Assessment of Digitalized Logistics for Implementation in Low-Income Countries

Abstract

Integration of digitalization and automation with logistics systems promotes effective and efficient flow of goods, information, and services, contributing to economic development. The level of implementation of digitalization and automation in low-income countries is still low, however. The aim of this study is to establish which digitalized logistics practices could best be adopted by firms in low-income countries. A systematic literature review was used to identify state-of-the-art digitalization and automation technologies in logistics chains. Criteria for adopting digitalized logistics practices were also identified in the literature review. An expert survey was conducted to identify criteria weights using analytical hierarchy process (AHP). Economic benefit, infrastructure, and affordability were the criteria that were given the highest weights by the experts. Case studies that applied state-of-the-art technologies such as internet of things (IoT), radio frequency identification (RFID), blockchain, big data analytics (BDA), and sensors mainly for traceability, production operation, and warehouse and inventory management were considered as recommended practices. Identification of suitable practices considering the local conditions in low-income countries could help logistics professionals and policymakers adopt enabling technologies in logistics chains.

Key Logistics Performance Indicators in Low-Income Countries: The Case of the Import–Export Chain in Ethiopia

“…Strengths Limitations AHP Ability to evaluate both qualitative and quantitative data [38] Pairwise comparisons increase as the number of variables increase [39] Issues with inconsistency [40] TOPSIS Does not require pairwise comparisons [40] No issues with inconsistency [40] Needs to be combined with other methods to have quantitative results in qualitative problems [41] BWM Lesser pairwise comparisons [39] Weights are always consistent [39] Complex calculation process DEMATEL Can weight dependent alternatives [42] Understands cause and effect relationship [42] Individual weightings of experts are not used to obtain the final weighting for an alternative [42] AHP has been used for the identification of potential risk factors in warehouse management [22], the selection of appropriate locations for intermodal freight logistics centres [42], the selection of the location of a manufacturing plant [37] and the identification of the most important criteria for implementing digitalised logistics in low-income countries [43].…”

“…To improve the performance of dry ports, warehousing and transportation, technology adoption plays a vital role. However, the adoption of new technologies, particularly in low-income countries, is dependent on the economic advantages of the technologies, the presence of necessary infrastructure and the affordability of the technologies [43]. Thus, detailed studies regarding the technologies and ways on how to implement them is important.…”