ORIGINAL PAPER
Innovative technologies in the logistics system: Digital solution implementation benefits and risks assessment
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1
Department of Economics and Management, Azerbaijan Academy of Labor and Social Relations, Azerbaijan
2
Department of Management, Azerbaijan State Oil and Industry University, Azerbaijan
3
Department of Transport Equipment and Management Technologies, Azerbaijan Technical University, Azerbaijan
4
Department of Business Organization, State and Municipal Management, Azerbaijan University of Cooperation, Azerbaijan
A - Research concept and design; B - Collection and/or assembly of data; C - Data analysis and interpretation; D - Writing the article; E - Critical revision of the article; F - Final approval of article
Submission date: 2025-06-02
Final revision date: 2025-07-30
Acceptance date: 2025-12-30
Publication date: 2025-12-31
Corresponding author
Vilayat Ismayilov
Department of Economics and Management, Azerbaijan Academy of Labor and Social Relations, 181 Azadliq Ave.,, AZ1130, Baku, Azerbaijan
SLW 2025;63(2):35-56
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ABSTRACT
The research relevance is determined by the modern requirements for efficiency and speed of deliveries necessitating constant updating of logistics systems, thus successful integration of digital solutions becomes a key factor of companies’ competitiveness in a dynamic business environment. The research niche of this article is the need for a consolidated assessment of benefits and risks of adopting digital technologies in logistics. The study aims to analyse the benefits and risks associated with the integration of innovative digital technologies into the logistics system to develop strategic recommendations. Analytical, functional, statistical, system analysis, deduction, synthesis and comparison methods were applied. The key aspects of integrating innovative digital technologies into the logistics system were examined to test the hypothesis that net performance gains depend on aligned technology selection, staff training and cybersecurity controls. Systematic assessment of the benefits that companies can achieve when implementing innovative technologies such as automated warehouse management systems, real-time delivery monitoring, big data analytics and blockchain technologies was emphasised. Potential risks were highlighted as well, including the financial costs of implementing new technologies, difficulties in training staff and possible technical failures. The study also emphasises the importance of adapting logistics systems to modern market requirements to ensure the sustainability of enterprises in a rapidly changing business environment. The conclusions provide strategic recommendations for companies seeking to optimise their logistics processes. The practical relevance of this study is to provide specific strategic recommendations for companies in the field of logistics, ensuring an informed choice of innovative digital technologies.