Logistics Innovation and Future: A Critical Analysis

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ASSESSMENT TASK 2
SOURCES RATIONALE, CRITICAL ANNOTATED BIBLIOGRAPHY AND
DISCUSSION PAPER PLAN

Contents
SOURCE RATIONALE..................................................................................................................3
ANNOTATED BIBLIOGRAPHY..................................................................................................5
DISCUSSION PAPER PLAN.........................................................................................................9
REFERENCES..............................................................................................................................11

SOURCE RATIONALE
ARTICLE 1:
Ivan Su, S. I., Gammelgaard, B., & Yang, S. L. (2011). Logistics innovation process
revisited: insights from a hospital case study. International Journal of Physical Distribution &
Logistics Management, 41(6), 577-600. DOI: 10.1108/09600031111147826
Logistics innovation is a necessity to enhance the processes and remove the implications which
will help in focusing other crucial aspects within any business. Britta Gammelgaard, Shong-Iee
Ivan Su, Su-Lan Yang from Department of Operations Management, Copenhagen Business
School conducted a study on logistics innovation in a hospital. This study covers the implications
of focal organisations and their supply chain management systems.
ARTICLE 2:
Daugherty, P. J., Chen, H., & Ferrin, B. G. (2011). Organizational structure and logistics
service innovation. The International Journal of Logistics Management, 22(1), 26-51. DOI:
10.1108/09574091111127543
Patricia J. Daugherty from the University of Oklahoma, Haozhe Chen from College of Business,
East Carolina University and Bruce G. Ferrin from Haworth College of Business working in
Marketing and Supply Chain Management conducted this study to determine the role of the
organisational structure on effective logistics and its service innovation. Decentralization,
formalization and specialization structures are focused in this report study.
ARTICLE 3:
Klumpp, M., & Zijm, H. (2019). Logistics innovation and social sustainability: How to
prevent an artificial divide in Human-Computer Interaction. Journal of Business Logistics.
Klumpp, M., & Zijm, H. (2019). DOI:10.1111/jbl.12198
Innovation in logistics can pave a way to the social sustainability of the business and hence
Matthias Klumpp and Henk Zijm researched on techniques that can help in preventing an

Artificial Divide in Human-Computer Interaction. This research aims to work on the
fundamental concern of the level of control transferred to machines.
ARTICLE 4:
Hu, Z. H., & Sheng, Z. H. (2014). A decision support system for public logistics
information service management and optimization. Decision Support Systems, 59, 219-229.
DOI:10.1016/j.dss.2013.12.001
Zhi-Hua Hu and Zhao-HanSheng has highlighted a study on the decision support system for the
logistics and aims at minimising the empty load ratio in vehicles. The study has been conducted
in China and motivation came from long distances between B2B and B2C and increased costs.
Most of the Chinese local governing bodies are working on developing effective services that
can decrease ELR. Authors have developed a matching vehicle model to minimise the same
based on concepts and decision-making models for PLISMO and found that it is effective after
analysing the results.
ARTICLE 5:
Wu, Y. J., & Hou, J. L. (2010). An employee performance estimation model for the
logistics industry. Decision Support Systems, 48(4), 568-581. DOI: 10.1016/j.dss.2009.11.007
Yu-Jen Wu and Jiang-Liang Hou developed an employee performance model for logistic
industries due to the rapid growth in Taiwan with the motive to enhance third party logistics
(3PLs) that can enhance efficiency and competency. They determined employee performances to
develop an employee performance estimation model (EPE) with direct and indirect performance
determination and score analysis to reduce the workloads.

ANNOTATED BIBLIOGRAPHY
ARTICLE 1: Ivan Su, S. I., Gammelgaard, B., & Yang, S. L. (2011). Logistics
innovation process revisited: insights from a hospital case study. International Journal of
Physical Distribution & Logistics Management, 41(6), 577-600. DOI:
10.1108/09600031111147826
Innovation in logistics and supply chain is the current hot topic of research and discussion on
global platforms. With the establishment of new businesses, there come new ways to handle
supply chains and companies like Ikea, Zara and Dell have emerged from their innovative
logistic perspectives. Not only in production industries, but even the healthcare sector is also
focusing on increasing the flow of production and the main reason behind this is the distance of
service care from their locations. Authors showed that hospitals in Taiwan and USA wanted to
get into suppliers for logistics innovation. Research shows that there is a need to focus on basic
logistics to innovate. Some take the voice of the customer approach for innovation, some
implemented cross-docking and pull-based supply chain design while the major areas for
innovation are found to be the product of service-based, process-based, position and paradigm
based. A radar model of innovation has also been discussed for innovation involves 12
dimensions that can help to innovate. Overall, in results, it has been stated that innovation is
nothing but the redesign of the core processes of operating that improves effectiveness and
efficiency.

For this study, action research methodology has been utilised as it helps practitioners to indulge
in actual problems. Hence, the research method emphasises on practical problem solving,
address problems and application of the theory with the process changes for logistics innovation
in the Taiwanese healthcare industry. The results and findings are multi-faceted; initially, it has
found that the top management is the root of changes in logistic operations with the right team. A
new ordering system can be implemented for both suppliers and customers and there was a lot of
learnings in the conceptual design of the iteration. And the third iteration has been successful in
increasing the validity of Flint’s model for Mackay’s innovation journey.
ARTICLE 2: Daugherty, P. J., Chen, H., & Ferrin, B. G. (2011). Organizational
structure and logistics service innovation. The International Journal of Logistics Management,
22(1), 26-51. DOI: 10.1108/09574091111127543
With the innovation in logistics services, the new ideas, procedures and practices are
established. These techniques are quite challenging but if achieved successfully, this can pay off
great amounts to firms. With increasing intensive pressures, many companies are finding ways to
enhance their logistics systems. Authors showed an RFID technology as the best one, by utilising
passive tags rather than traditional tags. Here, a conceptual model has been introduced with the
hypothesis. The current strategy combines SSP with RBV for the proposed model. It has been

found that the innovations must be based on organisational core capabilities and skills to attain
sustainable competitive advantage. The study focused on the value chain and its related aspects
that help in enhancing the firm’s advantages in supply chain and logistics activities.
Organisational resources are crucial for any kind of new establishment or modification within a
business and hence for the logistics and supply chain. There are several types of research
included that are focused on organisational structures and capabilities that can help in managing
innovation at logistics.
The study presents 4 hypotheses; first, that decision making is directly and positively related
with logistics service, second that formalisation is negatively related to logistics innovation,
specialisation is related positively in the same context and forth innovation in logistics service is
related to the market. For this research’s conceptual model, data has been collected from China
due to rapid growth and integration in the global economy. It has been found that many Chinese
firms are linked globally but most of them are unaware of benefits from logistics innovation. The
research findings provide support for organisational structure and its role in performance
relationship, especially when logistics are focused. In addition to this, all businesses must
establish some new offerings to compete and differentiate. Moreover, one needs to get a better
understanding of the impacts of the structural designs and internal resources as a managerial
relevance which can offer betterment to the business according to the researchers.
ARTICLE 3: Klumpp, M., & Zijm, H. (2019). Logistics innovation and social
sustainability: How to prevent an artificial divide in Human-Computer Interaction. Journal of
Business Logistics. Klumpp, M., & Zijm, H. (2019). DOI:10.1111/jbl.12198

The changes and innovation in logistics and supply chain are results of social, technological,
market evolutions with the customer demands. According to the authors, the automation in
production and distribution has migrated the businesses to new levels with the help of AI,
robotics etc. But, with these integrations and development, a major question comes out regarding
the controls that are shared with technologies, human workers are reducing, human-machine
interaction has increased, AI is utilised at most, machines are making decisions and hence
changed the arena of logistics and supply chain. It has been found that 2.9+ million people are
working in the logistics sector in Germany and there will be still needed for human drivers in
future. So, considering sustainability, authors proposed to use the triple bottom line approach and
it has been found that economic and social sustainability gets affected the most. Literature in the
study focuses on transportation automation and suggested that AI is now playing a major role in
mitigating the drawbacks and solving them whereas, there are developments in automobiles that
too with majorly AI. The future vision also suggests that the internet will be going to play an
important role in the same context. The suggested theoretical framework is with human-machine
interaction motive, and three areas are major hindrances; AI competences, autonomy and
decisions. To outline the research problem and how to cope up from them, human-machine
cooperation is found to be the major issue in logistics innovation. Cooperative bots (cobots) are
increased, human employees are reduced, and in recommendations, it has been said that AI
should involve divide elements, there is a need to develop an additional focus on logistics by
management, results should be checked and further preparations should be made on personal
experiences. Overall, it can be said that the paper has highlighted the concern of social and
economic sustainability with the drastic implementation of artificial intelligence for both
employees and firms, some benchmarking examples have been shown and stated that there is a
need to research on the human-machine interaction for future sustainability.

DISCUSSION PAPER PLAN
WORKING TITLE: Logistics Innovation and Future
INTRODUCTORY PARAGRAPH
With the advent of latest technologies and the tremendous market dynamics has forces the firms
to work to establish some new ways and techniques that can enhance the logistics and supply
chain practices. The innovations are generally from internet of digital platforms with the AI, IoT,
cloud, automation and machine learning platforms. Not only, production firms, but also the
healthcare and other service sectors are working on improving their logistics and supply chain
managements.
PARAGRAPH 1 (logistics innovation and background) Illustrate the present condition of
logistics innovation and its need? Reasons for working on logistics innovation?
Logistics innovation is been a hot global topic and many are working on same. From initial
phases till now, most of the things has ben changed and there have been regular modifications
for betterment and enhancement of business profitability.
(Ivan et al. 2011)
(Klumpp & Zijm, 2019)
PARAGRAPH 2 (factors that fosters and hinders innovation in logistics and supply chain)
Determine factors that can enhance the innovation in logistics? What factors needs to ne
considered as hinderances in logistics innovation?
There are several aspects that can help in fostering innovation regarding logistics and supply
chain like organisational structure, artificial intelligence, advent of new technologies and
machine engineering etc. while some factors that hinders this innovation are reduction in
employment, human machine cooperation and increasing control by machine (cobots), increasing
costs etc.
(Klumpp & Zijm, 2019)

(Sarkis, et al. 2010)
PARAGRAPH 3 (techniques that can be used for betterment and faster innovation) Solutions
that can be applied as logistics innovation techniques in present practices? Ways to overcome
from the challenges? Recommendations?
Logistics innovation is necessity and there are several models and theories developed to make
suitable results for betterment of all and hence can be utilised.
(Cosimato & Troisi, 2015)
CONCLUDING PARAGRAPH
It can be said that the role of the innovation in the logistics is going to be a drastic change in
enhancing the profitability and efficiency of the firms. So, there is a need to work on same and
some major factors that can support it are the artificial intelligence and other digital internet
technologies, human machine interaction level automation, organisational structure that supports
innovation with some other sub factors. Overall, the research can be concluded as logistics
innovation is important and there is a reckless necessity for the same but responsible people
should take care of some aspects that can create any hinderances in positive future directions in
line.

REFERENCES
Cosimato, S., & Troisi, O. (2015). Green supply chain management: Practices and tools for
logistics competitiveness and sustainability. The DHL case study. The TQM Journal,
27(2), 256-276.
Daugherty, P. J., Chen, H., & Ferrin, B. G. (2011). Organizational structure and logistics service
innovation. The International Journal of Logistics Management, 22(1), 26-51.
Ivan Su, S. I., Gammelgaard, B., & Yang, S. L. (2011). Logistics innovation process revisited:
insights from a hospital case study. International Journal of Physical Distribution &
Logistics Management, 41(6), 577-600.
Klumpp, M., & Zijm, H. (2019). Logistics innovation and social sustainability: How to prevent
an artificial divide in Human-Computer Interaction. Journal of Business Logistics.
Sarkis, J., Helms, M. M., & Hervani, A. A. (2010). Reverse logistics and social sustainability.
Corporate Social Responsibility and Environmental Management, 17(6), 337-354.