The digital transformation of logistics : demystifying impacts of the fourth industrial revolution / edited by Mac Sullivan, Johannes Kern.

ABOUT THE AUTHOR
MAC SULLIVAN has an MBA from Hult International Business School and is pursuing his PhDfrom East China Normal University in the field of Political Theory. In addition toworking for the past seven years in international logistics, he teaches classes in Supply Chain & Operations, Cross-Cultural Communication, and Economics atElon University and Tongji University.

JOHANNES KERN is a Senior Research Associate at the Bosch-Chair of Global SupplyChain Management at Tongji University. In addition to doing supply chainconsulting, he teaches classes in Supply Chain & Operations. He is currently pursuing his PhD from TechnischeUniversität Darmstadt.

Includes bibliographical references and index.

TABLE OF CONTENTS
List of Contributors xix

Author Biographies xxi

Foreword xxix

Acknowledgments xxxiii

A Note from the Series Editor xxxv

Section I Introduction 1

1 Demystifying the Impacts of the Fourth Industrial Revolution on Logistics: An Introduction 3
Mac Sullivan

Introduction 3

Future of Work in the Fourth Industrial Revolution 3

The Role of Digital Transformation 4

Hub Economy Companies Leading the Way 5

Current State of the Logistics Industry 5

Effects of the Second and Third Industrial Revolutions on Logistics 5

Technology Is Easy; But People Are Hard 6

The Role of Startups in the Logistics Community 6

Logistics Companies Under Pressure 7

Technology Investments by Logistics on the Rise 7

New Entrants Threaten Status Quo 8

Disintermediation Threat Looming 8

Navigating a Digital Transformation 9

Budget Considerations for Technological Upgrades 9

Lessons Learned from Other B2B Industries 10

Automation Leading in Terms of Return on Investment 10

Winners and Losers of a Digital Transformation 11

The Necessity of Economies of Scale 11

Foundations of a Digital Transformation 12

Prioritization of Technology Exploration 12

Connectivity Standardization in Logistics 12

New Business Models Emerging 13

Participation in Platforms and Marketplaces 14

Zoom Out/Zoom In Approach 14

The Time Is Now 15

Conclusion 16

Key Takeaways 17

References 17

Section II Technologies 21

2 Technologies Driving Digital Transformation 23
Mac Sullivan

References 25

3 Logistics Management in an IoT World 27
Axel Neher

Introduction 27

Logistics Management in an IoT World 29

Get Connected 29

Criteria for Defining the Right Things 30

Sensors and Identification 30

Means of Connection 31

Triggers 31

Standards 31

Security 32

Get Decisions 33

Get Prepared 34

Data Quality 34

Organization 35

Skills 35

Ecosystem 36

Conclusion 36

Key Takeaways 38

References 39

4 Additive Manufacturing: Shaping the Supply Chain Revolution? 41
Johannes Kern

Introduction 41

AM Supply Chain 42

Evaluation 43

Advantages 43

Bottlenecks 44

Technologies and Materials 46

Technologies 46

Materials 47

Application Scenarios 50

Market and Trends 51

Market 51

Trends 52

Conclusion 53

Key Takeaways 55

References 55

5 The Role of Robotic Process Automation (RPA) in Logistics 61
Mac Sullivan, Walter Simpson, and Wesley Li

Introduction 61

Companies Under Pressure 61

RPA as a Solution 62

Evaluating Heavyweight IT to Lightweight IT Automation 62

Achieving Operational Excellence 63

Process Improvement on the Rise 63

Outsourcing Versus Automation 64

Center of Excellence as a Leader of RPA 64

RPA: Hype or Realistic Solution 65

The Facts 65

Rote, Repetitive Tasks Ripe for Automation 65

Process Considerations of Implementing RPA 66

Motivating Example: Konica Minolta Using RPA 67

Konica Minolta’s RPA Roadmap 68

Use Cases for RPA in Logistics 70

Track and Trace 70

RPA Adoption at DHL 71

Navigating Your RPA Journey 71

Who Should Own This RPA Journey? 71

Process Mining and Process Mapping 72

Choosing the Right RPA Provider 72

Change Management Considerations 73

RPA Implementation Announcement 73

Liberated Knowledge Workers 74

Interacting with RPA 74

Training the Bot 74

Next Evolution of RPA Training 75

Conclusion 75

Key Takeaways 76

References 76

6 Blockchain Will Animate Tomorrow’s Integrated Global Logistics Systems 79
Nicholas Krapels

Introduction 79

The Origins of Blockchain Technology 81

The Potential of Blockchain Technology 84

Revolution via Protocol 84

Essential Properties of Blockchain 85

Blockchain Applications in Logistics 88

Public Blockchain Applications in Logistics 88

Private Blockchain Applications in Logistics 89

Conclusion 92

From Trusted Actors to Trustless Networks 92

Key Takeaways 94

References 94

7 Digitalization Solutions in the Competitive CEP Industry – Experiences from a Global Player in China 97
Scott Wang and Johannes Kern

Introduction 97

Challenges in Key Logistics Segments 97

Digitalization Solutions Today 98

E-Commerce in China and Its CEP Market 100

A New Competitive Environment 101

Digitalization Solutions of the Future 102

Internet of Things (IoT) 102

Artificial Intelligence (AI) 103

Blockchain 104

Case Study: Enhanced Address Translation Through AI 106

Conclusion 109

Key Takeaways 109

Acknowledgements 110

References 110

8 Understanding the Impacts of Autonomous Vehicles in Logistics 113
Lionel Willems

Introduction 113

Evolution of AGVs 114

Intelligent Logistics 116

The Automation of Indoor Transport Systems 116

Opportunities for AGVs 117

Challenges of Adopting AGVs 118

The Automation of Outdoor Transport Systems 119

History of the Automation of Outdoor Transport Systems 119

Opportunities and Challenges in Logistics 120

Drones and Their Use in Logistics 122

Conclusion 124

Key Takeaways 124

References 125

9 Logistics in the Cloud-Powered Workplace 129
John Berry

The Cloud Revolution 129

Growing Dominance of Cloud Computing 130

Infrastructure as a Service (IaaS) 130

Platform as a Service (PaaS) 131

Software as a Service (SaaS) 132

Enabling New Business Models 132

How Software Drives Logistics 133

Warehouse Management Systems (WMS) 134

Transportation Management Systems (TMS) 134

Shortcomings of Conventional Logistics Software 135

Complexity 135

Difficult Data Integration 135

The Impact of SaaS on Logistics 136

A New Technology Delivery Model 136

SaaS Warehouse Management Systems 137

SaaS Transportation Management Systems 138

APIs 138

SaaS-Enabled Value Creation 139

Automation 139

Integration 141

Analytics and Artificial Intelligence 141

Conclusion 142

Key Takeaways 143

References 143

Section III Platforms 147

10 Platforms Enabling Digital Transformation 149
Mac Sullivan

References 151

11 The Digital Transformation of Freight Forwarders: Key Trends in the Future 153
Ruben Huber

Introduction 153

The Specter of the Digital Transformation 153

Actors in the Shipment Cycle 153

Key Trends That Will Shape the Future 154

Technology 154

Specialization 156

Omnichannel 157

Virtualization 158

Reshaping Logistics Service 159

Collaboration Is Key 160

Digitalization Impact for White-Collar Workers 162

The Regulatory Environment 163

Conclusion 163

Key Takeaways 164

References 165

12 International Trade Revolution with Smart Contracts 169
Matías Aránguiz, Andrea Margheri, Duoqi Xu, and Bill Tran

The Blockchain Revolution 169

Smart Contracts 171

Smart Legal Contracts 171

Service Level Agreements 171

Smart Contracts in International Trade 172

Paperless Trade 172

Trade Finance 173

Bill of Lading 173

Letter of Credit 174

Trade Facilitation 174

Smart Import Declaration 175

Trusted Payment 176

we.trade Case Study 177

Information Distribution 178

Information Transmission 178

Tradelens Case Study 178

Information Symmetry 178

Smart Contract Initiatives 179

Government Initiatives 179

Chinese Central Bank 179

South Korea 179

Private Initiatives 180

Mizuho Bank Using IBM 180

Marco Polo Trade Initiative 180

Risks and Challenges of the Implementation 180

Technological Challenges 180

Scalability 180

Sustainability 181

Security 181

Interoperability Challenges 181

Compatibility 181

Data Standardization 182

Legal Issues 182

Validity 182

Privacy 182

Conclusion 182

Key Takeaways 183

References 183

13 Exploring China’s Digital Silk Road 185
Andre Wheeler

Introduction 185

Digital Integration and Supply Chain Along China’s BRI 186

Challenges of Digitization for the Freight Industry Along the BRI 189

Challenges in China 190

System Connectivity Challenges 191

Digital Silk Road as an Answer to the Digitalization Deadlock 191

Summary 193

Key Takeaways 194

References 195

14 Marine Terminal Operating Systems: Connecting Ports into the Digital World 197
Ira Breskin and Ayush Pandey

Introduction 197

Terminal Operating Systems 198

Ports and Local Governments Recognizing the Value of Modern TOS 198

An Increasingly Competitive TOS Software Market 199

Navis as a Terminal Operating System 200

Breaking Down the Costs of Implementing a TOS 202

What to Consider When Selecting a TOS? 202

Importance of Visibility at the Terminal 203

Digital Communication is Key 204

The Future of Terminal Operating Systems 204

Conclusion 206

Key Takeaways 207

References 207

15 Improving Cross-Border eCommerce Through Digitalization: The Case of Compliance in B2C Shipments 209
Simon de Raadt and Jiao Xu

Introduction 209

Customs Clearance as a Barrier Constraining Growth 210

Lack of Integration as the Root Cause of Customs Misdeclaration 212

How the Digitalization Can Revolutionize Cross-Border ECommerce 214

Increased Customer Satisfaction 215

Supply Chain Visibility 215

Speed of Customs Clearance 216

Technology as Enabler for a Cooperative Model 217

Technical Requirements 219

Conclusion 219

Key Takeaways 220

References 220

16 Enabling Platform Business Models for International Logistics 223
Sam Heuck and Cory Margand

Introduction 223

Current International Logistics Technology Landscape 225

The BCO’s Perspective 230

The Future 232

SimpliShip: Deeper Dive into an Existing Logistics Marketplace 233

The Era of Data and the Impact on the Workforce 235

Conclusion 238

Key Takeaways 238

References 238

17 The Evolution of the Cold Chain: A Story of Increasing Complexity Amidst a Sea of Traditional Thinking 243
Alex von Stempel

Introduction 243

Cold Chain Transportation 243

Cold Chain Transportation Modes 244

Ocean Freight 244

Airfreight 246

Technological Differentiation Between Air and Ocean Cold Chain Transportation 246

Cold Chain Transportation Considerations 247

Condition Monitoring 247

Controlled Atmosphere (CA) 248

Modified Atmosphere Packaging (MAP) 249

Evolution of Cold Chain Transportation 249

Technology Solutions 251

Blockchain 251

IoT and AI 252

Gaps to be Addressed 252

Food Safety as the Key 253

Conclusion 253

Key Takeaways 254

References 254

Section IV People 257

18 People Navigating Digital Transformation 259
Johannes Kern

References 261

19 Change Management Falling Short – the Call for Business Transformation 263
Michael Teubenbacher

Introduction 263

Change Management and Business Transformation – Two Sides of the Same Coin? 264

Business Transformation in the Context of “Digital” 265

Change Management in the Context of “Digital” 267

Business Transformation and Change Management in the Context of the Fourth Industrial Revolution in Logistics 271

Conclusion 274

Key Takeaways 275

References 275

20 Organizational Culture Change: Process to Sustainably Improve Performance 277
Robert Mostert and Johannes Kern

Introduction 277

OCC Business Practices 279

Strategic Matching 279

Purpose, Vision, and Mission 281

Values and Beliefs 281

Recruitment and Placement 283

Training and Development 283

Rewards and Recognition 284

Performance Management and Feedback 285

Artifacts 286

OCC at Toll 287

Background 287

New Purpose, Values, and the Case for Change 288

Changing the Way to Manage Performance 291

Tone from the Top (Leadership) 292

Next Steps 292

Conclusion 293

Key Takeaways 294

References 295

21 Competence Management as an Enabler for the Digital Transformation of the Supply Chain 299
Jiayu Sun

Introduction 299

Competence Management in Supply Chain Functions 300

Fundamentals of Competence Management 300

Bosch Case Study: A Competence Model Example 300

Current Competencies Required 301

Future Competences Needed 301

Digital Transformation Competence Management: A Learning Transformation 303

Fundamentals of Learning 303

Transitioning from Passive Learning to Active Learning 304

Transitioning from Classroom Training to Digital Learning 305

Future Learning Trends 305

Micro-learning 305

Mobile Learning 306

AR/VR 306

Blended Learning 307

Conclusion 307

Key Takeaways 308

References 308

22 Impacts of Digitalization on Traceability: A Case Study of the Carbon Fiber Supply Chain 311
Cameron Johnson

Introduction 311

Carbon Fiber, The Material of the Future 312

Global Supply Chains: A Fragmented Picture 312

Several Constraints Characterize the Global Supply Chain 313

Case Studies on Lack of Material Traceability and Digitalization 314

Case Study 1: An Aerospace Company Losing a Qualified Supplier 314

Quality Management 315

Quality Control 315

Standards 315

Case Study 2: Traceability, Which Affects Efficiency and Compliance 315

Case Study 3: A Global Carbon Fiber Converter’s Internal Waste System Could Use an Upgrade 318

Tracking Waste 319

Compliance 320

Digitalization Benefits in the Global Carbon Industry 320

Implementation Challenges 320

Manual Entry 320

Cost 321

Training and staffing 321

Motivation 321

Digitization Opportunities 321

Conclusion 322

Key Takeaways 322

References 323

23 The Evolution of Freight Forwarding Sales 329
Mac Sullivan, Dennis Wong, and Zheyuan Tang

Introduction 329

The Rise of the Digital Freight Forwarder as a New Entrant 329

Market Shifts 330

Amazon Effect 330

Instant Visibility and Pricing 331

Redefining Customer Service 332

The Evolution of Freight Forwarding Sales 332

The Traditional Sales Representative 332

Traditional Sales Reps Evolving 333

Rise of Technology and Its Effects on Sales 333

Connectivity 334

Freight Forwarding Sales Executives at Risk of Losing Their Jobs? 335

Analytical and Creativity as Valued Skills 335

Future Job Market 336

Sales Enablement in a Digital Age 336

Information 337

Training 338

Talent 338

New Cultures and Skills 339

Conclusion 340

Key Takeaways 341

References 341

24 Managing and Selecting Logistics Service Suppliers 345
Colin Cobb and Dyci Sfregola

Introduction 345

Identifying Business Needs, Capacity, and Capabilities 346

Motivational Example 347

Background 347

Current State Enterprise Network 348

Services that Will Be Needed to Achieve the Goal 348

Industry Vertical Experience 348

Technology Solutions 348

Forecasted and Desired Demand 348

Previous Wins and Challenges 348

Deconstructing the Issues 349

Defining a Solution 349

Choosing a Solution 350

Sourcing and Managing Suppliers in the Continuum 350

Strategies for Developing Strategic Alliance 351

The Vested Outsourcing Model 351

Pricing Considerations for Outsourcing 353

The Roadmap for Success: Onboarding, Measurements, and Service Level Agreements 354

Key Performance Metrics 355

On-Time Delivery (Inbound) 355

Order Accuracy 355

Cost per Shipment 355

Customer Order Cycle Time 356

Carrier Scan Rate 356

Inbound (Purchased) Order Cycle Time 356

Inventory Accuracy 356

Fill Rate 356

Data or Document Transfer Error Rate 357

Logistics Billing Accuracy 357

Supplier Development and Managing the Supplier Relationship 357

Conclusion 358

Key Takeaways 358

References 359

Section V Conclusion 361

25 The Digital Transformation of Logistics: A Review About Technologies and Their Implementation Status 363
Johannes Kern

Introduction 363

State of Digitalization in Logistics and Supply Chain Management 365

Logistics Infrastructure 365

Seaports 365

Airports 366

Warehousing 368

Logistics Execution 371

Road Transport 371

Sea Transport 376

Air Transport 378

Courier, Express, and Parcel Delivery (CEP) 381

Logistics Services and Advisory 387

Conclusion 391

Key Takeaways 393

Acknowledgments 394

References 394

Glossary 405

Index 435

The digital transformation is in full swing and fundamentally changes how we live, work, and communicate with each other. From retail to finance, many industries see an inflow of new technologies, disruption through innovative platform business models, and employees struggling to cope with the significant shifts occurring. This Fourth Industrial Revolution is predicted to also transform Logistics and Supply Chain Management, with delivery systems becoming automated, smart networks created everywhere, and data being collected and analyzed universally. The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution provides a holistic overview of this vital subject clouded by buzz, hype, and misinformation. Provided by publisher.

Description based on print version record and CIP data provided by publisher; resource not viewed.