E-LOGISTICS
AGENDA
Definition
⚫ Logistics
⚫ E-logistics
Evolution of IT in the Field of Supply Chain
⚫ Communication Improvement
⚫ Data Integration
Process involved in E-Logistics (B2C Example)
Case Study Haier Corp.
⚫ E-Logistic system Implementation
SUPPLY CHAIN SYSTEMS
Ocean
Customs
Agent liner
Supplier Plant Port
Roadways Roadways Airways Road
+
Rail
Home Consumer Customer Customer’ RDC
(Retailer) s Roadways
Warehouse
LOGISTICS
Council of Logistics Management (CLM) definition:
“Logistics is that part of the supply chain process
that plans, implements, and controls the
efficient, effective flow and storage of
goods, services, and related information from the
point-of-origin to the point-of-consumption in order
to meet customers’ requirements”
E-LOGISTICS
E-Logistics is a Dynamic set of communication
computing and collaborative technologies that
transform key logistical processes to be customer
centric by sharing data , Knowledge and information
with Supply chain partners .
Ultimate objective of E-Logistics is to deliver right
products in right quantities at right place and time to
the right Customer.
TRADITIONAL APPROACH
MATERIAL AND INFORMATION FLOW
Raw Key Outlet
Manufacturer Distributor Consumer
Materials Supplier
Retail
Material flow Information flow
INFORMATION TECHNOLOGY EVOLUTION
PART-1
Communication Plays important role in information flow
Key Raw Materials
Supplier
Manufacturer Consumer
Distributor Outlet
Retail
Material flow Information flow
INFORMATION TECHNOLOGY EVOLUTION
PART-2
Information Integration
Key Raw Materials
Supplier
Manufacturer Consumer
Outlet
Distributor Retail
Material flow Information repository
COMMUNICATION + INFORMATION INTEGRATION
Banks Customs
Manufacturer Warehousing
Distributor Retailer Courier Salesman Supplier
INTEGRATED BUSINESS APPLICATION SYSTEM
e-Logistics
Data feeds
to internal
applications
system E-mail
Performance Order tracking
Interactive alerts and
reports
notification
FASTER ORDER FULFILLMENT PROCESS
seconds or minutes
Public E-Commerce
Internet Integration Software
E-Catalogs,
Consumer E-Procurement,
Messaging, EDI, ERP Packaged
E-Payments, Application
Interactive Apps. Changes in
technology
drive the
fulfillment
processes
faster
Retailer Warehouse Courier Manufacturer
E-Logistic Available
to promise E - file transfer / EDI
days or weeks
PROCESSES INVOLVED E-LOGISTICS(B2C)
1 – Method of payment
2 – Check product availability
3 – Arrange shipments
4 – Insurance
5 – Replenishment
6 – Contact with customers
7 – Returns
ARRANGE A METHOD OF PAYMENT.
Possible payment methods:
⚫ At the time of order: e-payment (e.g. PayPal), credit
card
⚫ At the time of delivery: COD
For electronic payments, a system of verification of
payment is needed before shipping
CHECK PRODUCT AVAILABILITY
If possible, inform
customer of availability
before order is placed.
If out of stock or the
product will take time to
manufacture, inform
customer of the delay.
ARRANGE SHIPMENTS
Electronic shipping – quick and immediate
Physical product – determine best shipping method for
level of service
It is the biggest activity (labor, energy, money, etc.)
for E-Logistics
INSURANCE
This option needs to be available for customers
since product can be lost or damaged in the
shipping process.
REPLENISHMENT
This is an overview step. It should be examining all
aspects of physical inventory at a location and
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.)
CONTACT WITH CUSTOMER
With an invisible process (back-door
operations), the customer needs to be informed as
much as possible.
Most common types of communication:
⚫ Order confirmation
⚫ Payment success
⚫ Shipping confirmation
⚫ Tracking information
⚫ Any problems in the process
RETURNS
The flow of product from customer back to the
vendor is called reverse logistics.
Possible reasons for customers to return or
exchange product:
⚫ Damaged
⚫ Doesn’t work
⚫ Don’t like it
⚫ Wrong product/type/color
CASE STUDY
E-LOGISTIC SYSTEM FOR HAIER LOGISTIC CORPORATION
Step1:Framework Construction
⚫ As is Analysis and Pros and Cons of E-logistic
system are discussed
Step2:Function Integration
⚫ Moving to a MRP tool
Step3:Internal supply chain Integration
⚫ SCP and ERP Implementation and Introduction of EDI
Step4:External supply chain Integration
⚫ Usingprocesses like VMI
Step5:Dynamic Alliance of integrated supply
chain(Intranet/Internet)
STRUCTURE OF HLC E-LOGISTIC SYSTEM
HAIER 360 DEGREE SOLUTION
ADVANTAGES OF E-LOGISTICS
Real-Time Shipper/Receiver/ Fulfillment
Decision Support Provider Connections
Performance
Monitoring
Capacity and Load
Matching
Exception-Based
Status Alerts
e-Logistics
Transportation
Track and Trace Optimization
Wireless Updates Transportation
Documentation
SUMMARY
Use of Technology in the Traditional Methods of
Business has given birth to E-Logistics
Consumer Fulfillment rate has increased because of E
logistics.
Transparency in the Business has improved
Need to analyze and also the ability to analyze the
Business has improved because of use of technology.
REFERENCES
Utilizing e-logistics Paper Lulea University of Technology
en.wikipedia.org/wiki/Logistics
r0.unctad.org/ecommerce/event_docs/curacao/bayles.pdf
portal.acm.org/citation.cfm?id=1089626
www.emeraldinsight.com/journals.htm
THANK
YOU !
