Abstract
In recent years, because of the radical change in global economies and increasing customer demands for goods and services, logistical costs associated with transportation, warehousing and inventory exponentially increased. This increase in logistics costs highlights a global trend, due to outdated processes and a lack of technological advancements being implemented across several industry including the South African mining industry.
Globally, to reduce costs and optimise logistics functions, Industry 4.0 technologies are being implemented within the logistics sector. Technologies such as Big Data, 3D printing, AI, Robotics, Cloud Computing and IoT have all been identified as key Industry 4.0 technologies set to impact logistics and the future thereof.
The South African mining industry is a critical industry from a Gross Domestic Product (GDP) and employment perspective, and it is important for the country that it performs effectively and efficiently. The successful implementation of Industry 4.0 technologies could make a significant contribution in this regard, especially in the field of logistics. However, limited research has been conducted on the use and impact of Industry 4.0 technologies in the South African mining industry. Therefore, the objective of this study aims to uncover the impact of Industry 4.0 technologies on logistics efficiency and effectiveness within the mining industry, with a specific focus on the critical logistics functions of transportation, inventory, and warehouse management. The sub-objectives of the study are to determine which Industry 4.0 technologies would potentially have the largest impact on logistics in mining; to determine how these technologies would impact achieving efficiency and effectiveness in logistics in mining; establishing which Industry 4.0 technologies are most likely to be adopted within logistics functions in the mining industry; and lastly determining what are the benefits and challenges the logistics industry would face when implementing these technologies within its logistics functions.
The study was conducted adopting methodological approaches which included an interpretivism philosophical paradigm, an inductive research approach, a mono method qualitative methodology, and a narrative inquiry research strategy with a cross-sectional time horizon. As a result of utilising the mono method qualitative methodology, the
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researcher conducted one-on-one, open-ended, semi-structured interviews with participants. This allowed rich qualitative data to be collected, analysed and interpreted according to themes established to answer the research questions and objectives.
The findings of the study suggest that Industry 4.0 technologies are likely to have a positive impact on logistics functions in mining. These technologies could improve efficiency and effectiveness, collaboration and decision making within logistics. Technologies such as Cloud Computing, Big Data, robotics, 3D printing and Blockchain have been identified as the most likely technologies to be adopted and implemented within mining logistics.
The findings revealed several potential benefits and challenges with the implementation of Industry 4.0 technologies in mining. The benefits include; improved efficiencies, productivity, operational performance and safety within the logistics functions. The main challenges which may hinder these benefits include; employee resistance, a lack of skills and infrastructure and high initial investment costs.
Key terms: Industry 4.0, logistics, big data, mining industry, artificial intelligence, internet of things, supply chain, fourth industrial revolution, cloud computing.