Identification, assessment, and quantification of new risks for Logistics 4.0

ABSTRACT

Logistics 4.0 brands the specific application of Industry 4.0 technologies. Although it is considered to be a significant innovation, contemporary research has raised concerns regarding the potential challenges for its implementation. To our knowledge, no study has conducted an extensive quantitative risk analysis to avoid these new risks and overcome barriers to the adoption of Industry 4.0 in the logistics context. Moreover, a comprehensive study on the implementation of each Industry 4.0 technology at each sub-activity level of the logistics structure is still warranted. This study addresses the aforementioned research gaps. The results of this study reveal that activity Inventory management had the highest drop in performance for most of the companies. Industry 4.0 technologies, such as autonomous robots, simulation, system integration and big data analytics were in the advanced stage of in-process implementation. However, Industry 4.0 technologies, including cyber physical system, internet of things and cloud computing, were in the initial stage of implementation. Technological infrastructure risk was found to have a significant impact on all Industry 4.0 technologies regardless of their maturation stage. The insights drawn through the result analyses and discussion can be used by managers to address new risks to successfully implement Industry 4.0 in logistics.

KEYWORDS:

• Industry 4.0
• Logistics 4.0
• risks
• simulation

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The authors confirm that the data supporting the findings of this study are available within the article.

Additional information

Funding

This work was supported by the Indian Institute of Management Ranchi.