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New trend of E-logistics
ZHANG Weixi1, WANG Jian-jun2,
(1 academe of Economy and society at Nankai University, Tianjin, China 300071
2 School of Management, Dalian University of Technology, Dalian, 116024)
Abstract: With the development of e-business and supply chain management, more and more logistic
facilitators become the coordinators in the integrated supply chain. For overcoming the disconnection of
information in the supply chain, the e-logistics based on information platform has appeared. In a broad
scope the purpose of our paper intends to develop an understanding of the e-logistics. Firstly the paper
describes the development of the logistics, analyzing the definition of the e-logistics, comparing the
e-logistics with the traditional logistics from four aspects. Then it presents the core problems of the
logistics and analyzes the levels of the informationization and integration. Finally the paper discusses
two patterns of the e-logistics development.
key words: E-logistics; supply chain; informationization; integration; pattern
1 Introduction
The development of logistics falls into three stages, namely military logistics, business logistics
and e-logistics, in which the e-logistics has been the latest word appearing in the logistic industry.
Presently the e-logistics has been mostly defined according to the definition of Electronic Logistics, in
which the most typical one is that electronic logistics refers to the process which utilizes web technology
as an important tool to manage the whole logistic process or some sectors of it [1]; Prof. Zhai Xuewei
regards e-logistics as the combination of logistics supporting e-commerce and the electronic technology
for logistics [2]. Based on the above definitions and other literature, the author holds that e-logistics,
namely e-logistic commerce, which has been characterized with electronic technology, network
technology and automation, can be regarded as the integration of information flow, fund flow and
logistical service. E-logistics realizes the utility of electronic technology and integration of logistic
organization, trade, management and service modes. It is entitled to share data, knowledge and other
，
information with partners in the supply chain[3 4]. Seen from these definitions, as e-logistics has been
combined with the meaning of commerce, then it is also equipped with the same procedure of commerce
from negotiation, contract signoff, payment, and implementation to balance counting and utilizes
electronic technology in each step.
2 the Core Problems in the Development of E-logistics
As the basis of social economic run, logistics has been regarded as a complex macro-system
because logistic activities are characterized with a wide coverage, fast-changing speed and various
influential factors. In order to simplify its complexity, the author only analyzes the core of logistics,
which is generally divided into five levels. (Seen in Table 1)
Management Level of Supply Chain
Collect and Share information in Conduct control in any
the whole process; Make time and give feedback
information visualized
quickly
↓
Entity Level
Manufacturer
1
Service Supplier
Manufacturer
2
Service Supplier
…
…
…
…
…
…
Service Supplier
Manufacturer
n
↓
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Make decisions
optimize plans
1
1
and
Conduct management and
realize operation simulation
Customer
Customer
1
1
…
…
…
1
Customer
1
Operation Level
Process
Transportation
Manufacture
Management
1.ERP
1.Network Design
2.JIT
2.Transportation
Expense
3.6 σ
Management
3.Vehicle
Group
Management
4.Container
Management
5.Carrier
Management
6.Transportation
Monitoring
Automatic
Ex-im
System
Intelligent
Sorting
System
Stock
Plan
Control
1. Stock Forecast
2.Order Quantity
Engineering
3.Order Satisfied
Rate
Engineering
4.Control Rules
5.Allocation
Management
Multimode
Transport
System
Technical Tools Level
ITS Loading Technology Container Technology
Vehicle Technology
Industrial Robot
Protection Technology
Packaging Technology
Auto-sorting technology
Auto-identifying Technology
Auto-storage Technology
Material Transfer Technology
Human Engineering Technology
Transportation Network Infrastructure
Supply
Management
1.Supplier Service
Rules 2.Purchase
Management
3.Purchase Order
Processing
4.Purchase
and
Payment
Processing
5.Supplier
Conformity
6.Allocation
Management
↓
Automatic
Loading
System
↓
CRM
CRM
1.Customer
Service Rules
2.Customer
Satisfaction
Management
3.Order Processing
4.Information
Input
and
Management
System
5.Bill Management
and Payment
Order
Processing
System
Rationing
Management
1.Ex-im
Management
2.Storage
System
3.Storage
Optimization
Allocation
4.Sorting
Processing
5.Delivery
Management
6.Transfer
Management
Contract, Payment
and Insurance
…
Information Processing
…
Storage
Processing
Telecommunication Infrastructure
Transfer
…
Transformation
Internet Infrastructure
Table1 Level Classification of E-logistics Activity
In all the five levels, nothing limits the transfer of information. Only the information collecting, transfer and
processing in each activity are guaranteed of no limitations can the resource conformity, management optimization
as well as service and efficiency improvement can be realized in the whole range of supply chain. Meanwhile in
each level the high-efficient logistic activities show great dependence on the information technology, which has
been the key of various activities ranging from equipment automation, procedure optimization and even to the
visualization of all resources.
In the broad sense of supply chain, logistics has been regarded as the most important bridge linking each entity
in the supply chain together. As a consequence, it becomes the focus of logistics. The activities of supply chain
have shaped a dynamic random process enhancing the circulation of logistics, commerce flow and information flow
and making these three parts interlaced with each other. The importance of supply chain enables it become the
foundation of logistics. The improvement of supply chain, which must through the systematic view realize the
integration of logistic activities on the basis of integrated informationization, can enhance the development of
logistics.
As a result, the key objectives in the development of E-logistics lie in the perfection of social logistics system,
improvement of logistic service and increase of operational profits of the overall supply chain. In other words, the
upgrade of logistics technology and overall quality of social logistics system can be realized by the improvement of
informationization and integration.
3 The Development Patterns of E-logistics
The development patterns of E-logistics are divided into two categories. The first one is defined in
the e-logistic information market which is a new information system established on Internet. In this
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pattern, the information about the logistics information of the consignor or about the usable vehicles of
transportation companies can be input on the Internet and both the parties can sign a contract in
accordance with this information. In other words, the consignor can put such information involving
transferred goods categories, quantities and destinations on Internet and the transportation company can
provide related information (such as the location of usable vehicles) to the consignor through Internet;
and then based on the above information both the parties can sign a contract. The main functions of this
pattern include information search, dissemination and bid; other functions mainly refer to providing
such services as industry information, goods insurance, logistic tracing, road condition and GPS. For
example, National Transportation Trade Market (www.Net.net), as an electronic transportation market,
builds a trade Internet for the consignor, the logistic company and the transporter through Internet
technology.
The second pattern is based on an e-logistic system specialized in providing supply chain
management for logistic enterprises. It is characterized by electronic technology, which utilizes Internet
to complete the coordination, monitoring and management of the whole logistic process and provide all
mediate services between Internet foregrounding and end customers. Typically, this pattern combines
various software technologies and logistic services, in which way the close link among fund flow,
logistics and information flow can be completed. What’s more, this type of link can provide visibility
among enterprises, which enables these enterprises to control and manage storage to a maximum extent.
Meanwhile, with the aids of such advanced information technologies as customer management system,
the integration of commercial intelligent computers and telephones, geographical information system,
GPS, Internet and wireless net technology as well as such logistics management technology and modes
as rationing optimization, dynamic monitoring, intelligent transportation and storage optimization, the
e-logistics provides an advanced and integrated management system and then enables enterprises to
establish supply chain system as soon as possible. It can be imagined that without electronic technology,
it is impossible for all participates in the supply chain to operate regularly when they have to receive
thousands of cases involving hundreds of suppliers and retailers.
As of now most famous professional logistics companies such as FedEx have made use of the
e-logistic system to different extends. FedEx, which provides various individualized solutions according
to the scale of customer group, realizes the variety of service and enhances the feasibility of market.
Among these logistic companies, the most typical one is the third-party logistics, which refers to an
operation and management pattern in which the manufacturer relegates its logistic activities to a
professional logistic company so that it can focus on its main business. Meanwhile, the manufacture can
keep close contact with the relegated logistic company through information system so that it can
monitor and control the whole logistics process. This pattern mainly orients at the supply chain tache.
4 Conclusions
The development of e-logistics has been the focus of China’s modern construction and
informationization has been the inevitable step for industrialization and modernization. China, aiming at
market demand, can enhance the horizontal and vertical integration of logistics step by step and adapt
information technology to improve the informationization degree of society and overall logistics quality
of China.
References
[1]Wang Wei. E-logistics-The New Trend of Modern Logistics [J]. Logistic Technology, 2003, (3):
67-68.
[2]Sun Chao. E-logistics: Future Trend [J]. Chinese E-Commerce, 2002, (7): 57-59.
[3]Aldin N, Stahre F. Electronic commerce, marketing channels and logistics platforms—a wholesaler
perspective [J]. European Journal of Operational Research, 2003, 144: 270-279.
[4]Rutner S.M., Gibson B.J., Williams S.R. The impacts of the integrated logistics systems on electronic
commerce and enterprise resource planning systems [J]. Transportation Research Part E, 2003, 39:
83-93.
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