Comparing Efficiency of Outsourcing or Insourcing Digital Logistics in Supply Chain Management

Abstract

The goal of the article is to investigate the influence of insourcing and outsourcing of digital logistics solutions to efficiency of a firm operating in Supply Chain 4.0 environment. Digital logistics covers digital technologies in both manufacturing planning and supply chain. Supply Chain 4.0 is an application of the Internet of Things to improve productivity and customer satisfaction. This requires the introduction of advanced robotics and advanced big data analytics in supply chain management. It is argued that depending of various reasons a firm could either develop digital logistic solutions internally or outsource it. Multicase analysis as a main research method gave an opportunity to divide main alternatives of decisions and factors justifying them. Managerial application of the paper offers trends for IT implementation and perspective business solutions based on them. Specific way to measure efficiency addressed for both insourcing and outsourcing of digital logistics solutions.