Identify and examine any 2 e-logistics applications and explain how they influence effective

logistics management [25]

E-Logistics is an internet-enabled logistics value chain designed to offer competitive logistics
services including public warehousing, contract warehousing, transportation management,
distribution management, freight consolidation (Gunasekaran and Ngai, 2003; Hesse, 2002). The
ultimate objective of E-Logistics is to deliver right products in right quantities at right place and
time to the right customer. The stages involved in the e-logistics of a B-C in their order are
method of payment, check product availability, arrange shipments, insurance, replenishment, and
contact with customers and returns.

E-logistics applications that are used to better the process include the Fedex application. It is a
courier services provider that offers shipping services across the whole world. The application is
owned by Fedex Express and the company is known for its overnight shipping service and
pioneering a system that could track packages and provide real-time updates on package location
(to help in finding lost packages), a feature that has now been implemented by most other carrier
service. It creates a shipping label, track shipment status and manage your packages wherever
you are with the FedEx Mobile app.

The application has made a meaningful contribution in the logistics sector as it provides tracking.
Real time tracking provides real time visibility for both the shippers and carriers to be able to
proactively manage their order-to-delivery process and be more responsive to customers’
requirements. It also increases security and safety. Tracking is a vital component in e-commerce
because companies need to make sure that they deliver the right product to the right customers.
On the other hand it is important for the customer to know the location of their products and this
builds trust as they can see their goods in transit.

Another fundamental application used by business is the SAP business software. It comprises of
all software that is needed in every sector of business and one of them is logistics. SAP is a
leading standard business application software that delivers scalable solutions to help customers
advance industry best practices, respond to dynamic market conditions and maintain competitive
advantages. Under the Logistics and supply chain section, the SAP software has the sales and
distribution that incorporates processes ranging from customer orders to the delivery of the

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products, and oversees pricing, packaging, and shipping. This increases automation that also
leads to shorter order handling time, better communication and transaction efficiency

Customer Service (CS) function tracks warranties and helps manage the process of repairing
broken goods that are sent back to be fixed. There is also the Warehouse Management that
process helps management companies accurately manage inventory and maximize storage
capacity. This type of system determines the most effective use of both labor and space, which
reduces waste.

WMS software can help you determine where to keep certain materials, products and equipment
to optimize the flow of your warehouse. To support the warehouse activities, Radio Frequency
(RF) scanning combined with on-line data processing ensures that stock is tracked in an efficient
manner. Moreover, advanced systems have warehouse floor simulators, enabling users to create
potential floor plans within the system. These simulators let you place pallets, shelves and other
equipment you’d need to accommodate for in your warehouse. Rather than holding onto
inventory for long periods of time, your warehouse receives it “just in time” to fill an order.
While this process can be quite complex, achieving a balanced, just-in-time inventory is a breeze
with the right warehouse management program.

Use of the SAP software in e-logistics has helped management in doing quick decision making.
It is important for management to be quick in the electronic environment to curb competition.
For example if a customer’s goods are lost, this is easily noted and corrective measures are then
done without losing the customer.

Another key contribution of e-logistics applications in facilitating effective logistics management

is that it improves communication. This could be B-to-B, B-to-C or within the organization. This
is important if there are any delays, they are well communicated on time to eliminate customer
dissatisfaction.

The challenges of e-logistics applications in developing countries are economic and educational
barriers, lack of infrastructure, security, trust and privacy, channel conflicts, delivery logistics,
security problems and global terrorism and geographical barriers. This however impacts on the
effectiveness of logistics management. In economic and educational barriers the main obstacles
for e-logistics is the lack of economic resources, internet usage and standard of education.

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In conclusion due to globalization the importance of e-logistics is growing even though there are
many challenges in e-logistics the significance of e-logistics cannot be ignored. In order to use e-
logistics effectively we should understand the strength and weakness of e- logistics effectively
and we should use in a proper way and should not misuse it. Last but not least in the coming
future the importance of e-logistics will be higher and it will be used by many people in the
future.

Speculate how RFID technology could be used to transform a mobile device into a self-pay
point of sale. Clearly articulate how a store could differentiate between legitimate
purchases and shop lifted goods. Assume that there is no one in the shop [15]

Radio Frequency Identification (RFID) is the technology that uses radio-frequency waves to
transfer data between a reader and a movable item to identify, categorize and track. It is a fast
and reliable technology that does not require physical sight or contact between reader/scanner
and the tagged item. It comprises of four components namely RFID tag, antenna, reader and
station. A microchip in a label is exposed to radio waves. A tag is attached to every product in
the shop and tags are made of the chip that holds information about the product, an antenna that
transmit radio signal and a package that is used to encase both the chip and the antenna so that
they are easily attached to the product. There are two types of tags namely active tags that
contain a battery that runs the microchips circuitry and passive tags that get power from the
reader. Most mobile device have payment systems already (google pay, Apple Pay and Samsung
pay) which is available across multiple devices.

1. The store will tag each product and have it on a database

2. When a user pick up a product, they will scan the item into their mobile cart - note this will
work best if the store create a mobile app that is available for the users

3. Once the user is done shopping they will pay for the items in the cart using their mobile
devices through applications like Google Pay and Apple Pay.

4. Once item is paid for - the database releases the item from inventory to sold and the receipt is
generated to the user/shopper

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5. At the main entry/exit there will be a security system that scans outgoing items from a safe
predefined distance - if the user/shopper is carrying an item not paid for at a certain distance
close to the security post then the gate will shut and the shopper will not be able to leave until
item is returned

6. Shopper can use the same system to return items by scanning and placing item back into the
store and the database will move it back from sold to inventory and a return receipt is generated
and payment is returned.

7. To elaborate on the last part of the question if a product is stolen and once it gets close to the
door and the security scanner scan item as unpaid, the doors are shut and neither the thief nor the
product can leave the store until item is returned. The security system will be using RFID
technology such that it will require a door system that is linked to the security console which will
automate the stop of stolen goods.

References

1. J. Cselényi, B. Illés (2005) Logisztikai rendszerek I. (Logistic systems I) Miskolc University

Publishing house
2.