Using System Dynamics Analysis for Performance Evaluation of IoT Enabled One-Stop Logistic Services

Abstract

This research focuses on a methodology applying Internet of Things (IoT) technology and enabling the material procurement process improvement of a manufacturer. The one-stop logistic service provider (1SLP) is an integrator that assembles the resources, capabilities, and technologies of supply chain networks to design and implement comprehensive logistic service solutions. This research develops the IoT enabled 1SLP process framework and uses a case example to demonstrate the improved process with a system dynamic (SD) assessment. The current material procurement process of the case requires excessive operation times and the related data do not integrate with the supply chain related information. The 1SLP offers to-be (improved) logistics support incorporating IoT to shorten the operational time and enhance the information flow accurately and transparently. For the SD assessment, the results show that the to-be model improves the IoT process efficiency with the IoT when benchmarked with the as-is current processes.