Predrag Matkovic

,
Decision Making in Logistics
Pere Tumbas,
Veselin Pavlicevic
Processes Supported by Cloud
Computing
Summary
Article Info:
Logistics processes in a globalized economy are increasingly complex, dynamic, and
Received 25 January 2014 distributed. These characteristics pose major challenges for logistics management.
Accepted 12 February 2014 Planning, organizing, leading and coordinating processes have become progressively
UDC 004:005 more complex activities that are carried out by an increasing number of internal actors.
Information inputs and outputs of these processes are more diverse and complex, with
Recommended citation: a greater number of users. Decision making is distributed in a way that all actors within
Matkovic, P., Tumbas, P., Pavlicevic, V. these processes make decisions locally and autonomously. Development of a unified
(2014). Decision Making in Logistics and open logistics information platform aimed at integrating various (heterogeneous)
Processes Supported by Cloud Computing, logistics sources and data would facilitate improvement of the logistics operation
International Scientific Journal of efficiency and also reduce costs, enhance competitiveness, and enable advance of the
Management Information Systems, 9 (1), logistics system. Logistics information platform is the core and key development factor
11-20.
of the modern logistics system. Construction of this electronic platform can greatly
promote the information oriented (can greatly improve the information necessary) for
modern logistics development. In addition to that, it would provide essential support in
making strategic and operational decisions in logistics processes.
This paper analyzes decision-making activities at different levels of logistics process
management and explores the possibility of using cloud computing technology based
on their key characteristics. In addition to that, the authors identify the different types of
cloud computing architectures and cloud deployments models that are most frequently
utilized for decision making in logistics. Research results include identified benefits and
limitations of application of cloud computing technologies in supporting decision
making in logistics processes.

Keywords
logistics processes, cloud computing, decision making

1. Introduction and decision making in a changing environment.
Intensive utilization of information technology that
The environment where managers make decisions provides timely transaction processing and support
has changed significantly these years. Organizations in decision-making processes has an especially
design their products in one country, purchase important role in the execution of complex
materials and raw materials in another, production management activities.
is carried out in a third country, and finished In supporting complex, dynamic and distributed
products are marketed in numerous countries logistics processes, organizations increasingly use
around the world. At the same time, logistics information technologies. Logistic process
processes were the first processes to be management became inconceivable without the
outsourced. New logistics service providers, whose support of ICT technology. Therefore, the choice
particular focus is on their core competencies, have of mode of transport, stock quantities, mode of
emerged. Specialization has become the goal for storage, locations and number of distribution
logistics providers as well. Hence, they warehouses, decisions regarding new market
differentiated their operations based on the penetration, determining the profitability of some
different logistics resources and processes consumers and levels of services represent
managed. Under such circumstances, a great examples of activities in strategic decision-making
number of logistics operators appeared: main where computer systems are utilized. Of course,
business owners, fourth party logistics service the application of computers is even more
providers, third party logistics service providers, intensive in planning, execution and control of
second party logistics service providers and first operational activities. Certain parties of the logistic
party logistics providers. Logistics processes, as system use specific applications within their
transaction intensive, are abundant with various enterprise information systems for management of
data used by numerous parties in logistics operational activities and decision making at an
processes for effective and efficient management organizational level. These are rarely widespread

improved customer service. the elaborates on decision making activities in logistics search in the defined sources was executed and the processes and potential application of cloud obtained studies were evaluated according to the computing in these activities. most often these are completely experience from a logistics information platform different applications that are hard to connect. and deployed in the cloud? enabling data exchange among them poses a Selection of sources – Selection criteria through challenging task. Therefore. making. Management. types of cloud that the studies must contain issues and topics computing architecture. Finally. faster decision. The second section of this paper presents the Once the sources were defined. 2008). The the computing world. The list of proposed definitions of cloud Question formalization . what Da Silva. Wiley Interscience. logistics system as a whole. The fourth section Review execution .1. especially in These journals were specifically selected for review. represents a new way to outsource. greater Journal of Supply Management. After executing the search chapter identifies prospective benefits of applying chain on the selected sources. Cloud Emerald Publishing. cloud logistics. the last established criteria. and and their characteristics. singled out: Journal of Operation Management. Specifically. Journal of Business Logistics. Pere Tumbas. but also to identify and analyze made efforts to define the concept of cloud the current state and the most notable possibilities computing and specify technologies associated for applying cloud computing to support decision with this term in academic and professional making in the domain of logistics. Cloud computing consideration: Science Direct. which we evaluated sources was based on research Cloud computing is relatively new paradigm in experience of the authors of this paper. and should enable effective and efficient management International Journal of Logistics Management. along with possible courses for its with inclusion criteria which resulted in a set of further development and use. literature. It is especially difficult to paper is to determine whether decision-making formulate a single clear definition of cloud processes in logistics would benefit from use of computing. Predrag Matkovic. Butrico & the logistics system level. The most often cited definition. shared real-time data. not only in order to summarize the existing studies related to the 3. International strategic and operations management of logistic Journal of Physical Distribution and Logistics activities. This set of relevant studies was once again filtered with the exclusion 2.During this phase. Journal of automation and efficiency. as an innovated concept. Veselin Pavlicevic software solutions. uncertain and complex environments. AIS digital library and Scholar computing services provide consistent global Google. followed by an overview that these studies must also describe strategic and of decision-making activities and processes in operational decision-making process activities in logistic processes at an enterprise level and the logistics. based on systematic to describe the process and the criteria for study analysis of selected literature and its expert selection and evaluation. cloud deployment models which consider cloud computing in logistics. it was necessary applied research methodology. advantages and disadvantages may logistics however. In the domain of Logistics Information Management. Literature review on the selected topic. we established of cloud computing technologies. due to a vast variety of elements cloud computing at the enterprise level. The following journals were particularly platforms. and also at associated with this concept (Youseff. as they represent significant research in logistics.A systematic under references. of distributed logistics resources. literature exclusion criteria of this research were based on review. review of the existing literature on cloud computing logistics was carried out for the research 3. contains a brief elaboration on the concept the research question. quickly developing and following sources have been taken into attracting a number of users. The inclusion and interpretation. The subsequent chapter. we obtained a set of clouds logistics to support decision making about 90 results which were filtered in accordance processes.The purpose of this computing is extensive. Research Methodology criteria to produce a set of studies which corresponds with about 40 primary proposals listed Systematic review of cloud logistics . is the one by the National Institute of enterprises and all other actors in logistics systems Standards and Technology (NIST): "Cloud 12 International Scientific Journal of Management Information Systems . Overview of Cloud Computing application of cloud computing technologies in A large number of distinguished authors have logistics processes. about 60 relevant studies. volatile.

and reliability. cost compared to the provider and the consumer of the utilized intern solution." constantly removed and repaired. based on virtualization.because errors are and can be priced on a pay-per-use basis. controlled. These two attributes are indicated by consumers as more important than Apart from the essential ones. networks and ICT scalable to suit consumer immediate business resources power can be accessed by consumers needs. use of standard data formats.g. customers over the Internet" (Foster. Among various definitions of cloud computing. automatically. cloud computing has application of advanced techniques in identity International Scientific Journal of Management Information Systems 13 . 2008).a single instance of an an IT deployment model. without any knowledge or elastically obtained. to consumer demand. Zhao. while the most optimization of resource utilization. application serves multiple consumers (tenants) where resources. According to this definition. dynamically-scalable. Riedl. on-demand network access to a shared service models and four deployment models. five essential characteristics of cloud computing networks. to quickly scale up and rapidly released to while all these resources/services are available on a quickly scale down. Böhm. reported on. Cloud services can be rapidly and thru a Web browser. 2010): security and resources can be measured. & Krcmar. Horvat. servers. "cloud computing is a large- providers of each service. in which a pool of ▪ Broad network access: Cloud capabilities are abstracted. scale distributed computing paradigm that is driven by economies of scale. Anandasivam & Ma. From the different physical and virtual resources consumers’ perspective.implementation of the holistically. for service provision." (Mell & Grance. pricing tariff. applications. should particularly be highlighted. platforms. virtualized.Decision Making in Logistics Processes Supported by Cloud Computing computing is a model for enabling ubiquitous. there are some those related to financial aspects. Research on consumer capabilities available for hire often appear to be preferences of cloud service attributes resulted in unlimited and can be purchased in any quantity the following list of attributes that were most at any time. provider reputation. Security service. providing transparency for both migration process. "Cloud computing is ▪ Multitenancy . required skills. (Petkovics. frequently stated as important by the respondents ▪ Measured service: Use of cloud computing (Koehler. Cloud computing services often possess and reliability are attributes that consumers metering capabilities. available over the network and accessed managed computing power. concern about the location of these resources. service provider interaction. 2010). and are: services) that can be rapidly provisioned and ▪ On-demand self-services: A user can obtain released with minimal management effort or computing capabilities as needed. Raicu ▪ Resource pooling: The provider’s computing & Lu. with perspective of cloud computing. storage. These services are scalable on demand ▪ Increased reliability . efficient computing paradigm in which ▪ Rapid elasticity: The cloud is flexible and applications. and through standard mechanisms that promote use services are delivered on demand to external by heterogeneous thin or thick client platforms. in some cases automatically. (Seres. 2014). Matkovic & Baracskai. platforms. without requiring human interaction with 2011). and consumer support. the pay-per-use basis. Tumbas. (Leimeister. The pool of configurable computing resources (e. resources are pooled together to serve multiple NIST definition primarily reflects the providers’ consumers using multiple-tenant model. & Horvat. the phenomenon of cloud dynamically assigned and reassigned according computing is described as described as a new cost. from the perspective of application and most rigorous cutting-edge security measures infrastructure. in terms of infrastructure. such as cost other significant features of cloud computing reduction or pricing tariff choice. 2011): a particular one that looks at this concept ▪ Security of services .. involves three convenient. This important among other attributes are the implies that IT services are charged per usage reputation of the cloud service provider and the metrics – pay per use. storage. To the consumer. providers. In other words. which enables control and consider to be knock-out criteria. ▪ Identity management and access control - According to the NIST. with the possibility (for the tenants) to applications and data are deployed via the internet customize some details of the software as a distributed service by one or several service applications. five fundamental characteristics.

Pere Tumbas. development between institutions and researchers.. consumers do with clear common interest and specific not have to maintain hardware. faster time to market. lower sharing of resources leads to cost reduction. Community clouds are known to hosting environment. 2009). portability. servers. Platform as a Service. for extremely mission ▪ Platform as a Service (PaaS) – It is the middle critical and high-load appliances. consumers get considerably facilitate the development process. increased security and legitimate data use. 14 International Scientific Journal of Management Information Systems . easier a Service (Weinhardt et al. Consumers can generally access organization with a large number of staff/end resources on-demand. enhanced customized applications and service. consumer is responsible for managing these Community cloud. global accessibility. when platforms. ▪ Faster development . when high layer of cloud computing. Benefits according to the type of capability provided to the of SaaS for the consumer include: pay-per-use consumer into three service models: Infrastructure software. network infrastructure. running and dedicated to exclusive use of a single maintaining it. where cloud ▪ Software as a Service (SaaS) . Public cloud and Hybrid cloud. operative demands. full control is providers offer consumers a development demanded (legal. resources and installing software onto them. servers and storage. and as a first step in platform as a service. Resources are normally is entitled to consume underlying cloud provided using virtualized hardware. These are: Private cloud. ▪ Infrastructure as a Service (IaaS) . At this level. complete and functional solutions. but of service types. paying only for what they users. Predrag Matkovic. At this level. Private clouds are set up within a specific use.cloud computing The consumer uses the services for business platforms with a large number of services and purposes via Internet. domain-specific platforms. These may be organizations engaged in the PaaS consumer manages the deployed strategic partnerships or those that serve same application and customizes the application. compatibility. persons or organizations with a common network resources. unlimited institution or a group of individuals in hardware capabilities. system acquisition bypass. reduced costs. whereas Cloud computing services are categorized providers retain all other obligations. This layer support for an abundant compilation of client covers service-enabled remotely-accessible platforms to reach a broader base of users. The key advantages of IaaS for the private community. and easier administration. which they can use to cloud migration strategy. with the only necessity to customize and use it. in case of agility and innovative business racing. Private guaranteed usability and beneficial costs. The provider owns the equipment and is ▪ Private cloud: The cloud infrastructure is responsible for housing. expert cloud is preferred in the following case: for guidance. privacy). Providers deliver a single ▪ Centralization of infrastructure and lower application through the browser to thousands expenses of operation and maintenance. By using SaaS services. and Software as software updates. communities. of consumers using a multi-tenant architecture. from general value-added usually offer services tailored to the services on top of cloud infrastructure to highly requirements of the community.It is the lowest layer of cloud computing. ▪ Diverse platform support. and the infrastructure resource. highly sensitive data.It is the highest providers often provide services with built-in level of cloud computing service. Four deployment models have been defined for the service includes lease of hardware resources cloud computing. Veselin Pavlicevic checks and access control in order to provide development failure risk. predictable and collaboration across multiple locations. PaaS covers a wide range be more expensive than public clouds. collaboration. there is a need for collaboration system. performance is necessary. the distinctive feature being who to the consumer. infrastructure maintenance and as a Service. PaaS provider that provides resources to a specific group of is responsible for managing operative systems. Community advanced. This may be a single consumer are: scalability. build their own software solutions and deploy ▪ Community cloud: The type of cloud service them on the cloud infrastructure. as a communication preset templates for application development medium. whereas interest. The main cloud is mostly used in the following cases: benefits of PaaS for the consumer are: prepared when there is a well-identifiable community platform for fine tuning and use. software packages.

decision making activities in logistics processes.e.Decision Making in Logistics Processes Supported by Cloud Computing when procurement of cloud services in shared 3. but From the viewpoint of locality of also small firms. In-house computer to ensure successful execution of logistics clouds are physically located within the processes and activities. Logistics operators are most commonly divided into the following categories: The brief overview of the cloud computing ▪ Main Business owner (MB) – the main business concept presented in Fig. Their activities may be limited internal services. When choosing infrastructure deployment models. cooperation and collaboration with their partners Public cloud is available for personal and in a way that provides substantial benefits for all business use. country. appropriate information technology. but are tied together by standardized technology that allows a degree of data and application portability. commodity or standardized IT services. services on a global level. as well as a fast and organization’s premises and protected by the appropriate flow of information between individual organization's firewall. organizations must bear in mind the Figure 1 Core concepts of cloud computing numerous limitations associated with particular cloud computing model. public seek solutions to ease and improve their sharing of research results. or can opt to combine Logistics sector covers processes and activities several models to solve certain problems and of variously sized companies. and bill consumers for their usage. ▪ Fourth Party Logistics Service Provider (4PL) – a general contractor. 2013). offering a wide range of services. through forwarding. all categories of logistics through the intranet. Under commercial organizations who generally offer a circumstances such as increasing competitive certain range of cloud related services and pressure. Logistics ▪ External cloud . cloud deployment models are Services offered to their customers ranges from internal and external (Petkovics. in case of need for collaboration and cooperation with their partners. companies constantly incidental or ad-hoc need for resources. palletizing. they manage the entire International Scientific Journal of Management Information Systems 15 . 2013). resources. Access is provided actors in a logistic system. Trninic & simple transport services. satisfaction of potential and existing must be implemented by an external IT customers’ needs also poses itself as an important organization. continent. In order internal usage (usually). i. realized by an internal IT to a region. 1. that provides services to any consumer over the interactions and interdependences with other public Internet. all the way to virtual services (IaaS. goal. or reach the whole organization (in-house implementation) for world (Kawa & Ratajczak-Mrozek. external cloud can be public or private. and a multiplicity of facilitate their operations.where above mentioned basic chains management services. Decision Making in Logistics Overview context is easier. Djurkovic. implementation. The clouds remain unique entities.where basic types of cloud service providers primarily apply IT in order to computing services are not hosted in-house. An increase efficiency and automate their work. At the same time. Public clouds are provided by entities from its business environment. and when IT staff resources and knowledge is limited. PaaS and SaaS) are offered as service integration. and the cloud is intended operators (logistics service providers) must use for internal use only (in most cases). to full supply ▪ Internal cloud . but However. companies develop their relationships. particularly highlights entity around which logistics processes and its characteristics that render it applicable in activities are built. ▪ Hybrid cloud: This design of cloud deployments present the mix or composition of two or three types of the above clouds. It includes very large. Public cloud is used in case of parties.2. warehousing. A characteristic trait of the modern enterprise is ▪ Public cloud: The type of cloud deployment the growing importance of its relationships. packaging.

transnational logistics processes. 16 International Scientific Journal of Management Information Systems . Sorting and packing of storage goods o ▪ Use internal and external data and models. positioning systems. The 4PL assembles and manage decisions. Choice of volumes of automated support s Order tracking and evaluating o The DSS applications in the field of logistics Indebtedness control o Invoice harmonization o give the support to decision makers in a huge Performance measuring o number of logistics processes and activities on In stocks management: strategic and/or operative decision-making level. network security systems. integrating different services provide managers in logistics processes with exact offered to logistics service providers or to other and timely information to react fast and make right actors. resources. communication and distribution networks. the development of new information goods and information that cross national borders. as Assessment and control of consignment notes o interactive computer based information systems. Logistics processes and activities Decision type ▪ First Party Logistics Provider (1PL) executes a In transport: single logistics activity. DSS applications networking technology.strategic decisions o . DSS. Sedlak & Matkovic. Stocks evidence o In order to fulfil current expectations. and the logistic process outsourced by the MB to ▪ Implementation of a specific and independent 1PL or 2PL (or other 3PLs). 1990): In warehousing: Determination of storage number and location s ▪ Support decision makers. Transfer of storage goods o ▪ Solve problems of different complexity Warehousing o Storage planning and design o (unstructured.Enterprise Resource Planning (ERP) and Vehicle distribution o Decision Support Systems (DSS). not efficiency in the In order processing: process of decision-making. facilitation of a free flow of However. especially to the global market that has Measuring the level of rendering services o never been bigger. semi structured and structured Choice of equipments for storage goods o problems). RFID technology. knowledge and technology of other Two basic approaches to the development of logistics service providers. organization). not replacing them in Choice of storage way s decision-making. Administration claims o have the following core (basic) characteristics Performance measuring o (Eom & Lee. Market expansion and development of multinational corporations s . competitiveness and utilizing both at macro and micro levels. Choice of transport model s Choice of transport way s Logistics operators most commonly use two Routing vehicles at land and sea o types of information systems for managing their Delivery planning o logistics processes and activities and decision. and Performance measuring o ▪ Focus on the effectiveness. ▪ Implementation of the integrated DSS at the ▪ Third Party Logistics Service Provider (3PL) – a company level (enterprise. in logistics processes. ▪ Second Party Logistics Service Provider (2PL) – Table 1 Overview of activities within logistics processes and manages a single activity (or subprocess) of the types of decisions made (Tumbas. positive effects of economies of scale in mobile data transfer systems. DSS Tracking of transferring o applications in the field of logistics must adapt to Tracking of stocks turnover o In rendering services: completely changed conditions in the global Determining the level of rendering service s economy. partly service operator who manages the main part of including the field of logistics as well. 2007) logistics process. and communication technologies enable DSS DSS become strategically important for improving (decision support systems) to have new possibilities service quality. They are also defined DSS applications are used most commonly: as the Virtual Logistics Provider. Pere Tumbas. Delivery routing and distribution o Choice of carriers o making . Predrag Matkovic. Veselin Pavlicevic logistics process.operative decisions requires information. Choice of restocking systems s An overview of most significant processes and Stocks forecasting o activities is given in Table 1. They manage the DSS applications restricted to the domain of flow of goods between different organizations logistics.

2010). reliability. It (e. GoGrid and Flexiscale) (Zhang. installed programs. Computing resources are obtained and generated the need for standardization of awarded in line with users’ needs (Zhang. It offers company requires. performance and cost a certain processes in a predefined environment. & Freitag. connectivity (e. A logistics platform is any kind of The deployment model depends on the level of resource base for the implementation of logistics security. i. Private clouds are processes both within and between supply chains designed exclusively for a single organization with aimed at improving operational efficiency may be multiple users and are not available to the general referred to as a logistics information platform. the other hand. With regard to growing numbers of itself as an operational necessity. often lack the needed to three types of services: SaaS. After considering a number of Cloud computing applications can be deployed definitions. 2012). In hybrid clouds. resources for growth and have limited or no IT. are just some of technological processes and activities. Such circumstances have laptop). maintenance and updates costs (Aviles & Rutner International Scientific Journal of Management Information Systems 17 . facilitate real-time data integrate services of different operators in one sharing. improve place. the term logistics applications of their own choice on cloud hardware platform is used differently and in diverse cases. (Zhang information technology operating costs. 2004). Transportation integration. firms lack control over data. a PDA or a Windt. (Aviles & Rutner 2012). mobile phone. cooperation /multidimensional databases. but they do not provide up- front capital savings. robotics.. Cloud services are partners within logistics networks and a owned by multiple providers. compatibility of different systems is provide access to any device that has Internet becoming increasingly important (Scholz-Reiter. eBuilder. community. intelligent agents. cloud computing imposed prerequisites. specialized logistics service work force. co-located in a single simultaneous expansion of the quantity of software data center. and collaboration amongst a great number of internet of things. who are and efficiency. Lipicnik. data mining. PaaS allows them to Logistics platforms appear as a solution to the create their own applications using supplier-specific aforementioned problems. absence of applications accessed over the Internet (e. OMS Platform. to the Internet deployment software tighter control and security and also facilitating on- and computing capacity. was chosen.. SaaS allows them to run existing on-demand online competences and investments. Microsoft Windows Azure referred literature – authors use the term in a wide and Salesforce.e. servers and computers in the and another part runs in public clouds. et al. www logistics operators in the realization of logistics technologies. Management Systems.. a definition that best suits the research via public. Private clouds offer the highest degree of control over performance. A are not required to invest in infrastructure. it should be pointed out that the logistics application in logistics to provide consistent services industry lacks solutions that would logistics global platforms. public (Armbrust et al. private or hybrid clouds. Finally. When it comes to decision making in a logistics Cloud computing services are suitable for system. formal data semantics prevents automated data Warehouse Management Systems. Data centers are located globally and solutions used. 2010). companies highest level (Gajsek. appropriate.com). but on platform that supports integrations. In addition.. 2010).Decision Making in Logistics Processes Supported by Cloud Computing machine learning using artificial intelligence 2012).). a well-developed deployment. PaaS and IaaS. & interfaces. 4.g.. There is no consensus tools and languages (e. & Simenc.g.g. enable faster decision-making. 2010). depending on individual business information-communication system. is clear that the use of the term is not always et al. In practice. implementation of inter organizational logistics network and security settings.g. a great number of small and customer service and achieve greater automation medium (SME) logistics service providers. big data. in a different business methods. as to ensure their interoperability. IaaS allows users to run variety of contexts. helping reduce demand service expansion and reduction. logistics needs (Aviles & Rutner 2012). The logistics operators have access generally more flexible. Furthermore. one part of Cloud computing represents a shift from locally the service infrastructure runs in private clouds. Research Results reliability and security.. Firms select different types of customized infrastructure. the data warehouse environment shaped by globalization. infrastructure and services are available for open friendly rules and favourable support on the use by the general public. on what represents a logistics platform in the Google App Engine. the technology. Cheng.. AmazonEC2. giving enterprise. In such way. Boutaba. In public clouds.

In this and data pools from local (on-premise) IT. warehousing Management systems. Synchronization and Sharing of information platform is integration of various data created and utilized by multiple users is the information resources to facilitate data exchange. customs. once again owing to Cloud Computing. better suitability for distributed interdependence. greater Analysis of the aforementioned use cases leads reliability. Synchronization and Sharing of platform. logistics companies gain readily available significant to decision making in logistics resources at the costs which are in line with their processes. especially micro. accessibility to software and device. All of the listed use cases and possibilities identified within each of 18 International Scientific Journal of Management Information Systems . software applications. Oberländer & Schwarzbach. which applies information and Hetzner. Rackspace. Identified functionalities of the services is used for data exchange both within logistics platform and expected benefits associated organizations and among different ones. most important functionality of a logistics Integration. 2013): possibilities to logistics enterprises. as well as other companies. Europe. level of reliability. platform for adding e-commerce applications. DropBox and Google Drive. Enterprise applications for inter-organizational logistics Resource Planning systems. companies. secure. affordable and implement data sharing and information suitable form an increasing number of logistics transformation (Zhen. The affordable to logistics enterprises of various sizes. 2009). Outsourcing of IT resources and logistics operations. Pere Tumbas. logistics store. Gui-Cheng. optimizing logistics operations. classify. which is with them are presented in the following text. evaluate. were identified and are the logistics demands is the third use case that offers new cloud (Arnold. This type of technologies. and location independence. 2012). hardware. this use case could be considered as systems into a cloud. support can reduce capital expenses and reduce ▪ Platform for the management and optimization operational costs. When it comes to SaaS. ▪ Market Place for product and service offers and and suitable for logistics processes and demands. to a conclusion on their interrelation and improved security. which is intended for managing and data created and utilized by multiple users. access necessary resources at a desired level. suppliers. Some additional benefits of implementing cloud computing are: agility. presented in Table 2. small and medium-sized ones to availability on many diverse devices.e. Outsourcing of software. sense. Generally speaking. Supply Chain stakeholders such transporters. regulatory bodies. Veselin Pavlicevic A well-designed cloud can be reliable. different collaboration operations. The most popular IaaS partners for information platform is a general information European SaaS vendors are Amazon. ▪ Outsourcing of IT resources and related Implementation of this use case is realized thru e- services.e. reduction in direct and indirect operating costs. 1&1. publish (release). Proper deployment can provide of collaborative business activities of multiple significant savings. Microsoft and Host communication technologies to collect. The following generic use cases. banks and other financial software services offered in the market. next use case to become available. OVH. Using a cloud to deliver decision activities to the corporate business models. Workflow Management agents. such as Customer operations. scalability. analyse. interrelated in Market Place for product. Numerous functionalities aimed at easing Data management has become a major business. distributors. i. service offers and multiple ways. reduction in capital expenses. By expertise. better IT services and a higher business partners. suites. related services enables logistics enterprises. insurance systems. manage companies have the opportunity to use versatile and control relevant information on logistics software services in the cloud. collaboration and cooperation of all participants and among the most prominent Cloud Data within logistics process are suitable for Management services providers are Microsoft One implementation using cloud computing Drive. i. Logistics information platform provides Document Management systems. processes and management (Tang & Relationship Management systems. for example at the IaaS Logistics information platform is especially level. accounting software. The platform involves multi. Predrag Matkovic. use of SaaS. The fourth use case is the Management ▪ Integration. commerce software solutions in the cloud. the logistics needs. computing has made these services available and educational and research organizations etc. & Bing-Wu. route planning systems. Cloud organizations. Electronic Du. exchange platform. purchasing certain services.

2008). confidentiality. IT hardware and software investments. Conclusion utilization. Synchronization and situations without the need for additional Sharing of data (Arnold. ▪ Cloud computing infrastructure accelerates and employees etc. certain risks. terminals and authorities ▪ Cloud computing infrastructure allows such as customs enterprises to achieve more efficient use of their authorities. smart devices of clients. remote access. available to the user community. fosters the adoption of innovations. independent computing technologies offers several technical services. processes are very complex and that decision ▪ Users will not have to concern themselves with making process is carried out in conditions of storage capacity. which are listed below umbrella and implementing them in an (Aymerich. PDA or other device. ▪ Cloud computing is particularly beneficial for Cloud computing is a promising approach to small and medium businesses. as to ensure that the well. environment suitable for logistics enterprises is the course for developing a logistics platform based on Technical and architectural advantages are: Cloud Computing. Activities related strategic and operational decision-making at ▪ The user is no longer tied to a traditional the level of individual logistics operators. external service teams. Every device that can Regardless of the level of observation. also play a very significant role. compatibility and similar uncertainty. ▪ The system delivers greater scalability as it is File synchronization of mobile possible to add “on demand” computational actors and business units. such as resources. different types of computer based information ▪ The user always uses the latest version of the systems form the basis for decision making. Placing all those capabilities under one and financial advantages. which enterprises and organizations they manage themselves. but also bears house resources and technical equipment. File exchange among trucks and other vehicles. Oberländer & Schwarzbach. Fenu. such as cost total cost of ownership. integration and process consistency real-time collaboration capabilities. as well at computer to use an application. platform were analysed within the research. ▪ Cloud computing easily handles peak load Table 2 Examples of Integration. ease of availability and functionality. operations of logistics based application. Hardware and File exchange across borderlines of single communication resources can be virtualized and Typical intra-organizational uses provided to customers as virtual servers. and experience. employees etc. and make their innovations Business data exchange and such as seaports. It increases profitability by improving resource 5. The paper explores the issue of applying cloud Advantages for the logistics operators . it can be access the Internet will be able to run a cloud- concluded that activities. software when accessing an application on the although soft skills. such as cloud to do things that traditional productivity File exchange with trucks and other vehicles.e. external service teams. Application of cloud International Scientific Journal of Management Information Systems 19 . applications cannot do. for a variety of reasons. intuition cloud. smart devices of business partners.single computing technologies to support decision users and enterprises: making activities in logistics processes.Decision Making in Logistics Processes Supported by Cloud Computing them are available thru different. or has to buy a the level of a common logistics information version specifically configured for a phone. Detailed analyses must be carried out ▪ Also large businesses are moving to the cloud as before its implementation. File synchronization of mobile ▪ It is possible to use the processing power of the actors and business units. 2013) hardware infrastructures that would remain largely underutilized. test. It alleviates File exchange with the need of innovators to find resources to infrastructure operators develop. Hard data and information from issues. cutting. requirements have been met. such as knowledge. Use of cloud computing productivity without excess spending on in- technologies yields many benefits. i. where effective implementation of a contemporary concept of and affordable IT tools are critical for boosting logistics systems. intermodal organizations. & Surcis. security. synchronization within decentralized airports.

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