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2018 ISPEM Logistics 4.0 Maturity Model
2018 ISPEM Logistics 4.0 Maturity Model
2018 ISPEM Logistics 4.0 Maturity Model
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Abstract. The term Industry 4.0 is widely recognized, not only among academ-
ics, but also among business. The term that has not gained that popularity and
publicity yet is Logistics 4.0. As industry needs material flows, and in global
economy they are of high complexity, authors believe that Logistics 4.0 will be
the field of research and solutions within it will be sought for and implemented
by companies. The paper presents the framework of Logistics 4.0 Maturity
Model, developed to provide companies with opportunity to assess current sta-
tus with respect to Logistics 4.0 and develop a road map for improvement pro-
cess. The model is developed basing on the literature research on Logistics 4.0
and maturity models and design to offer measures that can be translated into set
of guidelines or recommended solutions towards Logistics 4.0. The research is
at the modeling stage, however the pilot research among business to recognize
their awareness of Logistics 4.0 as a source of competitive advantage and tools
and methods within Logistics 4.0 was already conducted and is to be the basis
for further research stages.
1 Motivation
Industry 4.0 and Logistics 4.0 are inherent elements of contemporary business en-
vironment, even if companies are not aware that they benefit from solutions within
their scope. The research strives to develop an evaluation methodology to assess
whether the current status of a company (processes it performs, information systems it
benefits from and management approach it uses) corresponds in any way with Logis-
tics 4.0 solutions. Such a feedback can make managers aware that they already are
benefiting from Logistics 4.0 and be an incentive to implement more solutions from
its scope.
The methodology is to focus on assessing level of maturity in the context of Logistics
4.0 – Logistics 4.0 Maturity Model. The model is based on authors knowledge and
experience in the field. Theoretical framework is to be implemented into IT environ-
ment to make the methodology available for wide spectrum of potential users. The
main stages of the research are presented in the Figure 1.
Free-access
application
Test stage
App develop
Practical model implementation
Model
Experts Theoretical model development
panel
Literature
research
Figure 1. Brief outline of methodology of research implemented
The paper covers mainly the basis, which theoretical part. Literature research was
carried among world literature in Logistics 4.0 and maturity models. Experts panel
brainstormed the most important elements of the model and produced the framework
3
of Logistics 4.0 Maturity Model. The model is to be transformed into an online appli-
cation, tested and published as free-access tool.
3 Literature review
The advantages listed in the table refer mostly to potential Logistics 4.0 offers while
the disadvantages are the consequence of Logistics 4.0 requirements concerning
5
30
20
10
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
The number of references found is not large (max 27), but growing, which shows on
one hand the cognitive gap and on the other proves the potential of the field. The total
number of references include press material and professional trade publications. The
list was filtered to identify scientific papers and the diagram presents those indexed by
Scopus and WoS.
4.1 Dimensions
Following the introduced research procedure, authors carried out the literature re-
search to characterize the terms “Logistics 4.0”, “maturity” and “maturity models”.
Due to limited size of the paper only brief presentation of the most distinctive features
of the terms were presented in the previous sections. Based on literature review of
existing maturity models, and Logistics 4.0 enablers, challenges and trends, the draft
model was developed, including maturity indicators and elements. Authors conformed
their ideas with academics specializing in the field of logistics during the experts pan-
el to foster introduction of new items and indicators for the maturity framework. The
feedback from experts panel and the literature review enabled definition of the final
structure of Logistics 4.0 Maturity Model.
The Logistics 4.0 Model was used to define criteria with which companies are
classified into five types. This classification is based on the following three aspect of
logistics1: (1) management (2) flow of material, (3) flow of information, which be-
1
According to Council of Supply Chain Management Professionals (previously the Council of
Logistics Management) logistics is the process of planning, implementing and controlling
(altogether referred to as management) procedures for the efficient and effective transporta-
tion and storage of goods (material flows) including services and related information (in-
formation flows) from the point of origin to the point of consumption for the purpose of
7
come naturally three dimensions for Logistics 4.0 solutions, as presented in the Table
2.
The three dimensions constituting the Model Area can be used to assess the maturity
and awareness of managers in terms of solutions within Logistics 4.0. Depending on
the number and scope of solutions implemented, the conclusion on present Logistics
4.0 status can be drawn. Moreover, recommendation concerning the status improve-
ment, and maturity increase, can be defined basing on gaps identification and analy-
sis, making the model useful not only in terms of diagnosis, but also in terms of man-
agement.
According to authors, the term ‘Logistics 4.0 maturity’ reflects the level to which a
company or a supply chain has implemented Logistics 4.0 concepts. Authors distin-
guish five maturity levels: Ignoring, Defining, Adopting, Managing and Integrated. In
the Figure 3 maturity levels are confronted with Logistics 4.0 dimensions.
conforming to customer requirements and includes inbound, outbound, internal and external
movements.
8
By that year, according to the World Economic Forum, the implementation of digi-
tal platforms that enable cross-border trade and crowdsourcing of logistics routes
could together will contribute to substantial development of logistics. On top of inte-
grating Industry 4.0, supply chain and procurement leaders will also need to redistrib-
ute roles and responsibilities between humans and machines, taking the right cues and
best practices from across industries as they too evolve alongside the fourth industrial
revolution. Most companies associate digitization with the goal of greater delivery
reliability. Digitization provides various levers for this purpose, such as more trans-
parency, better predictability and planning, risk reduction or customer-specific prod-
ucts. At the same time, modern IT enables companies to integrate greater flexibility
and agility in their processes and therefore to react more promptly to customers and
market requirements. Increasing competition causes that data is progressively becom-
ing an asset. The goal of connected digitization and Industry 4.0 and Logistics 4.0 are
therefore the learning, agile company that is able to adapt to changing requirements.
Unfortunately, many enterprises have little knowledge about the characteristics of
both concepts, the solutions they propose, as well as the benefits of using the latest
methods of process digitization. The aforementioned thesis is confirmed by research
carried out by the Ministry of Development and Siemens in the years 2016-2017 col-
lected as part of the Smart Industry Polska Report [43].
By knowing where companies are today, they can easily find their future goal –
and how they will get there. Assessing Logistics 4.0 maturity will help visualize com-
panies’ path forward and set priorities for process improvement. First stage of planned
research is to carry out survey between Polish companies – the practical, implementa-
tion part of the research. Based on preliminary results from survey conducted by au-
thors in logistics and manufacturing companies from among the surveyed companies
33 percent know the term Logistics 4.0, 50% percent of companies know the concept
of big data, 83% companies want to apply automated data exchange systems and are
willing to automate their processes as well as introduce partial robotization of the
processes.
Identification of logistics maturity of companies will enable assessment of the in-
dustry condition in Poland and will provide data for analysing correlation between the
maturity level of a company, and its competitive position, size, development dynam-
ics, number of services offered, structure of capital and level of internationalization of
operations. The analysis is supposed to lead to general conclusion and development of
system dynamics model presenting system, that a company providing logistics ser-
vices undoubtedly is, behaviour in the form of causal loop. The model will add dy-
namic layer to the static concept of logistics maturity levels.
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