1. E-logistics = Internet + logistics
René Rojas
www.linkedin.com/in/renerojas
www.twitter/renerojas
renerojas@modelosdenegocio.com

2. Definitions - Internet
Web of millions of electronic networks
linked by cables and wireless
technologies that carry data around the
world in fractions of seconds”

3. WWW – World Wide Web
World Wide Web is the most important
architecture running over internet
Documents in HTML or XML at various URLs linked
via HTTP
HTTP: HyperText Transfer Protocol
URL: Uniform Resource Locator
HTML: Hypertext Markup Language
XML: eXtensible Markup Language
(Radio + TV + printed media ) * reach *
richness

4. (Internet + www ) History

5. 3. Internet – Architecture
Emerging Application Service Providers (ASPs)
BACKBONE
Network Access Providers
Internet Access/Service Providers
END USERS
Adapted from (Kalahota & Whinston: 1996, 41)/2000)

6. How Internet works
Computers on the Internet work
together to transfer information
back and forth around the world.
Backbone
Router The Internet
A router regulates backbone is a set of
traffic on the Internet high-speed data
Packets and picks the most lines connecting
Information over the Internet is efficient route for major networks all
broken down into smaller pieces each packet. A over the world.
called packets. packet may pass
through many
TCP/IP
routers before
Transmission Control Protocol/Internet
reaching its
Protocol (TCP/IP) is a
destination.
language computers on the Internet
use to communicate with each other.
TCP/IP divides information into packets and
sends the packets independently across the Download and Upload
Internet. When information arrives at the You download information
intended destination, TCP/IP ensures that from other computers on
all the packets arrived safely and the Internet.
reassembles the original information. You upload information to
other computers on the
Source: Paul Whitehead and Ruth Maran, Teach Yourself the Internet and the World Wide Web Visually, Internet. Last Updated: 01/17/01
IDG Books Worldwide, 1997 –Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC

7. Internet – Access Methods
Game
Television Systems
Telephone Cable
Modem Modem
Connecting To
Telephone Cable
Mobile The ISDN
Internet
PDAs
Palmtops Satellite
MP3
Computer Future?
Networks Where There
Is A Chip..

8. Internet – Global Usage
www.internetworldstats.com

9. WHO IS AFFECTED
B&M
business
• WALTMART
E-Business
• DELL
• AMAZON
E-logistics

10. e-Business Infrastructure
e-Business infrastructure
the general industry environment
underlies each strategic decision
presents opportunities & constraints
2 categories of e-business infrastructure
Network
Media
Digitization driving convergence of each

11. Network & Media Convergence
Network Media
Infrastructure Infrastructure
Print
Telephone/DSL (Newspapers and Magazines)
Cable Television
Broadcast Radio & TV Radio
Digital
Convergence
Satellite Music
Wireless Motion Pictures
–Source: Rayport & Jaworski (2001)

12. Definitions - Network Infrastructure
“Basic underlying group of electronic
devices and connecting circuitry
designed as a system to share
information”
– Source: Rayport & Jaworski
Includes
Hard & software
Comms, pay TV, computers, mobile
devices
All that enables the transport of digital info

13. Network Power – Social Networks –
Business Networks
Melcalfe law
Reed Law
Moore’s Law (Gordon Moore,
INTEL)
• Microprocessor Computer Power
Will Double Every 18 months -
Valid Since 1975

14. Business Applications
Bill Gates’ “Digital Nervous System”
Corporate digital equivalent of human
nervous system
Digital processes that closely link every
aspect of a company’s thoughts and
actions
Well-integrated flow of info to right part of
organisation at right time
Finance, production, customer feedback –
accessible using digital tools to quickly
adapt and respond
– Source Gates, Bill. (1999), Business @ the Speed of
Thought, Penguin Books, London

15. –Source: Rayport & Jaworski (2001)
Exhibit 9-12: Digital Nervous System
Procurement Finance
/ Accounting / Control
Supply-Chain
Management / Human
Resource
Management
Basic Operation
Business Digital Strategic
Reflexes Nervous System Thinking
Customer
Interaction
Consumer
Relationship
Management / Selling-
Chain Management /
Supply-Chain
Management
Last Updated: 01/17/01
Source: Bill Gates, Business @ the Speed of Thought, Warner Books, 1999 Copyright  2000 by Marketspace LLC

16. Business Applications
Intranets
Computer Networks privately developed and
operated within an organisation
Now set up with Internet Architecture
Including World Wide Web Service
Gateways to the Internet (Firewalls)
Extranets
Collaborative network linking businesses with their
suppliers, customers or other businesses that
share common goals
Using Internet Architecture
Often evolving out of an Intranet
Gateways to the Internet (Firewalls)

17. Business Applications - CRM
Optimising long term profitability of customer
relationships by better understanding a
customer’s behaviour, patterns and life time
value to a company
Coordinated actions at all access points to
drive
X-sell
Up sell
Retention

18. Exhibit 9-13: Customer Relationship Management
Customer
Customer
Relationship
Relationship
Management
Management
Direct Channels
Direct Channels Indirect Channels
Indirect Channels
Web
Web Telecenter
Telecenter Direct Sales
Direct Sales Retailer
Retailer Reseller
Reseller Distribution
Distribution
Customers
Customers
and Prospects
and Prospects
Source: “Know Thy Customer,” The New York Times, February 14, 2000 Last Updated: 01/17/01
–Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC

19. Business Applications - Selling Chain
Management
Large scale field-sales solutions to
automate order acquisition functions
including configurations, pricing and
service
Aims are to
Make things easy for customer
Add value to customer
Improve sales effectiveness
Facilitate team selling

20. Supporting Slide 9-G: Enterprise Resource Planning
Forecasting and
Forecasting and
Planning
Planning
Purchasing Material
Purchasing Material
Management
Management
Warehousing and
Warehousing and
Inventory
Inventory Enterprise Resource Planning
Enterprise Resource Planning
Management
Management
Finished Product
Finished Product
Distribution
Distribution
Accounting/Finance
Accounting/Finance
Source: Adopted from “e-Business: Roadmap for Success,” Dr. Ravi Kalakota and Marcia Robinson
Last Updated: 01/17/01
–Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC

21. Supporting Slide 9-H: Supply-Chain Management
Market Demand
Market Demand
Resource and
Resource and Supply-Chain Management
Supply-Chain Management
Capacity Constraints
Capacity Constraints
Real-Time
Real-Time
Scheduling
Scheduling
Source: Adopted from “e-Business: Roadmap for Success,” Dr. Ravi Kalakota and Marcia Robinson
Last Updated: 01/17/01
–Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC

22. Exhibit 9-11: Overview of Basic Internet E-Business Architecture
Seller
Buyer Storefront System Back-Office System
Web Catalog
Web
Commerce Server
Source: Adapted from E-Business Technology
Forecast (1999), published by
PricewaterhouseCoopers’ Technology Centre,
Menlo Park, CA
Internet
Order Processing
Order Processing
Fulfillment System
Fulfillment System
Bank
Payment
Payment Accounting System
Accounting System
Gateway
Gateway
Enterprise Firewall Enterprise Firewall
Last Updated: 01/17/01
–Source: Rayport & Jaworski (2001) Copyright  2000 by Marketspace LLC

23. Comparison of Market Opportunity
Analysis
Old Economy New Economy
Competition Within industries Within & Across
industries
Competitor Slower Rapid
development speed
Competition between Companies Alliances of
companies
Consumer Established Being defined
behaviour patterns
Value Configured Being rapidly
chain/system reconfigured

24. Distribution and logistics have been
evolving rapidly…Trends include:
Globalization
Increased competition
Falling distribution and logistics costs
Increased outsourcing
Consolidation among businesses involved in
distribution and logistics activities (transport
and storage) – Full service logistics solutions
Increasing integration of distribution and
logistics into value chains

25. Implications:
Shorter order cycles
Demands for smaller, more frequent, more reliable
deliveries
More varied delivery patterns related to product shelf-
life, product customization, production and retailing
strategies and the reliability of short-term forecasting
Closer relationship between customer and logistic
services suppliers, often with fewer suppliers
Outsourcing of logistics to third party logistics
managers, allowing firms to share distribution
facilities
Greather use of recycling and managed disposal,
which has resulted in additional back-haul cargoes
(i.e. reverse logistics)