DIGITAL TRANSFORMATION IN LOGISTICS: INVESTMENT BARRIERS, COST STRUCTURES, AND STRATEGIC OPPORTUNITIES
DIGITAL TRANSFORMATION IN LOGISTICS: INVESTMENT BARRIERS, COST STRUCTURES, AND STRATEGIC OPPORTUNITIES

Summary/Abstract: The rapid development of digital technologies has significantly influenced the transformation of logistics systems, reshaping operational models, cost structures, and strategic decision-making processes within supply chains. In the context of emerging and transition economies, digital transformation in logistics presents both opportunities and structural challenges. The purpose of this paper is to provide a comprehensive theoretical overview of existing research on digital transformation in logistics in the Republic of North Macedonia and the broader Southeast European region, with a particular focus on investment barriers, cost structures, and strategic opportunities for companies operating in this sector. The study is based on a qualitative research approach that relies on a systematic review and synthesis of relevant academic literature, institutional reports, and previously published empirical studies addressing logistics digitalization in the regional context. Through comparative and analytical methods, the paper examines the dominant themes and findings in the existing body of research, identifying the main financial, technological, and organizational factors influencing the adoption of digital logistics solutions. The analysis indicates that companies in North Macedonia and the surrounding region face several structural constraints that hinder the implementation of advanced digital logistics technologies. Among the most frequently identified barriers are high initial investment costs, limited access to financial resources, insufficient digital infrastructure, and a shortage of specialized human capital capable of supporting digital transformation processes. In addition, the literature emphasizes the complexity of the cost structures associated with digital logistics systems, including capital expenditures for technological infrastructure as well as ongoing operational costs related to system maintenance, employee training, and organizational restructuring. Despite these challenges, previous studies highlight significant strategic opportunities resulting from the adoption of digital logistics solutions. The integration of technologies such as automation, artificial intelligence, Internet of Things (IoT), and advanced data analytics can improve supply chain transparency, enhance operational efficiency, reduce long-term logistics costs, and strengthen the competitive position of firms in regional and international markets. The contribution of this paper lies in synthesizing and systematizing the existing knowledge on digital transformation in logistics within North Macedonia and the Southeast European region. By identifying key investment barriers, cost implications, and strategic opportunities, the study provides a conceptual foundation for future empirical research and offers insights that may support policymakers, researchers, and business practitioners in designing more effective strategies for the sustainable digital transformation of logistics systems.

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