Sustainability Impact of Digital Transformation in E-Commerce Logistics

Authors

  • Adetayo Olaniyi ADENIRAN * Department of Logistics and Transport Technology, Federal University of Technology, Akure, Nigeria
  • Okwudili Ben SIDIQ Department of Geography and Environmental Management, Bamidele Olumilua University of Education, Science and Technology, Ikere-Ekiti, Nigeria
  • Gbemileke Tobi OYENIRAN Georgia State University, Atlanta, United States
  • Adedayo Ayomide ADENIRA Department of Geography and Planning, University of Ibadan, Nigeria

Keywords:

Sustainability, Digital Transformation, E-Commerce, Logistics

Abstract

Purpose: This study investigated the digital transformation in logistics and its effects on sustainability. It provides answers to questions about what digital transformation and related technologies are in logistics, how the transformation altered the operational processes, and which merits have been realized as a result of digital transformation. As part of the fourth industrial revolution, most businesses are digitally transformed. Since commerce is the primary focus of the digital revolution, phrases like "Commerce of the Future" and "E-Commerce" are used interchangeably with this idea.

Methodology: Qualitative research methods and semi-structured interviews were used to elicit information from participants in six (6) e-commerce logistics companies in Nigeria. Seventeen (17) pertinent criteria are identified, of which ten relate to the economic feature of sustainability, two relate to the environmental feature, and the remaining five relate to the social feature.

Findings: From the sustainability dimensions, the economic impacts of digitization outweighed the other two dimensions, even though the evaluation of some criteria by the participants was ambiguous. Digitization of logistics has great merits regarding cost, delivery time, delay, inventory, dependability, and flexibility. Aside from this, it was found that the social effects of digitization, such as better health outcomes and decreasing accident occurrences, have little bearing on society. While the digitalization of logistics may alleviate safety and health issues, it was less accepted because it was perceived as a threat to labor involvement.

Originality/value: The study demonstrated the significant sustainability impact of digital transformation in logistics as it gives birth to e-commerce logistics operations.

Downloads

Download data is not yet available.

References

• Abu Seman, N. A., Govindan, K., Mardani, A., Zakuan, N., Mat Saman, M. Z., Hooker, R. E., & Ozkul, S. (2019). The mediating effect of green innovation on the relationship between green supply chain management and environmental performance. Journal of Cleaner Production, 229, 115-127. doi:https://doi.org/10.1016/j.jclepro.2019.03.211

• Adebambo, S., & Toyin, A. (2011). Analysis of information and communication technologies (ICT) usage on logistics activities of manufacturing companies in southwestern Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 2(1), 68-74. doi:https://doi.org/10.10520/EJC133845

• Adeniran, A. O., Akinsehinwa, F. O., & Olorunfemi, S. O. (2022). Factors influencing the acceptance and patronage of E-commerce logistics operations in Nigeria. Bulletin of the National Research Centre, 46(1), 128. doi:https://doi.org/10.1186/s42269-022-00816-x

• Adeniran, A. O., Muraina, M. J., & Ngonadi, J. C. (2023). Energy Consumption for Transportation in Sub-Saharan Africa. In D. Crowther & S. Seifi (Eds.), Achieving Net Zero (Vol. 20, pp. 203-231): Emerald Publishing Limited.

• Afum, E., Osei-Ahenkan, V. Y., Agyabeng-Mensah, Y., Amponsah Owusu, J., Kusi, L. Y., & Ankomah, J. (2020). Green manufacturing practices and sustainable performance among Ghanaian manufacturing SMEs: the explanatory link of green supply chain integration. Management of Environmental Quality: An International Journal, 31(6), 1457-1475. doi:https://doi.org/10.1108/MEQ-01-2020-0019

• Agrawal, P., & Narain, R. (2023). Analysis of enablers for the digitalization of supply chain using an interpretive structural modelling approach. International Journal of Productivity and Performance Management, 72(2), 410-439. doi:https://doi.org/10.1108/IJPPM-09-2020-0481

• Agyabeng-Mensah, Y., Ahenkorah, E., Afum, E., Dacosta, E., & Tian, Z. (2020). Green warehousing, logistics optimization, social values and ethics and economic performance: the role of supply chain sustainability. The International Journal of Logistics Management, 31(3), 549-574. doi:https://doi.org/10.1108/IJLM-10-2019-0275

• Alldredge, K., Newaskar, P., & Ungerman, K. (2015). The digital future of consumer-packaged-goods companies. Retrieved from https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-digital-future-of-consumer-packaged-goods-companies

• Almeida, H. A., & Correia, M. S. (2016). Sustainable Impact Evaluation of Support Structures in the Production of Extrusion-Based Parts. In S. S. Muthu & M. M. Savalani (Eds.), Handbook of Sustainability in Additive Manufacturing: Volume 1 (pp. 7-30). Singapore: Springer Singapore.

• Andrew, B. (2021). Electronic Commerce (E-commerce). Retrieved from https://www.investopedia.com/terms/e/ecommerce.asp

• Bag, S., Pretorius, J. H. C., Gupta, S., & Dwivedi, Y. K. (2021). Role of institutional pressures and resources in the adoption of big data analytics powered artificial intelligence, sustainable manufacturing practices and circular economy capabilities. Technological Forecasting and Social Change, 163, 120420. doi:https://doi.org/10.1016/j.techfore.2020.120420

• Bayanati, M. (2023). Business Model of Internet of Things and Blockchain Technology in Developing Countries. International Journal of Innovation in Engineering, 3(1), 13-22. doi:https://doi.org/10.59615/ijie.3.1.13

• Beske, P., & Seuring, S. (2014). Putting sustainability into supply chain management. Supply Chain Management: An International Journal, 19(3), 322-331. doi:https://doi.org/10.1108/SCM-12-2013-0432

• Bigliardi, B., Filippelli, S., Petroni, A., & Tagliente, L. (2022). The digitalization of supply chain: a review. Procedia Computer Science, 200, 1806-1815. doi:https://doi.org/10.1016/j.procs.2022.01.381

• Chacón Vargas, J. R., & Moreno Mantilla, C. E. (2014). Sustainable supply chain management capabilities: a review from the resource-based view, the dynamic capabilities and stakeholder theories. Latin American Journal of Management for Sustainable Development, 1(4), 323-343. doi:https://doi.org/10.1504/LAJMSD.2014.067388

• Chandra, M. D., A. (2016). Artificial Intelligence: The Next Big Thing in Supply Chain Management. Retrieved from http://www.financialexpress.com/industry/artificial-intelligence-the-next-big-thing-in-supply-chain-management/329033/

• Chang, E., & Hadzic, M. (2006, 01/01). A Digital Ecosystem for Extended Logistics Enterprises. Paper presented at the Proceedings of the 11th International Workshop on Telework.

• Chen, I. J., & Kitsis, A. M. (2017). A research framework of sustainable supply chain management. The International Journal of Logistics Management, 28(4), 1454-1478. doi:https://doi.org/10.1108/IJLM-11-2016-0265

• Chiani, F., & Adibpour, M. (2023). The Impact of E-Commerce on Business Strategy in Small and Medium Enterprises (SMEs) of Iran. International Journal of Innovation in Management, Economics and Social Sciences, 3(1), 46-51. doi:https://doi.org/10.52547/ijimes.3.1.46

• Chowdhury, A. (2003). Information technology and productivity payoff in the banking industry: evidence from the emerging markets. Journal of International Development, 15(6), 693-708. doi:https://doi.org/10.1002/jid.1027

• Chu, S. H., Yang, H., Lee, M., & Park, S. (2017). The Impact of Institutional Pressures on Green Supply Chain Management and Firm Performance: Top Management Roles and Social Capital. Sustainability, 9(5). doi:https://doi.org/10.3390/su9050764

• Diana, M., Pirra, M., & Woodcock, A. (2020). Freight distribution in urban areas: a method to select the most important loading and unloading areas and a survey tool to investigate related demand patterns. European Transport Research Review, 12(1), 40. doi:https://doi.org/10.1186/s12544-020-00430-w

• Ding, H., Liu, Q., & Zheng, L. (2016). Assessing the economic performance of an environmental sustainable supply chain in reducing environmental externalities. European Journal of Operational Research, 255(2), 463-480. doi:https://doi.org/10.1016/j.ejor.2016.05.003

• Dougados, M., Ghioldi, S., Van Doesburg, R., & Subrahmanyam, K. V. J. (2013). The Missing Link Supply Chain and Digital Maturity. Retrieved from https://www.capgemini.com/wp-content/uploads/2017/07/supply_chain_paper_13-12_cc.pdf

• Effing, R., & Spil, T. A. M. (2016). The social strategy cone: Towards a framework for evaluating social media strategies. International Journal of Information Management, 36(1), 1-8. doi:https://doi.org/10.1016/j.ijinfomgt.2015.07.009

• Evans, N. D. (2017). Digital sustainability: Digital transformation's next big opportunity. Retrieved from http://www.computerworld.com/article/3170647/digital-transformation/digital-sustainability-digital-transformations-next-big-opportunity.html

• Fang, C., & Zhang, J. (2018). Performance of green supply chain management: A systematic review and meta analysis. Journal of Cleaner Production, 183, 1064-1081. doi:https://doi.org/10.1016/j.jclepro.2018.02.171

• Gebler, M., Schoot Uiterkamp, A. J. M., & Visser, C. (2014). A global sustainability perspective on 3D printing technologies. Energy Policy, 74, 158-167. doi:https://doi.org/10.1016/j.enpol.2014.08.033

• Geng, R., Mansouri, S. A., & Aktas, E. (2017). The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies. International Journal of Production Economics, 183, 245-258. doi:https://doi.org/10.1016/j.ijpe.2016.10.008

• Gezgin, E., Huang, X., Samal, P., & Silva, I. (2023). Digital transformation: Raising supply-chain performance to new levels. Retrieved from https://www.mckinsey.com/capabilities/operations/our-insights/digital-transformation-raising-supply-chain-performance-to-new-levels

• Ghahremani-Nahr, J., & Nozari, H. (2021). A Survey for Investigating Key Performance Indicators in Digital Marketing. International journal of Innovation in Marketing Elements, 1(1), 1-6. doi:https://doi.org/10.59615/ijime.1.1.1

• Ghahremani Nahr, J., Nozari, H., & Sadeghi, M. E. (2021). Green supply chain based on artificial intelligence of things (AIoT). International Journal of Innovation in Management, Economics and Social Sciences, 1(2), 56-63. doi:https://doi.org/10.52547/ijimes.1.2.56

• Holmström, J., Holweg, M., Lawson, B., Pil, F. K., & Wagner, S. M. (2019). The digitalization of operations and supply chain management: Theoretical and methodological implications. Journal of Operations Management, 65(8), 728-734. doi:https://doi.org/10.1002/joom.1073

• Jabeur, N., Nait-Sidi-Moh, A., & Zeadally, S. (2018). Crowd social media computing: Applying crowd computing techniques to social media. Applied Soft Computing, 66, 495-505. doi:https://doi.org/10.1016/j.asoc.2017.09.026

• Kagermann, H. (2015). Change Through Digitization—Value Creation in the Age of Industry 4.0. In H. Albach, H. Meffert, A. Pinkwart, & R. Reichwald (Eds.), Management of Permanent Change (pp. 23-45). Wiesbaden: Springer Fachmedien Wiesbaden.

• Kayikci, Y. (2019). E-Commerce in Logistics and Supply Chain Management. In D. B. A. M. Khosrow-Pour (Ed.), Advanced Methodologies and Technologies in Business Operations and Management (pp. 1015-1026). Hershey, PA, USA: IGI Global.

• Kian, R. (2021). Provide a model for an e-commerce system with the impact of artificial intelligence. International Journal of Innovation in Management, Economics and Social Sciences, 1(3), 88-94. doi:https://doi.org/10.52547/ijimes.1.3.88

• Lacy, P., & Rutqvist, J. (2016). Waste to wealth: The circular economy advantage.

• Li, X. (2014). Operations Management of Logistics and Supply Chain: Issues and Directions. Discrete Dynamics in Nature and Society, 2014, 701938. doi:https://doi.org/10.1155/2014/701938

• Liu, X., Yang, J., Qu, S., Wang, L., Shishime, T., & Bao, C. (2012). Sustainable Production: Practices and Determinant Factors of Green Supply Chain Management of Chinese Companies. Business Strategy and the Environment, 21(1), 1-16. doi:https://doi.org/10.1002/bse.705

• Mackenzie Owen, J. (2007). The Scientific Article in the Age of Digitization.

• Manent, P. (2017). Artificial Intelligence and Future Supply Chains. Retrieved from http://www.scmworld.com/artificial-intelligence-future-supply-chains

• Mohanty, R. P., & Prakash, A. (2014). Green supply chain management practices in India: a confirmatory empirical study. Production & Manufacturing Research, 2(1), 438-456. doi:https://doi.org/10.1080/21693277.2014.921127

• Monnet, J. M. L. N., N. . (2011). Assessment of logistics concept to sustainability: Development of a common approach to transport issues (EFI Technical Report 75). Retrieved from http://www.efi.int/files/attachments/publications/eforwood/efi_tr75.pdf

• Mortaji, S. T. H., & Shateri, S. (2023). Harnessing the Power of Business Analytics and Artificial Intelligence: A Roadmap to Data-Driven Success. International Journal of Innovation in Engineering, 3(3), 1-27. doi:https://doi.org/10.59615/ijie.3.3.1

• Muñoz-Villamizar, A., Charris, E., Quintero-Araujo, C., & Santos, J. (2019). Sustainability and digitalization in supply chains: A bibliometric analysis. Uncertain Supply Chain Management, 7(4), 703-712. doi:https://doi.org/10.5267/j.uscm.2019.3.002

• Obaid, H. S. (2022). Review the challenges of using big data in the supply chain. Journal of Data Analytics, 1(1), 16-24. doi:https://doi.org/10.59615/jda.1.1.16

• Ornig, H. J. (2016). Leading into the Future: The so What? on Exponential Technology and Leadership: Balboa Press.

• Perera, P. S. T., Perera, H. S. C., & Wijesinghe, T. M. (2013). Environmental Performance Evaluation in Supply Chain. Vision, 17(1), 53-61. doi:https://doi.org/10.1177/0972262912469566

• PWC. (2016a). The Era of Digitized Trucking: Transforming the Logistics Value Chain. Retrieved from https://www.pwc.nl/en/publicaties/digitized-trucking.html

• PWC. (2016b). Industry 4.0: How Digitization Makes the Supply Chain More Efficient, Agile, and Customer-Focused. Retrieved from https://www.strategyand.pwc.com/gx/en/insights/2016/digitization-more-efficient.html

• Raab, M. G.-C., B. (2011). Digital Transformation of Supply Chains. Retrieved from https://www.capgemini.com/wp-content/uploads/2017/07/Digital_Transformation_of_Supply_Chains.pdf

• Sadeghi, M. E., & Jafari, H. (2021). Investigating the dimensions, components and key indicators of supply chain management based on digital technologies. International Journal of Innovation in Management, Economics and Social Sciences, 1(3), 82-87. doi:https://doi.org/10.52547/ijimes.1.3.82

• Sadeghi, M. E., Khodabakhsh, M., Ganjipoor, M. R., Kazemipoor, H., & Nozari, H. (2021). A New Multi Objective Mathematical Model for Relief Distribution Location at Natural Disaster Response Phase. International Journal of Innovation in Engineering, 1(1), 29-54. doi:https://doi.org/10.52547/ijie.1.1.22

• Samadi-Parviznejad, P. (2022). The role of big data in digital transformation. Journal of Data Analytics, 1(1), 42-47. doi:https://doi.org/10.59615/jda.1.1.42

• Stuermer, M., Abu-Tayeh, G., & Myrach, T. (2017). Digital sustainability: basic conditions for sustainable digital artifacts and their ecosystems. Sustainability Science, 12(2), 247-262. doi:https://doi.org/10.1007/s11625-016-0412-2

• Trubia, S., Giuffrè, T., Canale, A., & Severino, A. (2017). Automated Vehicle: a Review of Road Safety Implications as Driver of Change. Paper presented at the 27th CARSP Conference, Toronto, , Toronto.

• Tseng, M.-L., Islam, M. S., Karia, N., Fauzi, F. A., & Afrin, S. (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling, 141, 145-162. doi:https://doi.org/10.1016/j.resconrec.2018.10.009

• United-Nations-Conference-on-Trade-and-Development. (1999). Can electronic commerce be an engine for global growth? Electronic commerce and the integration of developing countries and Countries with economies in transition, International Trade. Retrieved from Geneva: https://digitallibrary.un.org/record/274450/files/TD_B_COM.3_23-EN.pdf?ln=en

• Uver, D. (2023). Internet of things and the future of digital marketing. Journal of Data Analytics, 2(1), 24-29. doi:https://doi.org/10.59615/JDA.2.1.24

• van Marwyk, K., & Treppte, S. (2016). 2016 Logistics Study on Digital Business Models. Retrieved from https://www.rolandberger.com/publications/publication_pdf/roland_berger_logistics_final_web_251016.pdf

• Wang, J., Zhang, Y., & Goh, M. (2018). Moderating the Role of Firm Size in Sustainable Performance Improvement through Sustainable Supply Chain Management. Sustainability, 10(5). doi:https://doi.org/10.3390/su10051654

• Wang, S., Wan, J., Li, D., & Zhang, C. (2016). Implementing Smart Factory of Industrie 4.0: An Outlook. International Journal of Distributed Sensor Networks, 12(1), 3159805. doi:https://doi.org/10.1155/2016/3159805

• WCED. (1987). Our Common Future. Retrieved from https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf

• YU, Z., GOLPîRA, H., & KHAN, S. A. R. (2018). The relationship between green supply chain performance, energy demand, economic growth and environmental sustainability: An empirical evidence from developed countries. Logforum 14(4). doi:https://doi.org/10.17270/J.LOG.2018.304

• Zacharia, Z. G., Sanders, N. R., & Nix, N. W. (2011). The Emerging Role of the Third-Party Logistics Provider (3PL) as an Orchestrator. Journal of Business Logistics, 32(1), 40-54. doi:https://doi.org/10.1111/j.2158-1592.2011.01004.x

• Zhu, Q., Sarkis, J., & Lai, K.-h. (2013). Institutional-based antecedents and performance outcomes of internal and external green supply chain management practices. Journal of Purchasing and Supply Management, 19(2), 106-117. doi:https://doi.org/10.1016/j.pursup.2012.12.001

Downloads

Published

2024-04-15

How to Cite

ADENIRAN , A. O. ., Ben SIDIQ, O. . ., OYENIRAN , G. T. ., & ADENIRA, A. A. . (2024). Sustainability Impact of Digital Transformation in E-Commerce Logistics. International Journal of Innovation in Marketing Elements, 4(1). Retrieved from https://ijime.ir/index.php/ijime/article/view/75

Issue

Section

Original Research