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
RoadwaysCustomer’sWarehouse
Customer (Retailer)
Supplier
Roadways Roadways
Customs Agent
Port
Ocean
liner
Airways Road+
Rail
RDCConsumerHome
Plant
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
Information flowMaterial flow
RawMaterials
KeySupplier
Manufacturer DistributorOutletRetail
Consumer
INFORMATION TECHNOLOGY EVOLUTIONPART-1 Communication Plays important role in information flow
KeySupplier
Distributor OutletRetail
Manufacturer
Raw Materials
Consumer
Information flowMaterial flow
INFORMATION TECHNOLOGY EVOLUTIONPART-2 Information Integration
Material flow Information repository
KeySupplier
DistributorOutletRetail
Manufacturer
Raw Materials
Consumer
COMMUNICATION + INFORMATION INTEGRATION
Manufacturer
Salesman SupplierRetailer CourierDistributor
BanksWarehousing Customs
Data feedsto internalapplicationssystem
Order trackingPerformancereports Interactive alerts and
notification
e-Logistics
INTEGRATED BUSINESS APPLICATION SYSTEM
FASTER ORDER FULFILLMENT PROCESS
Changes in technologydrive thefulfillmentprocessesfaster
seconds or minutes
ERP PackagedApplication
PublicInternet
E-CommerceIntegration Software
Consumer
E-Catalogs,E-Procurement,Messaging, EDI,E-Payments,Interactive Apps.
E-Logistic
Warehouse Courier ManufacturerRetailer
Availableto 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
e-Logistics
TransportationDocumentation
PerformanceMonitoring
Capacity and LoadMatching
TransportationOptimization
Real-Time Decision Support
Exception-Based Status Alerts
Shipper/Receiver/ Fulfillment Provider Connections
Wireless Updates
Track and Trace
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
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