Jarkko Kuokkanen 

Digitalization of forwarding- & delivery process 

Action research for forwarding at ABB Oy 

 

 

 

 

 

 

 
  

Vaasa 2023 

School of Management 
Master’s thesis in Discipline  

Strategic Business Development 



2 

UNIVERSITY OF VAASA 
School of Management 
Author:    Jarkko Kuokkanen 
Title of the Thesis:  Digitalization of forwarding- & delivery process : Action research 
for forwarding at ABB Oy 
Degree:    Master of Science in Economics and Business Administration 
Programme:   Strategic Business Development 
Supervisor:   Anni Rajala 
Year:    2023 Pages: 87 

ABSTRACT : 
Digitalization and digital transformation have long been in the minds of companies and the en-
tire business world and have increased their relevance in relation to new regulations, laws, and 
environmental issues. For this reason, most companies strive to move their practices towards 
new standards to keep up with the ever-changing operating environment in terms of customers' 
wishes and to keep up with the competition. Outdated operation methods are constantly up-
dated, and companies invest more and more in sustainable development than ever before. The 
various functions of the companies are going through changes, which aim to influence the over-
all image of the company. For this reason, the goal of this research is to take the freight forward-
ing process of the commissioning company through digitalization, and to update the already 
outdated operating methods, especially regarding paper prints. 
 
The theoretical reference framework of the research is built from a strategic point of view, going 
through the perspectives of what companies want to achieve with digital change, what are its 
challenges, levels, and effects both in terms of technology and the environment. The theory thus 
supports the process itself and its results. 
 
The empirical part of the research was created based on action research, because during the 
research the researcher was involved in the changes and monitored the feedback and develop-
ment proposals received, thus contributing to the quality of the changes. Traditional interviews 
were not carried out in the research, but the results of the research are based on the discussions, 
feedback and meetings that took place during the research process. 
 
Thanks to the research, the forwarding process, as well as the supporting functions, processes 
and tools surrounding it, were significantly improved, affecting the number of paper prints, the 
lead time, and the simplicity of the process itself. The development targets and changes ob-
served during the research were so significant that they could be utilized in other units of the 
commissioning company, making their impact even greater. 
 
Since it can be said that digitalization and digital transformation are never finished, the process 
in the different functions of the commissioning company continues even after this study in terms 
of new ideas and development targets. The biggest of these issues can be mentioned the wishes 
of different customers regarding physical copies of invoices and their necessity. 
 
 
 
 

KEYWORDS: digitalization, digital transformation, forwarding 
 
 



3 

Vaasan Yliopisto 
School of Management 
Tekijä:    Jarkko Kuokkanen 
Tutkielman nimi:  Digitalization of forwarding- & delivery process : Action research 
for forwarding at ABB Oy 
Tutkinto:    Master of Science in Economics and Business Administration 
Oppiaine:   Strategic Business Development 
Työn ohjaaja:   Anni Rajala 
Valmistumisvuosi:  2023 Sivumäärä: 87 

TIIVISTELMÄ : 
Digitalisaatio ja digitaalinen muutos ovat jo pitkään olleet yritysten ja koko yritysmaailman tie-
toisuudessa ja nostaneet merkityksellisyyttään uusien säännösten, lakien ja ympäristöasioiden 
suhteen. Tästä syystä, useimmat yritykset pyrkivät viemään toimintatapojaan kohti uusia stan-
dardeja pysyäkseen mukana alati muuttuvassa toimintaympäristössä asiakkaiden toiveiden suh-
teen sekä pysyäkseen kilpailussa mukana. Vanhentuneita toimintatapoja päivitetään jatkuvasti, 
ja yritykset panostavat yhä enemmän kestävään kehitykseen kuin koskaan aikaisemmin. Yritys-
ten eri toiminnot käyvät läpi muodonmuutoksia, joilla pyritään vaikuttamaan koko yrityksen toi-
mintakuvaan. Tästä syystä, tämän tutkimuksen tavoitteena onkin viedä toimeksiantajayrityksen 
huolintaprosessi digitalisaation lävitse, ja päivittää jo vanhentuneita toimintatapoja, erityisesti 
paperitulosteiden suhteen.  
 
Tutkimuksen teoreettinen viitekehys on rakennettu strategisesta näkökulmasta, käyden läpi nä-
kökulmat sille mitä yritykset haluavat tavoitella digitalisella muutoksella, mitä ovat sen haasteet, 
tasot ja vaikutukset niin teknologian kuin ympäristönkin suhteen. Teoria täten tukee itse pro-
sessia ja sen tuloksia.  
 
Tutkimuksen empiirinen osa on luotu toimintatutkimuksen pohjalta, sillä tutkimuksen aikana 
tutkija on samalla ollut mukana muutoksissa, ja seurannut siitä saatuja palautteita sekä kehitys-
ehdotuksia, ja näin ollut osaltaan vaikuttamassa muutosten laatuun. Tutkimuksessa ei toteu-
tettu perinteisiä haastatteluja, vaan tutkimuksen tulosten pohjana toimii tutkimusprosessin ai-
kana käydyt keskustelut, palautteenannot sekä palaverit.  
 
Tutkimuksen ansiosta huolintaprosessia, sekä sitä ympäröiviä tukitoimintoja, prosesseja sekä 
työkaluja saatiin parannettua huomattavasti, vaikuttaen paperitulosteiden määrään, prosessin 
läpimenoaikaan, sekä prosessin yksinkertaisuuteen itsessään. Tutkimuksen aikana havaitut ke-
hityskohteet ja muutokset olivat osaltaan niin suuria että niitä pystyttiin hyödyntämään toimek-
siantajayrityksen muissa yksiköissä, jolloin niiden vaikutus oli entistä suurempi.  
 
Koska voidaan sanoa, että digitaalisuus ja digitaalinen muutos ei ole koskaan valmis, prosessi 
toimeksiantajayrityksen eri toiminnoissa jatkuu myös tämän tutkimuksen jälkeenkin uusien ide-
oiden ja kehityskohteiden osalta. Suurimpina näistä kohteista voidaan mainita eri asiakkaiden 
toiveet fyysisistä laskukopioista sekä niiden tarpeellisuudesta.  
 
 

AVAINSANAT: digitalization, digital transformation, forwarding 
 
 
 

 



4 

Content 

1 Introduction 7 

1.1 Motivation for the thesis 8 

1.2 Objective of the study and research questions 8 

1.3 Structure of the thesis 10 

2 Digital transformation in companies 12 

2.1 Strategic aspect behind digitalization 13 

2.2 Challenges in digitalization 17 

2.3 Digital innovation 18 

2.4 Stages of digital transformation 19 

2.4.1 Common issues after digital transformation 21 

2.5 Benefits of digitalization 22 

2.5.1 Technological impact 23 

2.5.2 Sustainability 24 

2.5.3 Acquirements of a company to implement digitalization 25 

2.6 Theoretical framework 26 

3 Methodology 29 

3.1 Research method 29 

3.2 Assessment of research´s quality 36 

4 Digitalization of forwarding in the order-to-delivery process 38 

4.1 Background for the study 38 

4.2 Company introduction 39 

4.3 Order-to-delivery process in the commissioning company 40 

4.4 ABB Oy Digital strategy 43 

5 Digitalization of the forwarding process 47 

5.1 Introduction of current working methods 47 

5.1.1 SAP 47 

5.1.2 nShift -delivery management software 48 

5.1.3 Packing department 49 



5 

5.2 Starting point of digitalization 49 

5.3 Phases of the project 50 

5.3.1 Starting phase for the project 50 

5.3.2 Improvement of tools 51 

5.3.3 Requirement of shipping invoices 52 

5.3.4 Learning visit to other ABB unit 54 

5.3.5 Introducing shipment booking to the shipping personnel 54 

5.3.6 Supply chain returns & shipments from external location 56 

5.3.7 Launch of paperless forwarding 58 

5.3.8 Digitalization of invoice archives 60 

5.3.9 Preparation of savings calculations 63 

6 Key improvements for the order-delivery process 67 

6.1 Overall benefits for various departments 67 

6.1.1 Forwarding 67 

6.1.2 Packing and shipping department 70 

6.2 Savings throughout the project 73 

6.3 Proposals for further research 74 

7 Conclusions 77 

References 79 

  



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Figures 
 
Figure 1 Theoretical framework 27 

Figure 2 Steps of action research (Altrichter, et al. 1993) 31 

Figure 3 Spiral of action research cycles (Nunes & McPherson, 2002) 33 

Figure 4 Thesis action research process 35 

Figure 5 Example of relays manufactured by Distribution Solutions (Relion 615 series)40 

Figure 6 Forwarding process 42 

Figure 7 ABB strengths in enabling powerful industrial outcomes 44 

Figure 8 ABB Ability™ Collaborative Operations 46 

Figure 9 Queue for supply chain returns 57 

Figure 10 Shipping queue before, and after changes 68 

Figure 11 Overall action research process 72 

 
  



7 

1 Introduction 

Digitalization in companies, scholars, and countries has grown significantly due to its 

ability to ease up the transformation of data and information into more tractable version 

leading to an efficiency increase in production and working methods in companies and 

schools. Moreover, process digitalization can help companies in their decision-making 

and transform the process into more sustainable versions of themselves. (Klymenko, Lil-

lebrygfjeld Halse & Jæger, 2021). Projects and efforts towards advanced digitalization 

increased massively due to COVID-19 pandemic which forced companies to find alterna-

tive solutions for operating models, which had been existing for years. Covid-19 is one 

of the main reasons why digitalization and digital transformation is and will be one of 

the major themes for organizations in the near-future. Covid-19 forced companies to 

thoroughly go through their operating models to have a chance against the changing 

environment. (Frankiewicz & Chamorro-Premuzic, 2020). Covid-19 also made digitaliza-

tion and digital transformation take significant leap in a short period of time. The great 

leap in digitalization also raised possibilities. Companies may use the situation in their 

own benefit with customers, operating models, and operating systems to improve their 

performance. Shift in the markets meant changes in company strategies. (Klein & 

Todesco, 2021) 

 

The way companies operate in the business environment is in constant motion in today´s 

business life. Things that were relevant in the beginning of 21st century have already 

expired. Employers place higher value for upskilling and digital skills than to tenure and 

working experience. (Turner, 2022). However, employees are only one small part of this 

since digitalization and sustainability have created rising interest from companies and 

researchers due to changes in laws and operating models. Especially sustainability has 

transformed from a subject with small influence on a necessity in the business environ-

ment of today. Same applies to digitalization since both have a wide impact on busi-

nesses and their operations and might have a significant consequence from authorities 

and public if not applied properly. (Klymenko et. al (2021). 

 



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1.1 Motivation for the thesis 

Digitalization has the ability to make companies gain an increased competitive advantage 

over their competition in a short period of time. This is why companies need to keep 

their competition and digitalization strategies constantly up to date incase other compa-

nies on the same business field come up with new operating models and solutions. 

Therefore, it is important to keep innovating and constantly enhance the way of working. 

(Wen, et.al 2022).  

 

Digitalization increases the level of location independence in companies, which has wide 

impact within. For instance, productivity levels may rise since some workers are more 

suitable for home offices than others. Furthermore, travel costs, environmental impacts, 

and time used for travel will decrease while employee satisfaction will increase having 

an effect to the overall performance of each employee. (Nash, Jarrahi & Sutherland, 

2020).  

 

The importance of reducing environmental impacts from manufacturing companies has 

increased due to global warming and there is an increasing amount of legislation towards 

waste management and sustainability. Therefore, companies are seeking new ways to 

achieve the sustainability goals established by governments and leaderboards. Study by 

Lieb & Lieb (2008, 526) showed that most popular reason for new sustainability pro-

grams however in companies according to CEO´s was “a corporate desire to do the right 

thing”.  

 

1.2 Objective of the study and research questions 

Based on the issues stated, related to digitalization and policies leading to changes in 

strategy and operating models, this study has been created in the form of action research 

to fully study and implement findings of an actual company and its operations. The ob-

jective of this Master thesis is to examine the forwarding process through its challenges 

and possibilities to find out how forwarding process can be improved through 



9 

digitalization. To find solutions for the existing problems, the researcher will work along-

side the research to improve the forwarding function in the commissioning company 

through observations, meetings, and discussions, and hence guiding the digitalization 

efforts in the right direction. The final objective is to alter the forwarding function 

through digitalization and achieve more effective and efficient forwarding function while 

also being practical for the employees working in that specific function. The goal is to 

achieve more time and place independent forwarding and simultaneously improve the 

lead time of the whole order-to-delivery process. As of now, employees working in the 

forwarding function are required to print and sign documents, such as invoices and pack-

ing lists, which is not necessary in today’s digital world.  

 

Digitalization of the forwarding function has number of motivational backgrounds, why 

the process must be seen through from the perspective of the commissioning company. 

Challenges, such as lack of resources, and low efficiency are among those companies are 

trying to solve. (Rosin, Proksch, Stubner & Pinkwart, 2020). Furthermore, digital technol-

ogy, digital competition and digital customer behavior are driving companies to increase 

digital presence within their operations to match with the direction the markets are 

heading to. (Verhoef, Broekhuizen, Bart, Bhattacharya, Dong, Fabian & Haenlein, 2021). 

Moreover, digitalization is currently having a strong effect to the world of forwarding, 

and logistics which have a significant meaning to the operating model of the forwarding 

team in the commissioning company of this thesis. In addition, the necessity of human 

staff is often questioned in relation to increasing capabilities of digitalization and auto-

mation. Hence, manufacturing companies dealing with logistic companies, forwarding 

personnel and transportation in general are interested about the future with digitaliza-

tion. (Bavrin, Koop, Lukashevich, Simakova & Temirgaliev, 2021). In a conclusion, could 

the digitalization of the forwarding team lead to a significant increase in the capabilities 

of the forwarding team, which could then lead to surplus of resources, instead of lack of 

them.  

 



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To solve the existing problems and improve the forwarding process, the research will 

answer to following questions. 

 

1. How digitalization affects the forwarding function inside order-to-deliver process 

in an international company? 

2. What does it take to increase digitalization for forwarding in an international 

manufacturing company?   

 

The project is important for the commissioning company since the discussions of the 

same issues has been ongoing for few years. Especially when Covid-19 made companies 

rethink their ways of working, the commissioning company realized that the forwarding 

function cannot be done remotely. Furthermore, it´s crucial to clarify that this research 

is concentrating more on digitalization, because this research is about the alteration and 

updating of the existing processes within the forwarding team. Hence, relating to the 

terminology of digitalization as “the use of digital technologies to innovate a business 

model and provide new revenue streams and value-producing opportunities”. (Annarelli, 

Battistella, Nonino, Parida & Pessot, 2021). When in the other hand, digital transfor-

mation is concentrating more to the use of knowledge and integration of technology to 

most of the business areas inside a company. (Monton, 2022).  

 

 

1.3 Structure of the thesis 

This research consists of seven chapters. The first chapter is the introduction of the re-

search. The introduction chapter consists of objective of the thesis and introduction of 

the research questions. Also, the motivational background for this thesis is introduced. 

The second chapter will present the subject from a theoretical background, hence justi-

fying the research and the decisions made. The third chapter presents the methodology 

of this thesis, the research method used and how the quality of this thesis is assessed 

and questioned. The fourth chapter goes deeper into the actual commissioning company 

and presents their side of the digitalization process while revealing the order-to-delivery 



11 

process from their own perspective. Furthermore, the digital strategy of the commis-

sioning company is presented which also forms a ground for the motivation of this study, 

as well as the findings made throughout the process.  

 

In terms of the results of this thesis, one of the key chapters is chapter five, which re-

views the project in different phases and hence creating a timeline of the changes and 

process descriptions of each step of development. In the beginning, chapter five pre-

sents the main tools the forwarding team is using in their daily work, hence giving a 

background for the changes made and presented later in the same chapter. However, 

chapter five leaves the results of each step of development for the next chapter. In the 

next chapter, the key improvements to the order-to-delivery process are indeed revealed 

from the perspective of each function most closely affected with the results of this thesis. 

Later in the same chapter, the places where savings on time, money and resources are 

made are revealed, which truly uncovers the scale of what effects this project has had to 

the operating models and lead time of the whole order-to-delivery process, especially 

from the perspective of the forwarding team. Furthermore, since digital change is ongo-

ing and new inventions are made every now and then, everything cannot be included to 

the same thesis. That´s why, also the proposals for further research are given out in chap-

ter six based on the work concluded in this thesis. Finally, in the last chapter, the project 

will be brought together in the form of conclusion based on all the previous chapters.  

 



12 

2 Digital transformation in companies 

Digital transformation is the force transforming society and industry. Due to the intro-

duction of digital technologies within the organization or in the environment where the 

organization operates, digital transformation results in changes and benefits for busi-

nesses. (Parviainen, Tihinen, Kääriäinen & Teppola, 2017). Hence, digital transformation 

can be defined as “use of digital technologies to radically improve the company’s perfor-

mance” (Vial, 2019). Additionally, operating costs can be reduced up to 90% and turna-

round times can be increased by many orders of magnitude. Furthermore, decreasing 

the use of paper and manual processes with software´s, lets the companies to collect 

more information to be used for better understanding of process performance, cost driv-

ers and risk factors. (Parviainen, et al. 2017) 

 

It is important to clarify the terminological confusion with digitalization and digitization. 

Hence, digitalization and digitization should be kept apart even if they are frequently 

used simultaneously, which applies also to digital transformation. Digitization is the basic 

concept established by computer scientists since the invention of the first computers. It 

is the technological process of changing analog inputs into a digital form, and finally into 

binary digits. It also changes information from a physical into digital form. (Legner, Ey-

mann, Hess, Matt, Böhmann, Drews, Mädche, Urbach & Ahlemann, (2017). One example 

of digitization process is the establishment of an operational foundation or implement-

ing ERP systems through a systematic procedure with a specific outcome. (Ritter & 

Pedersen, 2020).  

 

Digitalization on the other hand has been used to refer to various sociotechnical phe-

nomena’s and to the usage and adoption of modern technology processes in more ex-

tended individual, organizational, and societal contexts, such as the application of digital 

technologies. (Legner, et al. 2017; Ritter et al. 2020) The world of business has experi-

enced digitalization in multiple comings. The first coming of technological advancements 

focused on using computers to replace paper as a physical container, increasing the level 

of automation in daily tasks. The second coming concentrated to the introduction of 



13 

internet, which brought changes to the way companies create value and gave birth to 

new business types, such as those in e-commerce and intermediaries. Nowadays, the 

businesses are experiencing the third coming of digitalization. Now it´s concentrating on 

increasing the processing capability, capacity of internal storages and easing internal 

communication. Therefore, it is enabling the creation of whole new business models 

while extending and enhancing current products and services. (Legner, et al. 2017) 

 

2.1 Strategic aspect behind digitalization 

One of the most common challenges new companies face, is the lack of resources, which 

may restrain especially smaller companies from developments and actions required to 

grow the business. Carefully managing resources, trying to increase efficiency, and con-

centrating on actions which are made, may be the easiest way, but not the sustainable 

one. Digitalization might help young companies to overcome their difficulties and able 

the beginning of growth with smaller investments. (Rosin, et al. 2020). 

 

Three main external drivers of digitalization which push companies to introduce digital-

ization to their operations are digital technology, digital competition, and digital cus-

tomer behavior. (Verhoef, et al. 2021). These three drivers could all be combined into 

the term business culture, being seen as what others are doing. (Brewster, 2021). More-

over, one of the major attributes to all three drivers mentioned is E-commerce and its 

varieties. E-commerce sales have increased radically since the invention of the Word 

Wide Web being 2.3 trillion dollars in 2017. The field of e-commerce is expected to grow 

annually across every business field. The change will force companies to reconsider their 

business models and transform their businesses into more compatible versions with the 

current markets with customers and competition. (Verhoef, et al. 2021). 

 

The increasing adoption of new digital technologies clearly highlight the need for busi-

nesses to transfer their operations to the digital world. Additionally, these new digital 

technologies may have an impact on the firm's cost structure by robots or virtual agents 

in place of more costly humans when providing services, or through the use of AI and 



14 

blockchain to optimize logistical streams and lower supply chain costs. (Verhoef, et al. 

2021) 

 

Nowadays customers can access dozens of different media channels, engage in active 

and effortless communication with companies and other customers. This way they can 

experience a rapidly growing number of touchpoints during their customer journey, 

which many are in a digital form. For many companies, digitalization has meant that 

newcomers have surpassed their traditional way of doing business with digital innova-

tion and are now suffering as a result. Hence, digitalization is forcing companies to pur-

sue technological innovation, such as artificial intelligence. (Denicolai, Zucchella & Mag-

nani, 2021). As an example, online retailers, such as Amazon and Alibaba, have had a 

strong effect to traditional retailers and their brick-and-mortar store´s. Furthermore, 

these new digital companies are not just limiting their operations to the traditional retail 

industry but are instead taking leverage from their digital capabilities to enter completely 

unrelated markets due to growth possibilities. (Verhoef, et al. 2021) 

 

Rise of new digital technologies has changed the competition field dramatically. In retail 

industry, technology has had an effect to the competitive landscape, moving the revenue 

stream towards new digital companies. Hence, large information-rich companies from 

the United States of America such as Amazon, Alphabet, Apple, and Facebook and China 

such as Alibaba, and JD start to dominate many industries, and consequently the com-

petition has grown both in scope and intensity. Particularly, this change is reflecting to 

the valuations of these companies. (Verhoef, et al. 2021) 

 

In relation to large companies and their digital platforms, transparency is often discussed 

alongside with digitalization due to problems which might occur with internet safety as 

well as the origin of products sold online. Moreover, one of the key components of civil 

society is the transparency of governmental power (Mynenko & Lyulyov, 2022), which is 

why it should be noted that the national economy's security policy has changed because 

of digitalization, alongside new vectors, such as data- and information security. Hence, 



15 

the increasing importance of digital technologies which ensure standard components 

related to national security economic, social and information should be considered more 

often. In a conclusion, there is a close relationship between transparency and digitaliza-

tion since, on one side the development of digital technology helps to grow transparency, 

accountability, and public awareness. Digitalization simultaneously enhances the busi-

ness model's efficiency and transparency as well as the public administration systems. 

(Kostetskyi, 2021).  

 

During the past decade, digital technology has had a significant change what comes to 

the way of doing business. Companies are no longer changing themselves just to please 

their customers, but also to change their operations to a digital version for developing 

new operating models which can bring new possibilities introduced through digital trans-

formation, and this way differentiate themselves from the competition. (Agostini, Galati 

& Gastaldi, 2020).  

 

Digital transformation has an effect to the market competition strategy for manufactur-

ing companies. Hence, the manufacturing process of digital transformation has a signif-

icant effect to promoting companies on implementing differentiated competitive strate-

gies, while at the same time preventing their rivals from the implementation of cost-

competitive strategy. Companies need to be aware that manufacturing companies with 

higher viability inside the market are more capable of adjusting to digital transformation 

and thus are implementing different competitive strategies from their competitors. 

Hence, businesses with high viability can benefit more from innovation incentives, de-

spite the size, ownership, or the productivity of the business. (Wen et al., 2022).  

 

The amount and capabilities of digital technologies are increasing daily, which leads to 

the collection of extensive amounts of data from devices and applications linked to those 

digital technologies. This forces companies to assess and change their operating models 

to match with the constantly changing environment. (Correani, et al. 2020). This means 



16 

that the traditional perspective companies use to view their IT strategy as subordinate 

to business strategy must change. (Nadkarni & Prügl, 2020).   

 

Digitalization has effects on individual behavior and requirements, by altering existing 

processes and creating new ones. Furthermore, it has effects on intra- and inter-com-

pany collaborations by enabling new sort of automation possibilities for companies. 

(Kerpedzhiev, König, Röglinger & Rosemann, 2020). Hence, failing to take critical aspects 

into account in change management in relation to employees and clients who must alter 

their working habits and the way of interacting with the company is one of the reasons 

why a digitalization projects might fail. (Correani, et al. 2020). 

 

The start of digitalization should happen after an awareness that how dependent current 

internal procedures are of stable market environment. Even though this process might 

have been contributing to the company´s previous success, it might also be the preven-

tion of being competitive in the future. Hence, in addition to the current near-term strat-

egy, businesses must begin on a wider digital transformation in order to stay in operation 

in the long term. (Björkdahl, 2020).  

 

Companies with the most success have used decentralized digital transformation, have 

flexible process and are learning from the mistakes they make. These companies have 

established cross-organizational teams who have clear vision where the company is 

heading with their digital transformation. These teams are motivating the members of 

the organization by communicating with them about new possibilities and solutions for 

problems they might have and that way pointing out places where investments and 

changes are needed. In order for the motivated teams and skilled employees within the 

company to achieve success in digital transformation, it is crucial that the company has 

a leader that develop a culture of consistent, comprehensive, and present of values and 

norms that support the implementation and use of digital technology and data. (Björk-

dahl, 2020; Nadkarni,2021). 

 



17 

2.2 Challenges in digitalization 

Organizations all over the world keep working to enhance their value and operations. 

Realizing the potential additional revenues and opportunities for value creation that 

come with the introduction of new digital techniques and devices is seen as a problem. 

The conversion of physical objects or information into digital information, which enabled 

not only people but also things to connect through the Internet, posed the first challenge 

for organizations. The current challenge is digitalization, which entails using new digital 

technology to transform company operations to produce materially more value. (Anto-

nucci, Fortune & Kirchmer, 2020).  

 

The significance of digitalization and it´s benefits to businesses are widely acknowledged 

as also explained in chapter 2.1. However, businesses still struggle to understand it´s po-

tential effects and advantages it can bring. In real life, there are many challenges to be 

faced with digitalization such as extracting value from the transformation process itself 

due to gap between the formulation and implementation of strategies. (Correani, De 

Massis, Frattini, Petruzzelli, & Natalicchio, 2020) The process of digitalization contains 

the implementation of digital capabilities to support business model transformations, 

which have an impact to the whole organization including operational processes, re-

sources, internal-, and external users. This is a significant shift in working practices that 

is built on close cooperation and interaction. (Parviainen, et al. 2017) 

 

Nowadays, companies must be capable of adapting to the unpredictability of changing 

markets. Companies must be prepared to the change in organizational roles, responding 

to changing customer needs and to the constant change in technologies. Furthermore, 

they need to be aware of and ready to react to the rising competition due to the disap-

pearance of market boundaries and entry barrier removals. (Verhoef et al. 2021). There-

fore, companies need to iterate themselves through digitalization to stay competitive. 

(Martin, 2022). Businesses should be digitally adaptable to continuously change and re-

configure existing digital assets and capabilities to respond to these problems. Addition-

ally, this will affect how the organization is structured. (Verhoef et al. 2021)  



18 

 

Using digital technologies in a manufacturing company creates more advantage over 

their competition. However, changing most of the processes inside a company to a digital 

version means significant costs for the business itself. Even though the process leads to 

the simplification and reduction of costs related to some processes, it will simultaneously 

make other processes more complicated and more expensive. Increase on the amount 

of new processes, usually means also increase on new risks and additional costs associ-

ated with the change. (Chudaeva, Mantulenko, Zhelev & Vanickova, 2019).  

 

2.3 Digital innovation 

The definition of digital innovation has been created to describe the creation of market 

offerings, business processes and models which were established after the use of digital 

technologies. Furthermore, the practices, processes, and principles that are behind the 

effective organizing of digital innovation are referred to as digital innovation manage-

ment. (Agostini, et al., 2020) 

 

Companies are using and implementing digital technologies for various purposes in their 

innovation process. Hence, studying the advantages, hazards, and impacts about the use 

of digital technologies becomes increasingly relevant for the companies, as does inves-

tigating how innovation processes alter to accommodate to the use of digital technolo-

gies. It is also crucial to understand whether applying these technologies requires busi-

nesses to restructure how they operate internally. (Agostini, et al., 2020) 

 

Digital innovation is one part of digital transformation due to its ability to change com-

panies and industries fundamentally. (Nambisan, Lyytinen, Majchrzak & Song, 2017). 

Nowadays, five of the most valuable companies in the world are counted as part of the 

digital sector. In top of that, character of innovation has gone through a digital transfor-

mation. Therefore, new business models linked to digital technology have become more 

and more important when compared to traditional product innovations. World is con-

stantly moving towards digital version of itself and affecting all parts of organizational 



19 

life and culture. Digital technologies are enabling fast growth for young businesses which 

attracts more entrepreneurs to start their businesses in the digital world. Digital innova-

tion, though, is not limited to the software industry. Digital innovation, and by extension, 

digital transformation, can be profitable for businesses across all sectors. (Ciriello, Rich-

ter & Schwabe, 2018) 

 

There are three ways how digital innovation could be explained in the world of business. 

First, it has three different aspects that affect how innovations are seen. When a com-

pany enters the digital world and has digitized their operations, the information they 

have can be stored, passed on, changed, and discovered by any available digital device, 

wherever the user of that device is located. It can change tasks so that these tasks could 

be done from anywhere, when in the past they had to be performed in the office. Fur-

thermore, once the information has been digitized, it can be re-programmed to match 

with data received from external systems and that way used more broadly. (Ciriello et 

al., 2018). And finally, digital technology is needed in a company, to create more digital 

technology because digital innovation can be described as the use of digital technologies 

within the innovation process. (Nambisan, et al.,2017). This means that once the com-

pany has started to digitize their data and operations, they are able to go further with 

their digitization, perhaps towards a full digital operation. (Ciriello et al., 2018) 

 

2.4 Stages of digital transformation 

Approximately 70% - 90% of the digital transformation projects will fail due to various 

reasons. The most usual reason for failing is the over-optimistic thinking of the results 

after the transformation, including the time which is takes to implement the change and 

the outcome. Other reasons include poor governance and execution of the change as 

well as using the wrong methods in the first place. Lastly, it’s crucial that the pace of the 

change from old to new is optimal, not too slow, or too fast. Hence, there are three dif-

ferent stages of digital transformation which leaders of companies going through digital 

transformation need to be aware. (Bonnet, 2022).  

 



20 

The different stages of digital transformation 

• Modernization 

The first phase is about setting up the ground for the success of later phases, 

which makes it the most important. In the modernization phase the company is 

implementing new technologies, designing new applications for the customers, 

or automating different tasks related to the wellbeing of employees, and thus 

becoming digitally more agile and smarter which can lead to fast return of invest-

ments. (Bonnet, 2022) 

 

• Enterprise-wide transformation 

The second phase is more complex phase which sees changes in the value-chain. 

Enterprise-wide transformation is focusing to the improvement of processes 

which already exists, hence creating the possibility of new value creation possi-

bilities with more efficient processes and new customer segments. Changes in-

cluded in this phase may be about establishing a new digital customer interphase 

for all digital and physical channels the company has. From the perspective of 

employees, this phase can be about institutionalizing new working practices, or 

establishing a new culture of learning and skill development benefiting the em-

ployee experience. (Bonnet, 2022) 

 

• New business creation 

New business creation -phase concentrates on widening the scope of the com-

pany by creating new lines of revenue for example by completely changing the 

traditional business model. From customer´s perspective it could be changing 

from traditional purchase of products to a business model based on monthly sub-

scriptions. This phase is about truly changing the core of the businesses, due to 

the focus on existing processes, structures, and main capabilities of the compa-

nies. In the light of the changes, a well-managed leadership is crucial during the 

transition from existing business model to a new one. (Bonnet, 2022; Björkdahl, 

2020). 



21 

 

 

2.4.1 Common issues after digital transformation 

The costs associated with digital transformation are often large and can prevent some 

companies from the digitalization of their operating models. The great investment on 

new technology is costly and can become unbearable due to the large financial invest-

ment and the risk of those technologies being outdated soon after the investment. (Al-

rawadieh, Alrawadieh & Cetin, 2021). Therefore, to tackle the challenge of costs compa-

nies looking to go through a digital transformation process needs to have sufficient fi-

nancial means, before, during and after the transformation. (Furjan, Tomičić-Pupek & 

Pihir, 2020).  

 

Other important aspect is to have adequate capabilities to facilitate the digital transfor-

mation. However, there are ways to complete a digital transformation even with inade-

quate capabilities. Support received from digital platform service providers for example 

implemented during the change can give the tools needed to improve managerial and 

organizational capabilities to the required level. However, to distribute these new skills 

inside the firm for the employee’s, well-managed leadership is once again required so 

that the company has the possibility to overcome the lack of capabilities. (Li, Su, Zhang 

& Mao, 2017; Björkdahl, 2020).  

 

As proven, Covid-19 had a significant effect to digitalization and to the way customer is 

experiencing the retail industry and mobile commerce by increasing the amount of 

online shoppers significantly. Furthermore, the online sales are being expected to in-

crease even more in the future which is forcing more companies to adopt to digitalization 

to match with customer expectations since the number of customers operating com-

pletely offline are decreasing daily. However, this customer group still exists as long the 

group of customers used to face to face sales are there. For millennials, the use of digital 

commerce is the major and most usual way of shopping, when on the other hand older 

generations are slower on adopting to the digital world. To please both age groups, it is 



22 

important to invest to the well-being of customers by creating customer friendly digital 

environments. (Akram, Fülop, Tiron-Tudor, Topor & Căpusneanu, 2021).  

 

2.5 Benefits of digitalization 

Digitalization, which has usually been linked to resource savings, increased operational 

efficiency, and more flexibility, suggests significant advantages for new businesses. How-

ever, a high digitalization rate does not automatically mean direct savings on resources, 

such as office space or amount of personnel needed. Instead, it boosts operational effi-

ciency, which generates indirect savings. Additionally, it results as higher market flexibil-

ity. (Rosin, et al., 2020). However, according to Parviainen et al. (2017) costs can be re-

duced up to 90% and turnaround times can be increased substantially. Furthermore, the 

rise of productivity, product quality and effectiveness of processes, with improved and 

flexible decision-making alongside the invention of new business models are among the 

potential impact’s companies can receive from digitalization. (Denicolai, et al., 2021) Ad-

ditionally, replacing paper and manual procedures with software allows businesses to 

gather additional data to be used in improving their understanding of process perfor-

mance, cost drivers, and risk factors. 

 

According to Mark Broadbent (2018) digitalization improves the efficiency of a company 

and its operations, decreases the costs needed and increases sales margins. However, 

these benefits will only last until the competition and market catches up with the com-

pany which went through the change first. Furthermore, early introduction of digitaliza-

tion has it´s downsides, but benefits as well. There is a high risk that there will be prob-

lems, but on the other hand high rewards if succeeded in digitalization. Digital technol-

ogies can also be utilized to enhance knowledge management procedures, having po-

tential behavioral and structural consequences. Regarding the structural consequences, 

digital technologies can make it easier to access both internal and external knowledge 

and promote knowledge transfer among a specific organization's members. (Agostini, et 

al. 2020) 

 



23 

The value what digitalization brings is not just about the combination of better digital 

technologies into the existing infrastructure. Rather it shows how the new technology 

received from digitalization processes can be utilized to transform internal process and 

create more value to the company. (Antonucci, et al., 2020). Organizations that can go 

through the digitalization process, are able to replace manual steps in their internal pro-

cesses which helps them to streamline activities and that way increase their efficiency. 

Furthermore, digitalization enables companies to follow their processes, and that way 

also increase the transparence in their processes. This leads to faster decision-making 

and discovery of those processes which can be improved. (Rosin, et al., 2020). 

 

In the manufacturing industry, the digitalization of the manufacturing process, sales, dis-

tribution, and suppliers will have a significant effect on planning and in the quality of 

management, as well as with optimization of the processes by enabling more precise 

decisions to be made much faster. Furthermore, because of digitalization, the companies 

will significantly change their way of connecting with customers, changing, and improv-

ing the way in which the management operates. This will lead to a higher quality and the 

lead time of processes will decrease. Hence, after these actions, new processes will be 

established, which can be understood on a new higher level due to the elimination of 

technological obstacles. (Vartolomei & Avasilcai, 2019).  

 

2.5.1 Technological impact 

Technological impacts during the process of digital transformation may vary. According 

to Hanelt et. al (2020) the impact can be either direct or indirect. Direct consequences 

are updating the software´s and programs companies are using. Indirect consequences 

might be changes on regulations and in demands from the customers. However, today 

the technological capability and the power of digital transformation is higher than it has 

been with the previous technology-driven transformations. This can be seen as existing 

applications designed for digital transformation, such as the Internet of Things, cloud 

computing, big data and mobile technologies which have far better power of computing, 



24 

amount of data storage and ways to distribute information than before. (Nadkarni, et al., 

2020).   

 

In the end, the current study on technology integration suggests the importance of flex-

ible IT department, innovative platforms for business and a strong and expandable back-

bone for operations to be part of the digital infrastructure. Models of technology inte-

gration once effective cannot be used any longer in companies which therefore need to 

be replaced. Furthermore, it is important that the integration of technology and trans-

formation of company activities are integrated to the organizational architectures of 

companies. (Nadkarni et al., 2020). 

 

2.5.2 Sustainability 

Dematerialization of tangible products and objects, such as CDs, books and machinery 

caused by digital transformation will become timely during the process since digital sub-

stitutes will bring far more superior performance when compared to those tangible ver-

sions. Therefore, it is important for companies to recognize the process of demateriali-

zation since the effects will become visible as customer benefits and as advantage over 

competitors. (Nadkarni et al., 2020). 

 

Internationalization of the world and the technological progress countries and compa-

nies are making are frequently viewed as potentially harmful to the environment be-

cause of problems with pollution or the overuse of the planet's resources. (Denicolai, et 

al. 2021). Therefore, digital revolution is pushing companies to adhere to environmental 

sustainability goals, which might become useful in the future since its estimated that the 

value established from AI in waste management and increasing the usability of products 

forward could be 127 billion dollars in 2030. (Frey, 2021). These goals are visible for com-

panies as being called to implement sustainable practices and internal and external pro-

cesses to reduce the environmental effect and preserving the natural resources for fu-

ture generations. Environmental sustainability means the search of human welfare, 

while at the same time ensuring that the amount of waste created by company activities 



25 

does not exceed the required amount of resources needed, in order to meet the require-

ments placed by environmental sustainability. (Denicolai, et al. 2021) 

 

2.5.3 Acquirements of a company to implement digitalization 

As discussed earlier, the fast development and adoption of digital technologies in com-

panies, as well as the shift in societal norms and organizational practices, are those that 

promote digitalization. Digital technologies can support advanced process automation, 

adaptive process execution as well as process data analytics. For a company to take ad-

vantage of the potential presented by digitalization, they need to integrate digital tech-

nologies into new or already existing processes. (Baier, Lockl, Röglinger & Weidlich, 2022). 

Furthermore, companies should invest significant resources into developing new capa-

bilities to support organizational digitalization goals, and to fully realize the value crea-

tion potential which they already have in their customer relationships. (Lenka, Parida & 

Wincent, 2017). However, earlier research only shows partial explanations of digital ca-

pabilities which also differs from one other. For example, manufacturing companies are 

competing to have the most advanced technology within their products by adding more 

intelligence and remote features (Iansiti & Lakhani, 2014), while some companies are 

investing more into gathering data and analyzing it to achieve higher benefits through 

value maximization in customer interactions. (Opresnik & Taisch, 2015).  

 

There are several capabilities, which helps companies to enable their digitalization pro-

cess. One of these is intelligence capability, which consists of the upgrading of hardware 

components to enhance intelligent functionalities with embedded sensors, microproces-

sors, embedded operating systems and software programs for example. Furthermore, 

intelligence capability may provide new possibilities of data gathering related to the con-

dition of products and how the customers use those products. Second capability is the 

connect capability, which is the ability to connect digitalized products through wireless 

communication networks. The third capability is related to the increased amount of data 

gathered from customers, products, and networks for which companies need to have a 



26 

strong analytic capability. Hence, supporting the digitalization strategy. (Lenka, Parida & 

Wincent, 2017). 

 

2.6 Theoretical framework 

This chapter will present the theoretical framework of this thesis, on which the research 

and conclusions are also based on. The frame has been created by using previous re-

search about the subject and a theoretical review.  

 

The framework consists of topics, which are closely related to the research which will 

back up the process and conclusions in the end. These topics are for example digital 

transformation, and the various issues and things related from challenges to benefits. In 

addition, digitalization is a key part of the frame of reference, since the whole process of 

this thesis is based on digitalization of the forwarding function and its daily operating 

methods. It is also important that the theoretical frame of reference is providing defini-

tions to the keywords presented in the theory which are important for the research itself. 

(Scribbr, 2018). They main objective of this research is to observe and identify the key 

issues of the forwarding function in the commissioning company and start the digitaliza-

tion process inside the forwarding function. The theoretical part of this thesis will sup-

port the digitalization with definitions and earlier research to prove that the conclusions 

and improvements are efficient. The theoretical framework is illustrated in figure 1, 

where the process itself is driven by the goals of the digitalization process and backed 

up by communication, observation, discussions, and meetings held throughout the pro-

cess.  

 

The frame of reference also presents the importance of well-managed leadership in a 

company going through a digital transformation. In addition, it is also essential that the 

discussion is on-going throughout the company not only during changes, but constantly. 

This will boost the efficiency and performance when employees are satisfied and know 

where the company wants to be. (Tkalac Verčič, Sinčić Ćorić & Pološki Vokić, 2021). The 

theory of this thesis presented the strategic aspects behind companies desires to go 



27 

through a digitalization process. Despite the challenges and difficulties, it might bring, 

the benefits related to competition and customer satisfaction are clearly significant 

enough for companies to start the process of digitalization. Furthermore, the increasing 

amount of laws and requirements for companies mentioned in chapter 2.6.2 are driving 

companies towards the benefits of digitalization. In addition, the future of businesses in 

all industries is becoming more digital, and it will be a mistake if companies in any indus-

try are not considering moving towards a digital platform for their sales and customers.  

 

 

Figure 1 Theoretical framework 

 

All the issues presented in the theory show how much there is what to think about when 

companies are planning and implementing a digital transformation or digitalization 



28 

inside their functions. Even though the strategic aspect behind the reasoning for digital-

ization might be similar for companies, the challenges may vary due to differences in the 

companies themselves. Same applies to benefits and to the pure scale of them. The sit-

uation is the same with the commissioning company and this thesis. The problems, chal-

lenges and development targets of this thesis are unique to the commissioning company 

and its forwarding function due to differences in working methods, employees, and 

standards for example. This also proves why digitalization methods and results from ac-

tion research cannot be applied directly as they are due to differences on how things 

used to be before digitalization. However, the conclusions indicate what can be achieved 

with digitalization in a company of this size.  

 



29 

3 Methodology 

This section will go through the methodology of this thesis. Also, the requirements for 

action research are discussed and introduced. Furthermore, the data collections meth-

ods and analysis are presented. In the end, this section will also present the reliability 

and validity of this project. 

 

3.1 Research method 

The aim of this study is to go through digitalization process in an international company 

and see how the process of introducing improvements to the order-to-delivery process 

is affecting the lead time of the whole process, and hence studying what are the side 

effects caused from the main changes. Since the digitalization can be seen as a process, 

which consists of multiple layers and steps, the research has been created as action re-

search, where the writer of the thesis is working as a project manager.  Action research 

itself is technically not a research method, but it can be used as an approach to connect 

practical development and research and is usually related to the qualitative research 

method. Typically, research is being guided from a theoretical background. However, in 

action research, the goal is to find out how things can be improved and done better in 

the future by improving working methods. Thus, researcher is actively participating to 

the process and making decisions pointing to a certain direction. Despite being practical, 

there still is a requirement for action research to systematically use scientific methods. 

(Raine & Aarnos, 2018; Puusa, Juuti & Aaltio, 2020).  

 

 There has not been success in finding a clear definition of action research as a research 

methodology. This is because action research is used in number of disciplines, and there 

are several schools of literature which differs from each other from the perspective of 

methods, goals, and background assumptions. Furthermore, the schools of action re-

search have been classified according to the points of interests, such as various social 

movements and working life research. However, all the schools have something in com-

mon. Schools are being united due their attachment to each other, perception, reflecting 



30 

and altering of activity. Also, the thought of researchers and actors participating simul-

taneously during the whole research process is common between these different schools. 

(Puusa, et al. 2020) 

 

Action research is using feedback and learning, as a baseline to the research. Hence, it´s 

suitable to be used in developing organizations. Learning can be used for example in 

operation models, attitudes, and the way of leading the organization. Furthermore, 

learning is about learning new things together inside the organization, with people from 

different functions, such as management and employees. (Puusa, et al. 2020). From this 

perspective action research is used to find information which would serve in proving 

operating models. (Raine et al. 2018).  

 

In action research, starting with figuring out what is the research question is not so es-

sential than it would be in a qualitative approach, where the research is started from a 

theoretical interest and not from possible practical benefits. Instead, the action research 

process starts from defining what is the task and goal of the research. This is because 

action research is used to find information, which could be applied and utilized to im-

prove existing operating models. Therefore, the key element in action research is more 

about finding out how things should be in the future, and not to figure out how they 

currently are. (Raine et al. 2018). However, to put things in perspective, there is typical 

way an action research project might start, even though each action research projects 

are different when compared to each other. Example of some of the most common steps 

in an action research process are described in figure 2. (Altrichter, Posch & Somekh, 

1993). 

 



31 

 

Figure 2 Steps of action research (Altrichter, et al. 1993) 

 

As described in figure 2, the action research process starts from discovering the starting 

point and having the clear motivation of seeing the process of action research through. 

In the second phase, the situation where the research, and the researcher are will be 

clarified through data acquired through conversations, observations, and interviews. As 

a result of this clarification, action plans are created and implemented in step C. Before 

entering the final step (D), the researcher might need to go through the process again, 

since effects of previous plans and actions might lead to new experiences, which could 

lead to the need of having further action plans and strategies. Therefore, before entering 

the next phase, each cycle is examined and studied by utilizing a variety of data gathered 

from each intervention. (Eden & Ackermann, 2018). This is a circular motion called re-

search cycles. Once the researcher is convinced that the process has stopped, or slowed 

down enough, the findings will be presented to others, such as companies or other re-

searchers. (Altrichter, et al. 1993).  

 

The action research process of this thesis is following a similar pattern as described 

above. As mentioned by Altricher et al. (1993), the process started from the discovery of 

the starting point. However, in this research, the discovery was not so simple, since the 

idea of the digitalization related to the decreased use of paper had been present within 

the commissioning company for few years prior to the start of this thesis but had not 

been acted upon due to more urgent issues related to the pandemic for example. The 



32 

actual starting point was discovered after discussions with the forwarding team, and the 

manager of packing and shipping team. Through the observations of all individuals con-

cerned, the action research process could therefore be initiated. Situation was therefore 

clarified during the spring of 2022 with number of meetings, where this research and 

the process and it´s goals were thought and discussed. In these meetings it was decided 

what should be the preliminary goal of the project. Hence, after the determination of 

the goals of the project, the actual process was started with various developments put 

in place simultaneously, which will be discussed in the project review in more detail. 

Finally, in the final phase, the findings and improvements made during the process are 

made public to the whole commissioning company, especially those affected by the 

changes. 

 

One of the key aspects of action research is reflective thinking. Traditionally reflecting 

means that human is reviewing their own beliefs, way of thinking and experiences, and 

thus trying to understand why they are doing things how they are from a new perspec-

tive. With the help of reflection, humans are trying to achieve new way of understanding 

action and thus improving existing operating models. For example, in a company where 

working habits have become routine, are to be questioned to find answers to what goals 

these routines are seeking. In action research, reflecting shows when action research is 

thought as a self-reflecting ring, where action, diagnosing, reflecting, and re-planning 

are following each other. Reflective ring creates a spiral moving through time when re-

flective rings are placed after one other. The spiral is describing how thinking and action 

are related to each other as consecutive planning, action, diagnosing, reflection, and re-

planning cycles (Figure 3). (Raine et al. 2018). 



33 

 

Figure 3 Spiral of action research cycles (Nunes & McPherson, 2002) 

 

Reflective thinking shows in various ways in the action research of this thesis. The re-

searcher is reviewing their own way of working with and inside the forwarding team, in 

the order-to-delivery process and trying to find alternative ways to do their work. One 

of those methods is trying to understand how a new employee would see the current 

working methods, and thus trying to increase the usability of programs and methods to 

a simpler level. Furthermore, since the actions and decisions made from the findings of 

this thesis effect not only the forwarding team, it is also important to consult the em-

ployees working in various positions inside the order-to-delivery process, to find new 

places of improvement, and perhaps find completely new perspectives to the digitaliza-

tion process which the researcher have not previously thought about.  

 

Intervention has a significant meaning in action research, since the researcher is part of 

the community being researched and reads the situation from the inside, when in tradi-

tional research the researcher is studying the object from a distance. (Raine et al. 2018; 

Puusa et al. 2020). Furthermore, the role of the researcher is significantly different than 

in traditional research since the data is gathered from those practices and theories what 

the object inside the company have adopted. (Puusa et al. 2020). However, there has 

been debate related to action research because the goal of action research in many cases 



34 

is to change the reality, which is not the case in normal academic research. One of the 

controversial issues has been the objectivity of action research, the multidimensional 

and in many cases contradictory role of the researcher in various research situations and 

the relationship action research has with conventional development projects. (Jyrkämä, 

1999).  

 

The key data for this research is collected through observations from employees during 

the process of digitalization, especially when new changes are introduced to observe if 

the change is going to the right direction. Observation in action research means follow-

ing how things happen, and how things are done by following the actual employees do-

ing it. Observation methods can be for example recording, describing, analyzing and the 

interpretation of employee behavior. In this thesis, the observation is conducted as par-

ticipant observation, where the researcher is participating fully to the actions of those 

the researcher is following, and this way becoming a member of this group, organization, 

or community.  This allows the researcher to share their own experiences just not 

through what is happening, but also through their own feelings. (Sanders, Lewis & Thorn-

hill, 2007). There are four ways how the researcher can participate to the observation. 

These are complete participant, complete observer, observer as participant, and partic-

ipant as observer. (Gill & Johnson, 2002).  

 

The researcher of this thesis acted as a participant observer, which means that all parties 

knew the role of the researcher within the project. This role allowed the researcher to 

ask questions from the subjects of the project to increase researchers understanding of 

various matters related to the project, which would give more insight to the researcher 

how the different parties of the project thought. (Sanders, et al. 2007). The action re-

search process of this thesis is illustrated in figure 4.   



35 

 

Figure 4 Thesis action research process 

 

Since the thesis has been structured as action research, the importance of interviews is 

not so significant when compared to case study. However, interviews had a significant 

meaning to the project to follow what reactions the changes to the processes were caus-

ing, and how the new improvements were taken into use. In action research type of 

research, data collection methods do not differ from the data collection methods in qual-

itative research for example. They can be used in action research with collection meth-

ods from quantitative research. Action research differs from qualitative research in one 

major way. There are three steps in qualitative research, which are planning, data collec-

tion and analysis, when in action research, there is one extra step in addition to the three 

already mentioned. This step is called action. Furthermore, each step could be explored 

and studied more than once to find more data and areas for development, before enter-

ing the next stage. (Eden et al., 2018).  When the research is considered to be finished in 

qualitative research after the analysis, the action itself springs from the analysis in action 

research, as illustrated in figure 4. Hence, the results can really be monitored in action 



36 

research when in qualitative research the research is just giving out suggestions. (Ka-

nanen, 2014).  

 

In this research, standard interviews were not conducted. The analysis is based on data 

gathered from meeting notes written by the researcher throughout the whole process, 

from the starting point when the goals of the project were determined, to the point 

when this research was concluded. However, to determine how the changes would affect 

other divisions of the commissioning company informal interviews of the changes were 

conducted to back up the digitalization process of invoice archiving. The findings from 

these interviews conducted, will be introduced with the key improvements in chapter 6. 

 

3.2 Assessment of research´s quality 

In scientific research, the proof of the reliability of the results is required, which means 

that the results of the research are correct and can be trusted. The foundation of trust-

worthy information starts from the proper preparation of research layout, which means 

that the research is studying those objects related to the research problem and that the 

research methods and measures are properly used. The quality of a research should be 

proven in every research, hence being the key criteria for scientific research. The quality 

is evaluated through two concepts, which are reliability and validity. (Kananen, 2014). In 

research, the validity of an research means that correct things are being researched, 

when reliability means that if the research would be repeated, the results would stay as 

they were in the first research. (Silverman, 203-207,1997). 

 

The problems in the assessment of research´s quality is that the same measures cannot 

be applied into all research method types since the starting points and goals in various 

research methods are different. For example, in quantitative research, the quality can be 

proven through reliability and validity, when instead in the qualitative research some of 

the forms of validity cannot be applied when assessing the research quality since re-

searcher-specific interpretations cannot be made from the data gathered in the research. 

The most problematic research quality assessment is usually with action research, since 



37 

assessment methods of qualitative research cannot be applied into action research, even 

though action research is considered to be part of the school of qualitative research. 

(Kananen, 2014). In action research, the key element in the assessment of research qual-

ity comes from the accurate documentation of research data, data collection methods, 

as well as other methods used to get to the conclusion of the research since without 

those it is otherwise impossible for an external evaluator to conclude anything about the 

reliability of the study. Furthermore, the portability and generalizability are also based 

on documentation when reviewed from the perspective of starting point and description. 

(Kananen, 2014) 

 

In this action research, the results and the quality of the research is proven through cal-

culations of savings in money, time and resources gained through the actions and 

changes made to the order-to-delivery process, especially from the perspective of for-

warding and shipping processes. Areas of savings are presented in chapter 6 with the key 

improvements.  

 

 



38 

4 Digitalization of forwarding in the order-to-delivery process 

This chapter will present the background of the study and reveal the commissioning 

company as well. Furthermore, the commissioning company, its business segment and 

main products are also introduced. Also, this chapter will also present the current state 

of the order-to-delivery process in the commissioning company, especially from the per-

spective of the forwarding function. In the end, the digital strategy of the commissioning 

company is presented giving an insight to the motivational background of this study from 

the company´s perspective.   

 

4.1 Background for the study 

This master thesis has been written as an assignment for the commissioning company 

to study and improve the forwarding process and departments next to it inside the or-

der-to-delivery process in ABB Oy´s Distribution Solutions function. The idea was to im-

prove the weakness found in the forwarding process and raise the function inside the 

company to a new level through digitalization. Simultaneously other functions, such as 

packing and shipping functions were enhanced to perform on a same improved level as 

the forwarding function.  

 

The researcher of this master thesis is working in the forwarding function and had no-

ticed that there was room for improvement. The main reason however, for the digitali-

zation was the old-fashioned way of working in the function in question, and the new 

environment created by Covid-19.  In the beginning of the project for the improvement 

of the forwarding function, all products leaving the factory still needed printing paper to 

leave the premises. Therefore, the main goal is to take the forwarding function of the 

commissioning company through digitalization into paperless forwarding.  

 



39 

4.2 Company introduction 

The commissioning company of this master thesis is ABB Oy, and its Distribution Solu-

tions function. In Finland, the Distribution Solutions function is responsible for the de-

velopment, manufacturing, selling, and marketing of protection relays and control-, au-

tomation- and monitoring devices used for electricity distribution networks. Main loca-

tions for Distribution Solutions in Finland are Vaasa and Tampere. Distribution Solutions 

factory in Vaasa has a high competence in remote control- and monitoring devices, 

which are extensively used in energy and industrial companies throughout Finland. (ABB 

Oy, 2022)  

 

Distribution Solutions has been divided into several different parts, in which all have 

their specific field of expertise. First one is Distribution Substation Products which con-

sists of Relay factory with global market allocation, global manufacturing support for all 

the factories and main research & development hub for Distribution Automation. The 

second one is Digital Systems, which include Grid Automation Solutions and the Intelli-

gent overhead line switches and reclosers in the European markets. The third one is Elec-

trification Service, which is responsible for the lifecycle services for all products with 

Finnish origin, as well as field service in Finland for all LV and MV products and systems. 

(ABB Oy, 2022)  

 

The Distribution Solutions function has sales into more than 90 countries in all regions 

across the world. In 2020, the revenue was 200 million USD. However, with 1,5 million 

different products in the product catalogue, the estimated market size is 1,5 billion USD. 

(ABB Oy, 2022)  

 

Protection relays are used as a failsafe in electricity distribution networks, to identify a 

malfunction and communicate about it to raise the safety and reliability of electricity 

supply. With the use of protection relays, electricity manufacturing based on renewable 

energy is complementing centralized production. As a result, network monitoring, con-

trol and protection have even higher roles to play to protect the electricity supplies and 



40 

guarantee a shorter breaktime in case of power outage. Relays manufactured by Distri-

bution Solutions can be used for example in Oil and gas segment of oil platforms or in a 

Safe Host data center to provide protection for power availability and network access. 

(ABB Oy, 2022) 

 

 

Figure 5 Example of relays manufactured by Distribution Solutions (Relion 615 series) 

 

The researcher of this master thesis is working for ABB Distribution Solutions in Vaasa in 

the forwarding function in a team of six with the responsibility of shipping manufactured 

and purchased products and parts to the customers. Researcher is closely operating with 

order handling, packing, and shipping department, as well as purchasing department. 

Job description contains creating shipments via various transporting companies and as-

suring that the shipments will reach their destinations. 

 

4.3 Order-to-delivery process in the commissioning company 

The forwarding function in the commissioning company is operating closely with packing 

and shipping functions. In addition, the shipping companies are included to the process 

as the final function operating inside the company walls. As the world has modernized, 

information technology (IT) has expanded in many industries and has grown to be a 



41 

significant factor. IT is an important factor for companies in their process of developing 

their operations, particularly in the area of goods transportation services, which can be 

strongly tied to IT. However, several businesses continue to run their operations manu-

ally which results in significant operational costs for the company. (Synthia, Fahira, Hima-

wan & Keke, 2020). Only in the forwarding function of the order-to-delivery process in 

the commissioning company, there are number of issues creating unnecessary costs, 

which could be eliminated by going through a digital change. These costs are for example 

the overuse of printing paper within the process and the disposal process of information 

security dumpsters, which are used for the destruction of confidential papers.  

 

The current forwarding process inside the order-to-delivery process starts, when the 

documents of packed orders are delivered to the forwarding team from the packing de-

partment, which is described in figure 6 as dotted line from “Pakkaamo” to “Huolinta”. 

These documents are picking list and packing details, which contain information related 

to the order, such as delivery addresses, customers numbers, mode of transport, product 

descriptions, dimensions, and weights of the packed products and so on. In forwarding, 

those documents are then divided geographically, and according to mode of transport 

into their own shelfs. From this shelf, the employees of the forwarding team can pick up 

orders which are ready to be shipped and create necessary shipping documents and 

book shipments from shipping companies. 

 

Once the order has arrived at the desk of a forwarding employee, they will check what 

is the most suitable mode of transport to that particular order according to the dimen-

sions of the package, as well as to the customers wishes. Once the mode of transport 

has been determined, forwarding will add mode of transport to the order, and depend-

ing on the destination of the shipment, possibly add also tariff preference clauses in the 

SAP production control system, which are then printed to the shipping documentation 

of each order. These shipping documents in most cases consists of shipping invoice and 

packing list.  

 



42 

The goal of invoicing is to create an invoice which the recipient of the shipment can use 

to make the payment. However, a similar invoice is also used for customs purposes. A 

significant part of the invoice creating has been automated to ensure that the possibility 

for human mistakes is as small as possible, which has been a problem across the industry 

(Fleet Owner Staff, 2018). Once the invoice has been created, forwarding will order a 

shipping company to pick up each shipment, and will then create waybills and shipping 

stickers for each shipment which the shipping company can use to identify those ship-

ments. Finally, once all documents have been created, the documents will be picked up 

by the packing function from forwarding and then delivered back to the shipping area. 

This is described with the dotted line from “Huolinta” to “Lähettämö” in figure 6. In the 

shipping area, shipping documents are attached to the packages, and are prepared for 

the pick-ups by shipping companies. Finally, in the end of the day, the shipping company 

will pick up the goods from the shipping area, as described with the solid line from 

“Lähettämö” to “Huolintayhtiö” in figure 6. 

 

 

Figure 6 Forwarding process 

 



43 

4.4 ABB Oy Digital strategy 

Digitalization and automation have enabled the industry to start the process through a 

significant revolution. ABB Oy´s goal is to deliver the true value received from digitaliza-

tion, while at the same time move towards smarter, safer, and constantly more autono-

mous operations, and this way rise the ladder of customer value chain, as a trusted part-

ner. (Ramachandran, 2020). As mentioned earlier, companies are struggling to gain value 

from their digital transformation, due to a problem´s connecting the strategy formula-

tion, and strategy implementation. (Correani, et al. 2020). This means that the company 

might have a strategy in place, but they don´t know how they should start the process 

of putting the strategy in motion. These problems cause difficulties for the companies 

experiencing them, since in the increasingly competitive business environment, most 

companies are heading towards operational excellence in areas of quality, performance 

and reliability using the minimum amount of money and resources, while doing all these 

with safe and sustainable manner. (Ramachandran, 2020).  

 

In digitalization, data is the key element seen as a problem, but also as a solution. (Ra-

machandran, 2020). Continuous flow of data is one of the crucial components when it 

comes to the development of real-time transport monitoring and management. For in-

stance, traffic data received from transport services owned by governments is in theory 

already opened but is not always accessible. Thus, new digital solutions, applications, 

and modern architecture´s that are dependable and interoperable are desperately 

needed. (Inkinen, Helminen & Saarikoski, 2019).  

 

Hence, more data is received from modern transport services, companies, and plants 

than companies and governments can use. Therefore, those entities who can use that 

data, and transform it into insights at the right time, will receive decreased costs related 

and create possible competitive advantage through performance gains in comparison 

with their competitors. At ABB, the solution to utilize the data received, is through a 

platform-driven approach, in which they need to integrate and contextualize the data 

they receive from number of systems such as information, operations, and engineering 



44 

technology. Moreover, to get all the benefits from the data, ABB needs to retrieve the 

data across the whole organization. For ABB to produce meaningful, and insights which 

lead to action, they need to automate the integration and data contextualization, prior 

to the use of artificial intelligence (AI) and analytics. (Ramachandran, 2020). 

 

 

Figure 7 ABB strengths in enabling powerful industrial outcomes 

 



45 

ABB Oy has the ability to provide digital solutions for some of the most complex prob-

lems the technology industry has. These capabilities include ABB Oy´s strength in the 

data-domain technology and their ability to handle the whole range of digital systems, 

from integrated digital systems to smart digital equipment and assets. Therefore, ABB 

has introduced the ABB AbilityTM platform, which powers hundreds of digital solutions 

created by the company. Furthermore, ABB Oy also has recently introduced ABB Abil-

ityTM Genix Industrial Analytics and AI Suite, which combines the company's industrial 

automation and deep domain expertise with Internet of Things technology and ad-

vanced analytics investments to support customers in realizing a safer, more efficient, 

and financially rewarding future. This process is described in figure 7. (Ramachandran, 

2020). 

 

ABB Oy has number of digital transformation and digitalization projects, which have 

been efficient and profitable. One of those is their ABB Ability™ Collaborative Operations 

program, which has had a major impact from customers perspective. ABB Ability™ Col-

laborative Operations is a service delivery model, which is created to connect people in 

factories, headquarters, and ABB to provide them unbiased data insights, which can be 

used to enhance plant efficiency to increase customer profitability, increasing the level 

of safety, while lowering the risk and costs involved as described in figure 8. (Ramachan-

dran, 2020). This connection will have a significant meaning in the future, since opera-

tional planning, control, and all levels of company´s operations must co-exist in the same 

environment, complementing one another, without the use of redundant or competitive 

services. (Isaksson, Harjunkoski & Sand, 2018).  

 

With ABB Ability™ Collaborative Operations tool ABB Oy can help their customers with 

transforming and improving their customer support, with a full-time access to ABB Oy´s 

own experts. With the use of this tool, ABB Oy is now connected themselves with more 

than 900 industrial facilities, approximately 1200 marine vessels, and more than 40 

mines, hence helping them to achieve higher productivity, increased uptime, safety, 



46 

enhanced operational performance, reduced maintenance costs, as well as smaller en-

ergy and fuel costs. (Ramachandran, 2020). 

 

Figure 8 ABB Ability™ Collaborative Operations 

 



47 

5 Digitalization of the forwarding process 

This chapter will review different phases of the project in detail, revealing the different 

parties involved. Furthermore, in the beginning of the chapter different tools used in the 

forwarding team and the responsibilities of the packing function is presented to give 

insights to the project inside the commissioning company.  

 

5.1 Introduction of current working methods 

This chapter will introduce the other departments working simultaneously with the for-

warding department as well as those systems the forwarding team is using to book those 

shipments to the company´s customers. These introductions will give a closer look to the 

daily working life inside the forwarding function, hence revealing slightly the background 

behind the research. 

5.1.1 SAP 

Systems Applications and Products, or commonly known as SAP is an enterprise resource 

planning (ERP) software which is a centralized system which has been created for com-

panies and enterprises to allows access to shared data inside the company. SAP makes it 

easy for companies to operate globally in software environment which is known all over 

the world. SAP software consists of hundreds of different transactions created to match 

with the wide needs and requirements from companies. The software allows its users 

for example to view and create purchase orders, projects, invoices, and other data 

needed throughout the order-to-delivery process of a company from purchasing to ship-

ping. Founded in 1972, SAP is nowadays one of the main management software´s used 

in the world of business. (SAP, 2022) 

 

In the forwarding team of the commissioning company, SAP is used for various tasks. 

These tasks are for example creating deliveries, invoices, and shipments. SAP is the main 

tool for booking shipments for the forwarding team, along with nShift, which will be in-

troduced in the next chapter. There are three different shipping queues, which 



48 

forwarding team is using to create shipments in SAP, along with dozens of support trans-

actions. First queue is called ZSHIP, which is the main tool used in the forwarding team. 

Through this SAP transaction, forwarding team can view the amount of completed, and 

upcoming deliveries. Furthermore, this transaction has “shortcut” buttons, which allows 

the handler to view orders, invoices, addresses and other information related to the 

shipment which could be useful when the shipment is booked. Through this queue, the 

handler will enter all the shipping information required for each shipment. This queue is 

also one of the main areas of development, since this queue goes through major changes 

during the project of this thesis, which will be reviewed more closely in chapters 5.4.2 

and 6.1.1. The other two shipping queues the forwarding team uses are designed to 

work hand-to-hand with the nShift program. Once the handler has finished creating the 

shipping documents, such as invoices and packing lists and filled all the information re-

quired on the ZSHIP queue, the handler of the order will create the shipments using a 

specific queue, designed for different purposes, one for courier shipments, and one for 

shipments using airfreight. Through the information added in the main shipping queue, 

the shipment will be visible in the second SAP transaction ready to be booked. Inside the 

secondary shipping queues, the handler will check the information, and will then save 

the shipment, which causes a message to be sent from the SAP system to the nShift 

system.  

 

5.1.2 nShift -delivery management software 

nShift is a delivery management software, which the forwarding team is using as a tool 

to book shipments alongside SAP software. nShift provides accurate management be-

tween various locations to keep expenses under control and help to keep customers sat-

isfied. In addition, the system helps to keep clear visibility of the shipments and reduce 

operational costs. (nShift, 2023). nShift is operated in a cooperation with SAP. As ex-

plained in the previous chapter, the forwarding team is using a specific SAP transaction 

to book shipments. Once the shipment is booked in the SAP interface, the shipment and 

the information related to it, such as addresses, item descriptions and weights are trans-

ferred automatically to the nShift system, from which the shipping documents, such as 



49 

waybills and pallet stickers are printed from and then attached to the packages. Further-

more, nShift will also send information to the transport agency responsible of each ship-

ment that there is package waiting for them to pick up. The system also allows to make 

changes to shipments and follow them during their transport to the receiver. 

 

5.1.3 Packing department 

Packing department is responsible of packing the products once they have been com-

pleted from the production phase. The packing process starts from the packing queue, 

which is integrated to the SAP production control system, which was introduced in chap-

ter 5.1.1. This queue will automatically order those orders which has been completed 

from production according to their delivery dates. Furthermore, it only shows those or-

ders which are completely ready from production or have the permission from customer 

to do a partial delivery. In the next phase, the employee responsible of packing will col-

lect the products from the end of production line and take them to the packing depart-

ment to be packed where a suitable pallet or carton is picked, and product placed inside. 

Once the packing has been sealed, dimensions and weights are entered to SAP and the 

process in SAP interphase is marked as ready from the packing phase. Once this has been 

completed, ID-number is printed out for each package which helps the identification of 

packages while they are going through the logistics process. In the final phase, picking 

list and packing list are printed out from SAP, and delivered to the forwarding team for 

the next phase which was introduced in chapter 4.3.  

 

5.2 Starting point of digitalization 

In the beginning of the digitalization project of the forwarding function in ABB Oy´s Dis-

tribution Solutions unit, paper was still the primary tool to be used with shipments and 

communication between the forwarding and shipping team. Documents, such as in-

voices, packing lists, picking lists, packing details etc. were still printed on paper.  

As described in chapter four, employees in the shipping and packing department were 

required to deliver picking list´s and packing details by hand to the forwarding team, 



50 

where the employees could see what they had to ship to the customers. This process is 

time consuming, since even the physical distance between the office space where em-

ployees of forwarding are currently placed is approximately 100m where the packages 

prepared to be shipped are located. Hence, this has a significant effect to the lead time 

of the order-to-delivery process. Furthermore, the use of paper meant that the forward-

ing team was required to work close to the shipping team, which was especially difficult 

during the times of quarantine related to Covid-19. This raised questions among the 

managers of the commissioning company, that would it be possible for forwarding team 

to accomplish their duties with minimum physical presence at the office. The commis-

sioning company had acknowledged the problem with the overuse of paper, and the 

need of physical presence, and decided that change was needed. Furthermore, as intro-

duced in chapter 4.4, the digital strategy at ABB Oy is thriving towards more digitalized 

working methods. Hence, it´s important that the various functions at the commissioning 

company, such as the forwarding function tries to achieve an increased level of digitali-

zation in their operating methods to match with the company´s digital strategy.  

 

5.3 Phases of the project 

The project was concluded in different phases. This means that once the first part was 

finished, the project team was able to move to the next part in digitalization. Next, all 

the main phases are named, and actions taken introduced.  

 

5.3.1 Starting phase for the project 

The first phase started when the need for digitalization of forwarding was acknowledged 

during the first months of Covid-19. However, very little was done afterwards, until the 

writer of this thesis brought the idea of digitalization back up again. During this quiet 

time, only few discussions were held related to the digitalization due to other more ur-

gent issues with the pandemic when the company was trying to survive with the con-

stantly changing regulations and environment. Once the number of covid-19 regulations 

decreased the writer of this thesis brought the idea up and started the discussion with 



51 

his manager about the subject, who approved the idea of this project. Quickly afterwards, 

it was decided that the company will proceed with the project in question and a date for 

the kick-off meeting was decided.  

 

The attendants of the meeting were decided according to their roles in the organization 

which could be crucial related to the project and its effects to the operating models of 

the company. The attendants were from the forwarding team, shipping & packing teams, 

IT system developers and the responding managers of those teams. During the kick-off 

meeting, the guidelines, and directions where the project was headed was discussed 

from the perspective of all parties related. Hence, the discussions lead to preliminary 

decisions that what should be included, and what excluded from the project. The pre-

liminary goals of the project were to significantly decrease the amount of paper needed 

in the forwarding, and to study which countries or customers require original documents 

on paper to accompany their shipments. Furthermore, calculations of how much time, 

money and resources are saved each month due to the improvement done to the for-

warding process were among the points of interests from the managers. Also, it was 

concluded that system updates and changes were needed for the forwarding team to be 

able to continue their work without any paper and movement between the forwarding 

and shipping teams.   

 

5.3.2 Improvement of tools 

Planning of the project began with getting familiar with the subject in question. The for-

warding team had to determine what they had, and what modifications were needed to 

their operating systems, to be able to continue with the project. As mentioned earlier, 

forwarding team is using SAP application to book almost all their shipments, using a spe-

cific work queue designed for their purposes. Therefore, it was concluded that the ingre-

dients for paperless forwarding were already there, but the systems just needed a bit of 

amendment to work properly.  

 



52 

Forwarding team is using a specific transaction in the SAP interface, later referred to as 

shipping queue as described in chapter 5.1.1. Already, in the beginning of the project, 

this queue could be used alone to operate the forwarding function. However, to create 

shipments using only this SAP queue, would still have significant challenges within. This 

meant that the system needed to be upgraded into more user-friendly version, which 

could be used alone in the future to book shipments. First, the researcher and forward-

ing team started gathering thoughts what the queue was missing, what could perhaps 

be removed and overall, how the usability could be increased. There were number of 

problems with the system, such as the fact that the system was showing all open orders 

in the system, even those which were not ready to be dispatched. Therefore, it was chal-

lenging for the forwarding team to spot which orders were ready to be shipped. Further-

more, there was only a small possibility to sort the queue according to dates, countries, 

shipment types and so on. Other problem for the queue was unnecessary information 

on the system view. There were for example several “short-cut” buttons which were 

never used while operating the queue. And with those buttons which were used, there 

was information missing. Since the goal of the project was to get rid of the paper the 

shipping team was bringing to the forwarding team, the team tested how it could oper-

ate solely with the shipping queue for one forenoon. The testing was a success, and the 

researcher and the forwarding team was able to spot all the complete orders even with-

out any developments in place. This meant that suggestions for improvement to the sys-

tem specialists could be given, who could then start working on with those improve-

ments.  

 

5.3.3 Requirement of shipping invoices 

As explained in chapter 4.3 and 5.1.1, forwarding is creating invoices for their shipments 

to be used in custom purposes and for the recipient to create the payment for their or-

dered products. For shipments going outside of European Union, meaning that customs 

procedures are being applied, the forwarding team was required to send three, or more 

invoices with the products depending on the requirements of each country. Furthermore, 

one invoice had to be printed out for the archiving purposes as explained in chapter 5.3.8. 



53 

This meant, that minimum of four invoice copies were printed out for all courier ship-

ments being sent outside of the EU being one the places where most paper copies had 

to be printed for a shipment.  

 

To find more about the requirements for invoice print outs, the researcher contacted the 

contact person in one of the major transport agencies in the world to find more about 

the issue. In this conversation, the contact person introduced an “Paperless Trade” func-

tion, which is working with SAP and nShift systems, with their shipments. However, there 

were some exceptions, but this function was working with most countries outside the 

European Union. This function enabled the electrical transformation of documents from 

the shipper to the transport agency, meaning that the requirement for printing of phys-

ical invoice documents could be stopped in most of the shipments. However, since the 

“Paperless Trade” function was still new tool for the researcher and forwarding team, 

discussion was held with the nShift system specialist who also helped in other parts of 

the same project later. The specialist explained that the function will work almost as non-

detected with the shipments and will allow the removal of physical invoice documents 

when activated. Furthermore, the specialist also suggested that an automatic booking 

email should be activated, since earlier the forwarding team had to create booking 

emails for all shipments going outside of EU. This change was one of the key improve-

ments, since it made the next phases possible in the project when the amount of printing 

paper was decreased.  

 

Besides the transport agency capable of using this “Paperless Trade” function, the for-

warding team is using one other transport company for their courier shipments. After a 

discussio