Driving Digitalization of Warehouse Services through Modularization and Configuration

The logistics industry is constantly evolving and is volatile in response to market changes and trends. Logistics service providers (LSPs) are central to third-party logistics (3PL), managing logistics activities on behalf of numerous clients. Especially with the rise of online shopping, LSPs are key facilitators of transportation and warehousing. Increasing demands from consumers and businesses add complexity to service delivery. At the same time, warehouse service providers face challenges, such as competition, rising costs, and labor shortages. The adoption of innovative technologies, particularly in the context of Industry 4.0, plays a significant role in transforming the logistics sector. However, the warehousing segment has been slower to adopt these advancements.

This thesis presents seven papers—based on a single case company—that investigates the 3PL warehousing industry and the challenges it faces. First, it explores the technologies currently transforming warehouse services. Second, it examines the barriers to implementing these technologies through case studies and a systematic literature review, which together help uncover underlying issues. Grounded in modularization theory, an approach for developing a service and process architecture for ware-houses is proposed to address the identified challenges and is tested in a multiple-case study. Finally, an approach for developing configuration systems that support the implementation of warehouse service architecture is presented using action research, and how these systems can improve business processes in the 3PL industry is examined.

The findings show that LSPs are exploring a range of technologies to improve efficiency and performance in the warehousing segment. These technologies are essential not only for operating in an increasingly complex logistics environment but also for remaining competitive. Six main categories of barriers to technology adoption were identified, arising both internally and externally from the LSPs. Notably, the diversity of clients and their varying needs significantly contribute to the complexity of delivering warehouse services. The studies demonstrate that LSPs can develop a modular architecture that breaks down warehouse services and business processes into individual elements, each delivering specific functionalities. Interfaces define how these elements can be combined and structured, enhancing standardization and aligning service offerings with service delivery. Furthermore, LSPs can develop configurator systems to implement the proposed architecture. These systems support the configuration of warehouse services and streamline customer-oriented business processes. This thesis provides both academic and practical insights into the current challenges facing 3PL warehousing and how they can be addressed through modularization and configuration.