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 linerSupplier Plant Port Roadways Roadways Airways Road + Rail Home Consumer Customer Customer’s RDC (Retailer) Warehouse Roadways
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 APPROACHMATERIAL AND INFORMATION FLOW Raw Key Outlet Manufacturer Distributor ConsumerMaterials Supplier Retail Material flow Information flow
INFORMATION TECHNOLOGY EVOLUTIONPART-1 Communication Plays important role in information flow Key Raw Materials Supplier Manufacturer Consumer Distributor Outlet Retail Material flow Information flow
INFORMATION TECHNOLOGY EVOLUTIONPART-2 Information Integration Key Raw Materials Supplier Manufacturer Consumer Outlet Distributor Retail Material flow Information repository
COMMUNICATION + INFORMATION INTEGRATION Banks CustomsManufacturer WarehousingDistributor 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
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 STUDYE-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 Using processes like VMI Step5:Dynamic Alliance of integrated supply chain(Intranet/Internet)
ADVANTAGES OF E-LOGISTICS Real-Time Shipper/Receiver/ Fulfillment Decision Support Provider Connections Performance Monitoring Capacity and Load MatchingException-BasedStatus 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