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Artificial intelligence (AI) applications are the core challenge for engineering and management science concepts in production and logistics within the next decade. This study analyses the application of AI instances in route planning as a central part of logistics management from an empirical case perspective for retail logistics in Germany. The methods applied encompass fuzzy data envelopment analysis (DEA), slack-based measurement (SBM) fuzzy DEA, and analytic hierarchy process (AHP)-SBM Fuzzy DEA. For the two depots using AI-based routing to the full account, efficiency advantages can be shown in the Fuzzy DEA as well as the SBM fuzzy DEA models. Results further indicate that the methodological approach is adequate for the analysed problem and that the combination with AHP is an interesting addition as, e.g., the perspective of sales managers supersedes that of logistics managers for route planning efficiency – a thought-provoking result pointing at very customer-oriented logistics systems.
Dominic Loske; Matthias Klumpp. Human-AI collaboration in route planning: An empirical efficiency-based analysis in retail logistics. International Journal of Production Economics 2021, 241, 108236 .
AMA StyleDominic Loske, Matthias Klumpp. Human-AI collaboration in route planning: An empirical efficiency-based analysis in retail logistics. International Journal of Production Economics. 2021; 241 ():108236.
Chicago/Turabian StyleDominic Loske; Matthias Klumpp. 2021. "Human-AI collaboration in route planning: An empirical efficiency-based analysis in retail logistics." International Journal of Production Economics 241, no. : 108236.
The increasing use of information technology (IT) in supply chain management and logistics is connected to corporate advantages and enhanced competitiveness provided by enterprise resource planning systems and warehouse management systems. One downside of advancing digitalization is an increasing dependence on IT systems and the negative effects of technology disruption impacts on firm performance, measured by logistics efficiency, e.g., with data envelopment analysis (DEA). While the traditional DEA model cannot deconstruct production processes to find the underlying causes of inefficiencies, network DEA (NDEA) can provide insights into resource allocation at the individual stages of operations. We apply an NDEA approach to measure the impact of IT disruptions on the efficiency of operational processes in retail logistics. We compare efficiency levels during IT disruptions, as well as ripple effects throughout subsequent days. In the first stage, we evaluate the efficiency of order picking in retail logistics. After handing over the transport units to the outgoing goods department of a warehouse, we assess the subsequent process of truck loading as a second stage. The obtained results underline the analytical power of NDEA models and demonstrate that the proposed model can evaluate IT disruptions in supply chains better than traditional approaches. Insights show that efficiency reductions after IT disruptions occur at different levels and for diverse reasons, and successful preparation and contingency management can support improvements.
Matthias Klumpp; Dominic Loske. Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency. Sustainability 2021, 13, 5650 .
AMA StyleMatthias Klumpp, Dominic Loske. Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency. Sustainability. 2021; 13 (10):5650.
Chicago/Turabian StyleMatthias Klumpp; Dominic Loske. 2021. "Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency." Sustainability 13, no. 10: 5650.
Purpose Technological advances regarding artificial intelligence (AI) are affecting the transport sector. Although fully autonomous delivery, or self-driving trucks, are not operating currently, various AI applications have become fixed components of cargo vehicles. Since many research approaches primarily concentrate on the technical aspects of assistance systems (ASs), the economic question of how to improve efficiency is seldom addressed. Therefore, the purpose of this paper is to apply an efficiency analysis to measure the performance of truck drivers supplying retail stores. Design/methodology/approach For this comparative study, 90 professional truck drivers in three groups are compared with (1) trucks without AS, (2) trucks with AS that cannot be turned off and (3) trucks with AS that can be turned off. First, we build a model investigating the impact of performance expectation, effort expectation, social influence and facilitating conditions on the behavioural intention to use AS. Second, we explore the impact of truck drivers' behavioural intention on actual technology use, misuse and disuse; operationalize these constructs; and merge them with our behavioural constructs to create one econometric model. Findings The human–AI system was found to be the most efficient. Additionally, behavioural intention to use ASs did not lead to actual usage in the AI-alone observation group, but did in the human–AI group. Several in-depth analyses showed that the AI-alone group used AS at a higher level than the human–AI group, but manipulations through, for example, kickdowns or manual break operations led to conscious overriding of the cruise control system and, consequently, to higher diesel consumption, higher variable costs and lower efficiency of transport logistical operations. Research limitations/implications Efficiency analysis with data envelopment analysis is, by design, limited by the applied input and output factors. Originality/value This study represents one of the first quantitative efficiency analyses of the impact of digitalization on transport performance (i.e. truck driver efficiency). Furthermore, we build an econometric model combining behavioural aspects with actual technology usage in a real application scenario.
Dominic Loske; Matthias Klumpp. Intelligent and efficient? An empirical analysis of human–AI collaboration for truck drivers in retail logistics. The International Journal of Logistics Management 2021, ahead-of-p, 1 .
AMA StyleDominic Loske, Matthias Klumpp. Intelligent and efficient? An empirical analysis of human–AI collaboration for truck drivers in retail logistics. The International Journal of Logistics Management. 2021; ahead-of-p (ahead-of-p):1.
Chicago/Turabian StyleDominic Loske; Matthias Klumpp. 2021. "Intelligent and efficient? An empirical analysis of human–AI collaboration for truck drivers in retail logistics." The International Journal of Logistics Management ahead-of-p, no. ahead-of-p: 1.
Although resources are scarce and outputs incorporate the potential to save human lives, efficiency measurement endeavors with data envelopment analysis (DEA) methods are not yet commonplace in the research and practice of non-government organizations (NGO) and states involved in humanitarian logistics. We present a boot-strapped DEA window analysis and Malmquist index application as a methodological state of the art for a multi-input and multi-output efficiency analysis and discuss specific adaptions to typical core challenges in humanitarian logistics. A characteristic feature of humanitarian operations is the fact that a multitude of organizations are involved on at least two levels, national and supra-national, as well as in two sectors, private NGO and government agencies. This is modeled and implemented in an international empirical analysis: First, a comprehensive dataset from the 34 least developed countries in Africa from 2002 to 2015 is applied for the first time in such a DEA Malmquist index efficiency analysis setting regarding the national state actor level. Second, an analysis of different sections in a Rohingya refugee camp in Bangladesh is analyzed based on a bootstrapped DEA with window analysis application for 2017, 2018, and 2019 quarter data regarding the private NGO level of operations in humanitarian logistics.
Matthias Klumpp; Dominic Loske. Long-Term Economic Sustainability of Humanitarian Logistics—A Multi-Level and Time-Series Data Envelopment Analysis. International Journal of Environmental Research and Public Health 2021, 18, 2219 .
AMA StyleMatthias Klumpp, Dominic Loske. Long-Term Economic Sustainability of Humanitarian Logistics—A Multi-Level and Time-Series Data Envelopment Analysis. International Journal of Environmental Research and Public Health. 2021; 18 (5):2219.
Chicago/Turabian StyleMatthias Klumpp; Dominic Loske. 2021. "Long-Term Economic Sustainability of Humanitarian Logistics—A Multi-Level and Time-Series Data Envelopment Analysis." International Journal of Environmental Research and Public Health 18, no. 5: 2219.
Order picking is a crucial but labor- and cost-intensive activity in the retail logistics and e-commerce domain. Comprehensive changes are implemented in this field due to new technologies like AI and automation. Nevertheless, human worker’s activities will be required for quite some time in the future. This fosters the necessity of evaluating manual picker-to-part operations. We apply the non-parametric Data Envelopment Analysis (DEA) to evaluate the efficiency of n = 23 order pickers processing 6109 batches with 865,410 stock keeping units (SKUs). We use distance per location, picks per location, as well as volume per SKU as inputs and picks per hour as output. As the convexity axiom of standard DEA models cannot be fully satisfied when using ratio measures with different denominators, we apply the Free Disposal Hull (FDH) approach that does not assume convexity. Validating the efficiency scores with the company’s efficiency assessment, operationalized by premium payments shows a 93% goodness=of-fit for the proposed model. The formulated non-parametric approach and its empirical application are promising ways forward in implementing empirical efficiency measurements for order picking operations within e-commerce operations.
Matthias Klumpp; Dominic Loske. Order Picking and E-Commerce: Introducing Non-Parametric Efficiency Measurement for Sustainable Retail Logistics. Journal of Theoretical and Applied Electronic Commerce Research 2021, 16, 846 -858.
AMA StyleMatthias Klumpp, Dominic Loske. Order Picking and E-Commerce: Introducing Non-Parametric Efficiency Measurement for Sustainable Retail Logistics. Journal of Theoretical and Applied Electronic Commerce Research. 2021; 16 (4):846-858.
Chicago/Turabian StyleMatthias Klumpp; Dominic Loske. 2021. "Order Picking and E-Commerce: Introducing Non-Parametric Efficiency Measurement for Sustainable Retail Logistics." Journal of Theoretical and Applied Electronic Commerce Research 16, no. 4: 846-858.
Digitalization is a major trend and challenge in most industries and sectors of societies. Still, quantitative insights regarding the impacts of digitalization are missing. This chapter is reporting a first approach using Data Envelopment Analysis (DEA) for measuring efficiency results of digitalization steps in a retail logistics context. Aspiring to quantify the performance of professional truck drivers during a digital turnover related to mobile devices, we evaluate truck loading processes. As inputs we use loading time and costs. Outputs are load factor of units, invoice charged to shops, and the value of the damages during truck loading. The findings indicate that a change in the level of digitalization entails a loss of the efficiency level in the first instance, which can be compensated and even surpassed later. When applying linear regression analysis, we prove a low statistical linear relationship of age and efficiency plus a strong statistical linear relationship of employer size and efficiency as well as period of employment and efficiency, always regarding the changing levels of digitalization in the working system of professional truck drivers. For practitioners in retail logistics, we derive the importance of employee retention programs for human resource management, along with a positive working environment provided for truck drivers to reduce fluctuation effects. Furthermore, we advise designing software for truck drivers as commonplace as possible and in the style of widespread smartphone software user interfaces.
Dominic Loske; Matthias Klumpp. Efficiency Measurement in Digitalized Work Systems of Transport Logistics. Optimization and Decision Support Systems for Supply Chains 2021, 149 -180.
AMA StyleDominic Loske, Matthias Klumpp. Efficiency Measurement in Digitalized Work Systems of Transport Logistics. Optimization and Decision Support Systems for Supply Chains. 2021; ():149-180.
Chicago/Turabian StyleDominic Loske; Matthias Klumpp. 2021. "Efficiency Measurement in Digitalized Work Systems of Transport Logistics." Optimization and Decision Support Systems for Supply Chains , no. : 149-180.
In the digitisation development of economy, logistics is of central importance due to the linkage of information and material flow throughout supply chains. However, verifiable effects in terms of efficiency have not been empirically shown in many cases yet. Therefore, this paper develops an efficiency analysis to evaluate the impact of changing levels of digitalisation. An efficiency-centred cross-sectional approach uses Data Envelopment Analysis (DEA) for assessing the performance of 60 truck drivers, as well as Malmquist productivity index for longitudinal analysis of 50 truck drivers between 2012 and 2018. The results of the DEA model indicate that a change in the level of digitalisation entails a loss of the efficiency level in the first instance, which can be compensated and even surpassed later. Findings of the Malmquist model prove positive long term effects of several digitalisation steps on transport logistics efficiency. As the proposed methodologies only allow an a posteriori evaluation for the impact of digitalisation, we develop an a priori simulation approach, based on empirical DEA results, statistical bootstrapping and regression analyses. Both approaches allow logistics researchers and managers to achieve a better understanding regarding the success or failure of digital transformation scenarios from an efficiency perspective.
Dominic Loske; Matthias Klumpp. Verifying the effects of digitalisation in retail logistics: an efficiency-centred approach. International Journal of Logistics Research and Applications 2020, 1 -25.
AMA StyleDominic Loske, Matthias Klumpp. Verifying the effects of digitalisation in retail logistics: an efficiency-centred approach. International Journal of Logistics Research and Applications. 2020; ():1-25.
Chicago/Turabian StyleDominic Loske; Matthias Klumpp. 2020. "Verifying the effects of digitalisation in retail logistics: an efficiency-centred approach." International Journal of Logistics Research and Applications , no. : 1-25.
Governmental restrictions aspiring to slow down the spread of epidemic and pandemic outbreaks lead to impairments for economic operations, which impact transportation networks comprising the maritime, rail, air, and trucking industries. Witnessing a substantial increase in the number of infections in Germany, the authorities have imposed drastic restrictions on everyday life. Resulting panic buying and increasing home consumption had versatile impacts on transport volume and freight capacity dynamics in German food retail logistics. Due to the lack of prior research on the effects of COVID-19 on transport volume in retail logistics, as well as resulting implications, this article aspires to shed light on the phenomenon of changing volume and capacity dynamics in road haulage. After analyzing the transport volume of n = 15,715 routes in the timeframe of 23.03.2020 to 30.04.2020, a transport volume growth rate expressing the difference of real and expected transport volume was calculated. This ratio was then examined concerning the number of COVID-19 infections per day. The results of this study prove that the increasing freight volume for dry products in retail logistics does not depend on the duration of the COVID-19 epidemy but on the strength quantified through the total number of new infections per day. This causes a conflict of interest between transportation companies and food retail logistics for non-cooled transport capacity. The contributions of this paper are highly relevant to assess the impact of a possibly occurring second COVID-19 virus infection wave.
Dominic Loske. The impact of COVID-19 on transport volume and freight capacity dynamics: An empirical analysis in German food retail logistics. Transportation Research Interdisciplinary Perspectives 2020, 6, 100165 -100165.
AMA StyleDominic Loske. The impact of COVID-19 on transport volume and freight capacity dynamics: An empirical analysis in German food retail logistics. Transportation Research Interdisciplinary Perspectives. 2020; 6 ():100165-100165.
Chicago/Turabian StyleDominic Loske. 2020. "The impact of COVID-19 on transport volume and freight capacity dynamics: An empirical analysis in German food retail logistics." Transportation Research Interdisciplinary Perspectives 6, no. : 100165-100165.
Digitalisation in warehousing and order picking is disrupting the logistics sector in its core processes. One key element of this transformation is the acceleration of physical and information flows in order to reduce the lead time. At this stage, scientists and practitioners know little about how accelerated processes impact order pickers’ perception of their work autonomy. Therefore, this paper aims to address this research gap. Additionally, we investigate the literature on autonomy to gain an understanding of this important concept. The research project involved a questionnaire completed by order pickers. The test persons were selected from a German food retailing company and have been working with either a pick-by-terminal (n=10) or a pick-by-voice system (n=10). The findings indicate that pickers using pick-by-terminal technology experience higher work autonomy than the ones using pick-by-voice. A further correlation analysis proves that the average performance is crucial for the perceived work autonomy and that work error autonomy is reduced the longer the pickers are employed. Based on these results, logistics management has to find ways to increase work autonomy for highly efficient pickers in both picking systems and lower the experience of isolation for voice based order picking.
Tony Cragg; Dominic Loske. Perceived work autonomy in order picking systems: An empirical analysis. IFAC-PapersOnLine 2019, 52, 1872 -1877.
AMA StyleTony Cragg, Dominic Loske. Perceived work autonomy in order picking systems: An empirical analysis. IFAC-PapersOnLine. 2019; 52 (13):1872-1877.
Chicago/Turabian StyleTony Cragg; Dominic Loske. 2019. "Perceived work autonomy in order picking systems: An empirical analysis." IFAC-PapersOnLine 52, no. 13: 1872-1877.