Ebusiness Logistics ELO

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E-business Logistics - ELO
Emphasis of the program is on executing and
directingphysical material flows. A central
viewpoint is, how electronicbusiness brings
about new demands on logistics on one handand
gives opportunities to the management of
physicallogistics on the other hand.

• Programme duration 2002-2005
• Programme volume 25 million euros
• Programme Manager Mr. Heikki Kekäläinen
• Additional informationwww.tekes.fi/english/progr
  ammes/elo

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E-business logistics
Information flow
Money flow
Material flow
The emphasis of the programme is on directing
thematerial flow with the help of information
flow
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Logistics environment

• Business networks are growing in importanceand
  in networks the meaning of logistics as afactor
  of competitiveness continues to increase
• The demand for different value-added servicesin
  logistics is increasing
• The importance of logistics and transport as
  anenvironmental factor is considerable
• In the future profitable growth can be based
  onsolutions of continuing growth only
• Sustainable development demands that
  futuretransportation distances of goods will not
  beextended and that management systems will
  beefficient enough to combine thinner
  materialflows effectively

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Logistics environment in Finland

• The logistics environment in Finland is
  characterizedby long distances, low population
  density, highstandard of living (customer
  requirements), and difficult climate
  conditions. These factors make themanagement of
  logistics a specially challenging task
• A special emphasis of the ELO programme is
  onsolutions based on portable and wireless
  techniques.The know-how in portable and wireless
  technologiesin Finland is strong and logistics
  is a good field tobuild first applications for
  new technology, becausethe amount of portable
  equipment is high and materialflows are
  substantial

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The goals of the programme

• To develop logistics that will improve
  thecompetitiveness and profitability of
  Finnishindustry and service sectors
• To develop logistics services required inthe
  environment of business networks
• To develop transparency in the demand-supply
  chain, resulting in more rapiddeliveries and
  optimisation of inventories
• To reduce work and routines in materialflow
  management in the logistics chain
• To develop products suited for export aswell as
  services and software for logisticsin
  cooperation with other Tekes technologyprogrammes
  
• To improve logistics research in Finlandand
  increase the international viewpoint

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Focus areas of research and development
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Supply chain and network management

• Process development
• Supply chain transparency
• Customer demand management
• Demand management andforecasting

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Logistics services

• Logistics outsourcing
• New service models and service providers
• Consolidation
• VAL Value Added Logistics
• Research on new operating models andrequired
  control, planning and monitoring tools
• The structure of the logistics infrastructure
  inthe future

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Product Data and material handling automation
Product data

• Identification technologies
• Positioning
• Value chain management
• Product data management
• Life cycle product identification

Material handling automation

• Automation for handling small batches
• Product and batch identification
• Loading and unloading systems
• Mobile telecommunicationsystems

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Examples of projects and results

• Systems theoretic modelling and control of the
  supply chain
• Tampere University of Technology,Institute of
  Automation and Control
• Systems theoretic modelling of a logistics
  network andsupply chain in e-business
  environment, with theobjective of accelerating
  the transport of goods in theentire supply chain
  from start producer to end user
• Replanning and control of business network
  logistics(NETLOG)
• Helsinki University of Technology, TAI-Research
  Center
• The project develops new, ICT-aided solutions for
  planningand management of distribution and
  supply networks

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Example of company projects

• Heavy Industry Intelligent Project System (HIIPS)
• The HIIPS (Heavy Industry Intelligent Project
  System)-project is funded by eight leading
  contractors andstakeholders in the supply chain
• The main objective is to develop common
  practices,tools and metrics for effective
  material flowmonitoring and optimisation on
  global constructionprojects for the entire
  supplier network
• The project started 23.10.2001 and will end
  31.12.2004
• The HIIPS-project forms a forum for development
  workacross company boundaries. Participating
  companieswill develop, specify and pilot
  together tools andpractices for the tracking of
  products andtransportation units via the
  Internet
• Additional information http//www.hiips.com

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Programme status
October, 2003

• By August 2003 there are 14 research projects
  and 25 company projects in the ELO-programme and
  the number of participating enterprises is over
  100.
• First version of Logistics Technology Roadmap
  (LTRM) has been published on ELO web pages under
  the heading Logistics Vision.
• A Study of the benefits on the usage of new
  e-business logistics technologies in Finland will
  be published at the end of this year.
• An international survey was released in February
  2002. The reports of Japan, Germany, UK and
  France are availableon the ELO website.

09-2003