Documente Academic
Documente Profesional
Documente Cultură
net/publication/314093962
CITATIONS READS
0 2,901
1 author:
Yasanur Kayikci
Türk-Alman Üniversitesi
23 PUBLICATIONS 112 CITATIONS
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
Ship2Rail: An integrated Service Platform for the Sea-Rail Multimodal Transport Service Providers Based on Revenue Management View project
All content following this page was uploaded by Yasanur Kayikci on 25 June 2017.
Copyright © 2018 by IGI Global. All rights reserved. No part of this publication may be reproduced, stored or distributed in
any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher.
Product or company names used in this set are for identification purposes only. Inclusion of the names of the products or
companies does not indicate a claim of ownership by IGI Global of the trademark or registered trademark.
Library of Congress Cataloging-in-Publication Data
Names: Khosrow-Pour, Mehdi, 1951- editor.
Title: Encyclopedia of information science and technology / Mehdi
Khosrow-Pour, editor.
Description: Fourth edition. | Hershey, PA : Information Science Reference,
[2018] | Includes bibliographical references and index.
Identifiers: LCCN 2017000834| ISBN 9781522522553 (set : hardcover) | ISBN
9781522522560 (ebook)
Subjects: LCSH: Information science--Encyclopedias. | Information
technology--Encyclopedias.
Classification: LCC Z1006 .E566 2018 | DDC 020.3--dc23 LC record available at https://lccn.loc.gov/2017000834
All work contributed to this book is new, previously-unpublished material. The views expressed in this book are those of the
authors, but not necessarily of the publisher.
Yasanur Kayikci
Turkish-German University, Turkey
DOI: 10.4018/978-1-5225-2255-3.ch466
Copyright © 2018, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
E-Commerce in Logistics and Supply Chain Management
5368
Category: Logistics and Supply Chain Management
5369
E-Commerce in Logistics and Supply Chain Management
5370
Category: Logistics and Supply Chain Management
Demand information: using the percent- in B2B and B2C commerce must be flexible and
age of likes and dislikes from social media as omni-present as possible in order to remain
exchanges as a measure of interest of cus- competitive in this shop-anytime-anywhere world.
tomers in a product, thus providing some As seen today, this trend is starting to displace
potential insight into customer demand. the traditional role of parcel operators. Now the
Supplier choice: Data mining of media e-commerce challenge has shifting to finding a way
such as Linked-In can provide important of synchronizing and standardizing the business
data to help infer information about wheth- processes to achieve real time access and insight
er a company will continue in business. of the inventory movement. As predicted, retail-
Logistics: Information gathered over time ers in developed markets are experiencing to shift
about particular highways can help devel- from multi-channel retail to omni-channel retail.
op a better understanding of likely highway Paradigm change in e-commerce is depicted in
conditions. Effectively, intuition can be Figure 2. Omni-channel retailers are managing
generated about routes and the likelihood their channels in an integrated way that offers
of problems being encountered when mov- customers a seamless experience, however they
ing goods over those routes choose to shop. With omni-channel, a retailer
may fulfill orders from local stores rather than
warehouses, ultimately blurring the distinction
INTEGRATED E-COMMERCE between the two e-fulfillment centers.
With extensive number of sales channels,
The evolution of multiple shipping options al- multiple warehouses, and dozens of suppliers,
lows retailers today more control over their e- the risk of misplaced orders is much higher than
commerce logistics and supply chains. Today’s ever before. In order to respond to this chal-
customers have the ability to purchase whatever, lenge, order fulfillment technologies have also
whenever, however, wherever and at the price they helped integrate the front-end and back-end of
want, putting them in total control of the market. online retail. Automated software and real-time
With social media, mobile and e-commerce on fulfillment data transform the back-end process
the rise, omni-channel fulfillment is becoming now in a collaborative effort. The alignment of
increasingly important for retailers. Companies important touch-points in the supply chain has
5371
E-Commerce in Logistics and Supply Chain Management
reduced inefficiencies and has helped identify channel it comes from, whether custom-
redundant processes. There are even robots that ers are shopping online from a desktop or
pick inventory and move it around the warehouse mobile device, by telephone or offline in a
(Robinson, 2014). brick and mortar store. Basically, the goal
of omni-channel is to give retailers an end-
• Multi-Channel: Customers interacts with to-end view based on aggregated informa-
retailers across the independently man- tion from suppliers to customers, orders,
aged channels (e.g. social media, web and and inventory.
emails). Retailers with this approach are
adopting two or more channels to engage In the past, retailers built two types of DCs, one
their customers, however, they are not nec- to manage store fulfillment, whereas another to
essarily focused on delivering a seamless/ manage purely e-commerce. Omni-channel DCs
consistent message across multiple touch- seamlessly combine both e-commerce and tradi-
point. Furthermore, these programs do not tional store distribution channels, omni-channel
necessarily factor in optimizing customer fulfillment strategies must be done right and
experience based on different devices (e.g. quickly. Omni-channel improves the customer ser-
smartphones, tablets and laptops). vice through real-time integration with POS, web
• Omni-Channel: This business is dili- storefront and call center solutions, furthermore
gent to ensure that customers receive the it increases flexibility and reduced costs through
same experience and message through common carrier, small package and private/dedi-
different channels and devices involved cated fleet delivery planning and optimization.
within their interactions with the retailer It improves delivery control through transport
(Kourimsky & van den Berk, 2014). Thus, execution capabilities including tendering, multi-
omni-channel has seamless integration carrier parcel manifesting, fleet dispatching,
with company software systems like ERP, routing, proof of delivery and freight auditing,
WMS, warehouse control system, distrib- additionally transport operations are streamlined
uted order management (Hobkirk, 2016). through carrier connectivity and global logistics
Typically, omni-channel customers require network. To meet the challenges, retailers must
their orders to be delivered within either completely redesign their distribution processes
same day or next day to their location of and add automation equipment to their DCs. In
choice, whether the order is distributed to order to support the fulfillment promise, shippers
their home or can be picked up in a store must have technology and infrastructure in place
or another location, moreover this type of to ensure sufficient response time between when
customers expect to be informed of every customer places an order and when fulfillment
step and any delays which may occur along center dispatches it. Additionally, significant
the delivery process. Similarly, retail- capital investment is required in material handling,
ers have a holistic view into inventory in conveyor sortation and controls, optimized racking
omni-channel environment, allowing them systems and lift equipment, inventory management
to fulfill orders from any location or ship software, and picking/packing technology.
inventory to other locations where invento-
ry is needed or sells better. Omni-channel
DCs share a common inventory pool and E-COMMERCE LOGISTICS
seamlessly combine both e-commerce and
traditional store distribution channels in In the context of logistics, e-commerce platforms
order to meet demand regardless of which can be termed e-commerce logistics platforms.
5372
Category: Logistics and Supply Chain Management
E- commerce logistics is the use of web-based platform developers build web-based (e.g., www.
technologies to support the material acquisition, timocom.com) as well as mobile-based (e.g.,
warehousing, and transportation processes. It TimoCom transportbarometer) applications, as
enables distribution to couple routing optimiza- communication tool in supply chain that run on
tion with inventory-tracking information. This Internet and on mobile, that are completely inde-
platform is an inter-organizational system (IOS) pendent of the user’s actual computer operating
that links transport users and TSPs together for system. E-commerce platforms offer powerful
the purpose of collaboration or trading. It en- online solutions for transport collaboration, where
ables online interactive transport exchanges in TSPs easily search online for freight or post any
terms of transport supply and transport demand spare capacity in order to increase load factor for
in order to match freight capacity with available return trip. Similarly, transport users offer freight
shipments (Christiaanse, 2005; Kale et al., 2007; for transportation or search for suitable vehicles.
Wang et al., 2007). For example, internet-based Today companies (e.g. Shipwire) access end-
freight acquisitions enable spot buying of truck- to-end orchestration and fulfillment capabilities
ing capacity. TSPs offer virtual logistics services on web-based enterprise fulfillment platforms
by integrating and optimizing distribution re- (DHL, 2015). These make it easy to access specific
sources. A company may even consider collabo- services and grow into new markets. Customers
ration with its competitors to improve its supply can choose their preferred transport option and
chain. Utilizing the web has largely reduced the this is factored into the total cost of the product
complexity and cost of implementation and the (e.g. FreightOS). E-commerce logistics platforms
integration of IOSs. Incorporating the concept of offer three different types of business activities
cloud computing services, e-commerce platforms (Kaplan & Sawhney, 2000):
are emerging quickly as a viable alternative to
large-scale client-server solutions (Kayikci & • Aggregators create a business community
Zsifkovits, 2013; Wang et al., 2007), especially where TSPs offer freight capacities with
where they are hosted by the technology provider. predefined prices (e-catalog) for trans-
Traditionally, transport software programs (e.g., port users on a website (e.g., Freefreight
TimoCom, TransMATCH) are developed for search).
specific platforms, such as Windows, Linux, or • Auctions create market and reduce empty
Mac OS, where parties are advertising freights trip and promote the load factor, where
(cargoes) and looking for empty trucks. Today, transport users can bid simultaneously
5373
E-Commerce in Logistics and Supply Chain Management
for the TSP’s freight capacity accord- an independent platform usually tries to be of
ing to multiple real-time auction systems direct use for shippers, receivers and carriers.
(e.g., FReight Exchange for International Neutral community, where the aforementioned
Transport-ONlinE). three communities collaborate each other and
• Exchanges create stable online market, their communications are supported by a neutral
where selected transport users and TSPs technology provider which is called as control
trade freight according to a fixed set of unit (CU). This community is characterized by
rules and at constantly changing prices a high level of transport collaboration. It is web-
(e.g., Transplace); this Expedia-like plat- based and hosted platform and enables high level
form for freight providing instant, online information sharing and joint activities.
real-time quoting for all legs of shipment.
Shippers can generate and book instant, • Platform Strategy: E-commerce plat-
door-to-door quotes directly online, using forms are divided into two types: open
their own internal negotiated rates or rates and closed platforms. Open platform al-
shared online by carriers or forwarders. lows transport parties to use their services
with no barriers to entry whereas closed
Characteristics of an E-Commerce platform tends to be geared towards the
Logistics Platform needs of particular shippers, receiver and
carriers (Wang et. al, 2007). Closed plat-
• Platform Community: The network for form denotes private community in other
transport exchanges allows transport users and words, semi-private or private networks
TSPs to create communities to better manage where the all participants know each other
their transport needs and resources (Kayikci & and they share information on shipping
Zsifkovits, 2013). Figure 3 depicts an overview requirements. Most of the transport users
of e-commerce logistics platform with various prefer to collaborate in a private network
consortia partners. If a transport coalition is rather than in an open network, however
composed of pre-selected members on vertical close platforms are less structured and of-
plane, it is called then private community; most ten contain the opinion of large companies
of the time this community is closed and specific (Chen et al. 2012), whereas open platforms
requirements should be fulfilled to enter into this acquire bigger negotiation capability and
community. If a transport coalition is composed offer more freight matching opportunities
of only receivers, then it is called receivers’ com- than closed platforms. However, the open
munity where the platform primarily serves interest platforms are not suitable in high level of
of receivers; likewise, if it is composed of only transport collaboration (Cruijssen et al.,
shippers, which is called shippers’ community 2007; Wang et. al, 2007). Especially stra-
and the platform serves the interest of shippers; tegic partnering level requires closed plat-
if only carriers are collaborate, then it is carriers’ form strategy.
community where the platform primarily serves • Platform Sourcing: The platforms also
interest of carriers. If shippers, receivers and car- differ in how total freight load capacity is
riers integrate together on the lateral plane, it is bought. Generally, transport users either
denoted as a neutral community which has gener- engage in systematic sourcing or in spot
ally heterarchical structure and serves interest of sourcing (Kaplan & Sawhney, 2000). First,
all participants and is often managed by a group transport users can acquire freight capac-
of consortium. That means, there is no dominant ity in a truck through fixed-commitment
community which rules the coalition, therefore contracts and negotiated market prices
5374
Category: Logistics and Supply Chain Management
with TSPs. Especially major shippers and platforms can also include personalization/
forwarders use systematic sourcing for ac- preference profiling, multichannel selling, L
quiring available freight capacity (Kayikci site/product search, search engine optimi-
et al., 2014). The closed private platforms zation, customer community management
exemplify this approach. Second, in spot or participation, integration with social
sourcing, transport user’s goal is to ful- media, and mobile stores.
fill an immediate need at the lowest pos-
sible cost, whereas TSP’s goal is to utilize
truck space at the highest possible profit- FUTURE RESEARCH DIRECTIONS
ability. The open source auction platforms
elucidate this approach. Spot transactions Customer buying behavior is evolving faster than
are being accompanied by development logistics and supply chains can adapt. The rapidly
of a short-term, loose relationship among changing delivery expectations of e-commerce
transport users and TSPs. customers, driven by trends towards click & col-
• Platform Capability: Development of an lect and next day delivery, mean that operating an
online platform includes creation and man- effective e-commerce supply chain and fulfilment
agement of an online storefront, shopping operation presents a whole new set of challenges.
cart management, PCI compliance, per- To meet these new expectations, e-tailers need to
sonalization transaction management, set- find new solutions at every stage, from demand
tlement and product visualization – enable forecasting, through to inventory management,
organizations to build basic B2B or B2C warehousing, technology integration and dis-
online stores. Some specific capabilities in tribution. A strong mobile presence, in-stock
electronic communications are determined merchandise, and fast delivery are important keys
(Hajdul, 2014) that are essential for e-com- to e-commerce success, and a strong argument
merce platforms with the collaboration of for top-notch logistics solutions. Today, supply
transport users and TSPs: web-interfaces, chains are segmented by channels, which results in
event management / alerting functional- duplication of inventory and infrastructure. Only
ity based on (re-)calculated routes/plans, few companies (such as Vargo) are beginning to
reporting, transport/purchase order man- offer omni-channel DCs, so that separate channel
agement at company level, monitoring of spaces within the same warehouse and different
the performed task, digital map, route op- automation solutions are used in order to easily
timization, invoicing, fleet management, respond the changing supply chain demands of
freight exchange, real-time monitoring of B2B and B2C channels. Unfortunately, there is still
the performed tasks, transport/purchase or- limited research associated with how e-commerce
der management at group of independent in terms of new trends has been and can be used in
companies level, verification of business the logistics and supply chains. From this perspec-
partners, coordination of transport orders tive, many opportunities for future research might
and resources of independent companies, be opening for researchers. These new research
optimization of truck loading process, areas might be big data analytics in logistics and
share of savings among group of cooper- SCM, adapting industry 4.0 in logistics and sup-
ating companies, load tracking, deliveries, ply chain, setting the strategies for omni-channel
support of existing communication stan- logistics, omni-channel integration as well as
dards, settlement and reports. E-commerce designing omni-channel DCs.
5375
E-Commerce in Logistics and Supply Chain Management
Capgemini. (2008). Future supply chain 2016. Kaplan, S., & Sawhney, M. (2000). E-hubs: The
White Paper, Capgemini Research. new B2B market places. Harvard Business Review,
97–103. PMID:11183982
Chen, H., Chiang, R. H. L., & Storey, V. C. (2012).
Business intelligence and analytics: From big data Kayikci, Y., Stix, V., LeBlanc, L. J., & Barto-
to big impact. Management Information Systems lacci, M. R. (2014). A novel application of a
Quarterly, 36(4), 1165–1188. hybrid delphi-analytic hierarchy process (AHP)
technique: Identifying key success factors in the
Christiaanse, E. (2005). Performance ben- strategic alignment of collaborative heterarchi-
ef its t hrough Integ ration hub. C o m - cal transportation networks for supply chains.
munications of the ACM, 48(4), 95–100. International Journal of Applied Logistics, 5(1),
doi:10.1145/1053291.1053294 54–77. doi:10.4018/ijal.2014010104
Cruijssen, F., Dullaert, W., & Fleuren, H. (2007). Kayikci, Y., & Zsifkovits, H. (2013). Successful
Horizontal cooperation in transport and logistics: ICT integration in transport collaboration. In
A literature review. Transportation Journal, 46(3), T. Blecker, W. Kersten, & C. M. Ringle (Eds.),
22–39. Pioneering solutions in supply chain perfor-
DHL. (2015). Omni-channel logistics: A DHL mance management (pp. 201–220). Köln: Josef
perspective on implications and use cases for Eul Verlag.
the logistics industry. White Paper, DHL Trend
Research.
5376
Category: Logistics and Supply Chain Management
Kourimsky, H., & van den Berk, M. (2014). The Yang, G. (2012). Relationships between e-
impact of omni-channel commerce on supply commerce and supply chain management. In L
chains: How to make sure you effectively deliver K. Haenakon (Ed.), Advances in technology
products that meet the customer‘s expectations. and management: Advances in intelligent and
White Paper, Intelligence. soft computing (pp. 653–658). Berlin: Springer.
doi:10.1007/978-3-642-29637-6_87
O’Leary, D. E. (2012). Developing trust and rela-
tionships in the supply chain using social media.
Retrieved December 12, 2015, from http://www.
europeanbusinessreview.com/?p=2559 KEY TERMS AND DEFINITIONS
Robinson, A. (2014). E-commerce logistics: The E-Commerce: E-commerce refers to conduct-
evolution of logistics and supply chains from direct ing business communication and transactions
to store models to e-commerce. Retrieved August over networks and through computer technology
14, 2015, from http://cerasis.com/2014/04/30/e- or buying and selling goods and services (also
commerce-logistics/ known as e-business), and transferring funds
Turban, E., Leidner, D., McLean, E., & Weth- through digital communications.
erbe, J. (2007). Information technology for man- E-Tailer: An e-tailer is a retailer that primarily
agement: transforming business in the digital uses the Internet as a medium for customers to
economy. New York: John Wiley & Sons. shop for goods and/or services provided.
Omni-Channel: Omni-channel involves pro-
Wang, Y., Potter, A., & Naim, M. (2007). Electron- viding a seamless, consistent and complementary
ic marketplaces for tailored logistics. Industrial customer shopping experience across all interac-
Management & Data Systems, 107(8), 1170–1187. tion channels like in store, on the web, and on
doi:10.1108/02635570710822804 mobile devices.
5377