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

Customs
Agent

Supplier

Plant
Roadways

Ocean
liner

Port
Airways

Roadways

Road
+
Rail

Home

Consumer

Customer
(Retailer)

Customers
Warehouse

Roadways

RDC

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
Materials

Key
Supplier

Manufacturer

Material flow

Distributor

Outlet
Retail

Information flow

Consumer

INFORMATION TECHNOLOGY
EVOLUTION
PART-1

Communication Plays important role in information flow

Key
Supplier

Manufacturer

Distributor

Material flow

Raw Materials

Consumer

Outlet
Retail

Information flow

INFORMATION TECHNOLOGY
EVOLUTION
PART-2

Information Integration

Key
Supplier

Manufacture
r

Distributor

Material flow

Raw Materials

Consumer

Outlet
Retail

Information repository

COMMUNICATION + INFORMATION INTEGRATION

Warehousing

Manufacturer
Distributor

Retailer

Courier

Banks

Customs

Salesman

Supplier

INTEGRATED BUSINESS APPLICATION SYSTEM

e-Logistics
Data feeds
to internal
applications
system

E-mail
Performance
reports

Interactive alerts and

notification

Order tracking

FASTER ORDER FULFILLMENT

PROCESS
seconds or minutes
Public
Internet
Consumer

E-Commerce
Integration Software

E-Catalogs,
E-Procurement,
Messaging, EDI,
E-Payments,
Interactive Apps.

ERP Packaged
Application

Retailer Warehouse Courier

E-Logistic

Available
to promise

E - file transfer / EDI

days or weeks

Manufacturer

Changes in
technology
drive the
fulfillment
processes
faster

PROCESSES INVOLVED ELOGISTICS(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
Doesnt

work
Dont 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

Step3:Internal supply chain Integration

SCP

EDI

and ERP Implementation and Introduction of

Step4:External supply chain Integration

Using

to a MRP tool

processes 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
Decision Support

Shipper/Receiver/ Fulfillment
Provider Connections

Performance
Monitoring
Exception-Based
Status Alerts

e-Logistics

Capacity and Load

Matching

Transportation
Optimization

Track and Trace

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 !