Study of the Impact of the Internet of Things Integration on Competition Among 3PLs

The Third-Party Logistics (3PL) industry plays an important role in modern supply chains, facilitating the efficient movement of goods and optimizing logistics operations. With the advent of advanced technologies, such as the Internet of Things (IoT), automation, artificial intelligence, and data analytics, the landscape of the 3PL industry has undergone significant transformation. With their tracking ability and real time data enabling capability, IoT technologies have gained great attention from researchers and practitioners and have been widely used in the supply chain sector. This paper employs the Cournot duopoly model within the framework of game theory to investigate the profound implications of the use of IoT technology on competition and operational strategies within the 3PL sector. In this study, we construct a Cournot duopoly model focusing on the assessment of the service level of third party logistics (3PL) within the market. We consider variables such as service level and the IoT adoption rates as crucial factors influencing the behavior of these firms. Through numerical simulations we quantify the impact of the technology on the overall profitability for both firms. Our findings have demonstrated the positive impact of integrating IoT on enhancing the profits of the 3PL firms. Additionally, the IoT adoption rates and the overall IoT integration costs play a critical role in determining market equilibrium and profit distribution.

@article{Izikki2023,
  title     = {Study of the Impact of the Internet of Things Integration on Competition Among 3PLs},
  journal   = {International Journal of Advanced Computer Science and Applications},
  volume    = {14},
  number    = {9},
  year      = {2023},
  publisher = {The Science and Information Organization},
  author    = {Kenza Izikki and Mustapha Hlyal and Aziz Ait Bassou and Jamila El Alami},
  doi       = {10.14569/IJACSA.2023.0140946},
  url       = {https://doi.org/10.14569/IJACSA.2023.0140946}
}