CHAPTER 1:

INTRODUCTION TO E-LOGISTICS

Lecturer: Dr Noorsiah Ahmad

BBL2063
OBJECTIVES
• To understand the concept of information sharing and E-
Logistics
• Clearly understand on E-Logistics functions in logistics
perspective
• To identify the types of E-Logistics available in the
logistics
• To recognize the application of E-Logistics for future
growth
INFORMATION SHARING FROM LOGISTICS
PERSPECTIVE
• Information technology is simple the processing of data via
computer: the use of technologies from computing, electronics,
and telecommunications to process and distribute information in
digital and other forms
• A supply chain is the network of suppliers, distributors and
subcontractors used by a manufacturer to source its raw materials,
components and supplies. Logistics companies store, transport
and distribute supplies and work-in-progress within the supply
chain and distribute finished products to customers or
intermediaries.
• Integrating supply chain and logistics operations improves
efficiency and reduces costs, increasing the manufacturer’s
competitive advantage.
INFORMATION SHARING CREATE ADVANTAGE
LOGISTICS INDUSTRY
 Sharing information about transported entities – including
vehicles, containers, packages and products – between
actors within a supply chain is crucial for several
reasons.
 Collaborative tracking and tracing systems – as a type of
intelligent transportation systems – and the way they
support transportation operations for the participating
actors of supply chains.
 New information and communication technology can lead
to increasing safety and security of transportations.
INFORMATION SHARING CREATE
ADVANTAGE LOGISTICS INDUSTRY

 Improving data sharing in supply chains can affect

protection of natural resources and subsequently
lead to positive environmental effects which are
beneficial for the society.

 The use of IT in supply chain and information

sharing coordinates the logistics activities with the
upstream and downstream counterparts.
 Promotes coordination, information sharing, IT and
supply chain management.
DEFINITION OF E-LOGISTICS

 The e-logistics defines utility in an online

business offers a broader concept focusing on
utilizing Information and Communication
Technology (ICT) to manage information and
information flows in supply chains or supply
network.
DEFINITION OF LOGISTICS

 LOGISTICS involves those activities that focus on

getting the right amount of the right products, to the
right place, at the right time, at the lowest possible
cost.

 The performance of these activities is LOGISTICS

MANAGEMENT which is the practice of organizing the
cost-effective flow of raw materials, in-process
inventory, finished goods, and related information from
point-of-origin to point-of-consumption to satisfy
customer requirements.
LOGISTICS MANAGEMENT

 Logistics Usually Refers to Management of:

 Movement of Materials Within Factory
 Shipment of Incoming Materials From Suppliers
 Shipment of Outgoing Products to Customers
 The logistics components/ activities –procurement, transport,
warehouse, inventory, distribution and retails
 The modes of transports – sea, air, land (rail and road) and pipeline
 Multimodal logistics/ transport - The movement of freight using multiple
modes of transportation, but through just one contract and operator.
 Intermodal logistics/ transport is defined as the movement of cargo
from origin to destination by several modes of transport where each of
these modes have a different transport carrier responsible, each with
its own independent contract. Multiple carriers during a single journey.
DEFINITION OF SUPPLY CHAIN MANAGEMENT

 Materials Are Any Commodities Used Directly or Indirectly in Producing

a Product or Service.
 Raw Materials, Component Parts, Assemblies, & Supplies
 A Supply Chain Is the Way Materials Flow Through Different
Organizations From Raw Material Supplier to Finished Goods
Consumer.
 Supply Chain Management includes all management functions related
to flow of materials from company’s direct suppliers to its direct
customers.
 Includes Purchasing, Traffic, Production Control, Inventory Control,
Warehousing, & Shipping.
 Materials Management & Logistics Management Includes All Decisions
About Purchasing Materials and Services, Inventories, Production
Levels, Staffing Patterns, Schedules, and Distribution.
E-SUPPLY CHAIN MANAGEMENT
24

• Supply chain: The flow of materials, information, money, and

services from raw material suppliers through factories and
warehouses to th e end customers
• E-supply chain: A supply chain that is managed electronically,
usually with Web technologies

E-supply chain management (e-SCM): The collaborative use of

technology to improve th e operations of supply chain activities as w
ell as th e management of supply.
•The success of an e-supply chain depends on:
• The ability of all supply chain partners to view partner collaboration.
• Information visibility along th e e ntire supply chain.
• Speed, cost, quality, and customer service.
• Integrating th e supply chain segments more tightly.
DEFINITION OF E-LOGISTICS
 Importance for both practitioners and academia to understand:
 What are the key technological developments in the field of logistics
 How do those technological advances support the effective
management of information flow within and between the
organizations, across different modes of transport and in a global
context?
 How do we assess the strategic value of e-logistics to a supply chain
or network?
 What is the impact of such technologies on logistics and business
performance?
 If the current state of information flow within and between
organizational is not ideal, how should an organization re-engineer
its information flows in a supply chain?
 What are the security, ethical, environmental and legal concerns
relating to e-logistics
 What does the future hold for e-logistics?
THE HISTORICAL DEVELOPMENT OF E-LOGISTICS
SYSTEM
Evolutionary 1960s 1970s 1980s 1990s 2000s 2010+
Stages

Typical E- A/c Transport TMS, ERP ERPII, Internet-based

Logistics receivables planning WMS,MRPII DSS internet- community
System inventory application; CRM based ELM system, mobile
mgt and MRP1 or e-logistic apps
control network
Emergent IT Stand- Siloed Applications Integrated Service- Multi-scale
Trends alone functional portfolio system oriented eclogies, cloud
application application architecture computing, web
s and web- 2.0, mobile and
based svs social media
Integration Functional Functional Internal end- External Multi-enterprise,
Focus Functional to-end integration, collaborative
integration in extended value network
company value chain
Business Transactio Business Desktop and Enterprise- Industrial Cross-industry
Application n function workgroup wide system automation
automation automation automation automation automation

Supporting Mainframe Mini- Personal Enterprise- Internet and Internet and

Computer computers computers computers wide web platform web, mobile
Technology and local area computing platforms
network
SUPPORTING ICT INFRASTRUCTURE FOR
FUTURE LOGISTICS

 The support of ICT to achieve the high levels of

visibility, responsiveness and efficiency vital to
remain competitive in today’s global markets.
 Multimodality (combination of different modes of transportation)
capabilities is driving modern logistics to adopt ICT
solutions for the achievement of efficiencies at the
operational level through better energy utilization.
 The support of ICT: Electronic data interchange (EDI)
and radio frequency identification (RFID), cellular
network (haulage), and satellite systems etc. These
technologies provide track and trace capabilities, which
enabled higher level of visibility in the supply chain.
SUPPORTING ICT INFRASTRUCTURE FOR
FUTURE LOGISTICS

 The support of ICT:

 Electronic data interchange (EDI) and
 Radio frequency identification (RFID),
 Cellular network (haulage), and
 Satellite systems etc.
 These technologies provide track and trace capabilities,
which enabled higher level of visibility in the supply
chain.
INFORMATION, COMMUNICATION AND
TECHNOLOGY (ICT)

 ICT, or information and communications technology (or

technologies), is the infrastructure and components
that enable modern computing.
 ICT is the term is generally accepted to mean all
devices , networking components, applications and
systems that combined allow people and
organizations to interact in the digital world.
COMPONENTS OF ICT

• ICT encompasses both the internet-enabled sphere as well as the mobile

one powered by wireless networks, includes antiquated technologies, such
as landline telephones, radio and television broadcast - such as artificial
intelligence and robotics.
• ICT is sometimes used synonymously with IT (for information technology);
however, ICT is generally used to represent a broader, more comprehensive
list of all components related to computer and digital technologies than IT.
COMPONENTS OF ICT

• The list of ICT components:

• computers and telephones, have existed for decades.
• smartphones, digital TVs and robots, are more recent entries
continues to grow.
• Cloud computing
• Software and hardware
• Communication technology
• Internet Access
• Transactions of the process
• Data
ICT AND LOGISTICS

 Logistics and transportation are dependent on ICT

as the flow of information for carrying out an
effective and efficient movement of consignment.
 Using more advanced technology and data sharing
to increase the resource utilization and thus
reduce costs.
 In logistics and transportation, cellular networks
are commonly used to forward instructions to drivers
& operators such as 4G/LTE (probe data), Wi-fi and
WiMax (supports high-speed data transmission)
DETAILS OF ON ADVANCED
TECHNOLOGIES

Other technology: Dedicated short-range communication

(DSRC) is the a next-generation wireless vehicle network
technology with an increasing role in multimodal logistics
and Intelligent Transport Systems (ITS).

 DSRC-based VANETs (Vehicular Ad-hoc Network)

 Intelligent Transport System (ITS)
 Smart Grid
DSRC-BASED VANETS
 DSRC-based VANETs (Vehicular Ad-hoc Network) offer a great
opportunity interoperability and connection, in addition to the
use of available technologies such as cellular networks, Wi-Fi or
4G/LTE.
 VANETs require efficient wireless intra- and inter-vehicle,
communication mechanisms to collect data and exchange data
among driver, vehicle and roadside infrastructure.
 DSRC-based VANETs suit the requirements of many logistics
working environment- it transmit two types of messages:
1.wireless access in a vehicular environment (WAVE) short
message (WSM)
 2. IPv6 traffic WSM on low latency and critical safety-related
messages.
INTELLIGENT TRANSPORT SYSTEM (ITS)

 ITS Intelligent transportation system (ITS) is the application

of sensing, analysis, control and communications
technologies to ground transportation in order to
improve safety, mobility and efficiency.
 ITS includes a wide range of applications that process and
share information to ease congestion, improve traffic
management, minimize environmental impact and increase
the benefits of transportation to commercial users and the
public in general.
 ITSs play an important role in handling multimodal
operations as modern logistics practices and international
trade – require multimodal distribution channel and
greater use of information technology.
INTELLIGENT TRANSPORT
SYSTEM (ITS)

 Commercial Vehicle Operations

• Apply, pay for and receive permits, registrations, and
licenses electronically
• Share of common trucking data across agencies
• Exchange information electronically with roadside
enforcement personnel
• Electronic “screening” of trucks for safety or other regulatory
violations
• Share information across state lines and with Federal
information systems
SMART GRID
 The increase in the use of electrical vehicles
used in transportation and distribution of
goods, there is a challenges faced by
electricity grids required for efficient
transmission and distribution of information.
 The European regulators defines smart grid
as an ‘electricity network that can cost-
efficiently integrate the behavior and actions
of all users connected to it.
SMART GRID
SMART GRID
The use of the smart grid will make it possible to:
• Allow consumers to play a part in optimizing the operation of the system
• Provide energy suppliers and their customers with greater information
and options for how they use their supply
• Better facilitate the connection and operation of generators of all sizes
and technologies, in particular, the transition towards large-scale
integration of distributed energy resources
• Accommodate renewable energy peaks in the grid and allow for load
management
• Significantly reduce the environmental impact of the whole electricity
supply system
• Contain costs of the transition to a low-emission supply, by investing in
intelligent planning and operations rather than in grid reinforcement only
• Maintain or even improve the existing high levels of system reliability,
quality and security of supply