Data-Driven Production Logistics: Future Scenario in Two Swedish Companies Based on Discrete Event Simulation.

Recent technological advances in capturing real-time and large amounts of data provide an opportunity for production logistics systems to enhance their performance. Transitioning to a data-driven system is a complex and multifaceted process. While many articles highlight the benefits of data-driven applications, there are few empirical studies on how production logistics are influenced at the system level. This paper examines the potential benefits of transitioning to a data-driven production logistics system through two case studies. The first case involves an internal material flow between two departments in a large Swedish heavy automotive manufacturer with complex multi-product internal logistic flows. The second case involves the cross-docking flow of pallets in one terminal of a major courier industry player in the Nordic region with diverse customers. The current situation in each case was compared to a smart data-driven state through discrete event simulation, expert interviews, observations, and document review. The analysis shows that a seamless data flow can improve the overall performance of the systems in terms of lead-time, resource utilization efficiency, responsiveness, and space efficiency. The study provides insights towards creating a roadmap for the transition to a data-driven production logistics system.