You are on page 1of 10

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

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

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

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

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

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

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

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

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

. M. (2004). Pere Tumbas. cross-referencing. Second International Conference on al. value added business services. Borissov. Michalk. J. (2008). O. Logistics Management: Opportunities in W.rs Email: pavlicevic@gmail.. Sedlak. & Lu. I. 2 (2). Cloud computing: State-of-the- Eom. The Logistics Platform collection. 53 Transportation Engineering (pp. I.. H. roles and value networks. L. Windt. (2012). F. Disambiguation.. (2011). M.. Role of logistics centres in national logistics system. GCE'08 (pp. & Simenc. 65-79. (1990).. A Survey of Decision Support System art and research challenges. R. S.. (2014). M.ac. Konwinski. Autonomous logistic from Provincial Secretariat for Science and processes: New demands and first approaches.. IEEE. & Horvat. R. Fechner. service providers based on cloud computing. Zhao... IEEE. 357-362).. information platform presents a unified solution Köhler. Y. S. Cloud Acknowledgements. 451-4591/2013-01. J. & Schwarzbach. ICADIWT 2008 (pp. (2012). The Role of Information Technology Support in Sustainable Development.. E. 753-758). & Ratajczak-Mrozek. 32-39. exchange. Tumbas. Logistics Information Platform Development Armbrust. 1-10). I. The authors gratefully Computing Support to University Business Processes in External Collaboration. S. rapid and comprehensive domestic and NIST Special Publication 800-145.. A Thunder in the Cloud. Applications. N. & Bing-Wu. D. publication and control Kawa. A View of Cloud Computing. I. 18 (4). seminar on manufacturing systems. In view of that. Cloud Computing and Grid Computing 360-Degree Compared.. Y.. 37th CIRP international Technology Development under the Grants 114. 11 (3). Zhang. Grid Computing Environments Workshop. (2010). Z. P. of Logistics Public Information Platform. K. Southern Association for Information Systems Conference SAIS. Butrico. The business enterprises interconnected with foreign logistics perspective of cloud computing: actors. Katz. (2008). P. & Đurkovic. realizing data exchange.. ECIS 2010 Proceedings. thus making domestic logistics Leimeister. research directions... (2007). AMCIS. Management. D. Blau. Petkovics. (2011). G.. Raicu. (2012).. Meinl. International Scientific Journal of Management Information Systems. A. Böhm. & Da Silva. A. 9-18. Riedl. Weinhardt. P. 2 (1)... M. & Rutner. 69-80.. The NIST Definition of Cloud Computing. Cooperation between logistics of data from multiple sources. 391-399.. 2008. S. 6 (1). Business & Information Systems Engineering... A. Y. Zhen. (2010). classification. platforms. Toward a Unified Ontology Computing network. J.. by facilitating Gajsek. References Tang. & Lee.. In addition to that. Predrag Matkovic Pere Tumbas Veselin Pavlicevic University of Novi Sad University of Novi Sad University of Novi Sad Faculty of Economics Subotica Faculty of Economics Subotica Faculty of Economics Subotica Segedinski put 9-11 Segedinski put 9-11 Segedinski put 9-11 24000 Subotica 24000 Subotica 24000 Subotica Serbia Serbia Serbia Email: pedja-m@ef. storage. Interfaces. Digital Information and Web Technologies. 7-18. use. Q. L. 458-467). (2013). accurate.ac.. 181-200.rs Email: ptumbas@ef. (2013). Research on Architecture LogForum. & Boutaba. U. Berlin: Springer. Gaithersburg: U. acknowledge the financial support for this research Scholz-Reiter. C.uns. Lipicnik. W. providing Mell. platforms. In Federated Conference on Computer Management Information Systems. M..S.com 20 International Scientific Journal of Management Information Systems . (pp. GCE'08 (pp. IEEE. Cheng. et al. evaluation. Horvat. Predrag Matkovic. et Based Knowledge Management. (2010).. 20 (3). A.. M. H. C.. M. 4 (6). P. B. the Petkovics. (2013). Research in Logistics & Production. and the Cloud. & Baracskai. Fenu. ASCE. & Surcis. Science and Information Systems (FedCSIS) (pp. Journal of Internet Services and Applications.uns. business models.. 396-400. IEEE. Oberlander. S. Grid Computing Environments particular significance for ensuring suitable data for Workshop. Aymerich. Trninic. 1055-1062)). 12-17).. Decision Support Systems Arnold. 16-19. Aviles. T. Anandasivam..Paper 56. (2009). Cloud computing–a classification. Acta Polytechnica Hungarica. 6 (2). Advancements in for Logistics Management. International Journal of logistic information platform improves decision Strategic Management and Decision Support Systems in Strategic making at the level of the whole logistics system. & Matkovic. Anandasivam. D. 50-58. decision making at the global level. T. B. Tumbas. Intelligent Information Management. Seres.. Matkovic. R. I. Atlanta. P.. B. Communications of the ACM. Veselin Pavlicevic The logistics information platform is of Foster. 1 (5). L. M. P. A. P. Gui-Cheng. (2009).. & Krcmar. M. L. L. & Du.. & Freitag... I. 113-118).. Department of international logistics information and other related Commerce.. A. (2010). Fox. 1 (1). In Intelligent Information and Database Systems (pp. An approach to a Cloud Youseff. First International Conference on the Applications of of Cloud Computing. M. 16th Americas Conference on Information domestic and foreign business systems and Systems... B. Cloud Services from a for network data processing and connecting Consumer Perspective. Joseph. The International Scientific Journal of cloud computing for logistics.. Griffith. (pp. (4). 1-10). & Grance. & Ma. 3-13. (2008). (2010)..