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Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency

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  • Matthias Klumpp

    (Fraunhofer Institute for Material Flow and Logistics IML, 44227 Dortmund, Germany
    Institute for Logistics and Service Management, FOM University of Applied Sciences, 45130 Essen, Germany
    Department of Business Administration, University of Göttingen, 37073 Göttingen, Germany)

  • Dominic Loske

    (Institute for Logistics and Service Management, FOM University of Applied Sciences, 45130 Essen, Germany
    Faculty of Business and Law, UCAM Universidad Católica San Antonio de Murcia, 30107 Guadalupe, Spain)

Abstract

The increasing use of information technology (IT) in supply chain management and logistics is connected to corporate advantages and enhanced competitiveness provided by enterprise resource planning systems and warehouse management systems. One downside of advancing digitalization is an increasing dependence on IT systems and the negative effects of technology disruption impacts on firm performance, measured by logistics efficiency, e.g., with data envelopment analysis (DEA). While the traditional DEA model cannot deconstruct production processes to find the underlying causes of inefficiencies, network DEA (NDEA) can provide insights into resource allocation at the individual stages of operations. We apply an NDEA approach to measure the impact of IT disruptions on the efficiency of operational processes in retail logistics. We compare efficiency levels during IT disruptions, as well as ripple effects throughout subsequent days. In the first stage, we evaluate the efficiency of order picking in retail logistics. After handing over the transport units to the outgoing goods department of a warehouse, we assess the subsequent process of truck loading as a second stage. The obtained results underline the analytical power of NDEA models and demonstrate that the proposed model can evaluate IT disruptions in supply chains better than traditional approaches. Insights show that efficiency reductions after IT disruptions occur at different levels and for diverse reasons, and successful preparation and contingency management can support improvements.

Suggested Citation

  • Matthias Klumpp & Dominic Loske, 2021. "Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:10:p:5650-:d:557016
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