Digitalization
27. February 2024

THE EFFECT OF INDUSTRY 4.0 TECHNOLOGY ON ECONOMIC, ECOLOGICAL & SOCIAL SUSTAINABILITY IN LOGISTICS

The newest whitepaper by Arvato : Innovation & Sustainability  – The effect of Industry 4.0 technology on sustainability in logistics, deals with the correlation of innovative technologies and sustainability strategies in logistics. Interviews with innovation and sustainability practitioners from Arvato were conducted to further examine the role of Industry 4.0 technologies (I4.T0) on the sustainability of LSP and gain insights into implemented projects. The author is our colleague Karoline Kowalik, Logistics Engineer and PhD student in the field of Innovation and Sustainability at Maastricht University.

 

I4.0T presents challenges in developing a holistic corporate strategy for sustainability. While it offers economic benefits like cost reduction and process optimization, its environmental impact varies and requires careful assessment. On the social front, embracing I4.0T can enhance brand image and workplace conditions. Understanding its total impact is essential for evaluating its true value.

Although Industry 4.0 technology can have a net positive impact on economic and social sustainability, it might have a positive or even negative on the environmental sustainability of
companies. While ROI demands in the sector are changing, mainly due to labor shortages, decision-makers still mostly only consider financial impact when making decisionsThis research has focused on the impact of Industry 4.0 technologies on the economic, ecological, and social sustainability of logistics service providers in warehousing and order fulfillment.

Results show that the true value and cost of an Industry 4.0 technology differs depending on the position in the supply chain and the technology.

 


DOWNLOAD FULL VERSION HERE

Image source: arvato.com