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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’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 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
       Using 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            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 !

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E logistics

  • 2. 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
  • 3. SUPPLY CHAIN SYSTEMS Ocean Customs Agent liner Supplier Plant Port Roadways Roadways Airways Road + Rail Home Consumer Customer Customer’s RDC (Retailer) Warehouse Roadways
  • 4. 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”
  • 5. 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.
  • 6. TRADITIONAL APPROACH MATERIAL AND INFORMATION FLOW Raw Key Outlet Manufacturer Distributor Consumer Materials Supplier Retail Material flow Information flow
  • 7. 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
  • 8. INFORMATION TECHNOLOGY EVOLUTION PART-2  Information Integration Key Raw Materials Supplier Manufacturer Consumer Outlet Distributor Retail Material flow Information repository
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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.
  • 14. 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
  • 15. INSURANCE  This option needs to be available for customers since product can be lost or damaged in the shipping process.
  • 16. 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.)
  • 17. 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
  • 18. 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
  • 19. 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  Using processes like VMI  Step5:Dynamic Alliance of integrated supply chain(Intranet/Internet)
  • 20. STRUCTURE OF HLC E-LOGISTIC SYSTEM
  • 21. HAIER 360 DEGREE SOLUTION
  • 22. 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
  • 23. 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.
  • 24. 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