The Impact of digitalization on logistics : a case in apparel industry

Abstract

Digitalization has become a vital tool across different industries, including the clothing manufacturing sector, where logistics operations play a pivotal role. While various studies have stressed the significance and impact of digitalization on logistics, further study is needed to understand its specific influence on the logistical activities within the garment industry. The purpose of this study is to investigate how digitalization has affected the logistical processes in this industry. The study examines seven important criteria to determine how they affect logistics operations, building on previous results about digitalization. By using the survey method, the study looks at seven important aspects: process control, departmental performance and efficiency, tracking and visibility, cost and budgeting accuracy, analytical accuracy, data availability and accuracy, and value addition to the end product. Based on the responses of the professionals in the field, the study employed hypothesis testing, descriptive analysis, and cross-tabulation analysis to gain insights from the collected data. The results highlighted that all seven factors were affected by digitalization where “value to final product” had mixed responses than the others. Additionally, the managerial insights gleaned from this study highlight areas that need attention when implementing digitalization in logistics operations, supporting better decision-making and optimization strategies.