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-mail

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

THANK YOU !