynamic Re-routing
Dynamic Transport Support  Avoidance of Congested Roads
 Focus on Driving
 Alerts in Case of Unexpected Events
(e.g. avalanche)
4.6.3 AR in Delivery
Last-mile delivery services and the rise of e-commerce have been growing at a parallel rate
(Glockner et al., 2014). Logistics companies aim at lowering last-mile delivery costs and AR is
ideal for achieving that (Glockner et al., 2014).

84
By enabling intelligent vehicle loading, AR significantly reduces the time a driver spends
locating a specific parcel, thus decreasing the time he/she spends not-driving (Glockner et
al., 2014). In addition, intelligent loading and unloading reduces the risk of parcel to item
damage (DHL, 2015).

Another main delivery problem that AR can solve is navigation. Missing street numbers,
misspelled addresses, entrances not easy to find and towns or villages with no naming plan
for addresses are posing quite a challenge to the delivery man (Glockner et al., 2014). AR can
access details from databases by pointing the device towards a building or a location or
simply create new entries in existing databases for said buildings and locations that no
information is available for (Glockner et al., 2014). By doing that, more information shall be
available in the next delivery.

However, traditionally used GPS applications are not capable of being used in perfect
coherence with AR technology, as the measurements of longitude, longitude and altitude
are not enough (Huang, 2018). The following table compares GPS to a more AR friendly
technology, VPS (Virtual Positioning System).
Table 4.18 Compares GPS to VPS.

GPS VPS
Readiness
Real-Time Data Processing -
Instant Localization -
Scalability -
User’s Orientation
Geometry Detection
Legend : Low : Medium to High : High
The following table summarizes AR’s benefits for last-mile delivery.
Table 4.19 Presenting AR's application for last-mile delivery (Glockner et al., 2014).

AR Applications in Last-Mile Delivery

Applications Benefits
Intelligent Loading/Unloading  Package Safety
 Less Time Not Driving
 Reduced Operational Costs
Last-Mile Navigation  Reduced Operational Costs
 Optimized Delivery Processes
New Address Entries and An Ever-  Optimization of Processes
Improving Database leveraged by IoT and  An Ever-Expanding Address
Big Data Network
4.7 Logistics 4.0 Implementation Framework
At this point, a framework is introduced to display the necessary steps a company should
follow in order to implement any of the emerging Logistics 4.0 technologies presented and
examined in this chapter. Emerging issues, such as social acceptance, workers’ doubting and
being afraid of being fired, high investment costs, standardization of operations, IT
infrastructure requirements, regulations and cybersecurity are obstacles that need to be

85
overwhelmed in order to successfully implement any emerging Logistics 4.0 technologies.
These issues and challenges will be explained in detail. Finally, an example of Logistics 4.0
technologies implementation will be displayed, based on the framework that is presented in
this chapter.

4.7.1 The Framework

The framework is split in five (5) phases of equal importance for a successful
implementation. Decide, Prepare, Execute, Improve and Maintain are the five phases of the
framework and are displayed in the following figure.

86
 DECIDE PREPARE EXECUTE IMPROVE MAINTAIN
•What to change? •Documentation •Entering Pilot Mode •Define KPIs to •Full Integration
•What is the •Assembly the Project •Preparation for End- monitor and track •Back to Operational
Innovation? Team User Training and Perfornance , Normality
•What Resources are •Create the Plan Coaching Productivity and
needed? •Seminars and End- Efficiency
•Identify the Software
•What is the Goal? and Hardware Needs User Training •Get End-User
feedback in order to
•How is it going to be •Prepare to deal with
determine if any
achieved? the emerging
Adustments are
•Who is affected by Challenges
necessary
this Implementation? •Watch out for Internal
and External
Environment Factors
affecting the
Implementation

Figure 4.16 The Framework a company should follow in order to successfully implement Logistics 4.0 technologies.

87
Each phase of the framework depends on some corresponding components, which are
critical to the success of the implementation and are described below:

1- Decide. In this phase, the company needs to determine the a) purpose of the
implementation (e.g. Higher operational efficiency), b) the innovation (e.g.
digitalization and automation) and, c) define the resources which are necessary for
the implementation project to proceed (WENDY HIRSCH CONSULTING, 2018).
2- Prepare. During the preparation stage, both components and roles need to be
determined. Critical components are a) documentation, b) assembling of the project
team, c) creating the plan, d) defining the needs in software and hardware, e)
preparing a data transfer plan and, f) prepare to deal with the challenges and issues
that emerge by correctly determining the stakeholders, which form the roles that
have an immediate impact on the framework’s phases. Stakeholders are as follows:
a. Governments
b. Society and Organizations
c. Management
d. Employees
e. Project Team
f. Competition
g. Partners
3- Execute. During this phase, the implementation project enters pilot mode, in order
to optimize any software or hardware performance and most importantly, train and
coach the end-users.
4- Improve. After completing the end-users training and coaching and determining
whether piloting was successful or not, the implementation framework enters its
fourth phase. During that period, end-users provide valuable feedback. Another
crucial component of this phase is determining the KPIs to be utilized for monitoring
and tracking system’s performance, efficiency, productivity, etc.
5- Maintain. In the final phase of the implementation framework, full integration of the
newly implemented technologies is expected. At that stage, all operations and
activities should proceed normally.

4.7.2 The Emerging Challenges

Implementing Logistics 4.0 technologies is associated with emerging challenges of social,
technological, economic, HR-related and operational nature (Barreto et al., 2017). Social
challenges are consisted of regulations (e.g. UAVs flight area), environmental organizations,
acceptance of revolutionary technologies by the public and cybersecurity (Noronha et al.,
2016). Technological challenges are originating from the company’s internal environment
and are consisted of the needs in software and hardware, which have a direct impact on the
economic challenge of high investment costs for Logistics 4.0 technologies implementation.
HR issues are formed by the concern of employees and the fear of losing their job, or
watching their salaries reduced (Ermolaeva, 2017). Finally, operational issues emerge due to
the need for standardization and the need for reformed organizational structures, an issue
thoroughly explained and analyzed in chapter 3. The following figure summarizes the
aforementioned challenges and splits them into their respective environments, external and
internal.

88
Figure 4.17 Displaying the issues and challenges of the Logistics 4.0 implementation (Gialos and Zeimpekis, 2018;
Barreto et al., 2017).

Dealing with these challenges is key for a successful Logistics 4.0 implementation.
Companies should comply with regulations and make efforts towards displaying an eco-
friendlier profile, as well as dedicate time and effort into conducting educative seminars and
releasing informational leaflets that educate the public about the revolutionary technology
and its safety.

On the technological frontier, a company should have full knowledge of the necessary
upgrades that are required for a Logistics 4.0 technology implementation in order to avoid
any increase in total implementation costs, thus decreasing payback time and increasing
return on investment. Dealing with this issue is crucial, as the investment costs are high
(Gialos and Zeimpekis, 2018).

Standardizing operations is another challenge a company should deal with in order to

properly integrate the emerging technology to be implemented, as it will enable the
maximizing of operational efficiency and productivity. Standardizing operations leads to
another challenge, which is the necessity for reformed organizational structures. Decreasing
management levels allows for a more flexible and adaptive approach (Jakes, 2016),
something achieved through the adoption of organizational structures such as fractalization,
lean organizations, network organizations, virtual organizations and amoebas, explained in
chapter 3.

Finally, dealing with HR issues is vital to a company’s function as employees and workers
need to be reassured that a Logistics 4.0 implementation leading to digitalization and
automation is not a threat to their jobs or salaries, but the way forward for the company to
achieve higher operational efficiency, productivity and innovation (Ermolaeva, 2017).

89
Company leaders and managers should reassure the employees that their skillset will be
improved through training and coaching in order to allow them to utilize their skillset in
more technical areas and that jobs are not threatened but empowered by this
implementation.

4.7.3 Implementing UAVs for Inventory Management

The benefits of an implementation of UAVs for inventory management was described earlier
during this chapter. An example of the framework’s use for implementing UAVs in the
warehouse is as follows:

90
DECIDE
•What to change?
•Inventory Management PREPARE
with the use of UAVs. •Documentation
•What is the Innovation? EXECUTE IMPROVE MAINTAIN
•Assembly the Project
•Digitalization and •Entering Pilot Mode •KPIs Definition: a) •Full Integration
Team
Automation.
•Create the Project •Preparation for End- Error Rates, b) Labor •Back to Operational
•What Resources are Productivity, c)
needed? Plan User Training and Normality
•Software and Coaching Efficiency, d) Value
•Funds depending on the
Hardware •Seminars and End- Addition Metric, e)
drones capabilities,
warehouse size and Requirements: a) RFID User Training Utilization Time
height, as well as the tags and Readers, b) •Get End-User
warehouse storage WMS compatibility feedback in order to
system, followed by
•Preparation to deal determine if any
technical knowledge of Adustments are
workers and project with the following
challenges: a) required
team.
•What is the Goal? Workers' Frustration,
•Higher operational b) UAVs Regulations,
Efficiency and Error c)Hidden Costs (e.g.
Rates Reduction. UAVs' system bugs)
•How is it going to be
achieved?
•Through the
implementation of UAVs
for stock counting and
facility patrolling.

Figure 4.18 Framework about UAVs implementation for Inventory Management.

91
During the Decide phase, the company decides to automate several processes and tasks
regarding inventory management and facility patrolling, with the goal of achieving higher
operational efficiency and decreasing error rates. The economic resources needed are based
on a number of factors, more specifically the warehouse size and height, the warehouse
storage system, the infrastructure and the drone capabilities needed for performing the
chosen processes and tasks.

At the Prepare phase, documentation and assembling the project team are completed.
Then, software and hardware requirements are recognized. For example, an up-to-date
WMS and the RFID compatibility with the UAVs are needed. At this stage, issues raised need
to be dealt with, as regulations regarding UAVs are still being formed and companies need to
track those changes and comply accordingly, while workers need to be assured that their
expertise will be utilized in more areas and tasks by having them thoroughly trained in the
new operational processes and systems (e.g. the UAVs handling equipment).

After the Execute phase, where the pilot mode is entered, several KPIs are defined during
Improve for monitoring and tracking end-user feedback, UAVs performance and results
provided. The KPIs are as follows (WENDY HIRSCH CONSULTING, 2018):

1- Error Rate
2- Labor Productivity
3- Efficiency
4- Value Addition Metric
5- Utilization Time

Finally, during the Maintain phase, operations are back to normality and the UAVs have
been fully integrated.

4.8 Summary
In this chapter, logistics 4.0 technologies and their applications on warehouse,
transportation, distribution and delivery operations were examined, with an implementation
framework proposed for companies that may aim at implementing said technologies. Finally,
a framework regarding the implementation of UAVs for inventory management was
presented. The following table presents which logistics 4.0 and logistics 3.0 technologies
apply to each individual operation and which of them transforms manual operations to
automated.

92
 Table 4.20 Summarizing the technologies that drive logistics operations towards automation and digitalization
(Gialos and Zeimpekis, 2018; Noronha et al., 2016).

Logistics 4.0 vs Logistics 3.0 Technologies

Operations Logistics 3.0 (Semi-Automation/Manual) Logistics 4.0 (Automated)
Pallet RF, Manual Barcode Hand IoT Big Data Advanced UAVs AR
Stacker and Handling Tags Pallet (RFID, Analytics Robotics
Voice (e.g. Truck Sensors (AGVs,
Picking Picking) etc.) Self-
Driving
Vehicles
etc.)
Warehousing
Receiving       
Put-Away      
Inventory      
Management
Picking      
Packing    
Dispatching        
Freight Transportation
Loading/Unloading       
Fleet Management  
Scheduling and   
Routing
Package Handling     
Navigation   
Last-Mile Delivery      
In the following chapter ten case studies of Logistics 4.0 technologies implementation will be
reviewed in order to showcase several outcomes of how these technologies revolutionize
the logistics industry.

93
Chapter 5 Case Studies in Logistics Operations
5.1 Introduction
In previous chapters, a review of the current status of logistics operations was conducted
followed by the introduction of Logistics 4.0 and how its revolutionary technologies can
potentially reshape the logistics industry and drive it towards digitalization and automation.
This chapter’s goal is to display the advantages of implementing logistics 4.0 technologies in
warehouse and transportation operations by reviewing several case studies.

The following table shows a list of ten case studies that have been reviewed and show how
logistics 4.0 technologies have been adopted successfully by organizations and companies.
Table 5.1 Displaying the case studies to be reviewed and which technologies are present in each situation

Company Case Study Technologies

IoT Big Data Advanced AR UAVs
Robotics
Bobcat SmartLIFT  
Technology
DHL Weighing  
Pallet
Shipments
Intel Vision 
Picking
DHL Dynamic  
Inventory
Control
Fraunhofer InventAIRY  
IML Project
Mercedes, Maintenance  
DHL & Volvo on Demand
DHL DHL’s  
SmartTruck
UPS Project  
ORION for
Routing
Jack in the Delivery 
Box Robots
Amazon Drone  
Delivery
5.2 Case Study 1: Bobcat and SmartLIFT Technology
Bobcat is a company supplying construction machinery and equipment (Wormer, 2014).
Loaders, excavators and various types of construction and industrial equipment are
originating from Bobcat Co.’s main production facilities which consist of three warehouses in
the 25.000 to 50.000 square feet range (Bradley, 2014).

94
5.2.1 The Challenge
Production materials of various kinds (e.g. large steel coils) pass through those warehouses
in order to get to manufacturing. It was reported that more than 40 truckloads of inbound
material are arriving each day resulting in deeming inventory control challenging and
increasing error rates revolving around location of goods and packaging (Bradley, 2014).

Errors included faulty location reporting and inaccurate quantities which were human errors
in nature (Bradley, 2014). Bobcat used gatekeepers and forklift drivers in order to check
inventory in a standard frequency and report to their superiors, but the human factor played
a crucial role in the high error rate resulting in the company seeking out for a solution to rule
out human errors (Bradley, 2014; Wormer, 2014). The company aimed for a system which
could support real-time data processing and take out the human factor.

RFID tags were considered, but the great amount of steel in the facilities would end up in
lost signals and inaccuracy (Bradley, 2014), which would only aggravate the problem. As a
result, Bobcat leaders opted for a visually-based solution (Bradley, 2014).

5.2.2 The Solution

IoT and Big Data analytics offered the solution. SmartLIFT, short for Smart Labor, Inventory
and Forklift Tracking, is a business intelligence software solution based on the utilization of
GPS and sensor technology, which combined with Big Data analytics offers real-time data
processing of data generated by the WMS and new data originating from the use of sensors
(Bradley, 2014).

With SmartLIFT, which is essentially an indoor GPS, information regarding truck location,
speed and condition, pallet location and condition (e.g. size and weight) and a precision to
the inch are enabled (Bradley, 2014). As for how it works, 11 by 11-inch barcodes are fixed
on the warehouse ceiling and optical SmartLIFT sensors are mounted on top of the lift trucks
in order to establish an uninterrupted visual connection resulting in a continuous real-time
location tracking (Bradley, 2014). As for the label scanning a label reader is placed between
the lift masts, resulting in an automatic label scanning (Bradley, 2014). Furthermore, a lift
height sensor and a pallet detector are placed on the lift forks (Bradley, 2014). As a result,
the WMS and the ERP are continuously being “fed” with real-time information transmitted
through a terminal mounted on the lift truck (Bradley, 2014). These supporting technological
aids can be seen in figure 5.1.

95
 Location of
the label
reader

Location of the
SmartLIFT sensors
Location of the lift
height sensor and the
pallet detector

Figure 5.1 Showing the locations of the individual supporting technologies on a TELEHANDLER BOBCAT V417
(onestoprentalsales.com, 2018).

In the beginning, one fourth of the trucks were supplemented with SmartLIFT sensors in
order to monitor the output and test the results (Bradley, 2014). Drivers had no problem
getting used to the new ways of performing operations according to Donnie Herbst, Bobcat’s
strategic materials manager at the time (Bradley, 2014).

5.2.3 The Results

SmartLIFT proved to be quite beneficial to Bobcat, evidenced by the 25 to 30% increase in
driver’s productivity and the ~0% of errors revolving around the placing of pallets. Inventory
accuracy was seeing significant increases and Bobcat leaders decided to expand the use of
the SmartLIFT sensors even further. According to Donnie Herbst, an 18-month return on
investment was expected (Bradley, 2014).

5.3 Case Study 2: DHL’s Weighing Forks on a Forklift Truck

Logistics companies depend on accuracy when it comes to weighing goods, as
miscalculations result in missing out on turnover and that is something providers desire to
avoid (Ravas, 2018).

5.3.1 The Challenge

DHL Poland was facing such a problem to a great extend as managers could not find an
efficient way to weigh pallet shipments and as a result were missing out on turnover (Ravas,
2018). The reason was due to a logistic implication, simply the fact that weighing pallets was
too time-consuming (Ravas, 2018). One unfruitful solution was processing pallets by hand
because of their various sizes deeming sorting and weighing on automated belts impossible
(Ravas, 2018).

5.3.2 The Solution

Using specially designed weighing forks on a forklift truck was the first step (Ravas, 2018).
The RWV weighing forks seen in figure 5.2 are connected to a display in the truck cabin
which transmits the pallet data to a truck terminal which sequentially sends these data to

96
the WMS through a W-Lan wireless network (Ravas, 2018). It is worth mentioning that the
revolutionary feature of the RWV weighing forks is the capability for real-time data
processing.

Figure 5.2 The RWV weighing forks (Ravas, 2018).

After lifting the pallet, the driver scans the barcode and information regarding the postal
code, the sender’s profile, the shipment details and the declared weight get sent to the
WMS, which in turn matches the declared weight to the weight measured by the RWV forks,
making any necessary alterations to the invoice (Ravas, 2018).

Finally, the WMS informs the driver about the internal destination of the pallet (Ravas,
2018). The driver then takes the pallet to the corresponding dock for loading and either
leaves it for further shipment or immediately loads it to the truck (Ravas, 2018).

5.3.3 The Results

The following table compares the operations before and after installing the RWV forks.
Table 5.2 Comparing warehouse operations pre and post smart weighing forks installation (Ravas, 2018).

Before After
Weighing was taking a lot of time to be Weighing pallets is only adding <10 seconds
completed to the procedures
Miscalculations were a direct result of the
Accurate calculations lead to a match
inability to correctly weigh pallets between the declared and the measured
weight
The drivers needed to know where to drive The driver is directly informed by the WMS
the pallet about the pallet’s destination
Higher operational costs due to the above Reduced operational costs
factors
Impaired labor productivity Higher efficiency in labor productivity
5.4 Case Study 3: Vision Picking at the Inter Arizona Distribution Center
The importance of picking in warehouse operations has been highlighted throughout all
previous chapters and since it is costly and labor-intensive it is only logical for companies to
try to reduce related costs and increase efficiency levels (Intel, 2015).

The advantages of vision picking are many when compared to pick-by-voice, pick-by-light,
RF-scanning and paper-picking as seen below (Intel, 2015):

1- Hands free at all time

97
 2- Information and details accessible through AR technology and appearing in front of
the worker’s optical field
3- Perfect for worker’s ergonomics and natural motions
5.4.1 Vision Picking vs RF Picking at the Intel Arizona Distribution Center
Intel is one of the largest and most well-known technology corporations. They decided to
implement Ubimax’s Jet Pro Smart glasses, supported by AR technology, and pit it against RF
scanners in their facilities (Intel, 2015). Pick lists were provided to both sides (Intel, 2015).

Figure 5.3 The differences between the two picking methods were reported by workers with the flexibility and
efficiency that the smart glasses offer being unanimously applauded (Intel, 2015).

The following disadvantages were reported by those using RF-scanners (Intel, 2015):

1- Too much information

2- Information not displayed in a coherent way
3- Manual data entry
4- The handheld scanner increasing risk of injury (e.g. when on a ladder)
5- Stopping to look at the handheld display and picking back up was increasing time
spent
On the other hand, users using the head-wearable glasses reported that the information
presented was much more coherent, as shown in figure 5.4, and did not interfere with their
activities since both hands were free and information were shown in front of the glasses
(Intel, 2015), not requiring them to stop and check a screen. In addition, having both arms
free increased the feeling of safety for workers, let alone the production efficiency increase
(Intel, 2015).

Figure 5.4 The information on the right concerns the aisle and the shelf for locating the item, while the
information on the left concerns the item code, the quantity to be retrieved and the delivery note to be put on the
box (Intel, 2015).

5.4.2 The Results

In total, 120 test picks took place with the Intel Recon Jet Pro leading to a 29% increase in
pick rate with a reduced error rate (Intel, 2015). To highlight the difference, the fact that the

98
first pick performed with the utilization of the smart glasses resulted in a 15% decrease in
picking time per box is evidence about the efficiency that AR technology facilitates (Intel,
2015).

5.5 Case Study 4: DHL’s Dynamic Inventory Control

Inventory management is one of the most important elements of supply chain management
and integral to the operational efficiency of a warehouse (Rushton et al., 2014).

5.5.1 The Challenge

Throughout visibility and traceability through the supply chain are key for the automotive
industry, as the collaboration between manufacturers, parts suppliers, logistics providers
and transportation companies are crucial to total performance (DHL, 2018).

But DHL faced a major challenge when in partnership with an automaker company with a
plant in Mexico. It was reported that three different production processes, 22 suppliers and
300-part numbers were involved (DHL, 2018). The company was in a great need for effective
and dynamic inventory control, as unused materials and high operational and transactional
costs were ordinary (DHL, 2018).

5.5.2 The Solution

DHL’s IoT-enabled solution was based on a supplier IT system developed to support basic
manufacturing operations, such as replenishment of supplies and deliveries with the goal od
improving the efficiency of inbound-to-manufacturing material flow (DHL, 2018). This system
connected all the customer suppliers into a central platform allowing for real-time inventory
management and production scheduling while increasing flexibility and streamlining
processes (DHL, 2018).

5.5.3 The Results

Direct results were evidenced by a 30% reduction in inventory and a 50% reduction in
unused materials (DHL, 2018). Error rate was significantly reduced and operational and
transactional costs were decreased, while time intervals for supplier response were
optimized (DHL, 2018).

5.6 Case Study 5: The InventAIRy Project by Fraunhofer IML

The InventAIRY research project was based on the use of UAVs in indoor and outdoor
warehouse operations, specifically inventory management and picking (Federal Ministry for
Economic Affairs and Energy, 2015). Inventory control, goods locating and retrieving and
aisle routing are targeted for automation and digitalization through the use of UAVs, as
drones are able to detect the necessary goods, systematically check for replenishment,
retrieve needed objects and navigate through the warehouse, while staying constantly
connected to the WMS (Federal Ministry for Economic Affairs and Energy, 2015). These
drones generate maps for the area they cover by utilizing smart algorithms and IoT-enabled
sensors with the addition of 3D cameras and scanners. This case study examines how the
use of UAVs for intralogistics applications can aid in automating inventory management by
facing the challenges stated below.

99
 Figure 5.5 The InventAIRy Bonn Test Copter (Ais.uni-bonn.de, 2016).

Figure 5.6 The InventAIRy copter in a Panopa Logistik warehouse (Ais.uni-bonn.de, 2016).

5.6.1 The Challenge

Stock-taking, checking for replenishment needs, navigating through the warehouse
searching for specific goods or items and picking are mostly manual in nature, if not
completely, which results in many periods during a working day when a warehouse’s
operation remains still (Federal Ministry for Economic Affairs and Energy, 2015), as such
activities require a lot of labor time and effort to be performed.

The use of barcodes and RFID tags facilitates easier and less time-consuming processes
during receiving, picking and dispatching, but during stock-taking and stock levels checking
the task of scanning is still manual, thus allowing no benefits (Federal Ministry for Economic
Affairs and Energy, 2015) and also increasing the risk of errors.

100
5.6.2 The Solution
The UAVs utilized in the warehouse are able to automatically check inventory levels without
any human interference, thus reducing operational costs, increasing reliability and boosting
labor productivity due to workers focusing on their tasks instead of being invested in time-
consuming activities regarding inventory management (Federal Ministry for Economic Affairs
and Energy, 2015). When a deviation in inventory levels is detected, the WMS is immediately
informed for any corrective moves needed to be taken (Federal Ministry for Economic
Affairs and Energy, 2015).

Finally, the UAVs can easily be connected to the WMS with no need for customizations in
software development allowing for a greater information flow (Federal Ministry for
Economic Affairs and Energy, 2015).

5.6.3 The Benefits

The following table compares how the InventAIRy project’s UAVs altered the way warehouse
operations are conducted, highlighting the benefits.
Table 5.3 Displaying how UAVs transform inventory management (Federal Ministry for Economic Affairs and
Energy, 2015).

The Utilization of InventAIRy Project’s UAVs in an Automotive Company’s Warehouse

Before InventAIRy Post-InventAIRy Benefits
Manual inventory levels Automated activities and  Less time-consuming
checking and stock- tasks regarding inventory activities and tasks
taking management  Reduced operational costs
 Increased labor
productivity
 Decreased error rate
Time-consuming aisle Automated object or  Automated navigating and
navigating for locating goods locating with an locating tasks and activities
an object or goods integrated warehouse  Increased labor
map productivity
Interrupted flow of Uninterrupted flow of  No need for software
information information as UAVs are development
connected directly to the customizations and patches
WMS  Uninterrupted flow of
information
Unspecified regulatory Specified regulatory  Greater productivity and
frameworks and frameworks and efficiency
guidelines guidelines
5.7 Case Study 6: Maintenance on Demand (MODE)
MODE is a research project conducted by the combined forces of DHL, Volvo and others
regarding IoT and Big Data-enabled real-time monitoring of a vehicle’s health statistics and
condition with very advantageous applications for the logistics industry, as predictive
maintenance can boost vehicle uptime by ~30% and reduce dead mileage (CORDIS|
European Commission, 2013; Macaulay et al., 2015).

5.7.1 The Logistics Challenge

Transportation of goods is a huge part of the supply chain road transportation accounts for
42,7% of goods transportation mode of choice (SAFETY4SEA, 2018). Predicting failures of
materials, parts or other vehicle systems is crucial to a more efficient and sustainable

101
transportation of goods, leading to increased revenues and greater customer satisfaction in
the process (Macaulay et al., 2015).

Many logistics providers struggle with efficiently monitoring their fleet’s vitals etc., leading
to increased operational costs, more deadhead miles due to a possible vehicle’s failure,
decreased productivity and sequentially lesser customer service (Macaulay et al., 2015).

5.7.2 The Solution

MODE offers a solution based on leveraging IoT and subsidiary technologies (e.g. sensors)
and Big Data analytics (Macaulay et al., 2015). By strategically placing sensors in various
mechanical or non-mechanical parts of the vehicle (e.g. the damper systems) and by having
a telematic unit inside the driver’s cabin, a remote user, such as the manager, can monitor
the vehicle’s vitals and condition (e.g. Temperature, humidity, material degradation etc.) and
fuel consumption, with real-time data processing based on a wireless 4G connection and
with Big Data analytics allowing for a much greater volume of data to be processed, thus
offering much more immediate and crucial information (Macaulay et al., 2015). It is worth
mentioning that Big Data analytics is the key to real-time decision making, as it boosts
profitability and generates more revenue in the long-term.

Figure 5.7 Many collaborating partners offered their expertise in developing the MODE project. As seen in this
figure, the damper system, the fuel injector and the oil system have been embedded with sensors which send the
data to the central system, which sequentially transmits them to a remote user (Avonwood, 2013).

The data are transmitted to a central system for processing and then onto the maintenance
system for analysis (Macaulay et al., 2015). In case of a maintenance requirement or an
emergency such as a system or a mechanization failure the driver is alerted to either pull
over or head to the closest station (CORDIS| European Commission, 2013).

5.7.3 The Benefits

MODE was first tried on a commercial vehicle, Mercedes Benz C-Class, with great success.
The advantages for the logistics industry are as follows (CORDIS| European Commission,
2013; Macaulay et al., 2015):

1- Accurate maintenance intervals based on Big Data analytics

2- Vehicle uptime increased by 30%
3- Predictive maintenance based on vehicle usage profile and materials condition
enables service packages to be offered for added value
4- Saved maintenance costs of up to 25%
5- Greater customer service due to increased flexibility and fleet efficiency

102
 6- Big Data aids in increasing profitability and customer satisfaction in the long-term
7- Dynamic fuel management
5.8 Case Study 7: DHL and the SmartTruck
Last-mile delivery has always been a costly logistics operation with lots of potential for
efficiency and cost reduction (Jeske et al., 2013). In this case study, the challenge of reducing
operational costs while increasing operational efficiency is stated, followed by analyzing how
DHL’s SmartTruck makes use of IoT and Big Data analytics in order to achieve those goals
and revolutionize the way logistics providers approach delivery operations (Laetsch et al.,
2016).

5.8.1 The Challenge

Delivering a parcel is a complex and demanding task with the factors of the continuously
uprising e-commerce and the greater customer demands deeming it even more difficult
today (Noronha et al., 2016).

Environmental factors also demand attention, with many logistics companies and
governments agreeing upon searching for solutions for reducing CO2 emissions (Noronha et
al., 2016). Empty-running miles addresses not easily found, congested roads, are all factors
for more CO2 emissions (Jeske et al., 2013). Apart from that, those factors also negatively
affect operational efficiency, as they increase costs and possibly have a negative impact on
customer satisfaction too (Jeske et al., 2013).

5.8.2 The Solution

In order to effectively face those challenges, DHL launched the SmartTruck in 2010, a truck
supported by the combined technological forces of IoT and Big Data (Laetsch et al., 2016).
The SmartTruck is allowing for real-time data processing, regarding road congestion and
navigation, by utilizing a telematic unit and being in constant contact with a manager
through the GPS (Laetsch et al., 2016). This enables the manager to have more control over
the fleet, which augments overall performance (Laetsch et al., 2016).

These technological advancements generate another big advantage of the IoT and Big Data
enabled SmartTruck, as they allow real-time route optimization which leads to a more
dynamic approach towards routing and last-mile delivery (Laetsch et al., 2016). In addition,
the system immediately informs managers and drivers for any changes or problems, such as
a misplaced package, thus increasing flexibility and adaptability (Laetsch et al., 2016).

Finally, the SmartTruck constantly feeds the manager data regarding fuel consumption,
miles travelled, the driver’s vitals, goods and items condition and the vehicle’s health (e.g.
temperature, pressure etc.) (Laetsch et al., 2016).

5.8.3 The Benefits

By using the DHL SmartTruck, the benefits are as follows (Laetch et al., 2016):

1- 15% less miles travelled

2- Decreased CO2 emissions
3- Predictive maintenance leading to greater operational efficiency
4- Greater customer service due to routing optimization
5- Reduced operational costs

103
5.9 Case Study 8: UPS Leveraging Big Data Analytics
Big Data analytics offer great value to logistics providers, as already mentioned before.
Companies investing in Big Data applications and projects are seeing reduction in costs,
greater insights and increased efficiency among many more benefits (Jeske et al., 2013).

5.9.1 UPS Big Data Projects

UPS, a leading logistics company, has been investing in Big Data centered projects for a while
now, having realized the value analytics can offer (Samuels, 2017). The company’s aim is to
leverage automation and innovation in a way to optimize their delivery operations and
processes globally (Samuels, 2017).

Such a project is known as Network Planning Tools (NPT), which utilizes Big Data, operations
research and Artificial Intelligence in order to enable real-time data processing and decision
making for better decisions (Samuels, 2017). These tools are expected to optimize the
distribution of more than 60 million packages in the U.S. per day, alone (UPS, 2018).

Another Big Data focused project playing a huge part in the smart logistics network that UPS
is planning, is the ORION (On-road Integrated Optimization Network) project (Samuels,
2017; UPS, 2018).

ORION is a fleet management system developed to fundamentally turn away from the way
standard systems operate (Samuels, 2017). ORION utilizes advanced algorithms in order to
allow real-time decision making for drivers and managers, thus optimizing routing and
delivery, by processing data regarding pickup time, package deliveries scheduling, route
performance and vehicle condition (UPS, 2018).

The system leverages Big Data analytics in order to dynamically optimize routes with the
goal being a reduction in overall miles and greater customer service (Samuels, 2017).

5.9.2 Results and Goals

UPS has already launched ORION with great success, as 85 million of miles have been saved
per day and fuel consumption is lower, thus saving $84 million per year and a total of $30
million per year is being cut from operational costs (Mclean, 2014).

These numbers are expected to grow even further with ORION continuously evolving with
advanced algorithms and Big Data analytics tools, supported by the rise of IoT-enabled
technologies (Samuels, 2017).

5.10 Case Study 9: Jack in the Box investing in Delivery Robots

Quick service restaurants (QSR) depend on great customer satisfaction, which is formed
based on factors such as speed, quality and service (Miles, 2017). This case study focuses on
a QSR chain, Jack in the Box, which is constantly striving for innovation in a very competitive
market (Miles, 2017).

5.10.1 Investment in Autonomous Delivery Robots

Jack in the Box is spread across 21 states with 2,200 and more restaurants (Miles, 2017).
Realizing the impact great customer satisfaction can have on revenue and brand-name
strength, the restaurant chain’s leaders decided to invest in a partnership with technology
company DoorDash and logistics company Marble with the goal of expanding the delivery
window by partly automating their delivery operations (Miles, 2017).

104
They started by having delivery robots carrying food up to the customer’s door in San
Francisco, which proved successful due to the fact that autonomous delivery robots enabled
late-night deliveries and increased operational efficiency and flexibility (Miles, 2017). These
robots are about 90 cm tall and look like a smaller Mars Rover (Mashable, 2017). Their
advantage over delivery vehicles (mini-cars, motorcycles, bicycles etc.) is their quicker
navigation capabilities enabled by a continuous 4G connection (Miles, 2017; Mashable,
2017).

The delivery robot is equipped with a software which allows it to act autonomously, with
light detection and ranging technology enabling an all-around “vision”, thus adding safety
and efficiency to its navigation through the city (Mashable, 2017). In addition, high-
resolution cameras, ultrasonic sensors and 3D maps provide the delivery robot all the
necessary tools for a perfectly performed delivery (Mashable, 2017).

Figure 5.8 The delivery robot, called Happy, developed by DoorDash and Marble (Mashable, 2017).

The success ignited an extension of the partnership to include more restaurant locations in
different states, with the QSR chain aiming at a continuously increased customer satisfactory
level (Miles, 2017).

5.10.2 Future Investments

The QSR chain is aiming at integrating other technological aids and platforms in order to
achieve greater levels of customer satisfaction, such as on-demand delivery, again enabled
by the use of delivery robots (Miles, 2017). Adapting early is risky, but in the food industry
technologies derived from logistics 4.0 can potentially revolutionize the current status
(Miles, 2017).

5.11 Case Study 10: Amazon’s Drone Deliveries

Amazon is one of the most well-known and largest online retail companies worldwide, so it
is natural for the company’s CEO, Jeff Bezos, and his partners to continuously look for ways
to innovate and revolutionize the industry (BBC News, 2013).

5.11.1 Investing in UAVs

Delivering goods is an operation depending on multiple factors and Amazon wants to
optimize it in order to increase customer satisfaction levels, while reducing operational costs
(BBC News, 2013).

105
In 2013, Amazon decided to invest in the Octocopters, as seen in figure 5.9, drones which
could carry goods up to 2,3 kgs (BBC News, 2013). These drones enabled immediate delivery
below the hour mark, a revolutionary feature (BBC News, 2013).

The service was later named Amazon Prime Air and was designed with the goal of optimizing
delivery processes (BBC News, 2013). Airspace regulations were putting the project at a halt
though, but in late 2016 the civilian air space was opened to drones (BBC News, 2013).

Figure 5.9 The octocopter utilized for the Prime Air service by Amazon (Spary, 2015).

5.11.2 Advantages
After the regulations issue was surpassed, Amazon fully utilized UAVs for delivering goods
(Business Insider, 2018). It is now estimated to result in savings of up to $50 million, due to
enabling rural delivery at much lower operational costs, while its shipment cost is at a low $1
per trip (Business Insider, 2018). In addition, UAVs can deliver goods in as low as 30 minutes
at a speed of 100 mph, which results in greater customer satisfaction levels and even lower
operational costs (Business Insider, 2018).

5.12 Summary
In this chapter, five warehousing-related and five freight transportation-related case studies
were analyzed, with the objective being the highlighting of Logistics 4.0 technologies’
benefits and advantages. Each case study was revolving around a challenge or a point to be
proven, with emerging technologies offering solutions that currently utilized technologies
cannot provide. Then, the benefits and the advantages of utilizing the Logistics 4.0 emerging
technologies were laid out and explained thoroughly.

106
Chapter 6 Conclusions
The purpose of this Master thesis was to determine how Logistics 4.0 technologies
revolutionize logistics operations, develop a framework for adoption and showcase
examples of said technologies implementations in order to display their impact.

6.1 Main Findings

Reviewing current information systems and practices in warehouse operations was the first
step in this thesis. It has been found that individual operations are still semi-automated at a
percentage of 75-80% (Michel, 2016). However, warehouse management systems,
automated storage and retrieval equipment, pallet trucks, picking technological aids (e.g. RF-
picking) etc. are facilitating an easier approach to most processes and activities (Rushton et
al., 2016).

The challenges that emerged have been exploiting the limits of currently utilized warehouse
technologies and practices, highlighting the inefficiencies that exist within their capabilities
(Barreto et al., 2017), as analyzed in chapter 2. The rise of e-commerce has led to a
continuous need for faster and more accurate operations due to the exponential growth of
online sales, while the goods making the reverse trip have been on the rise showcasing the
necessity of efficient reverse logistics processes (Malindretos, 2015; Monahan and Hu,
2018). Globalization’s uninterrupted rise shows why logistics providers and companies are
required to optimize their inbound and outbound logistics operations (Grapht, 2018). The
aforementioned challenges are related to the higher customer demands, as orders are
placed at a higher frequency and customers demand precision, accuracy and efficiency when
it comes to having their goods delivered, which results in a greater need for optimizing
packing and dispatching operations (Jeske et al., 2013). In addition, companies and logistics
operators are required to adjust to environmental and social regulations (e.g. lowering CO2
emissions and reducing waste) (Noronha et al., 2016).

When it comes to freight transportation, fleet management systems and routing software
solutions are utilized at a great extend and success already, but one thing highlighted,
through the case studies analysis which was performed in chapter 5, was the necessity for
real-time monitoring and visibility throughout the goods’ journey from dispatching to the
customer (Malek et al., 2017). Approximately 42,7% of the distributors choose road
transportation of goods over other transportation modes, but although road vehicles
facilitate a not so expensive and adaptable distribution, a number of serious implications
have been difficult for logistics providers to overcome (SAFETY4SEA, 2018; Barreto et al.,
2017). For example, some of the most common implications that were analyzed are fuel
consumption as a factor of great uncertainty, the condition of sensitive products as it
demands continuous monitoring and the mechanical, or no mechanical, parts of the vehicle
that need to be monitored in order to prevent material degradation and increase vehicle up
time (Nearsay.com, 2018). In addition, reducing vehicle empty-running miles was highlighted
as key to reducing CO2 emissions (Jeske et al., 2013). As for urban distribution, research on
city logistics and last-mile delivery has been going strong for the last decade and more, as
challenges and implications emerging in that sector of freight transportation are quite
complex in nature and require close attention when one considers solutions (Cardenas
Barbosa and Vanelslander, 2017). Congested roads, air pollution, vehicle empty-running
miles and fuel consumption are issues which are significantly heightened in these kinds of
situations.

107
Then, after thoroughly reviewing current warehouse and freight transportation operations
and the challenges and issues that have emerged along the way, chapter 3 introduced
Industry 4.0 and how companies should proceed in digitalizing their operations, as building a
flexible organizational structure is a challenge that needs to be addressed and adopting the
digital enterprise model is a crucial step before implementing the new age technologies, as
companies must add the elements of flexibility and adaptability (PwC, 2016; Jakes, 2016)
Finally, it was stated that companies worldwide should be careful during adopting those
technologies and embracing increased automation and digitalization, as HR issues such as
workers being afraid of losing their job need to be prevented (DW.COM, 2016).

Then, the Logistics 4.0 concept was introduced and analyzed, followed by a general
description of the key technologies that are examined in the thesis. IoT is the pinnacle of
those technologies, as it enables new data streams creation from sources previously being
non-exploitable and allows companies to monitor and control mechanizations, fleets etc. by
a central system. As a result, real-time monitoring and controlling produce greater and more
precise insights and real-time visibility and traceability is enabled by sensors and stable
wireless connection, while it adds preventiveness to the manager’s toolkit (Malek et al.,
2017; Karakostas, 2016).

Big Data analytics provide a powerful tool to companies, as the new data streams generated
by IoT produce much greater amounts of data which common software cannot process. Key
advantages of Big Data analytics produced by its ability to process huge datasets by normally
breaking them down into smaller ones and piecing them back together after processing is
done, are real-time data processing and real-time decision making (Jeske et al., 2013).

Advanced Robotics revolutionize logistics operations due to increasing automation. As seen

in several case studies in chapter 5, many repetitive day-to-day activities and tasks are
streamlined, while further flexibility is added due to robotics assisting workers (e.g. in case
study 9 where delivery robots assisted with the delivery of food during non-working or rush
hours) (Miles, 2017; Bonkenburg, 2016).

Augmented Reality offers numerous advantages for warehouse workers, as it presents

information in an easy and coherent way, without having the worker stop and stare at a
screen full of excess information (DHL, 2015). As it was reported by workers using the AR
wearable in the trials conducted by Intel and examined in the third case study, all the
information presented are related to the condition, location and route to specific products
or objects (DHL, 2015; Intel, 2015). AR’s advantages extend to distribution and last-mile
delivery, as it can display critical information regarding packages carried and the condition of
the vehicle, while navigating and looking out for not-easy to find addresses are facilitated by
its use (DHL, 2015).

UAVs present a revolutionary technology in many different ways. It was thoroughly

analyzed, that UAVs possess a wide array of applications, such as facilities patrolling,
warehouse assistance as seen in the case study referring to the InventAIRY project,
distribution to remote areas or to areas where ground-level distribution is difficult (e.g.
congested roads) and fast-time delivery as seen in the tenth case study which is about
Amazon’s drone deliveries and its Prime Air feature (DHL, 2014; Business Insider, 2018).

In the framework that was developed and displayed in chapter 4, five distinct phases were
considered as the key steps towards a Logistics 4.0 technology implementation with an

108
example being showcased regarding the implementation of UAVs for inventory management
and warehouse patrolling. It was thoroughly explained that in order for the implementation
to be successful, several issues and challenges of technological, social, economic,
operational and HR-related had to be overcome. The framework was developed in a way
that it deals with said challenges.

The case studies examined in chapter 5 showcased how the aforementioned Logistics 4.0
technologies revolutionize logistics operations and drive companies towards greater
automation and digitalization, thus enabling an upward trend for innovation.

6.2 Conclusions
The upcoming changes to the technological landscape and the social, economic,
environmental and more practical issues and challenges that have emerged are pushing
companies and logistics providers into making a shift in their organizational structures in
order to adopt Logistics 4.0 technologies and optimize logistics operations. However,
embracing a digital profile is challenging for existing companies which have been operating
under a more traditional organizational structure (PwC, 2016), while startups can disrupt the
industry due to the new trend towards Logistics 4.0 technologies.

These technologies, as stated in chapter 4 and shown in the case studies analysis, allow
logistics operators to take advantage of numerous features which currently utilized
technologies cannot offer, thus allowing companies to enter the digital age of the business
and logistics landscape (Jakes, 2016). The combination of IoT and Big Data analytics is
revolutionizing how the supply chain network operates and allows managers to have
knowledge of situations across the supply chain at any given time. Advanced Robotics boosts
automation levels and increases production and operational efficiency. AR significantly
enhances labor productiveness and operational efficiency in freight transportation. Finally,
UAVs offer new capabilities for warehouse management and distribution and last-mile
delivery (Müller, 2018).

However, implications and issues that have emerged regarding Logistics 4.0 technologies
adoption are slowing things down. These are summed up below (Barreto et al., 2017; Gialos
and Zeimpekis, 2018):

1- Cumbersome Organizational Structures

2- High Investment Costs
3- Resistance to Change
4- Human Resources Implications (e.g. a worker being afraid of losing his job)
5- Lack of Necessary IT Expertise
6- IT Supply Network Possession Requirement
7- Fear of Cyber Threats
So, as it stands right now the most probable worldwide trends to continue driving the
logistics industry forward are globalization, urbanization, technology’s constant evolution,
digitalization and climate changes (e.g. greenhouse effect) (Kunze, 2016).

The constant technological and digitalization-focused evolution, due to increased focus on

innovation, and the adoption of Logistics 4.0 technologies, depending on how fast the
aforementioned implications and issues can be overcome, is expected to keep on powering
the development of innovative applications e.g. (track and trace, labor assistance,
information transportation for 3D printing etc.) (Kunze, 2016). In addition, these trends

109
facilitate a smoother launch for startups seeking to disrupt the industry, a fact that will
factor in furtherly shaping the industrial landscape in the near future (Kunze, 2016;
Utterback and Acee, 2003).

On the other hand, the continuous rise of digitalization hides a risk in the form of cyber
threats, as more and more critical amounts of data are in the “cloud” (Grapht, 2018).
Companies should invest in cyber security, as the prevention of cyber-attacks increases
reliability and credibility, which results in greater customer satisfaction levels and supply
chain performance (Grapht, 2018; Deutsche Post AG, 2012).

Digitalization, supported by increased automation, also factors in the development of new

ways of delivery, which is especially important for city logistics (Kunze, 2016; Deutsche Post
AG, 2012). UAVs are expected to thrive in the coming years as air-level delivery is adopted
by more and more companies with an expanded array of capabilities (Kunze, 2016).

Finally, globalization is a driving factor for establishing worldwide standard regulations and
compliances, as e-commerce has increased the levels of complexity for last-mile delivery and
customization (Kunze, 2016).

The framework that was developed and described in chapter 4 allows a company to proceed
with a Logistics 4.0 technology implementation smoothly, without being negatively affected
by the issues and challenges at hand. The five phases described are of equal importance and
deal with those challenges accordingly. The five phases that were described are as follows:

1- Decide. During that phase, the company decides what is the change, the reason
behind it and the way the project will proceed.
2- Prepare. During that phase the company is preparing for the implementation, as
well as creating a plan to deal with the issues and challenges.
3- Execute. During this phase the project enters pilot mode.
4- Improve. In this phase, KPIs are defined and feedback is being given by end-users.
5- Maintain. In the final phase, operations turn back to normal with a full integration of
the Logistics 4.0 technology at hand.

To sum it all up, companies and organizations should embrace the Logistics 4.0 concepts and
adopt their revolutionary technologies by making any necessary adjustments and changes to
their organizational structure, in order to drive them towards digitalization and automation
with the goal of increased innovation, while carefully handling the issues and risks at hand.

6.3 The Way Forward

As a conclusion, it is evident that Logistics 4.0 applications and trends is a topic subject to
continuous research and development. This Master thesis was focused on performing a
literature review of current logistics operations and information systems utilized, followed
by an introduction and a thorough explanation of Logistics 4.0 technologies and applications.
Then, a framework was introduced, laying out the proper steps a company should follow in
creating the necessary conditions for Logistics 4.0 adoption. Finally, a case studies analysis
was conducted for warehousing and freight transportation operations, showcasing the
advantages and benefits of Logistics 4.0 technologies’ integration.

A future potential advancement of the research on Logistics 4.0 technologies would be the
testing of the framework developed in this thesis in a real-world environment (e.g. a
company) in order to monitor the integration process of the emerging technologies and the

110
results yielded, as well as the implications that emerged. Additionally, a comparison
between currently utilized technologies and Logistics 4.0 technologies could be performed in
the form of benchmarking, thus highlighting the advantages of Logistics 4.0 technologies.

References
Aalhysterforklifts.com.au. (2013). Order Picking in the Warehouse - Logistics & Materials
Handling. [online] Available at: http://www.aalhysterforklifts.com.au/index.php/about/blog-
post/order_picking_in_the_warehouse [Accessed 8 Jul. 2018].

Ais.uni-bonn.de. (2016). University of Bonn, Computer Science VI, Autonomous Intelligent

Systems. [online] Available at: http://www.ais.uni-bonn.de/videos/ICUAS_2016/ [Accessed
20 Oct. 2018].

Ali, H., Elmogy, M. and Barakat, S. (2016). A BIG DATA PROCESSING FRAMEWORK BASED ON
MAPREDUCE WITH APPLICATION TO INTERNET OF THINGS. Ciência e Técnica Vitivinícola. 31.

Anshari, M., Almunawar, M., Lim, S. and Al-Mudimigh, A. (2018). Customer relationship
management and big data enabled: Personalization & customization of services. Applied
Computing and Informatics.

Antich, M. (2013). Top 10 Trends in Truck Fleet Management. [online] Worktruckonline.com.

Available at: https://www.worktruckonline.com/152701/top-10-trends-in-truck-fleet-
management [Accessed 14 Jul. 2018].

AUTONOMICS for Industry 4.0. (2015). Berlin: Federal Ministry for Economic Affairs and
Energy.

Avonwood. (2013). MoDe Development Projects Case Study - Avonwood. [online] Available
at: https://avonwood.co.uk/2013/10/05/development-projects-case-study/ [Accessed 20
Oct. 2018].

AWSmarketplace. (2017). Business Intelligence & Big Data on AWS.

Balinski, B. (2014). Automation: a challenge and an opportunity - Manufacturers' Monthly.

[online] Manufacturers' Monthly. Available at:
http://www.manmonthly.com.au/features/automation-a-challenge-and-an-opportunity/
[Accessed 25 Oct. 2018].

Ballou, R. (2004). Business logistics management. Upper Saddle River, N.J.: Prentice-Hall.

Ballou, R. (2007). The Evolution and Future of Logistics and Supply Chain Management.
Researchgate.

Barreto, L., Amaral, A. and Pereira, T. (2017). Industry 4.0 implications in Logistics: An
Overview. ScienceDirect.

BBC News. (2013). Amazon testing drones for deliveries. [online] Available at:
https://www.bbc.com/news/technology-25180906 [Accessed 2 Oct. 2018].

Bcpsoftware.com. (2018). Warehouse Technologies | Voice WMS | RF Scanning | Pick to

Light |. [online] Available at: http://www.bcpsoftware.com/solutions/voice-technology-
solutions/warehouse-technologies-take-your-pick/ [Accessed 22 Jul. 2018].

111
Ben Ayed, A., Alimi, A. and Ben Halima, M. (2015). Big Data Analytics for Logistics and
Transportation. ResearchGate.

Bentz, B. (2015). Managing Reverse Logistics to Improve Supply Chain Efficiency and Reduce
Cost - Supply Chain 24/7. [online] Supplychain247.com. Available at:
https://www.supplychain247.com/article/managing_reverse_logistics_to_improve_supply_
chain_efficiency_reduce_costs [Accessed 15 Jul. 2018].

Bicheno, S. (2015). Ericsson forecasts LTE subscriptions to increase seven-fold by 2020.

[online] Telecoms.com. Available at: http://telecoms.com/424181/ericsson-forecasts-lte-
subscriptions-to-increase-seven-fold-by-2020/ [Accessed 2 Aug. 2018].

Bonkenburg, T. (2016). Robotics in Logistics. DHL.

Bradley, P. (2014). Bobcat excavates productivity, inventory improvements – DC Velocity.

[online] Dcvelocity.com. Available at: http://www.dcvelocity.com/articles/20140917-bobcat-
excavates-productivity-inventory-improvements/ [Accessed 26 Sep. 2018].

Bright Alliance Technology. (2018). 6 Frequently Asked Questions About Barcode Vs RFID
Scanners - Bright Alliance Technology. [online] Available at:
http://www.batlgroup.net/2016/07/6-frequently-asked-questions-barcode-vs-rfid-scanners/
[Accessed 29 Oct. 2018].

Business Insider. (2018). Amazon and UPS are betting big on drone delivery. [online]
Available at: https://www.businessinsider.com/amazon-and-ups-are-betting-big-on-drone-
delivery-2018-3 [Accessed 2 Oct. 2018].

Burgess, M. (2018). These tiny autonomous robots are ready to deliver lunch to your office.
[online] Wired.co.uk. Available at: https://www.wired.co.uk/article/starship-technologies-
robots-deliveries-intuit-compass-test [Accessed 12 Sep. 2018].

Burgess, M. (2016). Watch Panasonic's power-lifting exoskeletons in action. [online]

Wired.co.uk. Available at: https://www.wired.co.uk/article/panasonic-robot-suit-
exoskeleton [Accessed 26 Oct. 2018].

Camhi, J., (2018). http://www.businessinsider.com. [Online] Available at:

https://www.businessinsider.com/ai-supply-chain-logistics-report-2018-1 [Accessed 12 May
2018].

Cardenas Barbosa, I. and Vanelslander, T. (2017). City logistics, urban goods distribution and
last mile delivery and collection. ResearchGate.

CarPal Fleet. (2018). Proof of Delivery? What Are Its Benefits?. [online] Available at:
https://carpalfleet.com/proof-of-delivery/ [Accessed 15 Jul. 2018].

Cheng, Y., Yue, W. and Taylor, M. (2005). THE ROLE OF TRANSPORTATION IN LOGISTICS
CHAIN. [ebook] Researchgate. Available at:
https://www.researchgate.net/publication/281230908 [Accessed 6 Jul. 2018].

Clegg, B. (2017). BIG DATA: How the information revolution is transforming our lives. Icon
Books Ltd.

112
CollabNet VersionOne. (2018). Agile Transformation & Agile Implementation Consulting.
[online] Available at: https://www.versionone.com/customer-success/consulting-services/
[Accessed 4 Nov. 2018].

Collins, M. (2017). The surprising future of manufacturing - Magellan Financial Group.

[online] Magellan Financial Group. Available at:
https://www.magellangroup.com.au/insights/the-surprising-future-of-manufacturing/
[Accessed 5 Sep. 2018].

CORDIS | European Commission. (2013). Final Report Summary - MODE (Maintenance on

Demand). [online] Available at: https://cordis.europa.eu/result/rcn/58854_en.html
[Accessed 30 Sep. 2018].

Coutinho, L. (2017). Industry 4.0, Jobs for the future vs. future with no jobs.

Craig, G. (2016). What Is The Difference Between Data Lakes, Data Marts, Data Swamps, And
Data Cubes?. [online] Intersog. Available at: https://intersog.com/blog/what-is-the-
difference-between-data-lakes-data-marts-data-swamps-and-data-cubes/ [Accessed 29 Oct.
2018].

Crainic, T. (2003). Long-Haul Freight Transportation. ResearchGate.

Crizzle, A., Bigelow, P., Adams, D., Gooderham, S., Myers, A. and Thiffault, P. (2017). Health
and wellness of long-haul truck and bus drivers: A systematic literature review and directions
for future research. Journal of Transport & Health, 7, pp.90-109.

Cscmp.org. (2018). Home. [online] Available at: https://cscmp.org/ [Accessed 21 Jul. 2018].

Curry, D. (2016). IoT and coding: The most important IoT programming languages –
ReadWrite. [online] Readwrite.com. Available at:
https://readwrite.com/2016/07/08/programming-languages-iot-pt2/ [Accessed 2 Aug.
2018].

Datex Corporation. (2018). IoT and the Smart Warehouse. [online] Available at:
https://www.datexcorp.com/iot-and-the-smart-warehouse/ [Accessed 7 Sep. 2018].

Dedić N. & Stanier C. (2016). Measuring the Success of Changes to Existing Business
Intelligence Solutions to Improve Business Intelligence Reporting. Springer.

Deganutti, J. (2017). The First Industrial Revolution: How manufacturing changed in XVII-
XVIII centuries.

Delivering Tomorrow Logistics 2050 A Scenario Study. (2012). Bonn, Germany: Deutsche
Post AG.

Deloitte.com. (2013). 2013 Global contact center survey Results and key insights. [online]
Available at: https://www2.deloitte.com/us/en/pages/operations/articles/2013-global-
contact-center-survey.html [Accessed 9 Sep. 2018].

Deloitte. (2018). Shipping smarter: IoT opportunities in transport and logistics. [online]
Available at: https://www2.deloitte.com/tr/en/pages/technology-media-and-
telecommunications/articles/internet-of-things-iot-in-shipping-industry.html [Accessed 7
Sep. 2018].

113
Deloitte. (2018). Using smart sensors to drive supply chain innovation.

DHL, (2015). Breakout session: Augmented Reality in Logistics. Dubai.

DHL. (2014). Unmanned Aerial Vehicles in Logistics.

Doz, J., (2017). The Future of E-commerce: 2020 and Beyond. [Online] Available at:
http://www.doz.com/marketing-resources/marketing-resourcesthe-future-of-e-commerce-
2020-and-beyond. [Accessed 20 May 2018].

Dua, A. (2018). Comparison of RFID Cost versus NFC and Barcode for Inventory Tracking |
RFID4U. [online] RFID4U. Available at: https://rfid4u.com/comparison-of-rfid-nfc-and-
barcode-for-inventory-tracking-part-1-rfid/ [Accessed 29 Oct. 2018].

Dua, A. (2018). Comparison of RFID Cost versus NFC and Barcode for Inventory Tracking |
RFID4U. [online] RFID4U. Available at: https://rfid4u.com/comparison-of-rfid-nfc-and-
barcode-for-inventory-tracking-part-2-rfid/ [Accessed 29 Oct. 2018].

Dukowitz, Z. (2018). Who’s Working Where: Introducing Our In-Depth Guide to Jobs in the
Drone Industry - UAV Coach. [online] UAV Coach. Available at: https://uavcoach.com/drone-
jobs-guide/ [Accessed 29 Aug. 2018].

DW.COM. (2016). Industry 4.0 to be huge job killer | DW | 18.01.2016. [online] Available at:
https://www.dw.com/en/industry-40-to-be-huge-job-killer/a-18987635 [Accessed 13 Aug.
2018].

Dynamic Inventory Control. (2018). DHL.

Eab.info. (2018). LIVE STORAGE RACKING. [online] Available at:

http://www.eab.info/storage-equipment/live-storage-racking/ [Accessed 11 Jul. 2018].

Easton, M. and Saldais, M. (2013). Industrial Revolution. Oxford University.

Ehmke, J. (2012). Integration of Information and Optimization Models for Routing in City
Logistics.

Ericsson. (2017). Ericsson Mobility Report. Ericsson Mobility Report. [online] Ericsson.
Available at: https://www.ericsson.com/assets/local/mobility-
report/documents/2017/ericsson-mobility-report-june-
2017.pdf?utm_source=Triggermail&utm_medium=email&utm_campaign=Post%20Blast%20
%28bii-
iot%29:%20How%205G%20will%20revolutionize%20the%20IoT%20%E2%80%94%20Qualco
mm%20eyes%20smart%20speakers%20for%20growth%20%E2%80%94%20Alphabet%20dro
ne%20exec%20will%20head%20up%20industry%20alliance&utm_term=BII%20List%20IoT%
20ALL [Accessed 2 Sep. 2018].

Ermolaeva, A. (2017). Industry 4.0 and HR in Logistics. Ph.D. UNIVERSITY OF ECONOMICS IN

PRAGUE.

EU GDPR Portal. (2018). EU GDPR Information Portal. [online] Available at:

https://www.eugdpr.org/ [Accessed 25 Jul. 2018].

Faccio, M. and Gamberi, M. (2015). New City Logistics Paradigm: From the “Last Mile” to the
“Last 50 Miles” Sustainable Distribution.

114
Field, A. (2015). Enter the Smart (Internet of Things) Warehouse. [online]
Supplychain247.com. Available at:
http://www.supplychain247.com/article/enter_the_smart_internet_of_things_warehouse/
warehousing [Accessed 1 Sep. 2018].

Fitzgerald, J. and Quasney, E. (2018). Using autonomous robots to drive supply chain
innovation. Deloitte.

Franklin, M. (2018). Industry 4.0: How Automation and IoT Will Affect Jobs. [online]
Datafloq.com. Available at: https://datafloq.com/read/industry-4-0-how-automation-iot-
will-affect-jobs/4539 [Accessed 13 Aug. 2018].

Galindo, L. (2016). The Challenges of Logistic 4.0 for the Supply Chain and Information
Technology. Norwegian University of Science and Technology.

García Márquez, F. and Lev, B. (2017). Big Data Management. Springer.

Geissbauer, R., Schrauf, S., Koch, V. and Kuge, S. (2014). Industry 4.0 - Opportunities and
Challenges of the Industrial Internet. PwC.

Gesing, B., Peterson, S. and Michelsen, D. (2018). ARTIFICIAL INTELLIGENCE IN LOGISTICS.

[Online] Available at:
https://www.logistics.dhl/content/dam/dhl/global/core/documents/pdf/glo-ai-in-logistics-
white-paper.pdf [Accessed 25 May 2018].

Glockner, H., Jannek, K., Mahn, J. and Theis, B. (2014). AUGMENTED REALITY IN LOGISTICS.
DHL.

Gialos, A. and Zeimpekis, V. (2018). Current status and challenges on Logistics 4.0
technologies in warehouse operations. In: 4th ICSC.

Ginters, E. and Gutierrez, J. (2013). Low cost augmented reality and RFID application for
logistics items visualization. Valmiera: ScienceDirect.

Goettler, S. (2014). Pick-by-Vision – Augmented Reality in logistics. [online] The blog of

Logistics at MGEPS at UPV. Available at:
https://logisticsmgepsupv.wordpress.com/2014/05/18/pick-by-vision-augmented-reality-in-
logistics/comment-page-1/ [Accessed 31 May 2018].

Grapht, H. (2018). Transportation & Logistics 2030 Volume 4: Securing the supply chain.
PwC.

Gregor, T., Krajcovic, M. and Wiecek, D. (2017). Smart Connected Logistics. ScienceDirect.

Greif, A. (2002). Handbook of Game Theory with Economic Applications. ScienceDirect.

Guide to Digital Tachographs. (2006). [ebook] RSA. Available at:

http://www.rsa.ie/Documents/Tachograph_Enf/Tacho%20Cards/Tacho%20Guides/Guide_to
_Digital_Tachographs.pdf [Accessed 15 Jul. 2018].

Gustavsson, P., Holm, M., Syberfeldt, A. and Wang, L. (2018). Human-robot collaboration –
towards new metrics for selection of communication technologies. ScienceDirect.

Hammel Scale. (2018). Industry 4.0 Weighing Solutions | Hammel Scale. [online] Available at:
https://www.hammelscale.com/industry-4-0/ [Accessed 26 Aug. 2018].

115
Hansen, M. and Dursteler, E. (2017). Pipeline, Rails and Trucks: Economic, environmental,
and safety impacts of transporting oil and gas in the U.S.. [ebook] Available at:
https://www.strata.org/pdf/2017/pipelines.pdf [Accessed 13 Jul. 2018].

Harnessing the Power of Big Data for Fleet Management. (2015). [ebook] Merchants Fleet
Management. Available at: https://www.merchantsfleetmanagement.com/docs/default-
source/whitepapers/6bc95808-6d97-6325-8c74-ff0000a054a5 [Accessed 9 Sep. 2018].

Hci.vt.edu. (2018). Augmented Reality in Transportation – Center for Human-Computer

Interaction. [online] Available at: http://hci.vt.edu/projects/augmented-reality-in-
transportation/ [Accessed 25 Oct. 2018].

Hector (2018). Essential Elements to Deploying IoT in the Warehouse. [online]

Articles.cyzerg.com. Available at: https://articles.cyzerg.com/essential-elements-to-
deploying-iot-in-the-warehouse [Accessed 24 Oct. 2018].

H.ESSERS. (2018). Drones for Logistics.

Hobsbawm, E. and Wrigley, C. (1999). Industry and empire. New York: New Press.

Hoey, B. (2018). What is Logistics 4.0?. [online] Blog.flexis.com. Available at:

https://blog.flexis.com/what-is-logistics-4.0 [Accessed 6 Oct. 2018].

Horejsi, P. (2015). Augmented Reality System for Virtual Training of Parts Assembly.
ScienceDirect.

Huang, S. (2018). Why GPS won’t be enough for the AR era. [online] Medium. Available at:
https://medium.com/sturfee/why-gps-wont-be-enough-for-the-ar-era-2c647b6f3352
[Accessed 29 Oct. 2018].

Hülsmann, T. (2015). LOGISTICS 4.0 AND THE INTERNET OF THINGS.

Ibarra, D., Ganzarain, J. and Igartua, J. (2018). Business Model Innovation through Industry
4.0: A Review. ScienceDirect.

IEEE Spectrum: Technology, Engineering, and Science News. (2015). Fetch Robotics
Introduces Fetch and Freight: Your Warehouse Is Now Automated. [online] Available at:
https://spectrum.ieee.org/automaton/robotics/industrial-robots/fetch-robotics-introduces-
fetch-and-freight-your-warehouse-is-now-automated [Accessed 25 Oct. 2018].

IIBM LMS. (2018). Supply Chain Management and Logistics in Retail Management - IIBM
Institute LMS. [online] Available at: http://www.iibmindialms.com/library/management-
basic-subjects/retail-management/supply-chain-management-logistics/ [Accessed 19 Jul.
2018].

Industry 4.0: Building the digital enterprise. (2016). [ebook] PwC. Available at:
https://www.pwc.com/gx/en/industries/industries-4.0/landing-page/industry-4.0-building-
your-digital-enterprise-april-2016.pdf [Accessed 26 Aug. 2018].

IoT Agenda. (2018). What is IoT devices (internet of things devices)? - Definition from
WhatIs.com. [online] Available at:
https://internetofthingsagenda.techtarget.com/definition/IoT-device [Accessed 2 Aug.
2018].

116
i-scoop.eu. (2018). Logistics 4.0 and smart supply chain management in Industry 4.0. [online]
Available at: https://www.i-scoop.eu/industry-4-0/supply-chain-management-scm-logistics/
[Accessed 2 Aug. 2018].

I-scoop.eu. (2018). Robots and cobots in logistics - the next stage of growth - Industry 4.0.
[online] Available at: https://www.i-scoop.eu/robots-cobots-logistics-4-0/ [Accessed 25 Oct.
2018].

Jakes, J. (2016). Position of Logistics in Organizational Structures - Trends. International

Journal of Management Science and Business Administration, 2(7), pp.42-50.

Jeske, M., Gruner, M. and Weiss, F. (2013). Big Data in Logistics. DHL.

Kappauf, J., Lauterbach, B. and Koch, M. (2012). Logistic Core Operations with SAP: Inventory
Management, Warehousing, Transportation, and Compliance. 8th ed. Springer.

Karakostas, B. (2016). Event prediction in an IoT environment using naïve Bayesian models.
ScienceDirect.

Kayikci, Y. (2018). Sustainability impact of digitization in logistics. ScienceDirect.

Kim, E. (2015). Amazon's $775 million deal for robotics company Kiva is starting to look really
smart. [online] Business Insider. Available at: https://www.businessinsider.com/kiva-robots-
save-money-for-amazon-2016-6 [Accessed 29 Aug. 2018].

Kirkos, E. (2015). Business Intelligence and Data Mining. Kallipos.

Konstant.com. (2018). High Density - Very Narrow Aisle | VNA, Very Narrow Aisle Racks,
Very Narrow Aisle Racking Systems. [online] Available at:
http://www.konstant.com/HighDensityVeryNarrowAisle.php [Accessed 11 Jul. 2018].

Kunze, O. (2016). Replicators, Ground Drones and Crowd Logistics A Vision of Urban Logistics
in the Year 2030. In: International Scientific Conference on Mobility and Transport
Transforming Urban Mobility. ScienceDirect.

Lachhab, F., Bakhouya, M., Ouladsine, R. and Essaaidi, M. (2018). Towards an Intelligent
Approach for Ventilation Systems Control using IoT and Big Data Technologies.
ScienceDirect.

Laetsch, J., Knoche, L., Schalk, T. and Driskel, C. (2016). Big Data & The Truck Industry: How
Logistics Firms Utilize and Analyze Big Data- A Case Study of DHL and the SmartTruck.
[online] BigdataBigbrotherBigboon. Available at:
https://bigdatabigbrotherbigboon.wordpress.com/2016/11/29/big-data-the-truck-industry-
how-logistics-firms-utilize-and-analyze-big-data-a-case-study-of-dhl-and-the-smarttruck/
[Accessed 30 Sep. 2018].

Liu, S., Zhang, G. and Wang, L. (2018). IoT-enabled Dynamic Optimisation for Sustainable
Reverse Logistics. ScienceDirect.

Loading Bay Equipment. (2018). [ebook] GANDHI. Available at:

http://geapl.co.in/pdf/loading-bay-equipment-brochure.pdf [Accessed 22 Jul. 2018].

117
Lucasware.com. (2018). Compare Voice Picking to RF and PTL | Mobile Work Execution.
[online] Available at: https://www.lucasware.com/how-voice-compares/ [Accessed 10 Jul.
2018].

Lumb, D. (2017). MIT researchers use drone fleets to track warehouse inventory. [online]
Engadget. Available at: https://www.engadget.com/2017/08/25/mit-drone-fleets-track-
warehouse-inventory/?guccounter=1 [Accessed 25 Oct. 2018].

Lummus, R., Vokurka, R. and Krumwiede, D. (2001). The relationship of logistics to supply
chain management: developing a common industry definition. [ebook] MCB UP Ltd.
Available at:
https://www.emeraldinsight.com/doi/abs/10.1108/02635570110406730?src=recsys&fullSc=
1&journalCode=imds [Accessed 6 Jul. 2018].

Macaulay, J., Buckalew, L. and Chung, G. (2015). Internet of Things in Logistics. DHL & Cisco.

Malek, Y., Kharbouch, A., Khoukhi, H., Bakhouya, M., De Florio, V., Ouadghiri, D., Latre, S.
and Blondia, C. (2017). On the use of IoT and Big Data Technologies for Real-time Monitoring
and Data Processing. ScienceDirect.

Malindretos, G., (2015). Supply Chain, Logistics and Customer Service.

Making the Smart Logistics Network a Reality. (2018). UPS.

Management Consulting Prep. (2018). Frameworks - Management Consulting Prep. [online]

Available at: https://mconsultingprep.com/case-interview-frameworks/ [Accessed 4 Nov.
2018].

Marr, B. (2016). How Big Data and Analytics Are Transforming Supply Chain Management.
[online] Forbes.com. Available at:
https://www.forbes.com/sites/bernardmarr/2016/04/22/how-big-data-and-analytics-are-
transforming-supply-chain-management/#7fcaab0b39ad [Accessed 8 Sep. 2018].

Mashable. (2017). You can now watch tech bring food to your door with a few taps of your
smartphone (Paid Content by Jack in the Box). [online] Available at:
https://mashable.com/2017/08/16/jack-in-the-box-delivery-robot/?europe=true [Accessed
20 Oct. 2018].

Mclean, L. (2014). Breaking Down Big Data & Why You Should Care -. [online]
Sisdigital.agency. Available at: https://sisdigital.agency/2014/01/breaking-down-big-data-
why-you-should-care/ [Accessed 2 Oct. 2018].

Mecalux.com. (2018). Drive-in pallet racking. [online] Available at:

https://www.mecalux.com/pallet-racks/drive-in-pallet-racking [Accessed 11 Jul. 2018].

Merlino, M. and Sproge, I. (2017). The Augmented Supply Chain. ScienceDirect.

Michel, R. (2016). 2016 Warehouse/DC Operations Survey: Ready to Confront Complexity -

Supply Chain 24/7. [online] Supplychain247.com. Available at:
https://www.supplychain247.com/article/2016_warehouse_dc_operations_survey_ready_t
o_confront_complexity/erp [Accessed 12 Sep. 2018].

Miles, S. (2017). Case Study: Jack in the Box Explores Autonomous Delivery Robots | Street
Fight. [online] Streetfightmag.com. Available at:

118
https://streetfightmag.com/2017/08/22/case-study-jack-in-the-box-explores-autonomous-
delivery-robots/ [Accessed 2 Oct. 2018].

Mokyr, J. (1998). The Second Industrial Revolution, 1870-1914.

Monahan, S. and Hu, M. (2018). US E-Commerce Trends and the Impact on Logistics. CSCMP.

Moore, M. (2018). What is Industry 4.0? Everything you need to know. [online]
https://www.facebook.com/TechRadar. Available at:
https://www.techradar.com/news/what-is-industry-40-everything-you-need-to-know
[Accessed 31 May 2018].

Mourtzis, D., Zogopoulos, V. and Vlachou, E. (2017). Augmented reality application to

support remote maintenance as a service in the Robotics industry. ScienceDirect.

mprosys.in. (2018). Inventory Management System | Warehouse Management Software |

Do You Really Need WMS ?. [online] Available at:
http://www.improsys.in/warehouse_management_systems.htm [Accessed 16 Jul. 2018].

Mrugalska, B. and Wyrwicka, M. (2017). Towards Lean Production in Industry 4.0.

ScienceDirect.

Müller, J. (2018). Emerging Technology Trends. SAP.

Murray, S. (2018). Worldwide Spending on Augmented and Virtual Reality to Achieve a Five-
Year CAGR of 71.6% by 2022, According to IDC. [online] IDC: The premier global market
intelligence company. Available at:
https://www.idc.com/getdoc.jsp?containerId=prUS43860118 [Accessed 5 Sep. 2018].

Myerson, P. (2015). Supply Chain and Logistics Management Made Easy. New Jersey:
Pearson Education, Inc.

Nearsay.com. (2018). Truck Mechanics Explain 3 Reasons to Keep up With Semi-Truck

Maintenance - Hobbs Spring & Suspension Inc - Hobbs. [online] Available at:
https://nearsay.com/c/371128/245028/truck-mechanics-explain-3-reasons-to-keep-up-
with-semi-truck-maintenance [Accessed 7 Sep. 2018].

Newatlas.com. (2018). Postybell mailbox sensor conquers the tyranny of distance. [online]
Available at: https://newatlas.com/postybell-gsm-mailbox-sensor/31687/ [Accessed 7 Sep.
2018].

Newcastlesys.com. (2018). How To Improve Warehouse Receiving Process. [online] Available

at: https://www.newcastlesys.com/blog/how-to-improve-warehouse-receiving-process
[Accessed 7 Sep. 2018].

Noronha, J., Bubner, N. and Bondebenner, P. (2016). Logistics Trend Radar. DHL Customer
Solutions & Innovation.

Naboni, R. and Paoletti, I. (2015). Advanced Customization in Architectural Design and

Construction.

Onestoprentalsales.com. (2018). TELEHANDLER BOBCAT V417 17 FOOT REACH 44 Rentals

Airdrie AB, Where to Rent TELEHANDLER BOBCAT V417 17 FOOT REACH 44 in Calgary
Alberta, Strathmore, Chestermere, Didsbury, and Airdrie AB. [online] Available at:

119
https://www.onestoprentalsales.com/equipment.asp?action=category&category=21&key=1
3-002 [Accessed 19 Oct. 2018].

Oracle.com. (n.d.). What is Big Data? | Oracle. [online] Available at:

https://www.oracle.com/big-data/guide/what-is-big-data.html [Accessed 2 Aug. 2018].

Patel, N. (2017). Significance of fleet management in logistics Industry. [Blog] Peerbits.

Available at: https://onmogul.com/stories/significance-of-fleet-management-in-logistics-
industry [Accessed 23 Jun. 2018].

Peopledatalabs.com. (2018). How Big Data Is Bringing Humanity Back to Customer Service.
[online] Available at: https://www.peopledatalabs.com/blog/customer-service-data
[Accessed 9 Sep. 2018].

Picking and Packing Best Practices. (2007). [ebook] WERC. Available at:
http://www.werc.org/assets/1/workflow_staging/Publications/696.PDF [Accessed 22 Jul.
2018].

Potenza, E. (n.d.). All That Glitters - What is industrialisation?.

Pronello, C., Camusso, C. and Valentina, R. (2017). Last mile freight distribution and
transport operators’ needs: which targets and challenges?. ScienceDirect.

Pyne, S. and Rao, P. (2016). Big Data Analytics Methods and Applications. Springer.

RAVAS. (2018). DHL weighs special shipments with RWV-weighing forks on a forklift truck.
[online] Available at: https://www.ravas.com/en/cases/dhl-weighs-special-shipments-rwv-
weighing-forks-forklift-truck [Accessed 27 Sep. 2018].

Renjen, P. (2018). Industry 4.0: Are you ready?. [online] Deloitte Insights. Available at:
https://www2.deloitte.com/insights/us/en/deloitte-review/issue-22/industry-4-0-
technology-manufacturing-revolution.html [Accessed 5 Sep. 2018].

Richards. (2018). The role of the Warehouse.

Rifkin, J. (2011). Third Industrial Revolution. Forbes.

Rightwarehouse.com. (2018). Warehousing & Storage | Right Warehouse, Delhi, NCR, India.
[online] Available at: http://rightwarehouse.com/warehousing-storage/ [Accessed 21 Jul.
2018].

Robinson, A. (2018). Three Key Trends in Logistics E-Commerce. [online] Transportation

Management Company | Cerasis. Available at: https://cerasis.com/2018/01/04/logistics-e-
commerce/ [Accessed 15 Jul. 2018].

Romeo, J. (2017). Robots at the Warehouse: Changing the Face of Modern Logistics -
Robotics Business Review. [online] Robotics Business Review. Available at:
https://www.roboticsbusinessreview.com/manufacturing/robots-warehouse-changing-face-
modern-logistics/ [Accessed 12 Sep. 2018].

Rosier, M. and Janzen, B. (2008). Reverse Logistics How to realise an agile and efficient
reverse chain within the Consumer Electronics industry. PwC.

Rushton, A., Croucher, P. and Baker, P. (2014). The Handbook of Logistics and Distribution
Management. 5th ed.

120
SAFETY4SEA. (2018). Maritime transport carried 63% of Albanian exports in 2017 -
SAFETY4SEA. [online] Available at: https://safety4sea.com/maritime-transport-carried-63-of-
albanian-exports-in-2017/ [Accessed 16 Jul. 2018].

Saghir, M. (2004). THE CONCEPT OF PACKAGING LOGISTICS. [ebook] Lund. Available at:
https://www.pomsmeetings.org/ConfProceedings/002/POMS_CD/Browse%20This%20CD/P
APERS/002-0283.pdf [Accessed 10 Jul. 2018].

Samuels, M. (2017). Big data case study: How UPS is using analytics to improve performance
| ZDNet. [online] ZDNet. Available at: https://www.zdnet.com/article/big-data-case-study-
how-ups-is-using-analytics-to-improve-performance/ [Accessed 2 Oct. 2018].

Sandle, T. (2017). Using drones in large warehouses to prevent inventory mismatches.

[online] Digitaljournal.com. Available at: http://www.digitaljournal.com/tech-and-
science/technology/using-drones-in-large-warehouses-to-prevent-inventory-
mismatches/article/504812 [Accessed 12 Sep. 2018].

Savelsbergh, M. and Woensel, T. (2016). City Logistics Challenges and Opportunities.

Savi. (2013). Best Practices in Improving Container Management and Increasing Supply Chain
Efficiencies. [ebook] Available at: http://www.savi.com/wp-
content/uploads/Savi_WhitePaper-final-1212130439PM.pdf [Accessed 14 Jul. 2018].

Schlaepfer, R., Koch, M. and Merkofer, P. (2014). Industry 4.0. Challenges and Solutions for
the Digital Transformation and use of exponential Technologies. Deloitte.

Schmidthk.com. (2018). Warehouse Management System (WMS) | Schmidt. [online]

Available at: http://www.schmidthk.com/industries-solutions/automation/warehouse-
management-system/ [Accessed 4 Nov. 2018].

Schrauf, S. and Bertram, P. (2016). Industry 4.0: How digitization makes the supply chain
more efficient, agile, and customer-focused. [ebook] PwC. Available at:
https://www.strategyand.pwc.com/reports/digitization-more-efficient [Accessed 26 Aug.
2018].

Scriosteanu, A. and Popescu, D. (2018). Customer Service: The Important Goal of Logistics.
Craiova: University of Craiova.

Segovia, D., Mendoza, M., Mendoza, E. and Gonzalez, E. (2015). Augmented Reality as a Tool
for Production and Quality Monitoring. ScienceDirect.

Serrato, M. and Ramirez, J. (2017). The Strategic Business Value of Big Data. In: F. Garcia
Marquez and B. Lev, ed., Big Data Management. Springer.

Shamim, S., Cang, S., Yu, H. and Li, Y. (2016). Management Approaches for Industry 4.0.

Shields, N. (2017). Here's how 5G will revolutionize the Internet of Things. [online] Business
Insider. Available at: https://www.businessinsider.com/how-5g-will-revolutionize-the-
internet-of-things-2017-6 [Accessed 2 Sep. 2018].

Shirer, M. and Goepfert, J. (2017). Big Data and Business Analytics Revenues Forecast to
Reach $150.8 Billion This Year, Led by Banking and Manufacturing Investments, According to
IDC. [online] IDC: The premier global market intelligence company. Available at:
https://www.idc.com/getdoc.jsp?containerId=prUS42371417 [Accessed 5 Sep. 2018].

121
Smith, Christopher E. (2014). Crude Oil Pipeline Growth, Revenues Surge; Construction Costs
Mount. Oil and Gas Journal. Available at: http://www.ogj.com/articles/print/volume-
112/issue-9/special-report-pipeline-economics/crude-oil-pipeline-growth-revenuessurge-
construction-costs-mount.html [Accessed 13 Jul. 2018].

Spary, S. (2015). FAA grounds Amazon drone delivery. [online] Campaignlive.co.uk. Available
at: https://www.campaignlive.co.uk/article/faa-grounds-amazon-drone-delivery/1334152
[Accessed 20 Oct. 2018].

Sreedhar, D. (2016). Augmented Reality Transport Improving Daily Life. [online] Appearition.
Available at: https://www.appearition.com/industryar-augmented-reality-transport-
improving-daily-life/ [Accessed 25 Oct. 2018].

Staff, 2. (2018). “Vision Picking” in the Warehouse - Augmented Reality in Logistics - Supply
Chain 24/7. [Online] Supplychain247.com. Available at:
http://www.supplychain247.com/article/vision_picking_in_the_warehouse_augmented_rea
lity_in_logistics [Accessed 24 May 2018].

Stoltz, M., Giannikas, V., McFarlane, D., Strachan, J., Um, J. and Srinivasan, R. (2017).
Augmented Reality in Warehouse Operations: Opportunities and Barriers. ScienceDirect.

Stone, S. (2015). Order Picking: Goods-to-Person Alternatives and Techniques. [online] Cisco-
eagle.com. Available at: http://www.cisco-eagle.com/blog/2015/10/29/goods-to-picker-
methods-and-alternatives/ [Accessed 9 Jul. 2018].

Stone, S. (2014). Questions to Ask: Carousel Picking Systems. [online] Cisco-eagle.com.

Available at: http://www.cisco-eagle.com/blog/2014/10/28/questions-to-ask-carousel-
picking-systems/ [Accessed 9 Jul. 2018].

Supplychain247.com. (2016). Amazon’s Real-Time Map Tracking Package Delivery App

Available to All US Customers - Supply Chain 24/7. [online] Available at:
http://www.supplychain247.com/article/amazons_real_time_map_tracking_package_delive
ry [Accessed 7 Sep. 2018].

Supplychain247.com. (2018). Data Driven Logistics. [online] Available at:

https://www.supplychain247.com/paper/presentation_data_driven_logistics [Accessed 8
Sep. 2018].

Supply & Demand Chain Executive. (2008). Guest Column: The Five Most Common Mistakes
when Planning a Distribution Center. [online] Available at:
https://www.sdcexec.com/sourcing-procurement/news/10327113/guest-column-the-five-
most-common-mistakes-when-planning-a-distribution-center [Accessed 21 Jul. 2018].

Szymanska, O., Adamczak, M. and Cyplik, P. (2017). LOGISTICS 4.0 – A NEW PARADIGM OR
SET OF KNOWN SOLUTIONS?.

Tadic, S., Zecevic, S. and Krstic, M. (2015). Status and Trends.

Taniguchi, E. (2012). Concept and Best Practices of City Logistics.

Taylor, R. (2017). Tesco makes UK's first delivery by ROBOT in test of technology which could
change shopping forever. [online] The Sun. Available at:
https://www.thesun.co.uk/tech/3691573/tesco-makes-uks-first-delivery-by-robot-during-
test-of-pioneering-one-hour-delivery-service/ [Accessed 25 Oct. 2018].

122
Temesist® Endüstriyel Depo Ve Raf Sistemleri. (2018). BACK-TO-BACK RACKING SYSTEM |
TEMESIST® INDUSTRIAL RACK AND STORAGE SYSTEM. [online] Available at:
https://temesist.com/back-to-back-racking-system/?lang=en [Accessed 11 Jul. 2018].

The Communication Logistics Specialists. (2018). The Internet of Things Reinvents Parcel
Delivery Services. [online] Available at: http://www.communication-logistics.com/parcel-
delivery-services.html#.W5Liz-gzbIU [Accessed 7 Sep. 2018].

The Economist. (2012). The third industrial revolution. [online] Available at:
https://www.economist.com/leaders/2012/04/21/the-third-industrial-revolution [Accessed
13 Aug. 2018].

The Ultimate Guide to Fleet Telematics. (2018). Fleetcarma.

Tipping, A. and Kauschke, P. (2016). Shifting patterns: The future of the logistics industry.
[Online] pwc.com. Available at: https://www.pwc.com/sg/en/publications/assets/future-of-
the-logistics-industry.pdf [Accessed 24 May 2018].

Tjahjono, B., Esplugues, C., Ares, E. and Pelaez, G. (2017). What does Industry 4.0 mean to
Supply Chain?. ScienceDirect.

Transportation & Logistics 2030 Volume 4: Securing the supply chain. (2011). PwC.

Trebilcock, B. (2015). Distribution centers: It’s all about the business. [ebook] Available at:
https://www.logisticsmgmt.com/article/distribution_centers_its_all_about_the_business
[Accessed 14 Jul. 2018].

Trebilcock, B. (2018). The Emerging Role for Warehouse Drones in the Supply Chain - Supply
Chain 24/7. [online] Supplychain247.com. Available at:
http://www.supplychain247.com/article/the_emerging_role_for_drones_in_the_supply_ch
ain [Accessed 12 Sep. 2018].

Utterback, J. and Acee, H. (2003). Disruptive Technology.

Vaidya, S., Ambad, P. and Bhosle, S. (2018). Industry 4.0 - A Glimpse. ScienceDirect.

Valuebasedmanagement.net. (2016). Summary of the Kaizen philosophy and method.

Abstract. [online] Available at:
http://www.valuebasedmanagement.net/methods_kaizen.html [Accessed 16 Aug. 2018].

Vision Picking with Intel® Recon Jet™ Pro. (2015). [ebook] Intel. Available at:
https://www.ubimax.com/cms/customer-projects-20170717-1-ODa0ZhM8.pdf [Accessed 23
Sep. 2018].

Visser, J. and Binsbergen, A. (2018). NEW URBAN GOODS DISTRIBUTION SYSTEMS. [ebook]
Available at: http://www.tft.lth.se/fileadmin/tft/dok/KFBkonf/3binsbergenvisser.PDF
[Accessed 14 Jul. 2018].

Voortman, C. (2004). Global Logistics Management.

Vupune.ac.in. (2018). [online] Available at: https://www.vupune.ac.in/blog/growth-of-e-

commerce-fuels-need-for-skilled-management-graduates [Accessed 16 Jul. 2018].

WENDY HIRSCH CONSULTING. (2018). Implementation Framework. [online] Available at:

http://wendyhirsch.com/implementation-framework/ [Accessed 4 Nov. 2018].

123
West, A. (2017). Industry 3.0 vs. 4.0 - Vision of the new manufacturing world.

Wewilltransportit.com. (2015). Line Haul Transportation. [online] Available at:

https://www.wewilltransportit.com/line-haul-transportation/ [Accessed 14 Jul. 2018].

Wheeler, C. (2018). The 8 Best Order Picking Methods (Including Batch Picking). [online]
Newcastlesys.com. Available at: https://www.newcastlesys.com/blog/bid/348476/order-
picking-methods-and-the-simplest-ways-to-minimize-walking-infographic [Accessed 8 Jul.
2018].

White, J. (2015). Fleet Management - Logistics Operational Guide (LOG) - Digital Logistics
Capacity Assessments. [online] Dlca.logcluster.org. Available at:
http://dlca.logcluster.org/display/LOG/Fleet+Management [Accessed 15 Jul. 2018].

World Economic Forum. (2016). Industry 4.0. [online] Available at:

https://www.weforum.org/agenda/2016/05/industry-4-0/ [Accessed 26 Aug. 2018].

Wormer, P. (2014). How Bobcat used SmartLIFT technology to boost warehouse

performance. [online] Info.totaltraxinc.com. Available at:
http://info.totaltraxinc.com/blog/how-bobcat-used-smartlift-technology-to-boost-
warehouse-performance [Accessed 26 Sep. 2018].

Zeimpekis, V. (2018). Storage Areas: Designing and Organizing.

Zhong, R., Xu, X. and Wang, L. (2017). IoT-enabled Smart Factory Visibility and Traceability
using Laserscanners. ScienceDirect.

124