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
Ocean liner Customs Agent Plant Supplier Road + Port Airways Roadways Roadways Roadways Rail Consumer Customer (Retailer) Home Customer’s Warehouse RDC supply Chain Systems
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 deliverright products in right quantities at right place and time to the right Customer.
Traditional approachMaterial and Information flow Raw Materials Key Supplier Outlet Retail Manufacturer Distributor Consumer Material flow Information flow
Information Technology EvolutionPart-1 • Communication Plays important role in information flow Raw Materials Key Supplier Consumer Manufacturer Outlet Retail Distributor Material flow Information flow
Information Technology EvolutionPart-2 • Information Integration RawMaterials Key Supplier Consumer Manufacturer Outlet Retail Distributor Material flow Information repository
Banks Customs Warehousing Manufacturer Distributor Courier Salesman Supplier Retailer Data feeds to internal applications system E-mail Order tracking Performance reports Interactive alerts and notification Communication + Information Integration INTEGRATED BUSINESS APPLICATION SYSTEM e-Logistics
seconds or minutes E-Commerce Integration Software Public Internet E-Catalogs, E-Procurement, Messaging, EDI, E-Payments, Interactive Apps. Consumer ERP Packaged Application Warehouse Courier Manufacturer Retailer E-Logistic Available to promise E - file transfer / EDI days or weeks Faster order Fulfillment process Changes in technology drive the fulfillment processes faster
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)
Advantages of E-Logistics Shipper/Receiver/ Fulfillment Provider Connections Real-Time Decision Support Performance Monitoring Capacity and Load Matching e-Logistics Exception-Based Status Alerts Transportation Optimization Track and Trace 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