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Ross, D. F. (2002). Introduction to e-supply chain management: engaging
Chapter 5 technology
▪ Body Levelto build
One market-winning business partnerships. CRC Press.
Logistics Resource Management • Body Level Two
➢ Body Level Three
• Body Level Four
Dr. Nguyen Duc Duy • Body Level Five

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▪ Body Level One ▪ Body Level One

“Logistics is the process of planning, implementing, and controlling the efficient
flow• and
Bodystorage
Level Two of raw materials, in-process inventory, finished goods, • Body Level Two
➢
services, and Level
Body Three
related information from point of origin to point of consumption ➢ Body Level Three
(including •inbound, outbound,
Body Level Four internal, and external movements) for the purpose of • Body Level Four
conforming to• customer requirements.”
Body Level Five • Body Level Five

Council of Logistics Management

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Logistics management functions. The logistics footprint.
▪ Body Level One ▪ Body Level One
• Body Level Two • Body Level Two
➢ Body Level Three ➢ Body Level Three
• Body Level Four • Body Level Four
• Body Level Five • Body Level Five

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PERFORMANCE
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PERFORMANCE
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▪ Logistics
Body Levelproductivity
One ▪ Logistics
Body Levelservice
One performance
• Body Level
Creation of Two
meaningful productivity standards. • Body Level
Tracking metrics
Two related to meeting customer service goals.
• ➢ Body Level
Tracking and Three
management of logistics costs. • ➢ Body Level
Includes Three
product availability, order cycle time, system flexibility, and service
• • Body of
Integration Level Four
quality management processes. information.
• Body Level Four

• • Body Level Five

Broadening of logistics service levels. • •
Utilization Body
of Level Five
technologies and post-sales service support.

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https://lpi.worldbank.org/
▪ Logistics
Body Levelperformance
One measurement systems ▪ Body Level One
• Body Level Two
Determining what and how performance is tracked. • Body Level Two
• ➢ Body Level
Selection Three measurements reflecting overall performance.
of accurate ➢ Body Level Three
• • Body
Objective Level Four
measurements to avoid distortion. • Body Level Four

• • Body Level Five

Utilization of LRM information systems for data gathering, processing, and
• Body Level Five

analysis.

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PLANNING
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Amazon.com Fulfillment
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process

▪ Body
Order fulfillment
Level One activities ▪▪ Body
Fulfillment
LevelCenters
One differentiated by the size of the products being packaged.
▪ Replenishment Centers for receiving incoming goods from vendors.
• Body Level Two • Body Level Two
▪ Customer Return Centers obviously dedicated to returns.
➢ Body Level Three ➢ Body
▪ Sortation Level Three
Centers receiving pallets of packages from Fulfillment Centers, the aggregating
• Body Level Four and sorting
• of theLevel
Body pallets
Fourby zip code so they can be distributed to the USPS facility handling
the associated zip codes. The USPS is one of the vendors that deliver the packages the “last
• Body Level Five mile.” • Body Level Five

▪ Delivery Stations, which are midsized centers, networked together with smaller Amazon
Fresh & Pantry sites to handle same-day home delivery in urban areas of groceries and
general merchandise.
▪ Specialty Sites are for dealing with smaller packages of textbooks, clothing, jewelry, and
shoes.
▪ Prime Now and Flex Hubs are smaller facilities for handling a limited number of high-demand
items (especially for Prime customers) to be delivered in 1–2 h in urban areas.

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PARTNERSHIP
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▪ Operational
Body Level One
Functionality of LRM Fulfillment Plan ▪ Body Level One
Characteristics of Modern LRM Relationships
• Body Level Two
Conversion of customer demand into shipment schedules. • Body Levelcollaboration
Increased Two between service providers and customers.
• ➢ Body LevelofThree
Optimization transportation management. • ➢ Body Level
Win-win Three and operational arrangements.
contractual
• • Bodyand
Collection Level Four
provision of fulfillment life cycle information. • • Body
Detailed Level Four
catalog of core competencies for outsourcing.
• Body Level Five
▪ Five Operations Areas of Fulfillment Planning • • Body Level Five
Designing support systems for individual companies and supply chains.
• a. Freight Cost and Service Management
• b. Fleet Management
• c. Load Planning
• d. Routing and Scheduling
• e. Warehouse Management
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PARTNERSHIP
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VISIBILITY
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▪ Body Level One Fulfillment Enablers

Technology-Driven ▪ Body Level One
• Logistics
a. Body Level
Marketplaces
Two • Body Level Two
➢ Internet-based
Body Level Three
platforms matching buyers and sellers of operational services. ➢ Body Level Three
b. • Body Level Four
Infomediaries • Body Level Four
• Body Level Five • Body Level Five
➢ Use of information technologies to synchronize logistics functions across the
supply network.
c. Flow Management Service Providers
➢ Assist in managing fulfillment transactions throughout the supply network.

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VISIBILITY
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VISIBILITY
text stylesTrack and trace order Lazada

▪ Body Level One ▪ Body Level One

• Body Level Two • Body Level Two
➢ Body Level Three ➢ Body Level Three
• Body Level Four • Body Level Four
• Body Level Five • Body Level Five

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VISIBILITY
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EVENT
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MANAGEMENT

▪ Body
Role of Visibility
Level One Systems ▪ Body
Key Features
Level of
OneFEM Applications
• Body Level
Provide real-time
Two insight into product transaction lifecycle. •a. Monitoring:
Body Level Two
Real-time information on supply network events and inventory
• ➢ Body
Track Level
order Three
placement, picking, packing, shipment, delivery, and performance levels.
➢ Body Level Three
statistics.
• Body Level Four b. Notifying:
• BodyException
Level Four management through alert messaging for effective
• Body Level Five decision-making.
• Body Level Five

c. Simulating: Tools for scenario modeling and trend analysis.

d. Controlling: Capabilities to modify decisions or conditions in response to events.
e. Measuring: Metrics and performance objectives for assessing and improving
channel relationships.

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II. DEFINING
Text LRM IN THE AGE OF e-BUSINESS
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EVENT
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MANAGEMENT Click to edit Master text styles
Defining:
▪ Body Level
Benefits of Computerized
One Logistics Techniques “e-LRM
▪ Body is the process
Level One whereby manufacturers, distributors, and suppliers move
• Body Level
Faster response
Two times and reduced shipping costs. their• products andTwo
Body Level services to their customers by utilizing the Internet.”
• ➢ Body Level
Decreased Three
WIP, channel, and in-transit inventories. Benefit:➢ Body Level Three
• • Body
Improved Levelprocessing
order Four accuracy and tracking. •
e-LRM enablesBody whole supply chains to make better decisions, trim costs and
Level Four

• • Body Level Five

Increased order management velocity and reduced returns. increase logistics
• efficiencies,
Body Level Five and architect effective collaborative relations
between all supply channel trading partners.
• Decreased inventory holding costs and increased inventory turns.

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Title
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Text LRM IN THE AGE OF e-BUSINESS Title Text and modeling tools
Analytical
3D Loading container software
e-Logistics resource management functions.
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▪ Body Level One ▪ Body Level One

• Body Level Two • Body Level Two
➢ Body Level Three ➢ Body Level Three
• Body Level Four • Body Level Four
• Body Level Five • Body Level Five

https://www.youtube.com/watch?v=XagUt3uUS0M
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III.
TitleUNDERSTANDING
Text THE THIRD-PARTY LOGISTICS NETWORK III.
TitleUNDERSTANDING
Text THE THIRD-PARTY LOGISTICS NETWORK

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A. ROLE
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OF Master
THE 3PL
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• Direct transportation services
▪ Body Level One ▪ Body
• Rotating on-site
Level One
representatives
• Track and trace
• Body Level Two • Body Level Two
• Warehouse management
➢ Body Level Three ➢ Body Level Three
• Shipment consolidation
• Body Level Four • Rate negotiation/carrier
• Body selection
Level Four
• Body Level Five • Freight payables Logistics
• BodyResource
Level Five
Management
• Relabeling/repackaging
• Reverse logistics
• Order fulfillment
• Border control
• Compliance consulting
• Information technology

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III.
TitleUNDERSTANDING
Text THE THIRD-PARTY LOGISTICS NETWORK III.
TitleUNDERSTANDING
Text THE THIRD-PARTY LOGISTICS NETWORK

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OF Master
THE 3PL
text styles B. TODAY’S
Click LSP MARKETPLACE
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Two main
▪ Body types
Level of 3PLs have emerged:
One ▪ Body
Key Benchmarks
Level One for Logistics Outsourcing:
•• Cost-Driven 3PLs:
Body Level Two • Body Level Two
Partnership Flexibility
➢ Focus on offering standardized services through owned transportation and warehouse
➢ networks.
Body Level Three • ➢ Body Cost
Defined LevelofThree
Services
➢ •Leverage logistics
Body Level
innovation.
Fourassets to cut Supply Chain Management (SCM) costs and drive process • • Body Level
Addressing Human FourConcerns

➢
• Body Level Five
Constantly seek opportunities to enhance core service packages through technology • • Body Level Five
Realistic Expectations
adoption.
• Aggressive 3PLs (4PL/LLP): • Technology Understanding
➢ Manage end-to-end logistics needs. • Partnership Commitment
➢ Act as supply chain integrators, assembling and managing dynamic organizations to deliver
customized solutions.
• Retention of Core Skills
➢ Provide a centralized point of contact for customers, overseeing all aspects of the logistics
relationship.

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Title Text Title
V. CHOOSING
Text AND IMPLEMENTING AN LSP SOLUTION
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LRM to edit Master
models.
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▪ Body Level One ▪ Body Level

Traditional Logistics
One Model
• Body Level Two • Body Level
Internal company
Two functions control logistics resources entirely.
➢ Body Level Three • ➢ Bodychain
Supply Levelfunctions
Three determined solely by the company.
• Body Level Four • • buys
Spot Bodyfor
Level Four
temporary weaknesses in internal capabilities.
• Body Level Five • Body Level Five

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Text AND IMPLEMENTING AN LSP SOLUTION Title
V. CHOOSING
Text AND IMPLEMENTING AN LSP SOLUTION
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models.
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models.
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▪ Body Level
Classic 3PL Model
One ▪ BodyLLP
Partial Level
Model
One
• Partnership
Body Level Two
with a 3PL to handle peripheral or poorly performed logistics • Body Level
Partial surrender
Two of logistics control to a Lead Logistics Provider (LLP).
functions.
➢ Body Level Three • ➢
LLPBody Level Three
manages entire portions of the supply chain while shipper retains control of
• Examples
• Bodyinclude international distribution beyond core competencies.
Level Four channel
• design.
Body Level Four
• •
Spot buys Body Level Fivefor warehouse and transportation services.
dominate • Shipper• assists
Body Level Five
in assembling the LSP team and oversees operational logistics
function execution.

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V. CHOOSING
Text AND IMPLEMENTING AN LSP SOLUTION
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LRM to edit Master
models.
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B. STEPS
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IN Master
LRM STRATEGY
text stylesDEVELOPMENT

▪ Body
Full LLPLevel
ModelOne ▪ Body
1. Logistics
LevelAnalysis
One
• Body Level
Shipper selects
Twoan LLP with full responsibility for logistics management.
•• Evaluate tradeoffs between in-house logistics functions and outsourcing.
Body Level Two
• Determine the extent of outsourcing and methods for securing LSP services.
• ➢
LLPBody Level ownership
assumes Three for channel design, 3PL partner selection, and
2.
➢ Body Level Three
Support for Customer Strategy
operational
• execution. •
Body Level Four
• Body Level Four
Align logistics strategy with marketplace cost and service strategies.
• Shipper• remains
Body Level Five
active in architecting logistics strategy and overseeing the LRM • • Body Level Five
Identify new logistics functions to enhance customer loyalty and attract new customers.
community. 3. Select a Technology Solution
• Assess available logistics technologies and their compatibility with business needs.
• Choose solutions that offer flexibility, control, and scalability.
4. Gain Company Buy-In
• Secure support from senior executives, internal logistics teams, and IT staff.
• Emphasize the benefits of LRM outsourcing for improving competitiveness.

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V. CHOOSING
Text AND IMPLEMENTING AN LSP SOLUTION
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IN Master
LRM STRATEGY
text stylesDEVELOPMENT Click
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IN Master
LRM STRATEGY
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▪ Body
5. Start Level
Small One ▪ Body
8. SelectLevel
a Compatible
One Technology Solution
• Body
Begin Level
with achievable
Two short-term wins to build credibility. •• Ensure LSPs possess necessary technology resources to support evolving strategies.
Body Level Two
• Phase in Level
additional functionality over time to enhance operational efficiency.
• Choose partners capable of continuously scaling and developing Internet solutions.
➢ Body Three ➢ Body Level Three
9. Controlling Information
6. Performance
• BodyMeasurements •
Level Four
• Body Level Four
Maintain control over critical logistics channel information flows.
• • metrics
Establish Body Level
toFive
track the success of logistics outsourcing efforts. • • Body Level Five
Architect solutions that offer flexibility, automation, and collaboration.
• Evaluate the impact on cost reduction, competitive advantage, and customer 10. Services and Capabilities
satisfaction. • Seek LSPs offering competitive volume discounting and value-added services.
7. Strength of the LSP • Evaluate capabilities in parcel carrier partnerships, fleet management, and e-fulfillment.
• Assess LSP financial strength, technological capabilities, and infrastructure. 11. Customer Success
• Review management expertise and commitment to providing quality logistics services. • Conduct due diligence by reviewing references and success stories of potential LSPs.
• Assess existing clients' experiences and satisfaction levels to gauge provider reliability.

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