Question: Key product characteristics that affect logistics costs include product weight, size, volume, perishability, and value. Heavier and bulkier items require more space and fuel during

Key product characteristics that affect logistics costs include product weight, size, volume, perishability, and value. Heavier and bulkier items require more space and fuel during transportation, leading to higher costs. Products with irregular shapes or excessive volume can complicate storage and shipping which requires specialized handling or packaging that adds cost. Perishability plays a crucial role, as these products need refrigerated storage and fast delivery to prevent spoilage, escalating costs. Fragile goods demand special care in handling and transportation, potentially requiring specific transport conditions to prevent damage, further increasing expenses. High-value items may also require enhanced security measures during transportation, raising costs due to insurance and traceability.
The article Digital Transformation at Logistics Service Providers: Barriers, Success Factors and Leading Practices highlights four barriers worth noting.
Complexity of Logistics Networks and Processes: Logistics Service Providers (LSP) often operate in fragmented and intricate systems that involve coordinating with multiple stakeholders across various locations. This complexity makes it difficult to integrate external service providers. (Cichosz, et al.,2020).
Lack of Resources: Skilled personnel with digital capabilities. Many LSPs struggle with shortages of digitally proficient employees, which hampers their ability to collaborate effectively with advanced logistics providers (such as 4PL or 5PL). These advanced LSPs provide a broader scope of services that aggregate demands into bulk volumes. (Coyle, et al.2021).
Resistance to Change: Highlighted as a key obstacle, particularly at the institutional level. Many companies are reluctant to adapt to new ways of operating, which can create friction with external providers offering innovative solutions.
Data Security and Protection: These concerns are critical, especially in the digital transformation era. The need for robust data integration across multiple platforms can create vulnerabilities, making it harder for LSPs to confidently align with external providers without risking security breache

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