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The transformation from manual to smart warehousing: An exploratory study with Swedish retailers

Kembro, Joakim LU orcid and Norrman, Andreas LU (2022) In International Journal of Logistics Management 33(5). p.107-135
Abstract
Purpose
To meet customers' expectations on shorter lead times, high product availability, flexibility, and variation in delivery and return options, retailers have turned their attention to warehousing and are making big investments in technology. Currently, technology providers are pushing for smart warehousing, a new and under-researched phenomenon. This study aims to conceptualize the term and examine pathways toward implementing smart warehousing.

Design/methodology/approach
An exploratory survey was administered to 50 leading Swedish retailers in varying segments. A two-tailed t-test for equality of means was used to detect significant differences between current and future states.

Findings
The study... (More)
Purpose
To meet customers' expectations on shorter lead times, high product availability, flexibility, and variation in delivery and return options, retailers have turned their attention to warehousing and are making big investments in technology. Currently, technology providers are pushing for smart warehousing, a new and under-researched phenomenon. This study aims to conceptualize the term and examine pathways toward implementing smart warehousing.

Design/methodology/approach
An exploratory survey was administered to 50 leading Swedish retailers in varying segments. A two-tailed t-test for equality of means was used to detect significant differences between current and future states.

Findings
The study found that future smart warehouses will be automated, autonomous, digital, and connected, but that retailers will follow different paths along this journey, driven by contextual trends, e.g. sales growth, wider product assortment, shorter lead-time offerings, and integration of brick-and-mortar and online stores. Interestingly, the study revealed that many of the retailers that aim to create smart warehouses in five years are not the retailers with the most developed technology today.

Research limitations/implications
The paper operationalizes smart warehousing in two dimensions: degree of automation and degree of digitalization and connectivity of information platforms. Based on the findings, 16 theoretical propositions are put forth that, based on contextual factors, explain different pathways for retailers to implement smart warehousing.

Practical implications
The empirical insights and theoretical discussions provide practically useful guidance, including outlined trends, for selecting and benchmarking automation and complementary technologies in warehouse operations.

Originality/value
This paper conceptualizes and operationalizes smart warehousing – an original approach. It is also one of the first to investigate the technological transformation in retail warehousing empirically, explaining how and why retailers choose different pathways toward smart warehousing. (Less)
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Retail, Logistics, Warehousing, Automation, TECHNOLOGY, smart, context, transformation
in
International Journal of Logistics Management
volume
33
issue
5
pages
28 pages
publisher
Emerald Group Publishing Limited
external identifiers
  • scopus:85132342907
ISSN
0957-4093
DOI
10.1108/IJLM-11-2021-0525
language
English
LU publication?
yes
id
d561d59f-5bd7-45fa-bc68-cc72f384ebe7
date added to LUP
2022-06-22 23:38:56
date last changed
2023-04-05 17:44:59
@article{d561d59f-5bd7-45fa-bc68-cc72f384ebe7,
  abstract     = {{Purpose<br/>To meet customers' expectations on shorter lead times, high product availability, flexibility, and variation in delivery and return options, retailers have turned their attention to warehousing and are making big investments in technology. Currently, technology providers are pushing for smart warehousing, a new and under-researched phenomenon. This study aims to conceptualize the term and examine pathways toward implementing smart warehousing.<br/><br/>Design/methodology/approach<br/>An exploratory survey was administered to 50 leading Swedish retailers in varying segments. A two-tailed t-test for equality of means was used to detect significant differences between current and future states.<br/><br/>Findings<br/>The study found that future smart warehouses will be automated, autonomous, digital, and connected, but that retailers will follow different paths along this journey, driven by contextual trends, e.g. sales growth, wider product assortment, shorter lead-time offerings, and integration of brick-and-mortar and online stores. Interestingly, the study revealed that many of the retailers that aim to create smart warehouses in five years are not the retailers with the most developed technology today.<br/><br/>Research limitations/implications<br/>The paper operationalizes smart warehousing in two dimensions: degree of automation and degree of digitalization and connectivity of information platforms. Based on the findings, 16 theoretical propositions are put forth that, based on contextual factors, explain different pathways for retailers to implement smart warehousing.<br/><br/>Practical implications<br/>The empirical insights and theoretical discussions provide practically useful guidance, including outlined trends, for selecting and benchmarking automation and complementary technologies in warehouse operations.<br/><br/>Originality/value<br/>This paper conceptualizes and operationalizes smart warehousing – an original approach. It is also one of the first to investigate the technological transformation in retail warehousing empirically, explaining how and why retailers choose different pathways toward smart warehousing.}},
  author       = {{Kembro, Joakim and Norrman, Andreas}},
  issn         = {{0957-4093}},
  keywords     = {{Retail; Logistics; Warehousing; Automation; TECHNOLOGY; smart; context; transformation}},
  language     = {{eng}},
  month        = {{06}},
  number       = {{5}},
  pages        = {{107--135}},
  publisher    = {{Emerald Group Publishing Limited}},
  series       = {{International Journal of Logistics Management}},
  title        = {{The transformation from manual to smart warehousing: An exploratory study with Swedish retailers}},
  url          = {{http://dx.doi.org/10.1108/IJLM-11-2021-0525}},
  doi          = {{10.1108/IJLM-11-2021-0525}},
  volume       = {{33}},
  year         = {{2022}},
}