Council of Logistics Management

E-Logistics
KDR DR HANI KALSOM BINTI HASHIM TLDM
TML 3353

Logistics
Definition

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”

Definition of e-logistics

DEFINITION OF E-LOGISTICS
(Joseph, Laura and Srinivas, 2004)
Supportive delivery process for fulfilling online e-commerce orders
Wang, Y., & Pettit, S. (2016)
(Daly and Cui, 2003; Gunasekaran, Ngai and Cheng, 2007
The use of information and communication technology to support the provision and execution of a broad range of logistics activit
E-logistics utility in an online business to customer (B2C) or business to business (B2B) setting, the latter offers a broader concep
focusing on utilizing ICT to manage information and information flows in supply chains or supply networks
Miščević, G., Tijan, E., Žgaljić, D., & Jardas, M. (2018)
A transformation of the classic tools used for logistics processes in a modern way, and backed-up
by Internet based technologies
E-logistics is essentially a complex entity (system), which includes manufacturers (distributors), log
centres, resellers, carriers, consumers among which there is an electronic exchange of data via Inte
dedicated electronic networks with the help of mobile (wireless) and wired communication technolo
with the aim to reduce data errors and improve efficiency in decision-making and more

LOGISTICS DEVELOPMENT SCENARIOS
Logistics scenarios

SUPPLY CHAIN MANAGEMENT (SCM)
SYSTEMS

SUPPLY CHAIN MANAGEMENT (SCM)
• SCM is the process of effectively managing the components o
an extended value chain--from suppliers, through
manufacturing and distribution chain, and to the consumers.
• SCM information systems use technology to more effectively
manage supply chains

WHY SUPPLY CHAIN MANAGEMENT?
Parts $5,000
Labor 4000
Overhead 2000
Management
Marketing 3000
Total Cost $14,000
1950-1980s Manufacturing
• 50 years ago, U.S. is the only country that
can manufacture cars.
● You buy a car from GM, all the money will
go to the GM.
1980-2000s Supply Chain Management
• Today, foreign parts and labors are much
cheaper than that in US.
● You buy a car from GM, only a portion of
money will go to the GM.

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

SUPPLY CHAIN MANAGEMENT (SCM) SYSTEMS
• With the advent of the Internet, e-businesses began to deman
different things from their SCM systems
• Most importantly, SCM systems vendors (largely the same ve
that provide ERP systems software) had to modify their produ
include a Web-based interface
• The ultimate goal of a business ERP system is complete optim
of internal business processes

EMERGING TRENDS IN LOGISTICS

CLOUD IN LOGISTICS
• The usage of the Internet to access data, information or software.
• User is no longer dependent on his PC (Personal computer), but ca
and receive data independently of his current location and distance
office and PC.
• Information is accessible to the user regardless of used device, as
the user is able to connect to the Internet (by laptop, smartphone,
etc.).
• The most significant advantage of cloud computing
• Enables new platform-based business models and increases efficiency.
• Disadvantages
• The projection of costs can be unclear since once a certain scale is reached
data centers still tend to be cheaper for a larger company with massive dem
• Data security

CLOUD IN LOGISTICS

MOBILE LOGISTICS
• Smartphones popular due to
• Convenience & possibility user is available everywhere and can attend to th
tasks immediately.
• Enable product browsing, selection and shopping on-the-go.
• Similar to individual consumers, industrial customers expect to get
shipments faster, with more flexibility and transparency at a lower
price
• Customers can track the entire course of the shipment starting fro
order, to warehousing, transportation, and final delivery at the doo
(last-mile delivery).
• Such level of transparency and availability of information is require
at B2B (Business to Business) and B2C (Business to Client) levels.

MOBILE LOGISTICS
• Mobile Solutions for Logistics offer the following features:
• Mobile Warehouse Management Solutions: Know your warehouse in and out
• Door Delivery Mobile Solutions: Speed-up your door delivery services
• Mobile Asset Tracking Solutions: Know the location of every shipment
• Mobile Fleet Management Solutions: Get the most from your fleets
• Customer Servicing Solutions: Meet the needs of the modern-day customer

MOBILE LOGISTICS
Transportation applications available on Google Play Shippers' applications available on Google Play

MOBILE SUPPLY CHAIN MANAGEMEN
• Supply chain management intensively uses
mobile devices for faster and better business
process organization.
• For example,Oracle Mobile Supply Chain
applications enable users to perform many
common warehouse and shop floor
transactions using wireless devices atthe
point of use, offering real-time transaction
processing, improved data accuracy and
increased mobility and convenience

MOBILE SUPPLY CHAIN MANAGEMEN
• Supply chain management intensively uses
mobile devices for faster and better business
process organization.
• For example,Oracle Mobile Supply Chain
applications enable users to perform many
common warehouse and shop floor
transactions using wireless devices atthe
point of use, offering real-time transaction
processing, improved data accuracy and
increased mobility and convenience

DIGITAL TWINS
• Virtual model of a process, product or service.
• This pairing of the virtualand physicalworlds allows analysis ofdata and monitoring of
systems to head off problems before they even occur,preventdowntime,develop new
opportunities and even plan for the future by using simulations.
• How does a digital twin work?
• Smart components thatuse sensors to gather data about real-time status,working
condition, or position are integrated with a physicalitem.
• The components are connected to a cloud-based system that receives and processes all
the data the sensors monitor.
• This input is analyzed against business and other contextual data.
• Lessons are learned and opportunities are uncovered within the virtualenvironmentthat
can be applied to the physical world — ultimately to transform your business.
• NASA was the first to dabble with pairing technology — the precursor to today’s digitaltwin —
as far back as the early days of space exploration

INDUSTRY 4.0
• Industry 4.0 is holistic,with a partialtransferof autonomy,
intelligence and autonomous decisions to machines.
• Supply chain and logistics in Industry 4.0 is very similar,
albeit with, on top of the overlaps,differentapplications,
technologies, human and business aspects and elements.
• For example,warehouse managementprogressed from no
automatization to semi-or fully automated,to finally no
warehouse at all.
• SCM started locally,as only locally operating structure and
evolved to open and flexible operations footprint.Another
example, which can already be seen tested on the roads,is
logistics routing.
• New autonomous transportation vehicles and equipment are
no longer part of distant future.

AUTONOMOUS VEHICLES
• Autonomous forklifts and robot arms are common in modern
warehouses.
• They load, unload and transport goods within the warehouse
area, by connecting to one anotherand forming flexible
conveyor belts.
• These tasks require advanced sensors, as wellas vision and
geo guidance technology.
• In addition to warehouses,autonomous vehicles are also
used in airports,harbours,and yards.In the firststages of
autonomousvehicle implementation,truckers’workplaces
will not be endangered.The role of a trucker in the driving
process will be similar to a ship’s first officer.
• Their job will be to step in when conditions become difficult.

INNOVATIONS IN LOGISTICS &
DIRECTIONS

INNOVATIONS
• Innovation can be defined as a brand new product
developed in order to respond to market needs.
• It can also be an already existing but improved
product that was given a new, still non-existing
purpose or value.
• Logistics has a lot of opportunities in the field of
innovations.

INTERNET OF THINGS AND INTERNET OF EVE
• The industrial Internet of Things (IoT) market is
estimated to reach $123.89 Billion by 2021.
• Internetof Things basically means connecting items
or products over the Internet.
• IoT is a partof the Internetof Everything (IoE) or an
extension of it.
• In this sense, it connects allof the M2M (Machine-to-
Machine)communications involved in IoT,but also
Machine-to People (M2P) and technology-assisted
People-to-People (P2P) interactions

START-UPS
• Start-up, shake up:
• In this scenario,new entrants in the form ofstart-ups
make a bigger impact.
• The most challenging and costly last mile of delivery, in
particular,becomes more fragmented,exploiting new
technologies like the platform and crowd-sharing
solutions.
• These start-ups collaborate with incumbents and
complement their service offers
• Five major start up clusters dominate the landscape:
• Online platforms
• Asset management solutions
• Robotics/autonomous vehicles
• Shipping execution & tracking
• Data and analytics solutions
• Start-ups are mostly producing innovations in shipping, SCM
or the last mile delivery. These are some of the critical points
that are still needing a better solution, speed and
optimisation,because demand is focused on improvement
in this areas.

5TH-PARTY LOGISTICS
• A fifth-party logistics, also known as 5PL, is a system where an organisation (a client) outsources allits supply chains
to a logistics service provider.
• The 5PL company engages in planning, organising and implementing the client’s logistics solutions.
• Through the various supply chain processes, 5PL employs the services of third-party logistics (3PL) and fourth-p
logistics (4PL) at the same time, and it manages all the networks in the supply chain.
• Moreover, 5PL companies set prices and, in some cases, re-negotiate the already determined price.
• The centralethos of5PL is its commitmentto collaboration and obtaining a higher degree ofresource utilization in
order to achieve savings and open up opportunities to secure the bestpossible solution atminimum financialand
carbon cost

5TH-PARTY LOGISTICS

3D PRINTING IN LOGISTICS
• Three-dimensionalprinting is increasingly being used in numerous business aspects,from toy manufacturing to
logistics.
• For example,Mattel Corporation has partnered with a design software company to launch a Design App
allowing users to intuitively design toys that can be connected to create larger toys.
• The 3D models can be created on a tablet or smartphone and sent wirelessly to the 3D printer.
• 3D printing technology can have a massive impact on how SCM works.
• Given thatthe impacton manufacturing is already apparentand cases already existwhere people are printing the
necessary parts (even the printed parts are already used for medicalpurposes), the question is when it willchange
the function of the supply chain we know today.

3D PRINTING IN LOGISTICS
• DHL and DB Schenkerare thinking in this direction and considering the option ofthe print-on demand mode of
business. Spare parts, for example, will be increasingly seen as a service with clearly defined lead time.
• Managing the complexity behind that service is where companies can leverage their capabilities.
• This will add value for the customers by reducing interfaces and complexity
• Companies may no longer need to store spare parts physically in a warehouse.
• They can print these parts on demand, where required, and rapidly deliver these items to the customer.
• In order to achieve coverage and efficiency in lead-time reduction, logistics providers could support companies
• creating a dense network of 3D printers to print and deliver spare parts on demand instantly

DRONES
• Logistics providers are experimenting with drone delivery to cutcosts and ward offnew competition from start-ups
and technology companies,which have latched on to drone delivery as a potentialpath to disrupt(or partner with)
traditional legacy logistics firms.
• However,delivering packages by drones to consumers’doorsteps is stillyears away from becoming a common
occurrence.
• Importantobstacles stillneed to be overcome relating to drone regulations,the developmentof autonomous flight
and traffic control systems for drones, and consumer acceptance.

DRONES
• Logistics providers are experimenting with drone delivery to cutcosts and ward offnew competition from start-ups
and technology companies,which have latched on to drone delivery as a potentialpath to disrupt(or partner with)
traditional legacy logistics firms.
• However,delivering packages by drones to consumers’doorsteps is stillyears away from becoming a common
occurrence.
• Importantobstacles stillneed to be overcome relating to drone regulations,the developmentof autonomous flight
and traffic control systems for drones, and consumer acceptance.

VIRTUAL REALITY AND AUGMENTED
• Virtual reality (VR) is an actual representation of reality in virtual
space with the help of computer technology.
• Its full usage is assisted by the use of other technologies, such as a VR
headset, for the user to accomplish a better sense of VR. Everything
that users sees and hears impacts his feelings about the experienced
VR. AR (Augmented reality) on the other hand does not simulate
reality in virtuality, but instead combines them in one single
experience.
• This way elements of VR are connected with reality simultaneously.
• The best example is game Pokémon GO, where the user uses the
smartphone, which is an element of VR, in real life for catching
Pokemon displayed on the smartphone, embedded in the real
environment.
• Similar experiences can be implemented in several logistics processes
such as transportation and warehousing.

VIRTUAL REALITY AND AUGMENTED
• As for Last Mile Delivery, it is the most expensive step
for every e-commerce retailer.
• As customer bases grow and are more spread out,
getting products shipped to customers cost-effectively
has become a priority for many retailers.
• According to a DHL Trend Research report, it’s
estimated that drivers spend 40-60% of their time
locating the correct boxes within their truck for the
next delivery.
• For many, this process relies on their memory of how
the truck is loaded.
• AR application could be used to streamline the time it
takes to identify packages upon delivery and reduce
the time it takes to figure out which package goes
where.

BLOCKCHAIN TECHNOLOGY
• Blockchain and Artificial Intelligence (AI) certainly made their presence felt in the logistics indust
• With the security and transparency blockchain offers, it offers a secure and robust way to store a
transactional data, while improving credibility with a ledger of transactions that can be checked f
authenticity.
• For example, if customer’s ID proof is available digitally through a blockchain structure, it cannot
by him at the time of delivery.
• Similarly, it’s possible to map the unique blockchain enabled registration number of every vehicl
delivery job IDs.
• By 2021, as much as 25% of the large global companies will be using AI and blockchain-based au
transactional procurement.
• This recent technology is what drives bitcoin and other cryptocurrencies. However, the technolog
much further than a hack proof way of holding and exchanging money.
• Blockchain can be used for any kind of exchange, smart agreements or asset tracking.
• In a supply chain, it can apply to anything from self-executing supply contracts to automated col
management

BLOCKCHAIN TECHNOLOGY

ADVANTAGES OF E-LOGISTICS

ADVANTAGES OF E-LOGISTICS
e-Logistics
Transportation
Documentation
Performance
Monitoring Capacity and Load
Matching
Transportation
Optimization
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
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.

THANK YOU