A Study on Alternative Analysis of Introducing Logistics Automation Systems Introduction Using Conjoint Analysis

Recently, there has been growing interest in the adoption of automation equipment not only in the manufacturing industry but also in the globallogistics indudstry. It can be recognized as the significant challenge because it asks the logistics process get higher for enhancing the customer service satisfaction level. Also, it should be able to address and respond to the social issues such as aging and population decline. Because the previous robots and automation equipment in logistics require the significant level of investment, it makes small and medium-sized companies difficult to adopt the automation systems to secure the market competitiveness.However, the adoption of those equipments is getting easier due to the extended investment, and the advances in production technologies and raw material. Therfore, the demand of the automation systems in logistics have been dramatically increased for not only big companies but also small and medium-sized companies . Still, the small and medium-sized companies in both manufacturing and logistics have difficulties to build the efficient strategies to adopt the automation systems because of the lack of expertises to figure out the cost-effectiveness, compatibility with the existing equipment, and ease of expansion.Also, the suppliers of automation systems have difficulties to make customer needs clear, and to develop the sales strategies. Therefore, this study aims to provide the fundamental understanding and guide for building sales strategies by pointing out the appropriate adopting cost using Conjoint Analysis. For the Conjoint Analysis, we have combined the attributes such as equipment introduction, purchasing cost, degree of expansion, and compatibility. Also, we have identified the factors which have significant impacts on the decision-making process for adopting automation systems from the view points of customers. Through the analysis, it has been found the significant differences among stakeholders in term of importance and utility of purchasing cost, ease of expansion, and compatibility attributes. The result of this study may be utilized to conduct the simulations on group-specific adoption rate changes through the analysis of the Maximum Utility Model, among the three sensitivity analysis models: BTL model, Logit model, and Maximum Utility Model. With the result of Maximum Utility Model, it is possible to suggest the appropriate sales strategies which may enhance the adoption rates for item groups. Still, thereexist some limitations which can be improved in the further research by addressing the alternative analyses for the introduction of automation equipments confined to specific processes, covering a broader range of automation equipment, and considering interconnections amongvarious logistics area.