The Digital Transformation of Logistics
Demystifying Impacts of the Fourth Industrial Revolution
IEEE Press Series on Technology Management, Innovation, and Leadership

1. Edition April 2021
480 Pages, Softcover
Professional Book
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.
The book is divided into three themed-sections:
* Technologies such as self-driving cars or virtual reality are not only electrifying science fiction lovers anymore, but are also increasingly presented as cure-all remedies to supply chain challenges. In The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution, the authors peel back the layers of excitement that have grown around new technologies such as the Internet of Things (IoT), 3D printing, Robotic Process Automation (RPA), Blockchain or Cloud computing, and show use cases that give a glimpse about the fascinating future we can expect.
* Platforms that allow businesses to centrally acquire and manage their logistics services disrupt an industry that has been relationship-based for centuries. The authors discuss smart contracts, which are one of the most exciting applications of Blockchain, Software as a Service (SaaS) offerings for freight procurement, where numerous data sources can be integrated and decision-making processes automated, and marine terminal operating systems as an integral node for shipments. In The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution, insights are shared into the cold chain industry where companies respond to increasing quality demands, and how European governments are innovatively responding to challenges of cross-border eCommerce.
* People are a vital element of the digital transformation and must be on board to drive change. The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution explains how executives can create sustainable impact and how competencies can be managed in the digital age - especially for sales executives who require urgent upskilling to remain relevant. Best practices are shared for organizational culture change, drawing on studies among senior leaders from the US, Singapore, Thailand, and Australia, and for managing strategic alliances with logistics service providers to offset risks and create cross-functional, cross-company transparency.
The Digital Transformation of Logistics: Demystifying Impacts of the Fourth Industrial Revolution provides realistic insights, a ready-to-use knowledge base, and a working vocabulary about current activities and emerging trends of the Logistics industry. Intended readers are supply chain professionals working for manufacturing, trading, and freight forwarding companies as well as students and all interested parties.
Editor and Author Biographies
Foreword - awaiting approval
Acknowledgments
Section I Introduction, edited by Mac Sullivan
Chapter 1 Demystifying the Impacts of the Fourth Industrial Revolution on Logistics: An Introduction Mac Sullivan
Section II Technologies, edited by Mac Sullivan
Chapter 2 A Technologies Driving Digital Transformation Mac Sullivan
Chapter 3 Logistics Management in an IoT world Axel Neher
Introduction2
Logistics Management in an IoT world4
Get connected4
Criteria for defining the right Things5
Sensors and identification5
Means of connection6
Triggers7
Standards7
Security7
Get decisions8
Get prepared10
Data Quality11
Organization11
Skills11
Ecosystem12
Conclusion13
Key Takeaways
References
Chapter 4 Additive Manufacturing: Shaping the Supply Chain Revolution? Johannes Kern
Introduction2
AM Supply Chain2
Evaluation4
Advantages4
Bottlenecks5
Technologies and materials6
Technologies6
Materials8
Application Scenarios11
Market and Trends12
Market12
Trends13
Conclusion
References
Chapter 5 The Role of Robotic Process Automation (RPA) in Logistics. Mac Sullivan, Walter Simpson and Wesley Li
Introduction2
Companies Under Pressure2
RPA as a Solution3
Evaluating Heavyweight IT to Lightweight IT Automation4
Achieving Operational Excellence5
Process Improvement on the Rise5
Outsourcing versus Automation6
Center of Excellence as a Leader of RPA7
RPA: Hype or Realistic Solution8
The Facts8
Rote, Repetitive Tasks Ripe for Automation9
Process Considerations of Implementing RPA10
Motivating Example: Konica Minolta Using RPA11
Konica Minolta's RPA Roadmap13
Use Cases for RPA in Logistics15
Track and Trace15
RPA Adoption at DHL16
Navigating Your RPA Journey17
Who Should Own this RPA Journey?17
Process Mining and Process Mapping17
Choosing the Right RPA Provider18
Change Management Considerations19
RPA Implementation Announcement19
Liberated Knowledge Workers21
Interacting with RPA22
Training the Bot22
Next Evolution of RPA Training22
Conclusion23
Key Takeaways24
References:24
Chapter 6 Blockchain Will Animate Tomorrow's Integrated Global Logistics Systems. Nicholas Krapels
Introduction1
The Origins of Blockchain Technology3
The Potential of Blockchain Technology6
Revolution Via Protocol7
Essential Properties of Blockchain8
Blockchain Applications in Logistics11
Public Blockchain Applications in Logistics11
Private Blockchain Applications in Logistics12
Conclusion: From Trusted Actors to Trustless Networks14
Key Takeaways16
Bibliography17
Chapter 7 Digitalization Solutions in the Competitive CEP Industry - Experiences from a Global Player in China. Scott Wang, Johannes Kern
Introduction1
Challenges in Key Logistics Segments2
Digitalization Solutions today3
eCommerce in China and its CEP market4
A new competitive environment5
Digitalization Solutions of the future6
Internet of things (IoT)6
Artificial Intelligence (AI)7
Blockchain8
Case study: Enhanced address translation through AI10
Conclusion12
Key takeaways13
Acknowledgment
References
Chapter 8 Understanding the Impacts of Autonomous Vehicles in Logistics. Lionel Willems
Introduction1
Evolution of AGVs2
Intelligent Logistics4
The Automation of Indoor Transport Systems5
Opportunities for AGVs5
Challenges of Adopting AGVs7
The Automation of Outdoor Transport Systems7
History of the Automation of Outdoor Transport Systems8
Opportunities and Challenges in Logistics9
Drones and Their Use in Logistics10
Conclusion12
Key Takeaways12
References
Abbreviations
Chapter 9 Logistics in the Cloud-Powered Workplace John Berry
The Cloud Revolution3
Growing Dominance of Cloud Computing4
Infrastructure as a Service (IaaS)4
Platform as a Service (PaaS)5
Software as a Service (SaaS)6
Enabling New Business Models7
How Software Drives Logistics7
Warehouse Management Systems (WMS)8
Transportation Management Systems (TMS)8
Shortcomings of Conventional Logistics Software9
Complexity9
Difficult Data Integration10
The Impact of SaaS on Logistics11
A New Technology Delivery Model11
SaaS Warehouse Management Systems11
SaaS Transportation Management Systems12
APIs13
SaaS-Enabled Value Creation14
Automation14
Integration15
Analytics and Artificial Intelligence16
Conclusion17
Key Takeaways17
References
Section III Platforms edited by Mac Sullivan, Johannes Kern, and Walter Simpson
Chapter 10 Platforms Enabling Digital Transformation Mac Sullivan
Chapter 11 The Digital Transformation of Freight Forwarders: Key trends in the future Ruben Huber
Introduction1
The Specter of the Digital Transformation1
Actors in the shipment cycle2
Key trends that will shape the future2
Technology3
Specialization4
Omnichannel5
Virtualization6
Reshaping Logistics Service6
Collaboration is Key7
Digitalization impact for white-collar workers9
The regulatory environment10
Conclusion10
Key Takeaways
References
Chapter 12 International Trade Revolution with Smart Contracts Matías Aránguiz, Bill Tran, Andrea Margheri, Duoqi Xu
1 The Blockchain revolution3
2 Smart Contracts introduction5
2.1 Smart Legal Contract5
2.2 Service Level Agreements use case6
3 Smart Contracts in International Trade6
3.1 Paperless Trade7
3.2 Trusted Payment12
3.3 Information Distribution14
4 Smart Contract Initiatives15
4.1 Government Initiatives15
4.2 Private Initiatives16
5 Risks and challenges17
5.1 Technological challenges17
5.2 Interoperability challenges18
5.3 Legal issues19
6 Conclusion and takeaway19
7 References
Chapter 13 Exploring China's Digital Silk Road Andre Wheeler
Introduction2
Digital Integration and Supply Chain along China's BRI.3
Benefits of Digitization for the Freight Industry along the BRI6
Challenges in China7
System Connectivity Challenges9
Digital Silk Road as Answer To The Digitalization Deadlock?10
Key Takeaways
References
Chapter 14 Marine Terminal Operating Systems: Connecting Ports into the Digital World Ira Breskin, Ayush Pandey
Introduction1
Terminal Operating Systems2
Ports and Local Governments Recognizing the Value of Modern TOS3
An Increasingly Competitive TOS Software Market3
Navis as a Terminal Operating System5
Breaking Down the Costs of Implementing a TOS6
What to consider when selecting a TOS?7
Importance of Visibility at the Terminal8
Digital Communication is Key9
The Future of Terminal Operating Systems9
Conclusion11
Key Takeaways
References
Chapter 15 Improving Cross Border eCommerce through Digitalization: The Case of Compliance in B2C Shipments Simon de Raadt, Jiao Xu
Introduction2
Customs clearance as a barrier constraining growth3
Lack of integration as the root cause of customs misdeclaration4
How the digitalization can revolutionize cross border eCommerce8
Increased Customer satisfaction8
Supply chain visibility9
Speed of customs clearance9
Technology as enabler for a cooperative model10
Technical Requirements12
Conclusion13
Key Takeaways
References
Chapter 16 4.G Enabling Platform Business Models for International Logistics Cory Margland, Samuel Heuck
Introduction1
Current International Logistics Technology Landscape4
The BCO's Perspective9
The Future10
SimpliShip: Deeper Dive into an Existing Logistics Marketplace11
The Era of Data and The Impact on The Workforce13
Conclusion16
Key Takeaways
References
Chapter 17 The Evolution of the Cold Chain: A Story of Increasing Complexity Amidst a Sea of Traditional Thinking Alex von Stempel
Introduction1
Cold Chain Transportation1
Cold Chain Transportation Modes2
Ocean Freight2
Technological Differentiation Between Air and Ocean Cold Chain Transportation4
Cold Chain Transportation Considerations5
Condition monitoring5
Controlled atmosphere (CA)6
Modified atmosphere packaging (MAP)7
Evolution of Cold Chain Transportation7
Technology Solutions9
Blockchain9
IoT and AI10
Gaps to be Addressed10
Food safety as the Key11
Conclusion11
Key Takeaways
References
Section IV: Managers, edited by Johannes Kern
Chapter 18 A People Navigating Digital Transformation Johannes Kern
Chapter 19 Change-Management Falling Short: The Call for Business Transformation Michael Babilon-Teubenbacher
1.Change-Management & Business Transformation - two sides of the same coin?1
2.Business Transformation in the context of 'Digital'3
3.Change Management in the context of "Digital"3
4.Business Transformation and Change Management in the context of the fourth industrial revolution in Logistics3
Key Takeaways
References
Chapter 20 Organizational Culture Change: Process to Sustainably Improve Performance Robert Mostert, Johannes Kern
Introduction3
OCC Business practices5
Strategic Matching5
Purpose, Vision & Mission6
Values & Beliefs7
Recruitment & Placement8
Training & Development9
Rewards & Recognition10
Performance Management & Feedback11
Artefacts11
OCC at Toll13
Background13
New Purpose, Values and the Case for Change14
Changing the Way to Manage Performance16
Tone from the Top (Leadership)17
Next Steps18
Conclusion
Key Takeaways
References
Chapter 21 Competence Management as an Enabler for the Digital Transformation of the Supply Chain Jiayu Sun
Introduction2
Competence Management in Supply Chain functions3
Fundamentals of Competence Management3
Bosch Case Study: A Competence Model Example3
Current Competencies Required4
Future Competences Needed4
Digital Transformation Competence Management: A Learning Transformation6
Fundamentals of learning6
Transitioning from Passive Learning to Active Learning7
Transitioning from classroom Training to Digital Learning8
Future Learning Trends8
Micro-learning8
Mobile learning9
AR/VR9
Blended learning9
Conclusion10
Key takeaways11
Bibliography
Chapter 22 Impacts of Digitalization on Traceability: A Case Study of the Carbon Fiber Supply Chain Cameron Johnson
Introduction3
Global Supply Chains: A Fragmented Picture3
Carbon fiber, the material of the future4
Several constraints characterize the global supply chain6
Case studies on lack of material traceability and digitalization6
Case Study 1: An Aerospace Company Losing a Qualified Supplier7
Testing7
Quality Management8
Quality Control8
Standards9
Case study 2: Traceability, which affects efficiency and compliance.9
Case Study 3: A global carbon fiber converter's internal waste system could use an upgrade.11
Benefits of a Digitalized System13
Tracking Waste13
Compliance14
Digitalization Benefits in the Global Carbon Industry15
Implementation Challenges15
Manual Entry15
Cost15
Training and staffing15
Motivation16
Digitization Opportunities16
Conclusion17
Key Takeaways:17
References
Chapter 23 The Evolution of Freight Forwarding Sales Mac Sullivan, Dennis Wong, and Zheyuan Tang
Introduction2
The Rise of the Digital Freight Forwarder as a New Entrant2
Market Shifts3
Amazon Effect3
Instant Visibility and Pricing4
Redefining Customer Service5
The Evolution of Freight Forwarding Sales5
The Traditional Sales Representative6
Traditional Sales Reps Evolving6
Rise of Technology and Its Effects on Sales7
Connectivity7
Freight Forwarding Sales Executives at Risk of Losing their Jobs?8
Analytical and Creativity as Valued Skills9
Future Job Market9
Sales Enablement in a Digital Age10
Information10
Training11
Talent11
New Cultures and Skills13
Conclusion14
Key Takeaways14
References
Chapter 24 Managing and Selecting Logistics Service Suppliers Colin Cobb and Dyci Sfregola
Introduction2
Identifying Business Needs, Capacity, and Capabilities4
Motivational Example4
Choosing a Solution9
Sourcing and Managing Suppliers in the Continuum9
Strategies for Developing Strategic Alliance11
Pricing Considerations for Outsourcing13
The Roadmap for Success: Onboarding, Measurements, and Service Level Agreements14
Key Performance Metrics16
Supplier Development and Managing the Supplier Relationship19
Conclusion20
Key Takeaways22
Sources
Section V: Conclusion edited by Johannes Kern
Chapter 25 Digitalizing the Logistics Industry: A Review About Technologies and their Implementation Status Johannes Kern
Introduction2
State of Digitalization in Logistics and Supply Chain Management4
Logistics Infrastructure4
Seaports4
Airports6
Warehousing7
Logistics Execution10
Road Transport10
Sea Transport13
Air Transport16
Courier, Express and Parcel Delivery (CEP)19
Logistics Services & Advisory22
Conclusion26
Key takeaways
Acknowledgement
References
Glossary
--Thomas Knudsen, Managing Director, Toll Group
"The book does a great job in creating readable content that contains learning points for everyone active in logistics and supply chain management, from students to seasoned experts. Help yourself by digging into this book as I challenge you to start your own evolution to be at the forefront of digitalization in the logistics industry." --Dr.-Ing. Jens Puttfarcken, President and CEO, Porsche China
"As moving goods around the world increasingly depends on the right way to move bits and bytes, Sullivan and Kern have aggregated a phenomenal overview of some of the most critical trends shaping global logistics today....and tomorrow." --Eytan Buchman, Chief Marketing Officer, Freightos
"Identifying the value and opportunities of digitization within the logistics industry is the key to enable organizations to transform. A must-have in every logistics manager's bookshelf, this book gives supply chain professionals the insights to lead the transformation."--Benedikt Birner, Senior Director of Logistics, Schaeffler Group
JOHANNES KERN is an affiliated professor at Tongji University, where he researches buyer-supplier relationships and the digital transformation of logistics. As the General Manager of Xiezhi Consulting, he enables international companies in China to optimize their entire supply chain, including sourcing, transportation, warehousing, and production. Johannes holds a Ph.D. from Technische Universität Darmstadt in Germany.