Developing human resource for the digitization of logistics operations: readiness index framework

Abstract

PurposeThe purpose of this study is to identify factors that are important for logistics organizations from the perspective of manpower readiness for digitization of logistics operations. The study also prioritizes the identified factors and also evaluates the readiness index of manpower for the digitalization of logistics processes.Design/methodology/approachThe factors for manpower readiness are identified through literature review and analysis of a case study. Three major categories of factors are identified. These are organizational, behavioural and technological factors. Under these three major categories of factors, 18 sub-factors are identified. Thereafter, with experts' inputs, the factors are prioritized using Fuzzy analytic hierarchy process (AHP). Further, a case illustration of an Indian logistics company has been taken to understand the current processes, technical capabilities, manpower skills and organization culture. After the case analysis and expert inputs, the manpower readiness index has been evaluated by using graph theory matrix approach (GTMA).FindingsThe prioritization of manpower readiness factors has been done using Fuzzy AHP. Organizational factors are found to be the most important factors which require quick attention. Sub-factors that are most important for building competencies in the logistics sector are providing the right training on functional skill development (0.129), top management support and commitment for digitalization (0.117), and organizational culture for process digitalization (0.114), etc. Finally, framework for evaluation of manpower readiness index for logistics operations in the digital age has been illustrated for a case company.Practical implicationsIndian logistics companies can benchmark their readiness index with respect to the best in the industry. Based on the readiness index, logistics companies can analyse their position, gaps from best and worst and can also identify potential areas for improvement.Originality/valueThe novelty of the study lies in the development of a framework for manpower readiness for digitalization in the logistics sector. In literature, this field is very less researched and provides the scope for developing strategies for improving manpower competencies for Industry 4.0. Logistics companies can improve their performance by making their manpower ready based on results obtained for readiness index.