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Data analytics and global logistics performance: an exploratory study of informatization in the logistics sector

Anwar Muhammad Fahad, Wong Wai Peng, Saad Nor Hasliza, Mushtaq Naveed

LogForum

2022

Vol. 18, no. 2

137--160

Background: Informatization has enabled global logistics and supply chains (LSC) to capitalize on data-driven analytics to improve logistics performance. At the country level, logistics performance is gauged through the logistics performance index (LPI), where globally 61.25% or 98 countries perform below the mean LPI score. Previous studies focused on logistics informatization in high and moderate LPI rank economies. The paper aims to conduct an exploratory case study in a low LPI performing country to assess the informatization practices of logistics entities and develop a logistics informatization continuum to unlock data analytics for other countries. Methods: The study implements qualitative methods to develop strategic recommendations to reduce global logistics imbalance. We employ a two-layer methodology consisting of thematic analysis and a novel strategic choice approach (SCA) to involve stakeholders for recommendations on obstruction. For thematic analysis, 16 semi-structured interviews were conducted from logistics companies, also onboard 10 trade associations and government representatives for the SCA analysis. Results: We observed many obstructions in informatization; low willingness on informatization, fear of information leakage by humans, low-reciprocity for collaboration, the myth of information and communication technologies (ICT) as an expensive tool, self-interest, and opportunistic behavior. Conclusion: Information-centric and integrated LSC enables data-driven technologies for real-time decision making, vigilance, and data analytics to distinguished the success of a country’s logistics performance. Originality: This study explores the informatization conformity in the logistics sector to connect data analytics. We introduced a novel strategic choice approach in the technology domain for problem structuring. The paper further contributes by suggesting a logistics informatization continuum for low LPI countries to straighten digitalization in the logistics sector.