E logistics

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E logistics

  1. 1. E-logistics = Internet + logistics René Rojas www.linkedin.com/in/renerojas www.twitter/renerojas renerojas@modelosdenegocio.com
  2. 2. Definitions - Internet Web of millions of electronic networks linked by cables and wireless technologies that carry data around the world in fractions of seconds”
  3. 3. WWW – World Wide Web World Wide Web is the most important architecture running over internet Documents in HTML or XML at various URLs linked via HTTP HTTP: HyperText Transfer Protocol URL: Uniform Resource Locator HTML: Hypertext Markup Language XML: eXtensible Markup Language (Radio + TV + printed media ) * reach * richness
  4. 4. (Internet + www ) History
  5. 5. 3. Internet – Architecture Emerging Application Service Providers (ASPs) BACKBONE Network Access Providers Internet Access/Service Providers END USERS Adapted from (Kalahota & Whinston: 1996, 41)/2000)
  6. 6. How Internet works Computers on the Internet work together to transfer information back and forth around the world. Backbone Router The Internet A router regulates backbone is a set of traffic on the Internet high-speed data Packets and picks the most lines connecting Information over the Internet is efficient route for major networks all broken down into smaller pieces each packet. A over the world. called packets. packet may pass through many TCP/IP routers before Transmission Control Protocol/Internet reaching its Protocol (TCP/IP) is a destination. language computers on the Internet use to communicate with each other. TCP/IP divides information into packets and sends the packets independently across the Download and Upload Internet. When information arrives at the You download information intended destination, TCP/IP ensures that from other computers on all the packets arrived safely and the Internet. reassembles the original information. You upload information to other computers on the Source: Paul Whitehead and Ruth Maran, Teach Yourself the Internet and the World Wide Web Visually, Internet. Last Updated: 01/17/01 IDG Books Worldwide, 1997 –Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC
  7. 7. Internet – Access Methods Game Television Systems Telephone Cable Modem Modem Connecting To Telephone Cable Mobile The ISDN Internet PDAs Palmtops Satellite MP3 Computer Future? Networks Where There Is A Chip..
  8. 8. Internet – Global Usage www.internetworldstats.com
  9. 9. WHO IS AFFECTED B&M business • WALTMART E-Business • DELL • AMAZON E-logistics
  10. 10. e-Business Infrastructure e-Business infrastructure the general industry environment underlies each strategic decision presents opportunities & constraints 2 categories of e-business infrastructure Network Media Digitization driving convergence of each
  11. 11. Network & Media Convergence Network Media Infrastructure Infrastructure Print Telephone/DSL (Newspapers and Magazines) Cable Television Broadcast Radio & TV Radio Digital Convergence Satellite Music Wireless Motion Pictures –Source: Rayport & Jaworski (2001)
  12. 12. Definitions - Network Infrastructure “Basic underlying group of electronic devices and connecting circuitry designed as a system to share information” – Source: Rayport & Jaworski Includes Hard & software Comms, pay TV, computers, mobile devices All that enables the transport of digital info
  13. 13. Network Power – Social Networks – Business Networks Melcalfe law Reed Law Moore’s Law (Gordon Moore, INTEL) • Microprocessor Computer Power Will Double Every 18 months - Valid Since 1975
  14. 14. Business Applications Bill Gates’ “Digital Nervous System” Corporate digital equivalent of human nervous system Digital processes that closely link every aspect of a company’s thoughts and actions Well-integrated flow of info to right part of organisation at right time Finance, production, customer feedback – accessible using digital tools to quickly adapt and respond – Source Gates, Bill. (1999), Business @ the Speed of Thought, Penguin Books, London
  15. 15. –Source: Rayport & Jaworski (2001) Exhibit 9-12: Digital Nervous System Procurement Finance / Accounting / Control Supply-Chain Management / Human Resource Management Basic Operation Business Digital Strategic Reflexes Nervous System Thinking Customer Interaction Consumer Relationship Management / Selling- Chain Management / Supply-Chain Management Last Updated: 01/17/01 Source: Bill Gates, Business @ the Speed of Thought, Warner Books, 1999 Copyright  2000 by Marketspace LLC
  16. 16. Business Applications Intranets Computer Networks privately developed and operated within an organisation Now set up with Internet Architecture Including World Wide Web Service Gateways to the Internet (Firewalls) Extranets Collaborative network linking businesses with their suppliers, customers or other businesses that share common goals Using Internet Architecture Often evolving out of an Intranet Gateways to the Internet (Firewalls)
  17. 17. Business Applications - CRM Optimising long term profitability of customer relationships by better understanding a customer’s behaviour, patterns and life time value to a company Coordinated actions at all access points to drive X-sell Up sell Retention
  18. 18. Exhibit 9-13: Customer Relationship Management Customer Customer Relationship Relationship Management Management Direct Channels Direct Channels Indirect Channels Indirect Channels Web Web Telecenter Telecenter Direct Sales Direct Sales Retailer Retailer Reseller Reseller Distribution Distribution Customers Customers and Prospects and Prospects Source: “Know Thy Customer,” The New York Times, February 14, 2000 Last Updated: 01/17/01 –Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC
  19. 19. Business Applications - Selling Chain Management Large scale field-sales solutions to automate order acquisition functions including configurations, pricing and service Aims are to Make things easy for customer Add value to customer Improve sales effectiveness Facilitate team selling
  20. 20. Supporting Slide 9-G: Enterprise Resource Planning Forecasting and Forecasting and Planning Planning Purchasing Material Purchasing Material Management Management Warehousing and Warehousing and Inventory Inventory Enterprise Resource Planning Enterprise Resource Planning Management Management Finished Product Finished Product Distribution Distribution Accounting/Finance Accounting/Finance Source: Adopted from “e-Business: Roadmap for Success,” Dr. Ravi Kalakota and Marcia Robinson Last Updated: 01/17/01 –Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC
  21. 21. Supporting Slide 9-H: Supply-Chain Management Market Demand Market Demand Resource and Resource and Supply-Chain Management Supply-Chain Management Capacity Constraints Capacity Constraints Real-Time Real-Time Scheduling Scheduling Source: Adopted from “e-Business: Roadmap for Success,” Dr. Ravi Kalakota and Marcia Robinson Last Updated: 01/17/01 –Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC
  22. 22. Exhibit 9-11: Overview of Basic Internet E-Business Architecture Seller Buyer Storefront System Back-Office System Web Catalog Web Commerce Server Source: Adapted from E-Business Technology Forecast (1999), published by PricewaterhouseCoopers’ Technology Centre, Menlo Park, CA Internet Order Processing Order Processing Fulfillment System Fulfillment System Bank Payment Payment Accounting System Accounting System Gateway Gateway Enterprise Firewall Enterprise Firewall Last Updated: 01/17/01 –Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC
  23. 23. Comparison of Market Opportunity Analysis Old Economy New Economy Competition Within industries Within & Across industries Competitor Slower Rapid development speed Competition between Companies Alliances of companies Consumer Established Being defined behaviour patterns Value Configured Being rapidly chain/system reconfigured
  24. 24. Distribution and logistics have been evolving rapidly…Trends include: Globalization Increased competition Falling distribution and logistics costs Increased outsourcing Consolidation among businesses involved in distribution and logistics activities (transport and storage) – Full service logistics solutions Increasing integration of distribution and logistics into value chains
  25. 25. Implications: Shorter order cycles Demands for smaller, more frequent, more reliable deliveries More varied delivery patterns related to product shelf- life, product customization, production and retailing strategies and the reliability of short-term forecasting Closer relationship between customer and logistic services suppliers, often with fewer suppliers Outsourcing of logistics to third party logistics managers, allowing firms to share distribution facilities Greather use of recycling and managed disposal, which has resulted in additional back-haul cargoes (i.e. reverse logistics)

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