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A framework and system architecture for value-oriented digital services in data-driven production logistics

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  • Masoud Zafarzadeh
  • Erik Flores-García
  • Yongkuk Jeong
  • Magnus Wiktorsson

Abstract

Digital services play a crucial role in enhancing manufacturing competitiveness by enabling differentiation, flexibility, customisation, and improved performance through advanced technologies such as the Industrial Internet of Things and Cyber-Physical Systems. While data-driven production logistics (PL) increasingly adopts these technologies to optimise operations, challenges persist in effectively leveraging digital services to enhance performance. This study proposes a value-oriented digital service framework for data-driven PL, integrating principles of value proposition development and value creation. Complemented by a system architecture, the framework identifies the defining characteristics of value-oriented digital services and provides a blueprint for effective performance monitoring. Empirical results from a case study on material handling in commercial vehicle manufacturing demonstrate significant improvements in PL performance metrics, including enhanced on-time delivery and energy efficiency. This study offers practical guidance for managers seeking to design and implement digital services that enhance operational monitoring and decision-making in data-driven PL.

Suggested Citation

  • Masoud Zafarzadeh & Erik Flores-García & Yongkuk Jeong & Magnus Wiktorsson, 2025. "A framework and system architecture for value-oriented digital services in data-driven production logistics," International Journal of Production Research, Taylor & Francis Journals, vol. 63(18), pages 6648-6668, September.
    • Handle: RePEc:taf:tprsxx:v:63:y:2025:i:18:p:6648-6668
    DOI: 10.1080/00207543.2025.2480204
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