Contribution to Integrated Design of Logistic System for Online Business

What Bill Gates predicted in the last century, turns into reality today. Borderless, timeless, low cost and highly efficient, e-commerce has developed into the dominant of this market in this century. In principle, B2C and B2B are the main business models in e-commerce and therefore the research object of this dissertation.
With the rapid development of electronic commerce, logistics service also put forward higher request. A well-designed logistics system has become a key to success for e-commerce. To this end, the emergence of innovative technologies and strategies makes the logistics industry comprehensive revolution.
In this research work, based on the practical operation and understanding of B2C and B2B e-commerce, the corresponding logistics concept is designed and a corresponding system is developed in a different business phase in order to maximize the benefit from the market. A constant and gradual business adjustment is made during the development of e-commerce to extend the business model.

The emergence of 3PL makes many companies worldwide turn to logistics outsourcing as a way to increase profitability. The cooperation between involved companies and 3PL happens mostly on transportation and the operation aspect turns to focus on the warehouse design and management, among which order picking system is the key part, due to the most investment on personnel and capital. The optimization of this system improves the efficiency of the complete logistics chain and enhances the company competitiveness, which includes the layout design of the order picking system, position adjustment of products in shelves, picking strategy etc. In different scenarios, the order picking routes are calculated and compared in order to make sure that the order picking system is optimized.

In this research work, many theoretic picking strategies are explained and furthermore, in practice, a business structure is built based on the calculation and profits from the suitable picking strategy. Some formulas from the reference are proved and one of them is adjusted through this research work.
Based on the customer orders, a strategic simulation model is proposed to evaluation different batching building scenarios. The purpose of the simulation is to recreate the physical material flow network and to analyze “what if” scenarios. In difference to material flow simulation model, a strategic simulation model emphasizes the determination of strategies. In this case, a system model is built based on order processing performance and the batch order is reorganized in different batch size.


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