Strategic insights into last-mile delivery: modelling the industry 4.0 enabler for e-commerce industry
DOI:
https://doi.org/10.1108/RAUSP-07-2024-0146Keywords:
Last-mile delivery, E-commerce logistics, Interpretive structural modelling, Industry 4.0, Technology adoptionAbstract
PurposeExcellent customer experience with doorstep delivery is one of the motivations for online purchasing and e-commerce. Optimal technology-driven last-mile delivery is the backbone of this business model. This paper aims to identify industry 4.0 (I4.0) technology-based enablers for efficient e-commerce logistics for last-mile delivery (LMD) operations.
Design/methodology/approachThis study adopts an empirically grounded quantitative approach for defining and analysing the I4.0 technology enablers for efficient LMD operations. It adopts interpretive structural modelling and matrice d’impacts croisés multiplication appliquée á un classement analysis to identify the dependency and relationship among the identified enablers.
FindingsThe transformation technologies of I4.0 offer a comprehensive package to handle LMD and e-commerce business challenges. This research identified that LMD and logistics will be dominated by autonomous running vehicles, drones and robots; apart from that, in I4.0 adoption cases, the implementation of radio-frequency identification was found suitable for efficient logistics networks. In addition, digitalisation through digital twins, robots, autonomous vehicles and Internet of Things adoption was found to drive the system and is crucial for strategic action.
Research limitations/implicationsThe findings of this research help companies and the e-commerce industry to evaluate strategic technological investments in promising I4.0 for LMD. The study also helps managers to focus on initiating and integrating digital technologies and autonomous vehicles, drones and robots focused on LMD improvement.
Practical implicationsThe findings of this research help companies and the e-commerce industry to evaluate strategic technological investments in promising I4.0 for LMD. The study also helps managers to focus on initiating and integrating digital technologies and autonomous vehicles, drones and robots focused on LMD improvement.
Social implicationsIndustry 4.0 technologies enable more efficient route planning, reducing fuel consumption and lowering carbon emissions. Optimised delivery networks reduce waste and ensure more efficient use of resources by using suggested technologies.
Originality/valueThis study presents strategic insights into LMD and I4.0 enablers for the e-commerce environment. It proposes a theoretical framework that can serve as a roadmap for implementing I4.0 technologies to address unaddressed bottlenecks in LMD operations, lowering the logistics network’s efficiency.
Downloads
References
Alexopoulos, K., Makris, S., Xanthakis, V., Sipsas, K., & Chryssolouris, G. (2016). A concept for context-aware computing in manufacturing: The white goods case. International Journal of Computer Integrated Manufacturing, 29(8), 839-849.
Arena, F., Collotta, M., Pau, G., & Termine, F. (2022). An Overview of Augmented Reality. Computers, 11(2), 28.
Badhotiya, G. K., Sharma, V. P., Prakash, S., Kalluri, V., & Singh, R. (2021). Investigation and assessment of blockchain technology adoption in the pharmaceutical supply chain. Materials Today: Proceedings, 46(20), 10776-10780.
Bai, C., & Sarkis, J. (2020). A supply chain transparency and sustainability technology appraisal model for blockchain technology. International Journal of Production Research, 58(7), 2142-2162.
Bashir, H., & Ojiako, U. (2020). An integrated ISM-MICMAC approach for modelling and analysing dependencies among engineering parameters in the early design phase. Journal of Engineering Design, 31(8/9), 461-483.
Blaga, A., Militaru, C., Mezei, A. D., & Tamas, L. (2021). Augmented reality integration into MES for connected workers. Robotics and Computer-Integrated Manufacturing, 68, 102057.
Boysen, N., Schwerdfeger, S., & Weidinger, F. (2018). Scheduling last-mile deliveries with truck-based autonomous robots. European Journal of Operational Research, 271(3), 1085-1099.
Chen, S., Yan, X., Pan, H., & Deal, B. (2021). Using big data for last mile performance evaluation: An accessibility-based approach. Travel Behaviour and Society, 25(1), 153-163.
Chy, M., Amzad, K., Masum, A. K. M., Sayeed, K. A. M., & Uddin, M. Z. (2022). Delicar: A Smart Deep Learning Based Self Driving Product Delivery Car in Perspective of Bangladesh. Sensors, 22(1), 126.
Conway, G., Joshi, A., Leach, F., García, A., & Senecal, P. K. (2021). A review of current and future powertrain technologies and trends in 2020. Transportation Engineering, 5(1), 100080.
Corbato, C. H., Bharatheesha, M., Van Egmond, J., Ju, J., & Wisse, M. (2018). Integrating different levels of automation: Lessons from winning the Amazon robotics challenge 2016. IEEE Transactions on Industrial Informatics, 14(11), 4916-4926.
David-West, O. (2022). Platform Business Models: E-logistics Platforms in Sub-Saharan Africa. In Digital Innovations, Business and Society in Africa (pp. 191-213). Springer.
Demir, M., Turetken, O., & Ferwom, A. (2019). Blockchain and IoT for delivery assurance on supply chain (BIDAS). IEEE International Conference on Big Data, 5213-5222.
Elhidaoui, S., Benhida, K., El Fezazi, S., Kota, S., & Lamalem, A. (2022). Critical Success Factors of Blockchain Adoption in Green Supply Chain Management: Contribution through an Interpretive Structural Model. Production & Manufacturing Research, 10(1), 1-23.
Ertz, M., Sun, S., Boily, E., Kubiat, P., & Quenum, G. G. Y. (2022). How transitioning to Industry 4.0 promotes circular product lifetimes. Industrial Marketing Management, 101, 125-140.
Fatorachian, H., & Kazemi, H. (2021). Impact of I4.0 on supply chain performance. Production Planning & Control, 32(1), 63-81.
Guha, A., et al. (2021). How AI will affect the future of retailing. Journal of Retailing, 97(1), 28-41.
Hermann, M., Bücker, I., & Otto, B. (2020). Industry 4.0 process transformation: Findings from a case study in automotive logistics. Journal of Manufacturing Technology Management, 31(5), 935-953.
Khan, S., Singh, R., Haleem, A., da Silva, J., & Ali, S. S. (2022). Exploration of critical success factors of logistics 4.0: a DEMATEL approach. Logistics, 6(1), 13.
Khan, W. Z., et al. (2020). Industrial Internet of things: Recent advances, enabling technologies and open challenges. Computers & Electrical Engineering, 81(1), 106522.
Khorasani, M., et al. (2022). A review of Industry 4.0 and additive manufacturing synergy. Rapid Prototyping Journal, 28(8), 1462-1475.
Klumpp, M. (2018). Automation and AI in business logistics systems: Human reactions and collaboration requirements. International Journal of Logistics Research and Applications, 21(3), 224-242.
Kumar, D., Singh, R. K., Mishra, R., & Wamba, S. F. (2022). Applications of the Internet of things for optimising warehousing and logistics operations. Computers & Industrial Engineering, 108455.
Lee, J., Azamfar, M., & Singh, J. (2019). A blockchain-enabled Cyber-Physical System Architecture for I4.0 Manufacturing Systems. Manufacturing Letters, 20(1), 34-39.
Lemardelé, C., Estrada, M., Pagès, L., & Bachofner, M. (2021). Potentialities of drones and ground autonomous delivery devices for last-mile logistics. Transportation Research Part E: Logistics and Transportation Review, 149(1), 102325.
Leon, S., Chen, C., & Ratcliffe, A. (2023). Consumers’ perceptions of last mile drone delivery. International Journal of Logistics Research and Applications, 26(3), 345-364.
Li, Y., Lim, M. K., & Wang, C. (2022). An intelligent model of green urban distribution in the blockchain environment. Resources, Conservation and Recycling, 176(1), 105925.
Lu, Y. (2017). Industry 4.0: A survey on technologies, applications, and open research issues. Journal of Industrial Information Integration, 6(1), 1-10.
Moadab, A., Farajzadeh, F., & Fatahi Valilai, O. (2022). Drone routing problem model for last-mile delivery using the public transportation capacity as moving charging stations. Scientific Reports, 12(1), 1-16.
Moldabekova, A., Philipp, R., Satybaldin, A. A., & Prause, G. (2021). Technological readiness and innovation as drivers for logistics 4.0. The Journal of Asian Finance, Economics, and Business, 8(1), 145-156.
Neal, A. D., Sharpe, R. G., Conway, P. P., & West, A. A. (2019). SmaRTI—A cyber-physical intelligent container for I4.0 manufacturing. Journal of Manufacturing Systems, 52(1), 63-75.
Ostermeier, M., Heimfarth, A., & Hübner, A. (2022). Cost-optimal truck-and-robot routing for last-mile delivery. Networks, 79(3), 364-389.
Pinto, R., & Lagorio, A. (2022). Point-to-point drone-based delivery network design with intermediate charging stations. Transportation Research Part C: Emerging Technologies, 135(1), 103506.
Rai, H. B., Touami, S., & Dablanc, L. (2022). Autonomous e-commerce delivery in ordinary and exceptional circumstances. Research in Transportation Business & Management, 45(1), 100774.
Rejeb, A., Keogh, J. G., & Treiblmaier, H. (2019). Leveraging the Internet of things and blockchain technology in supply chain management. Future Internet, 11(7), 161.
Santos, C. H. D., et al. (2022). Use of simulation in the industry 4.0 context: Creation of a Digital Twin to optimise decision making on non-automated process. Journal of Simulation, 16(3), 284-297.
Seyedghorban, Z., Tahernejad, H., Meriton, R., & Graham, G. (2020). Supply chain digitalisation: past, present and future. Production Planning & Control, 31(2/3), 96-114.
Shukla, V. K., Wanganoo, L., & Tiwari, N. (2022). Real-Time Alert System for Delivery Operators Through AI in Last-Mile Delivery. Healthcare Informatics for Fighting COVID-19 and Future Epidemics, 375-392.
Tu, M., Lim, M. K., & Yang, M. F. (2018). IoT-based production logistics and supply chain system–Part 2: IoT-based cyber-physical system. Industrial Management & Data Systems, 118(1), 96-125.
Wang, S., et al. (2016). Towards smart factory for industry 4.0: a self-organised multi-agent system with big data-based feedback and coordination. Computer Networks, 101(1), 158-168.
Zennaro, I., Finco, S., Calzavara, M., & Persona, A. (2022). Implementing E-Commerce from Logistic Perspective: Literature Review and Methodological Framework. Sustainability, 14(2), 911.
Published
Issue
Section
License
Copyright (c) 2025 Vijay Prakash Sharma, Surya Prakash, Ranbir Singh, Ojha Ravindra, Bharti Ramtiyal

This work is licensed under a Creative Commons Attribution 4.0 International License.
Management Department of the School of Economics, Management and Accounting of the University of São Paulo.
The publication of article segments is allowed, subject to prior authorization and source identification.
Copyright is regulated under Licença Creative Commons Attribution