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

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

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

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

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

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

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

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

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

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