LECTURE 1 An overview of e‐logistics

AN OVERVIEW OF E-LOGISTICS

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An overview of e‐logistics Họ đang bán hàng ra sao?

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 SAPO – Nền tảng quản lý & Bán hàng tổng thể Learning objectives

1.1 Definition and role of e-logistics

1.2 The impact of e-commerce on e-logistics
1.3 Models of e-commerce logistics
1.4 Operating models in e-logistics
1.5 Analyzing e-logistics operating models
1.6 Overview of logistics

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1.1 Definition and role of e-logistics 1.1 Definition and role of e-logistics
 Key features of e-logistics include:
 E-logistics (Electronic Logistics) refers to the integration of
• Real-time tracking and monitoring of shipments through GPS,
digital technologies into logistics and supply chain management RFID, and IoT devices.
processes. It involves the use of information and communication • Automation of warehousing and distribution processes.
technologies (ICT) to optimize the movement, storage, and flow of • Digital platforms for order management, such as e-commerce
systems and enterprise resource planning (ERP).
goods, services, and information across the supply chain. E-
• Data analytics for optimizing routes, inventory levels, and
logistics includes tasks such as inventory management, demand forecasting.
transportation, warehousing, order processing, and tracking, all • Integration of various supply chain systems for seamless
facilitated by digital platforms and tools. information flow between suppliers, manufacturers, and customers.

=> E-logistics is a critical component of modern e-commerce to help

company to improve efficiency, reduce costs and customer satisfaction

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1.1 Definition and role of e-logistics Firm value chain
 The role of e-logistics Benchmarking
 For the overall supply chain
⁃ The physical flow of goods
⁃ The flow of information
⁃ The flow of finances
 For firm value chain

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1.1 Definition and role of e-logistics 1.1 Definition and role of e-logistics

The role of information for e-logistics

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1.2 Impact of e-commerce on e-logistics 1.2 Impact of e-commerce on e-logistics

Change distribution channels

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1.2 Impact of e-commerce on e-logistics 1.3 Model of e-commerce logistics

 Change distribution channels

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1.3 Model of e-commerce logistics 1.3 Model of e-commerce logistics
The Emerging Internet-Driven Supply Chain
The emerging Internet-driven
supply chain operates like a
e-procurement e-fulfillment digital logistics nervous system.
It provides multidirectional
communication among firms,
- Purchase, inventory - Sales, order processing networks of firms, and e-
marketplaces so that entire
- Warehouse - Delivery, service networks of supply chain
- SRM - CRM partners can immediately
- Internet adjust inventories, orders, and
- Extranet capacities.
- B2B - B2B, B2C

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1.3 Model of e-commerce logistics 1.4 Operating model in e-logistics

 Outbound logistics in e-commerce is a part of e-commerce logistics that
includes activities, functions and effective integration processes. The
function of outbound logistics is to ensure that goods are supplied
according to an accurate process from the time the order is received until
the goods are delivered to customers.
 Outbound logistics

Traditional logistics model for order

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1.4 Operating model in e-logistics 1.4 Operating model in e-logistics
 Outbound logistics in e-commerce

Logistics model for online order

Quy trình xử lý đơn hàng trong logistics đầu ra

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1.4 Operating model in e-logistics 1.4 Operating model in e-logistics

Inbound logistics in e-commerce includes the process of purchasing goods Phân biệt logistics và e-logistics
from suppliers, issues related to packaging, warehousing and preserving
goods.
 Features:
 Purchasing management
 Inventory management
 Warehouse
 Packaging

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1.5 Analyzing e-logistics operating models 1.5 Analyzing e-logistics operating models
a. Mô hình lưu kho (Fulfillment by X) b. Mô hình qua kho (On Demand Fulfillment)

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1.5 Analyzing e-logistics operating models 1.5 Analyzing e-logistics operating models
c. Mô hình nhà bán tự vận hành (seller devivery) d. Mô hình bán hàng đa kênh (Multichannel Fulfillment)

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1.6 Overview of logistics 1.6 Overview of logistics

Economic Impacts of Logistics Table 1.1: The Cost of the Business Logistics System in
Relation to a Country’s Gross Domestic Product (GDP)
 Macroeconomic impacts
Country Logistics as a Percentage of GDP
 Economic utility
 Possession utility United States 8.5
 Form utility Brazil 12.0
 Place utility (*) South Africa 12.8
 Time utility (*) India 13.0
People’s Republic of China 18.0
Vietnam 25.0
Indonesia 27.0

Sources: Various country reports

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1.6 Overview of logistics 1.6 Overview of logistics

Logistics: What It Is The Increased Importance of Logistics

 Council of Supply Chain Management Professionals (CSCMP) definition:  A reduction in economic regulation
“Logistics management is that part of supply chain management that  Changes in consumer behavior
plans, implements, and controls the efficient, effective forward and  Technological advances
reverse flow and storage of goods, services, and related information  Advances in retailing
between the point of origin and the point of consumption in order to  Globalization of trade
meet customers’ requirements.”

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1.6 Overview of logistics 1.6 Overview of logistics

The Systems and Total Cost Approaches to Logistics Figure 1.1: Control Over the Flow of Inbound and Outbound
Movements
 Systems approach
 Compatibility between a company’s goals and objectives and
major functional area goals and objectives

 Interdependence of functional areas

 Interdependence of logistics activities or intra-functional logistics

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1.6 Overview of logistics 1.6 Overview of logistics

The Systems and Total Cost Approaches to Logistics Logistical Relationships within the Firm
 Total cost approach  Marketing
 Cost trade-offs: changes to one activity cause some costs to increase  Place decisions
and others to decrease
 Price decisions
 Total logistics concept: integration of all activities into a unified
- Landed costs
whole that seeks to minimize distribution costs in a manner that
supports an organization’s strategic objectives  Product decisions

- Stockouts

- Sustainable products

 Promotion decisions
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1.6 Overview of logistics 1.6 Overview of logistics

Marketing Channels Activities in the Logistical Channel

• Customer service • International logistics
 Channel members
• Facility location decisions • Materials handling
 Manufacturers
• Inventory management • Packaging
 Wholesalers • Order management • Reverse logistics
 Retailers • Procurement • Warehousing management
• Transportation management
• Demand forecasting

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Processes involved e-logistics (B2C) Processes involved e-logistics (B2C)

1. Method of payment Arrange a method of payment.

2. Check product availability  Possible payment methods:
3. Arrange shipments • At the time of order: e-payment (e.g. PayPal),
4. Insurance credit card
5. Replenishment • At the time of delivery: COD
6. Contact with customers
 For electronic payments, a system of verification of
7. Returns payment is needed before shipping

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Processes involved e-logistics (B2C) Processes involved e-logistics (B2C)

Check product availability Arrange shipments

 If possible, inform customer of availability before  Electronic shipping – quick and immediate
order is placed.
 If out of stock or the product will take time to  Physical product – determine best shipping method
manufacture, inform customer of the delay. for level of service

 It is the biggest activity (labor, energy, money, etc.)

for E-Logistics

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Processes involved e-logistics (B2C) Processes involved e-logistics (B2C)

Insurance Replenishment
 This option needs to be available for customers  This is an overview step. It should be examining all
since product can be lost or damaged in the shipping aspects of physical inventory at a location and
process. reordering as needed:
• Product – product sitting on shelves or material to
manufacture product
• Non-product – shipping materials, parts for
machines in process, items that are part of the
shipping process (scanners, totes, carts, etc.)

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Processes involved e-logistics (B2C) Processes involved e-logistics (B2C)

Contact with customer Returns

 With an invisible process (back-door operations),  The flow of product from customer back to the
the customer needs to be informed as much as vendor is called reverse logistics.
possible.
 Possible reasons for customers to return or
 Most common types of communication: exchange product:
• Order confirmation • Damaged
• Payment success • Doesn’t work
• Shipping confirmation • Don’t like it
• Tracking information
• Wrong product/type/color
• Any problems in the process

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Q&A

Thank you for your attention!

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