Impact of IT Innovation on Logistics and Supply Chain Management

This study focuses on analyzing the impact of IT innovation in the context of logistics development and supply chain management. Emerging technology creates strategic opportunities to expand logistics and supply chain management functional areas through information technology. Different literature has been explored concerning the subject in connection with earlier investigations. To obtain information that can better impact the link to research aims for achieving expected results, relevant research methodology has been explored.

Logistics management was established as an element of supply chain management that defines the process, including plan, execution, effectiveness, and efficiency control. In addition, it transmitted information regarding the source and consumption, which is useful in satisfying client requirements. Management of supply chain is defined as the monitoring of information, materials, and finances, which move the process from super to the manufacturer and from wholesalers to retailers and eventually customers(Rout & Behera, 2021). The ERP IT Tool helps optimize the supply chain management process, enabling competitiveness to be developed by reducing inventory and shipping expenses. The development of IT such as RFID and GPS has given full visibility of product movement, ensuring effective logistics administration(Stough, 2017). Thus, IT acts as a vehicle to enhance logistics and supply chain management efficiency and effectiveness to achieve competitive advantages.

The study aims to assess the influence of IT innovation on businesses' logistics and supply chain management.

Evaluating IT innovation and its possible impact on logistics and supply chain management was undertaken by evaluating several innovative methodologies employed in industrial operations. Three sorts of IT innovations have been applied here: automatic identification technology, communication technology, and information technology(Sunday & Vera, 2018). Deciding how IT innovation affects supply chain management is to be seen as baked into its potential efficiency to create competitive advantages.

The aim of this study was achieved by addressing concerns that need additional attention. In this respect, a lack of IT innovation in logistics and the management of the supply chain might disrupt communication that could increase supply costs and delay delivery that could have affect customers' intentions to purchase. Strategic management can have more influence in connection with research goals made achievable by the practice of IT innovation in logistics development and supply chain management. Collaborative replenishment and inventory management may help to control inventories and enable access to require information.

• To evaluate the IT innovation modes generally used for the industry purposes
• To assess how IT innovation affects logistics and supply chain management in companies
• To learn about the concerns of lack of IT innovation in logistics and supply chain management
• To recommend viable techniques that promote IT innovation in logistics and supply chain management

The objectives of this research study were lasting by actively implementing research plans, which can help attain goals with possible favorable responses. Based on this research topic, it is true that evaluations of IT modes of innovation should be taken into account to assess their efficiency in logistics and supply chain management. In this context, the technological revolution could be addressed as a catalyst for creating communications systems to integrate functional development. By establishing a sophisticated customer-based infrastructure, information technology was administered with a larger range of sources and dissemination. As Babu et al. (2021) described, artificial intelligence is the key driver of IT innovation that can have a huge impact on data-driven decision-making, leading to subsequent results as competitive benefits. On the other hand, IT has used state-of-the-art technology to emphasize the authentication service that offers beneficial exposures to the logistic development of operations.

Research aims

The lack of IT innovation might decide the lack of coordination that reflects the increase in production, inventory, and delivery expenses that harm consumer relations(Phares & Richey Jr, 2021). The objective is to identify potential challenges due to the absence of IT innovation that can help have real influence and efficiency in the development or acceleration of business operations and the gain of competitive advantages. In this respect, lack of collaboration efficiency is another important issue accountable for disrupting customer communication that directly affects productivity and business development(Chen, Das & Ivanov, 2019). The objective is to offer practical methods which can be developed through artificial intelligence, automatic identification technology, and blockchain technology for a company's Supply Chain Management and Logistics Management. Thus, the perspectives of these objectives must be addressed in this study to achieve the desired results.

The problem will be based on IT innovation approaches for logistics development and supply chain management. Adaptation of behavioral change may influence operational movement by integrating new operating approaches(Cimini et al. 2020). Accordingly, infrastructure development costs will be at the heart of increasing digital technology demand. This is because lack of staff efficiency shows incorrect ways of implementing organizations, leading to uncertainty. Evaluating the value of items is necessarily raised, which imposes negative attitudes towards IT innovation, diminishing client buying intensity(Kang et al., 2021). This is currently seen as a problem since IT innovation lowers labor costs and increases social costs, negatively affecting buyers' intention to establish relationships with the companies. Accordingly, the expectations of IT experts are considerable, leading to a serious scenario to meet the consumer requirements. The research will shed light on this problem since it will have a stronger impact on IT innovation in terms of logistics development and supply chain management. Therefore, this research study will examine the influence of IT innovation, which may allow readers to increase their positive understanding of company functionality.

This literature highlights the impact of IT innovation in various logistics modalities in an industrial context. Different forms of innovation have been implemented in this area, including its critical assessment, to comprehend the supply chain management process. In logistics development, channel coordination theory and supply chain models are also highlighted in the literature.

There are four categories of innovations that are usually employed for industrial purposes. They are incremental innovation, radical innovation, architectural innovation, and, lastly, disruptive innovation. According to Kobarg, Stumpf-Wollersheim & Welpe (2019), incremental innovation will increase the customer appeal of existing technology or product. It is the most frequent mode of innovation. As Wang & Xu (2018) believe, radical innovation may be called a complete innovation that helps lead a revolutionary industry. It can potentially consume established industries at the same time. An exclusive and effective arrival can be regarded as a radical innovation. As far as Foss & Saebi (2018) are concerned, another mode of IT innovation is known as architectural innovation is particularly important at the outskirts of the business sector. Architectural innovation is an invention in which the know-how and lessons of existing technology may be employed in a completely different market. This form of innovation is quite hazardous, but if it works, it may be very profitable. The fourth innovation mode is known as disruptive innovation. According to Christensen et al. (2018), this kind of innovation is nothing more than technologically advancing brand-new innovation. Disruptive technology might sometimes be lower and difficult to use than incumbent technology. It can also be aesthetically strange, on the other side.

Objectives

Critical evaluation based on the ways through which IT innovation impacts managing the logistics and supply chain in companies

Logistics and supply chain management is undoubtedly a vital element of the company. Baryannis et al. (2019) have already shown the favorable influence of artificial intelligence on logistics and supply chain management. The best example of artificial intelligence is automated warehousing, intelligent transportation, automated route planning. While these aspects are efficient in the industry, the best AI level has just come into perspective. According to Hahn, (2020), increased intelligence is intelligence when the human mind and artificial intelligence cooperate. Artificial intelligence in this system does not overtake the human intellect at all. In general, the best process is fixed with the help of both. According to El Saddik (2018), the digital twin is another means of artificial intelligence that today has enormous implications for logistics and the management of change supply. The discrepancy between the electronically displayed goods and the delivered product can be removed in this method. Digital twins would discover the problems and complaints of the merchandise. As Swift Guide Jr & Muthulingam, (2019) have said, SCV, also known as Supply Chain Visibility, is an excellent means of implementing AI in logistics. This technological procedure not only allows the goods to be tracked but can also adjust to the rapid changes on its paths. This change can be made because of traffic jams, weather, and roadblocks.

The developing technologies are now creating strategic opportunities for the organization to provide competitive advantages in many organizational management functions, including logistics and the supply chain. However, according to Barka et al. (2018), the success element depends on the correct technology, particularly IT, where communication is substantially submerged. Appropriate organizational architecture and culture, including management policies, also contribute to the organization's supply chain management and controls. The rate of identification in logistics, information, automation, and communication has significantly risen, in which data collection, processing, and analysis is carried out with precision and transformation is carried out in high volumes. Information technology is an important factor in building a highly competitive edge and level of performance as it plays a key part in supply chain management, improving the logistics system's efficiency. As Liu et al. noted (2020), innovation in IT, such as communication technology and artificial intelligence, has contributed to increasing and growing productivity. In general, it is vital to discover the specific obstacles IT executives may retain and explicitly argue for. Improving the entire innovation ecosystem through research and development is designed to be marketed and known as a cooperative effort by both government and industry.

Research rationale

As Casado-Vara et al. (2018) have indicated, a supply chain can be defined as a broad network of suppliers, distributors, and subcontractor companies utilized by a manufacturing company to turn raw materials into final goods. For each supply chains unit, logistics businesses are intended to store, transport, and distribute supplies, as well as technology-integrated tools. Progress in the IT business has increased consumer demand for equality and equity, and the absence of that tool has adverse effects on productivity and delivery. According to Kummer et al. (2020), warehouse and stock management tools play a critical role in developing ties with suppliers since they allow for frequent monitoring of organizational performance. The lack of IT tools like technology from Bluetooth; mobile solutions might disrupt the supply chain management since the contact process is restricted. These technologies are handy and effective to save time and useful for trouble-free warehousing systems that benefit industrial activities.

On the other hand, efficient logistics software is a shipment control tool that is a vital instrument for improved delivery efficiency. Logistics software is meant to improve parcel monitoring and freight control in real-time, including the production of actual reports. The lack of this instrument can disrupt the entire supply chain and logistics system on the market.

The common objective of channel coordination or supply chain coordination is to enhance the performance of the supply chain by implementing effective corporate plans and objectives. To carry out any task in a manufacturing company, the organization must ensure two main approaches: on-site task length and delivery time. As Lian & Ke (2018) have indicated, both of these factors are uncertain variables because of their hidden historical information. This idea is based on temporal control, which ensures a resource channel. The manufacturer and its suppliers can get an effective result through contract design, and the delayed function can interrupt that channel because it has time.

An effective chain model drives efficiency and organizes the business to improve the company's logistics and supply chain operation(Saunders, Merrick & Holcomb, 2021). This model has more efficiency in developing unique values to lower production costs, effectively reducing additional distribution expenses. Therefore, via the deployment of this approach, the integrity of production and supply to merchants were attainable. The manufacturer will help make products based on the material supply, increasing competitiveness and saving costs. Consequently, reduced production costs might be beneficial in dealing with customer interactions. Tsao et al. (2021) underlined the need for an efficient chain model to maintain process flow that includes high-speed and cost-cutting conditions. In addition, it is extremely efficient for the moving logistics and supply chain operation to provide a rhythmic and sustainable corporate operation. This strategy is extremely beneficial for frequent production to achieve competitive advantages and helps achieve the company's premium objectives by revealing end-to-end efficiencies.

Literature review

The literature gaps have been identified since the literature describes different approaches of IT innovation and their importance but cannot guide how they can be implemented. On the other hand, the literature demonstrates several problems owing to the absence of IT innovation, but the way to solve these scenarios in terms of logistics management and supply chain management has not been provided. In addition, the literature reveals the negative impact of IT innovation but does not show its social impact, which is crucial to consider client interests.

Figure 1: Conceptual framework for supply chain management

As Ryder et al. (2020) noted, research methodology is one of the integral elements of research, leading to adequate planning and methodological implementation to achieve research results with possible positive values.

In the subject sphere, the researcher will identify two sorts of research approaches: deductive and inductive approaches. As described by Rott (2021), the deductive research approach has concentrated on moving from generalisation viewpoints to the actual observation, which resembles the top-down strategy. In this context, a deductive strategy will be used in this study to collect information on the logistics and supply chain management impact of IT innovation. Instead, this research study will abandon the inductive research strategy because it concentrates on creating new knowledge or building new hypotheses. Existing theories are considered in this context to relate to specific hypotheses.

There have been three types of descriptive, exploratory, and explanatory study designs. As George & Howard (2020) said, the exploratory research design examines research problems while researchers have no previous data or few references. The study project will consider the design of exploratory research to collect information based on the influence of IT advances on logistics and supply chain management efficiency. Following this, an exploratory research design will give the researcher sufficient flexibility to tackle research issues. Explanatory and descriptive research designs, on the other hand, will be eliminated as the explanatory description is not necessary if the results of this research are to be achieved.

Three forms of research ideologies, positivism, interpretivism, and realism, were recognized. As Zyphur & Pierides (2020) noted, positive philosophy has adhered to factual knowledge that relies on observation and measures to trust. The positive philosophy is picked to collect information based on the influence of IT breakthroughs on logistics and supply chain management efficiency to perform this research. The reason for choosing this philosophy is because its independence is founded on the definition of human interests, which helps to concentrate the facts and understandings. On the other hand, interpretivism and realism philosophies will be excluded because the study is not beneficial for consultation.

As Kejzlarova & Mladkova (2021) noted, the mixed data gathering approach was referred to as an urgent methodology that promotes data integration through quantitative, qualitative, and information consideration. In this regard, a mixed data collection approach shall be adopted to collect useful information on the impact of IT innovations on logistics efficiency and supply chain management. The five managers of a company interviewed as primary data collection will be considered by asking five different questions to carry out this research activity. An alternative way of collecting data will also be used by evaluating peer reviews, articles, news stories, organizational business reports, and case studies.

There are two sorts of sampling strategies that are probability and unlikely sampling strategies discovered. As Yu, Vexler & Jalal (2019) mentioned, sampling probability strategy is the kind of sampling technique that enables researchers to choose participants from many people using the concepts of probability theory. When five managers of the organization are selected, probability sampling techniques will be utilized. It can be beneficial for this research in terms of the interviewees' positive interests and attitudes. In contrast, the unlikely sampling approach for this investigation will be dismissed because of its nature in revealing selecting population characteristics.

As Cened, Gschwandtner & Miksch (2019) have pointed out, data analysis is the method used by historical data to investigate the identification of comparable segments to interpret final results to achieve research objectives. A mixed-method will be used to carry out this research project to collect information based on the influence on the efficiency of logistics and supply chain management of IT advances. Therefore, according to the interview data analysis, an interview transcript is generated to analyze the actual facts concerning the study subject. This will also make thematic and story analyses helpful for analyzing material obtained from interviews with five managers. On the other hand, secondary data will be analyzed through case studies and archival material dependent on the research subject.

As indicated by Fleming & Zegwaard, (2018), ethical issues have addressed the principles that researchers must follow while conducting the study. The participant's consent shall be gained from the selected participants by the researcher, who will be able to achieve affirmative answers to produce study results. The researcher shall follow data protection law 2018 to ensure reliability that can be more exposed to avoid data breaches. Therefore, data security will have to be enabled to collect information from the participants in an intellectual manner.              

The research restrictions are potential obstacles that degrade the project's quality and postpone the completion of the project. In this context, time management restrictions can be addressed, which contributes to delaying the project's delivery. On the other hand, budget restrictions are regarded as another restraint that can affect the quality of the project. As Hughes et al. (2019) said, the financial limitation is irresponsible because it creates various difficult conditions that affect the strength of the rigidity, which has a bad impact on the readers.

This research study may therefore be expected to identify the influence of IT innovation through methodological application appropriately. Readers will therefore be able to determine the importance of integrating IT innovations into logistics generation and supply chain management in the company. Accordingly, appropriate IT innovation modes can be recognized by developing logistics and supply chain management. On the other hand, suitable use can benefit data collection methods to allow real worries or problems. In this regard, the perspective tool of this study may be expected to highlight the views of this research to attract readers' attention. Despite this, some viable techniques are anticipated to overcome difficult scenarios that can be addressed through this research to improve the company's supply chain and logistics operations.