TRANSFORMATION AND INNOVATIVE SOLUTIONS FOR LOGISTICS PROCESS IN BUSINESS

Abstract

The digitalization, technological development and increased complexity of the international supply chains have changed the logistics business over the past years. One of the sectors where businesses are slowly moving towards new technology for overhauling their logistics to save costs and increase customer service is logistics. This study aims to analyse the transformation in logistics business and identify innovative solutions that will support the enhancement of operational efficiency and performance of supply chain. The research uses a qualitative method through the use of the secondary sources of data i.e. academic literature, industry reports and logistic case studies. The analysis particularly focuses on key drivers such as the use of digital technologies, automation, data analytics and sustainable logistics practices. The findings show that technologies such as artificial intelligence, Internet of Things (IoT) and warehouse automation make a great contribution to improving visibility in supply chain, as well as to lowered operational costs and delivery performance. The results also suggest that the use of digital technologies helps to optimize the costs by improving route planning, decreasing the quantity of stored inventory, and increasing the efficiency of warehouses. The advantages, however, depend on costs of implementation, integration issues of the system and organizational preparedness. The researchers find that an effective implementation of digital and sustainable logistics solutions has the potential to drive operational efficiency, better cost performance and resiliency in the supply chain, and thus, contribute to the long-term competitiveness.