Unit 31: E-business Operations

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Learning Outcomes
4-3 Examine the support of logistics services and international trade through use of the internet

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Topics

Review of Last session Lecture

Logistics and support services

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Review of Last Session

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Topics Discussed

Recruitment and Communication

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CRITERIA 4-3

Examine the support of logistics services and international trade through use of the internet
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the role of logistics services (transport, storage, warehousing and distribution) and how the internet can be used to communicate information (availability, delivery, invoices) and the flow of demand information to back up the supply chain; the additional information needed to support international trade, both within and outside the Country, and use of the internet forwarding, customs, transport and shipping, bills-of-lading or airway-bills and payment knowledge management and transfer, e-learning

Logistics and Support Services

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Introduction

Billions will be spent on Internet Based Logistics Systems. Average Annual B2C market $7.7 to $28 Billion Average Annual B2B market $2.1 to $81 Billion (01-05) If growth is to be maintained (as we now know) efficient logistics systems have to be in place. Investments in e-logistics will also be great

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Background

E-Logistics Technology (examples)

The personal computer Electronic data interchange (EDI) among carriers, shippers and customers Barcoding and scanning Advance ship notices (ASNs) Shipment and package tracking systems Satellite global positioning systems (GPS) and geographic information systems (GIS) The World Wide Web The Internet, intranets and extranets Web-enabled relational databases, data warehouses and data marts Decision support systems Electronic signature technology Wireless technology Enterprise resource planning systems

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E-logistics and Supply Chain

Logistics is concerned with the flow of materials in the supply chain, from source through the industrial process to the customer, and then on to re-use, re-cycle, or disposal. By coordinating all resources, logistics have to ensure that service level agreements with customers are honored. E-logistics is defined to be the mechanism of automating the logistics processes and providing an integrated, end-to-end fulfillment and supply chain management service to the players of logistics processes. Those logistics processes that are automated by e-logistics provide supply chain visibility and can be part of existing e-commerce or workflow systems in an enterprise.

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E-logistics Processes

The typical e-logistics processes include Request For Quotes (RFQ), Warehousing and Storage Shipping, and Distribution Tracking

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Specific uses of internet in logistics

forwarding, customs, transport and shipping, bills-of-lading or airway-bills and payment

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Using internet for logistics

availability, delivery, invoices and the flow of demand information

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Forward E-Logistics

Procurement

Email, EDI and XML linkages aiding procurement Savings: Ideally reduce all paper driven transactions (Romm, 2000). Costs: (general issue with all technology)

energy costs because of technology (Mills 2000, 2001). Electronic Hardware

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Forward E-Logistics

Inventory and Warehousing

Postponement less inventory due to quick speed of information (JIT) Aggregation and centralization of warehousing/inventory do not need to be next to customer

+ less waste, energy to run additional locations - additional transportation costs

Information integration substitution of durable goods with information better efficiency less bullwhip effect.

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Forward E-Logistics

Transportation and Delivery Management

Transportation exchanges allow for more efficient carrier management Transportation costs may increase due to centralized warehousing Services and electronic (software/music) goods are easily delivered. Marketing with fancy packaging less necessary Have more flexibility in packaging

Packaging and Order Management

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Reverse E-Logistics

By definition is an environmentally conscious practice, bringing back disposed products, components, waste into system. Returns due to warranties, customer service, competitiveness issues are all increasing reverse logistics. Major RL activities: gatekeeping, collection, sortation and disposition

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External Transportation Selection

Raw and Virgin Material

Internal Transportation, Materials Movement Inventory Management

Closed-Loop Manufacturing, Demanufacturing, Source Reduction

Location Analysis, Inventory Management, Warehousing Transportation Packaging

Disposal

Fabrication Distribution, Forward Logistics USE

Vendors

New Components and Parts

Storag e

Recycled, Reused Material and Parts

Assembly

Storag e

Purchasing, Materials Management, Inbound Logistics

Production

Outbound Logistics

Product/Process Design

Waste

Waste

Waste

Reusable, Remanufacturable, Recyclable Materials and Components

Engineering

Marketing
Reverse Logistics

Figure 1: Materials, Product and Information Flow. Forward and Reverse Logistics, Adapted From Sarkis, 2001.

Flow of demand / Supply Chain

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Waste

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International Trade

International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events.

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PKI

Public Key Infrastructure

set of hardware, software, people, policies, and procedures needed to create, manage, distribute, use, store, and revoke digital certificates.

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Bill of Lading

A legal document between the shipper of a particular good and the carrier detailing the type, quantity and destination of the good being carried. The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined destination. This document must accompany the shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver.
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Knowledge Management

range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizations as processes or practices.

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Knowledge Management Basic Rules

A collection of data is not information. A collection of information is not knowledge. A collection of knowledge is not wisdom. A collection of wisdom is not truth.

Neil Fleming

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KM Diagram

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KM Summary

Information relates to description, definition, or perspective (what, who, when, where). Knowledge comprises strategy, practice, method, or approach (how). Wisdom embodies principle, insight, moral, or archetype (why).

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Value of KM

The value of Knowledge Management relates directly to the effectiveness with which the managed knowledge enables the members of the organization to deal with today's situations and effectively envision and create their future.

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KM and E-Commerce/ Logistics

Amount of information that is contained within each business transaction. Why and What : Trending Input all data, information, and knowledge of the front line people (sales, customer service, maintenance, and the customers themselves) combine it with their own expertise in product planning. Prediction of sales with utmost efficiency
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References

Investopedia.com Wto.org Ita.doc..gov Statcan.can Intracen.org/tradstat B2bexchanges.com Worldtradmag.com Marinade.ltd.uk

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See you next meeting

End of Session
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