Development of Digital-Oriented Model on Order Management System for Logistics Operation Improvement: The Problem Identification

Abstract

Logistics industry is critical to the modern economy. While the delivery practice and activity from orders to customers is exhaustive, it is the inspection and maintenance and approval matters that cause disruption and late deliveries, which leads to an increase in competitiveness difficulties. Transitioning company's operations from semi-manual to a digital-based transformation could enhance efficiency and provide a competitive advantage over competitors, as well as possibly improve employee behaviour and process effectiveness. However, most research indicates that companies are neglecting the significance of technology in business process management due to a lack of employee consciousness or company readiness. Similarly, an absence of a digital culture and understanding creates new challenges. Therefore, the development on digital-oriented model specifically to logistics operation needs is required, to support the IR4.0 and IR4WRD in developing country. Objective of this research is to investigate the details process and activities; and later to determine the digital-oriented criteria, the abilities and readiness of the Malaysia SMEs/LSPs. Finally, this research will develop a digital-oriented model to support logistics operation by considering the business capabilities. The case study methodology using triangulation research method will be used to construct a mode involves data collection using focus group with expert panels including model development designer and logistics expert in order to understand their business process for order management system (OMS).  Data collection obtained using semi-structured interview will be triangulated and analysed using content and thematic analysis. Digital-oriented model will provide a guidance and support for logistics sector which align with National Policy on Industry 4.0 to enhance the industry revolution through digitalization. In future, this research will offer essential guidance on business process management and strengthen support of businesses in handling goods and services that open opportunities to improve skills and participate fully in the digital transformation.