ELOGISTICS AGENDA Definition Logistics Elogistics Evolution of IT

E-LOGISTICS

AGENDA Definition Logistics E-logistics Evolution of IT in the Field of Supply Chain Communication Data Improvement Integration Process involved in E-Logistics (B 2 C Example) Case Study Haier Corp. E-Logistic system Implementation

SUPPLY CHAIN SYSTEMS Ocean Customs Agent Supplier Plant Roadways liner Port Airways Road + Rail Home Consumer Customer (Retailer) Customer’s Warehouse Roadways RDC

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-ofconsumption 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 Materials Key Supplier Manufacturer Distributor Material flow Outlet Retail Information flow Consumer

INFORMATION TECHNOLOGY EVOLUTION PART-1 Communication Plays important role in information flow Key Supplier Manufacturer Distributor Material flow Raw Materials Consumer Outlet Retail Information flow

INFORMATION TECHNOLOGY EVOLUTION PART-2 Information Integration Key Supplier Manufacturer Distributor Material flow Raw Materials Consumer Outlet Retail Information repository

COMMUNICATION + INFORMATION INTEGRATION Warehousing Manufacturer Distributor Retailer Courier Banks Customs Salesman Supplier INTEGRATED BUSINESS APPLICATION SYSTEM e-Logistics Data feeds to internal applications system E-mail Performance reports Interactive alerts and notification Order tracking

FASTER ORDER FULFILLMENT PROCESS seconds or minutes E-Commerce Integration Software Public Internet Consumer E-Catalogs, E-Procurement, Messaging, EDI, E-Payments, Interactive Apps. Warehouse Courier Retailer E-Logistic ERP Packaged Application Available to promise E - file transfer / EDI days or weeks Manufacturer Changes in technology drive the fulfillment processes faster

PROCESSES INVOLVED ELOGISTICS(B 2 C) 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. Pay. Pal), 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 Step 1: Framework Construction As is Analysis and Pros and Cons of E-logistic system are discussed Step 2: Function Integration Moving Step 3: Internal supply chain Integration SCP and ERP Implementation and Introduction of EDI Step 4: External supply chain Integration Using to a MRP tool processes like VMI Step 5: Dynamic Alliance of integrated supply chain(Intranet/Internet)

STRUCTURE OF HLC E-LOGISTIC SYSTEM

HAIER 360 DEGREE SOLUTION

ADVANTAGES OF E-LOGISTICS Real-Time Decision Support Shipper/Receiver/ Fulfillment Provider Connections Performance Monitoring Exception-Based Status Alerts e-Logistics Capacity and Load Matching 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 technology.