Towards a Warehouse 4.

0: Proposal of
a Maturity Model for SMEs
Racha BENMIMOUN Yosra EL KIHEL Soufiane EMBARKI
Laboratory of Industrial Industrial Engineering Laboratory of Industrial
Engineering and Seismic Cesi-Lineact Engineering and Seismic
Engineering Lille, France Engineering
UMP Oujda elkihel.yosra@gmail.com UMP Oujda
Oujda, Morocco
Oujda, Morocco
r.benmimoun@ump.ac.ma
s.embarki@ump.ac.ma
Bachir El Kihel
Laboratory of Industrial
Engineering and Seismic
Engineering)
UMP Oujda
Oujda, Morocco
belkihel@yahoo.fr

979-8-3503-0950-8/24/$31.00 ©2024 IEEE

Abstract— Warehousing stands as a cornerstone of logistics robust logistics systems and processes that can handle
infrastructure, exerting a profound influence on the these challenges while delivering a solid return on
competitive landscape of industries worldwide. Recognizing investment and improving customer satisfaction [2].
its pivotal role, this research endeavors to enhance Warehouse that is the subject of our case study is a labor
warehouse performance through the strategic integration warehouse that is experiencing management problems,
of a maturity model and cutting-edge Industry 4.0 which led us to conduct a literature review and develop a
technologies. methodology to ensure the transition from a conventional
warehouse to a digitalized one.
Keywords— Industry 4.0, Warehouse, logistics.

II. BIBLIOGRAPHIC STUDIES

I. INTRODUCTION
The warehouse is not a simple storage area, With the This section provides a literature review on the various
increasing importance of e-commerce and globalization, existing maturity models. Typically, a maturity model or
warehouses have become more than just storage assessment should enable a company to position itself on
facilities. They are now integral parts of the information a maturity scale, assess its methods and processes based
system and business strategy. The data generated by on the best practices in Industry 4.0. According to
warehouse operations can be used to optimize inventory Chrissis, Konrad, and Shrum (2008), the maturity level
levels, improve order fulfillment times, and enhance refers to the stage at which an organization is in terms of
customer satisfaction. Additionally, warehouses can deploying its processes towards a goal. According to
serve as strategic locations for companies to position Soanes and Stevenson (2006) maturity refers to the
inventory closer to customers, reducing shipping times degree to which an organization has achieved a state of
and costs., it requires adequate and efficient management stability, efficiency, and effectiveness. Similarly, for T.
of its flow, it is a strategic location that must meet the
Mettler maturity is often associated with experience,
needs of a structure while satisfying the quality-cost-time
expertise, and a deep understanding of the organization's
triangle taking into account sustainable development. [1].
goals, values, and culture.
Unstable demand from customers eager to source and There are numerous studies on the digitalization of a
purchase items at a moment's notice has disrupted the traditional warehouse and its impact on logistics. Article
entire supply chain from supplier to customer. Producers, [3] examines the impact of digital technological
retailers and warehouses are striving to meet their needs. innovations of sustainable performance of a supply chain
B2B companies are particularly hard hit by digital in the halio- industrial sector. In [4], a strategy
revolution, as they produce, store and ship items much changeover is proposed for supply chain management,
faster and with pinpoint accuracy. The spirit of " instant and a conceptual model is presented that allows for the
everything " has swept across sectors, where managers evaluation of maturity in a supply chain [5]. There are a
are looking to secure their bottom line and deliver a solid number of different models for assessing digital
return on investment, while improving overall customer maturity. The difference between these models lies in the
satisfaction. Companies must therefore rethink their axes to be assessed, the most promising models for a 4.0
logistics strategy to meet customer requirements. They environment. The Readiness model enables: (1) strategy
must adapt to new technologies, in particular by using su and organization, (2) smart factory, (3) smart operations,
pply chain management systems to optimize inventory (4) smart products, (5) services through data analysis
management, production and delivery, while taking and (6) employees. According to
quality standards into consideration. Additionally, Ducrey and Vivier (2017) the HUB Institute model aims
companies must also work closely with their suppliers
to help companies execute their digital transformation.
and customers to anticipate market needs and
fluctuations. Communication and collaboration are key to According to six main dimensions must be addressed
ensuring an efficient and flexible supply chain. Finally, during this process, including (1) leadership, (2) culture
companies should invest in training their staff to ensure and organization, (3) technology management, (4) data
they have the skills to manage a modern and complex management, (5) measurement system and (6) customer
supply chain. In sum, the digital revolution has disrupted experience. Interestingly, the number of publications
the supply chain, but it also offers opportunities for related to logistics 4.0 is significantly higher than that
companies that are ready to adapt and innovate. By related to warehouse 4.0.
adopting a proactive approach, companies can improve This can be explained by the fact that logistics 4.0
their efficiency, flexibility and competitiveness in the encompasses the entire supply chain, while warehouse
market. The spirit of "everything, immediately" has 4.0 focuses on a specific element of the chain. However,
extended to all sectors where decision makers must it is important to focus on warehouse 4.0 as it is a key
ensure their financial results and benefit this has placed element of the logistics chain and the digital transition
significant pressure on decision-makers to ensure that of the warehouse can have significant impact on
their operations are efficient, cost- effective, and able to
meet customer demands. In addition to the challenges of
managing inventory and fulfilling orders, companies
must also navigate the complexities of handling a wide
range of products, managing multiple channels, and
integrating physical and digital sales channels. To
succeed in this environment, companies must invest in
 company productivity and efficieny.

Figure 1: Number of publications related to

logistics 4.0 and warehouse 4.0 between 2015 and
2022
The figure shows the result of a bibliographic study carried
Figure 2: Methodology
out on Scopus to discover the number of publications linked
to logistics and warehousing between 2015 and 2022. The Developing a clear and coherent strategy is essential
number of publications on Warehouse 4.0 has gradually for successfully transitioning to a warehouse 4.0. This
increased over the years, surely due to the importance of this strategy needs to be carefully crafted and involve several
field in Industry 4.0. Many articles and research propose key steps. Firstly, it's necessary to define a detailed action
digital transition methodologies, methods for transitioning plan where specific objectives for the company's
from a traditional warehouse to a digitized warehouse that transformation towards a warehouse 4.0 are clearly
meets customer needs, but few are the researches that outlined. These objectives should align with the
evaluate the state of the company through a simple maturity company's overall vision and the expected benefits from
model aimed at SMEs. It is necessary to analyze the level of integrating 4.0 technologies.
maturity that has been reached in relation to the different
issues facing businesses today[7]. Next, an implementation strategy must be developed
to guide the shift from a traditional warehouse to a
warehouse 4.0. This involves determining the necessary
III. METHODOLOGY steps to gradually integrate new technologies, as well as
Nervertheless, the implentation of digitization in SC is hard resources and skills required to do so effectively. This
due to numerous challenges, such as the absence of a strategy should also consider the organizational and
framework for adopting digital technology in SC and cultural aspects of the transition, ensuring that all team
resistance to digitalization encountered by personnel, the members are aligned with the objectives and ready to
integration of different technologies and systems that may support the change.Subsequently, establishing a maturity
be used by different actors in the supply chain, as well as the questionnaire is crucial for assessing the current level of
the warehouse in terms of readiness for integrating 4.0
need for interoperability and standardization of data and
technologies. This questionnaire will measure various
communication protocols. This requires collaboration and
aspects of the warehouse, such as its processes, systems,
coordination among stakeholders to ensure that the and technological capabilities, to identify areas for
technology used is compatible and can communicate with improvement.Finally, once a model that meets the
each other. Also this requires the implementation of robust company's needs and objectives has been proposed, it's
cyber security measures and the training of personnel to important to test it in a real-world environment. This will
ensure that they are aware of the risks . Overall, while there help verify the model's effectiveness and identify any
are challenges to the adoption of digitization in the supply adjustments or improvements that need to be made before
chain, the benefits are significant and can lead to increased full implementation. In summary, developing a strategy
efficiency, cost savings, and improved customer for transitioning to a warehouse 4.0 requires a methodical
satisfaction. It is important for companies to carefully and structured approach, including defining clear
consider these challenges and take proactive steps to address objectives, careful implementation planning, assessing
them in order to successfully transition to a digital supply the current maturity of the warehouse, and rigorous
chain. testing of the proposed model.

A. Action plan
To succeed, it is necessary to meet the needs of
customers and for this, an action plan must be put in
place and a strategy defined, taking into account several
factors such as human resources trained in the use of
technologies, financing, and estimated time for
completion, which is estimated at twelve months. The
Deming wheel, also known as the PDCA (Plan-Do-
 Check-Act) cycle, is a continuous improvement model
that can be applied to various business processes,
including the transformation of a supply chain. The
wheel consists of four stages: [6]

4.0 technology Define

integration strategic
strategy objective
Figure 3: Action plan cycle
assessment s

Figure 4: Technology implementation strategy

B. Warehouse process
Warehousing involves receiving goods from suppliers, After identifying the problem and assessing its impact on the
storing them in a warehouse, preparing orders for customers, warehouse, we noticed that there are several possible
and shipping them out. These processes are essential for technological options. These choices were presented to the
managing inventory and ensuring timely delivery of products company, taking into account criteria such as implementation
to customers[7]. Warehousing also involves Diagnost
managing the cost, time required, and associated complexity. The final
flow of goods and information, tracking inventoryiclevels, and decision was made by the responsible parties in an informed
optimizingCurrent
storagestate maturity
space to improve efficiency and reduce manner, as indicated in Table 3
and gap + Areas
costs[8]. Each of
analysis
the four basic processes of warehousing
for
-
receiving, storage, order preparation, and evaluatio
shipping - is D. Maturity diagnosis
composed of several functions and sub-functions n that
describe the specific activities involved in each process. According to Poeppelbuss, the analysis of literature on
These processes are interdependent and must be managed maturity models suggests that the CMM is a five-level
effectively to ensure a smooth and profitable supply chain. model that describes the maturity of an organization's
Receiving goods from suppliers involves verifying the processes, was designed to help organizations improve
quality and quantity of the goods received, as well as their software development processes and has since been
recording them in the inventory management system. applied to other areas of business, such as project
management and service delivery[11]. The development
of new models is often based on existing models
C. Implementation strategy
(Poeppelbuss et al., 2011). This diagnosis of digital
Good project management is essential to ensure that the maturity can help the company identify areas where it
project is completed on time[10], within budget, and with needs to improve and develop a roadmap for digital
minimal disruption to warehouse operations. This includes transformation[12]. The analysis should consider various
defining clear project goals, developing a detailed project aspects of the company's digital capabilities, such as its
plan, assigning roles and responsibilities, monitoring digital infrastructure, digital skills and competencies,
progress, and addressing any issues or challenges that arise. digital culture and mindset, digital marketing and
Overall, the digitalization of a warehouse or the transition to communication, and digital customer experience.
a 4.0 warehouse is a complex undertaking that requires
careful planning, strong internal resources, and expert Indeed, the diagnosis of digital maturity allows us to
support to ensure success. The mapping groups all the understand where the company stands in terms of the use
activities to describe the steps to follow for a transfer from a of digital technologies in its activities[13]. It also helps
traditional warehouse to a 4.0 warehouse, which consists of identify the strengths and weaknesses of the company in
the following different steps: terms of digitalization, as well as the opportunities.
To do this, a questionnaire has been established on all the
activities of a warehouse. Each element has 4 levels of
maturity where level 1 reflects the total absence of new The
questionnaire is designed to provide a comprehensive
assessment of the warehouse's digital maturity and identify xes Questions
areas where improvements can be made. each has 4
maturity levels  How is the receiving area
Receipt of goods restored?
 How is receiving information
• Level 1: 4.0 technologies not adopted
• Level 2: 4.0 technologies used and not mastered transmitted?
• Level 3: 4.0 technologies little used and mastered  How is internal
• Level 4: 4.0 technologies used and mastered communication and
The maturity level (MD) of each dimension is calculated by information sharing ensured?
the weighted average of all the maturity index elements  How are goods unloaded?
(MDIi) in its associated dimension. The weighting factor  How is storage space located?
(gᴅIi) is equal to the importance rating in the company. Storage  How is warehouse
Based on the MD value obtained for each dimension, it is optimization managed?
possible to develop a maturity report, which can be easily
represented by a radar chart. The maturity level is  Does the company have a
calculated using the following formula [14]: real-time stock management
system?
(1)  How is finished goods stock
managed?
IV. CASE STUDY  How is product conformity
Preparation of checked?
A beverage company offers differents products, with goods  How are confidential customer
differents flavor and volumes for each product (2l, 1.5l, 1l, data secured?
0.5l, 33cl). By integrating new technologies, the company
can improve its warehouse performance and stand out from  How are order-picking
its competitors to improve its responsiveness, avoid stock workloads and activity
shortages, and provide accurate product flow forecasts monitored?
(orders, production) while improving its environmental and  How are selection errors
social performance. handled?
The company in question is a medium-sized enterprise that Shipping  Is the merchandise delivered
specializes in the distribution of consumer goods. It has been
to the customer on time?
in operation for over a decade and has experienced steady
growth over the years. However, the management has
realized that there is a need to upgrade its warehouse  How are delivery times
management system to enhance efficiency, reduce costs, and defined?
improve customer satisfaction. This case study aims to
explore the challenges faced by the company and how the  How are distribution and
integration of Industry 4.0 technologies can help overcome. transport resource
requirements assessed?
A. Maturity diagnostic
 What control is exercised over
To integrate 4.0 solutions, we follow the methodology transport and delivery quality?
developed previously in Figure 2 to incorporate 4.0
solutions. This step relies on a diagnostic using a  How are trucks assigned?
questionnaire to calculate the maturity level of different
processes from product reception to bottling, then storage in
the warehouse, order preparation, and shipping. Next, we
identify 4.0 technologies that can be used to enhance each
process and develop an action plan for their implementation.
The diagnostic we propose aims to discover existing and V. RESULT AND DISCUSSION
new technologies and suggest digitalization of the By following the proposed methodology and conducting
warehouse for the company. We have devised the the maturity diagnostic, we were able to determine the
questionnaire along four axes: Goods Reception, Storage, level of maturity required to significantly improve
Preparation, and Shipping. With this questionnaire (Table 1) performance. The results of our assessment clearly
and using Formula (1), we first calculate the maturity level demonstrated that our case study, concerning a labor-
of each axis and then the overall maturity level of the intensive warehouse, urgently requires the integration of
warehouse. Industry 4.0 technologies. This transition to advanced
technologies aligns with the company's strategic vision
and fully justifies the identification and implementation
Table 1: Technology implementation strategy of appropriate technological priorities. rather than others.
This may be due to factors such as the availability of
resources, the complexity of implementation, the impact
on existing processes, and so on. In the company's case, Augmented
the technological priorities identified are all relevant and Reality
can bring significant improvements to the company's
processes. The Warehouse Management System (WMS)
can help optimize inventory management and improve Post-integration results for 4.0 technologies show a clear
order accuracy. This can enable the company to better improvement in all maturity indicators. Warehouse
respond to customer demands and reduce inventory automation has been greatly optimized, enabling more
management costs, as well as Artificial intelligence can efficient use of resources and a significant reduction in
contribute to data analysis, providing valuable insights operating costs. At the same time, warehouse flexibility
into market trends, customer preferences and product has also been enhanced, enabling more agile adaptation to
performance. fluctuations in market demand. It is therefore crucial that
After the implantation of 4.0 technologies such as AI, the company meticulously assesses its technological
IoT, RFID,... in the warehouse of the company in priorities and deploys them strategically in order to
question, we recalculated the maturity level. The maximize benefits while minimizing potential risks. The
following table shows the results obtained after 6 radar chart visually illustrates the gaps between the
months of testing these technologies. Table 7 represents previous state and the current state, highlighting the
the measured maturity level compared to the old state. significant progress generated by the integration of 4.0
technologies.
Table 3: Comparaison between current state and
target state
State before Currant State
Reception 2.46 3.5
Storage 1.49 3.7
Preparation 1.56 3.3
Dispatch 2.01 3.2
The maturity level is assessed on the basis of equation
(1). The Mdli coefficient, which represents the quality
of task execution, is particularly significant. This
coefficient evolves on a scale where level 1 corresponds
to a total absence of 4.0 technologies, and level 4 Figure 5: Chart Radar
reflects advanced mastery of these technologies. Thus,
the higher the level of 4.0 technology integrated into The improvement of the maturity level includes all axes,
task execution, the more the Mdli coefficient tends particularly storage, following the integration of
towards 4, symbolizing a progressive improvement in technologies born with the 4th revolution. confirms the
execution quality.On the other hand, the gdli coefficient effectiveness of the digital transition approach. The
represents the importance rating attributed to the task in technologies used in digitization were chosen to meet the
the overall warehouse process, as defined by the needs of the company and respect the budget allocated for
warehouse manager. This importance rating may vary the transition to Warehouse 4.0. Digitization represents
according to various factors, such as the impact on an opportunity for the company to achieve the goal it has
productivity, customer satisfaction or warehouse set for itself. The integration of 4.0 technologies has led
profitability.The equation combines both the assessment to positive changes within the warehouse, resulting in
of how the task is performed, taking into account the improved operational performance and better alignment
level of 4.0 technology involved, and the importance of with market requirements.
this task in the overall context of the warehouse,
according to the criteria set by the manager. By Table 4: Problem detected and solution proposed.
integrating these two aspects, it offers a global and
precise vision of the warehouse's level of maturity.
Table 2 : Extract from the questionnaire
Axes Questions
Storage Question : 1 4
How is storage
space identified
Answer :
Visually
Methode
ABC
Managemen
t software
 management, in order to propose solutions to improve
performance and productivity. Industry 4.0 technologies
led to optimize inventory management, track product
movements in real- time, reduce delivery times, and
improve customer service quality. Automating the
performance of repetitive tasks has improved warehouse
efficiency and productivity. Technological advances such
as robots, automated conveyor systems and inventory
management systems have optimized the use of
resources, reduced human error and accelerated goods
handling processes. The result has been increased
productivity and reduced labor costs. Digitizing the
warehouse also allows companies to collect and analyze
real-time data, enabling them to make informed decisions
and predict market trends. To sum up, the incorporation
of Industry 4.0 technologies into warehouse management
has enhanced efficiency, productivity and overall
service quality. This has allowed the company to remain
competitive in the market by meeting growing customer
demands and optimizing its internal processes.

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