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Adoption of AI Based Order Picking in a Warehouse in Turkey: Benefits, Challenges and Critical Success Factors
Södertörn University, School of Social Sciences, Business Studies.
Södertörn University, School of Social Sciences, Business Studies. University of Vaasa, Finland; University of Economics and Human Sciences, Poland.ORCID iD: 0000-0003-2125-6155
Gümüşhane University, Turkey.
Södertörn University, School of Social Sciences, Business Studies. University of Economics and Human Sciences, Poland.ORCID iD: 0000-0002-3994-5365
2025 (English)In: Review of Managerial Science, ISSN 1863-6683, E-ISSN 1863-6691Article in journal (Other academic) Epub ahead of print
Abstract [en]

This research assesses the adoption of artificial intelligence (AI)-based batch order picking in a warehouse, focusing on benefits, challenges, and critical success factors. Using customer order data and simulation, the study employs a quantitative approach, combining mathematical and statistical estimations with qualitative examinations centered on interviews with the warehouse staff, its Enterprise Resource Planning (ERP) developer, and the AI developer. The findings of this mixed-method study reveal that the AI-based order-picking system (AI-based system) has improved order-picking efficiency by reducing travel distance and time. Nevertheless, challenges hinder maximum utilization of the system. In addition, the research highlights critical success factors and other benefits of adopting the system tailored to warehouse management. Understanding the lessons learned in this research is essential for businesses seeking to adopt AI to enhance their efficiency.

Place, publisher, year, edition, pages
Springer Nature, 2025.
National Category
Business Administration Transport Systems and Logistics
Research subject
Baltic and East European studies
Identifiers
URN: urn:nbn:se:sh:diva-54210DOI: 10.1007/s11846-025-00858-1ISI: 001427340800001Scopus ID: 2-s2.0-85218694648OAI: oai:DiVA.org:sh-54210DiVA, id: diva2:1869052
Funder
The Foundation for Baltic and East European StudiesAvailable from: 2024-06-12 Created: 2024-06-12 Last updated: 2025-04-03Bibliographically approved
In thesis
1. Transition Towards Supply Chain 4.0: Interweaving a Technological Perspective – Insights from Turkey and beyond
Open this publication in new window or tab >>Transition Towards Supply Chain 4.0: Interweaving a Technological Perspective – Insights from Turkey and beyond
2024 (English)Doctoral thesis, comprehensive summary (Other academic)
Alternative title[sv]
Övergång till Supply Chain 4.0 : Integration av ett teknologiskt perspektiv – Insikter från Turkiet
Abstract [en]

Supply Chain 4.0 represents a technological transformation in the way that supply chains work, extending the application of Industry 4.0 technologies from manufacturing and other advanced technologies into upstream and downstream processes. Despite the increasing global interest in this domain, the successful transition to Supply Chain 4.0 remains limited in practice, with existing literature highlighting its fragmented and under-conceptualized status. 

Adopting a strategic management approach to supply chains, this thesis amalgamates dynamic capabilities theory with the business-technology alignment concept, drawing from the domains of Information Technology Management and Information Systems, complemented by the integration of the multi-level perspective derived from transition literature, to underpin the thesis framework. This framework is then enriched by identifying the trio of benefits, challenges, and critical factors associated with the transition to Supply Chain 4.0, thereby contributing to advancing the knowledge frontiers within the domain of Supply Chain 4.0. 

This multi-method thesis uncovers the trio at two distinct levels: the technology level and the general Supply Chain 4.0 level. Twelve technologies closely associated with Supply Chain 4.0 are identified at the technology level, and the trio is analyzed in relation to each of these technologies. At the general level, the trio is examined in relation to Supply Chain 4.0 as a holistic concept. Insights derived from both these levels significantly enrich the thesis framework, offering valuable implications for the transition to Supply Chain 4.0. 

At the technology level, the findings of this thesis unveil the trio of benefits, challenges, and critical factors in relation to the following twelve technologies: Internet of Things; artificial intelligence; cloud computing; blockchain; big data technologies; augmented reality; automation; robotics; additive manufacturing; simulation; Internet of People, and semantic technologies. At the general level, the trio of benefits, challenges and critical factors is identified as follows: benefits include supply chain transparency, enhanced decision-making, supply chain integration, and supply chain process optimization. Challenges encompass high costs, the scarcity of requisite skillsets, security and privacy concerns, infrastructure development complexities, intricacies of coordination in Supply Chain 4.0, and inherent complexities within the technologies themselves. Identification of critical factors at the general level is rooted in business-technology alignment, further divided into three alignment aspects: critical factors for Regime-to-Niche alignment, critical factors for Niche-to-Regime alignment, and critical factors for both Regime and Niche alignment. Critical factors related to Regime-to-Niche alignment involve supply chain process reengineering, data management, and management commitment. Critical factors concerning Niche-to-Regime alignment include an understanding of the Regime’s context by technological solution provider, customization of technological design and solutions, and technological maintenance. Critical factors pertinent to both Regime and Niche alignment encompass providing requisite skillsets and knowledge, financial planning and investment strategy, data  rivacy and security considerations, technological infrastructure development and interoperability, and supply chain collaboration. This thesis reveals that the Niche-Regime partnership is characterized by technological complementarity, symbiotic alignment, and finite establishments subject to change with the ever-evolving technological landscape. Ultimately, the trio is further expounded in relation to Turkey, where empirical investigations focus on Regime’s supply chains.

Place, publisher, year, edition, pages
Huddinge: Södertörns högskola, 2024. p. 236
Series
Södertörn Doctoral Dissertations, ISSN 1652-7399 ; 232
Keywords
Supply Chain 4.0, technology, benefits, challenges, critical factors, dynamic capabilities, business-technology alignment, multi-level perspective, Turkey
National Category
Business Administration Information Systems
Research subject
Politics, Economy and the Organization of Society; Baltic and East European studies
Identifiers
urn:nbn:se:sh:diva-54206 (URN)978-91-89504-88-2 (ISBN)978-91-89504-89-9 (ISBN)
Public defence
2024-09-20, MB505, Alfred Nobels allé 7, Huddinge, 10:00 (English)
Opponent
Supervisors
Funder
The Foundation for Baltic and East European Studies
Available from: 2024-08-29 Created: 2024-06-12 Last updated: 2024-09-26Bibliographically approved

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Fakhrai Rad, FakhreddinOghazi, PejvakKordestani, Arash

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