Analysis on Cloud computing-based Logistics Information
Network Mode
Xing Wang
Management of Departmeng,City College of Dongguan University of Technology,Dongguan, China
54652613@qq.com
Abstract:Logistics information network is of great importance
for logistics enterprises to improve their operation efficiency a
nd reduce their operation cost. By applying SaaS,PaaS and
IaaS, logistics information network which is based on cloud co
mputing will be a great driving force for the development of lo
gistics market. This paper analyzes the frame of the logistics
information network and the application mode of cloud
computing in logistics information network so as to the
investigate model of the logistics information network which
based on the cloud computing.
Keywords: Logistics Informaition Network;Cloud Computing;
Mode
I. INTRODUCTION
Information transmission and information sharing are
two of the most important pre-conditions in today’s
efficient logistic operations.They are also throughout every
aspect of logistic activities. Accurate and timely
information of supply, demand and control is needed for
cargo flow management. They also save cost, improve
efficiency and benefit for companies[1].
Nowadays market competition is getting challenging,
more and more enterprises realised that the importance of
information management. Efficient information sharing to
each member on whole supply chain can reduce cost, and
improve logistic service level. Information networking
technologies provided a solid platform for today’s logistic
development. It based on the logistic information system of
each individual company, by collecting common data to
provide basic support information to the collaboration
companies, It is helpful to meet requirements of basic
common data sharing and contribute to support various
function of information system.
In order to achieve the target of both physical and
virtual logistic information resources optimization, using
information technology to provide logistic resources
sharing is the trend in current information networking
environment.
Therefore, the combination of modern communication
technology and computer data processing technology has
created an interconnected network information system. By
connecting each logistic subsystem will improve overall
advantages, it will shorten lead time of logistic information
flow, reduce transportation time, coordinate transportation
channels,enhance transparency,improve performance, thus
optimize the network logistic management system.It is a
perfect solution for overall network logistic operation[2].
II. DEFINITION OF CLOUD COMPUTING AND IMPACT TO
LOGISTIC INFORMATION NETWORKS
2.1 The meaning of cloud computing
Cloud computing is an innovative service model in
information technology territory, it has been considered as
the core for next generation information technology
revolution and business application model innovation.
Recently,cloud computing has created enormous attentions
by government departments and corporations, some new
policies and technologies have boosted its research and
development.
Cloud computing allocates huge amounts of computing
task to a resource Pool made up by hundreds of computers,
each application will be able to obtain required processing
capacity, network storage and other software services.
Overall, cloud computing is a new data processing model
that based on the Internet and network sharing resources
simulation; It is a result of combination of parallel
computing, distributed computing, technology development
and business innovation. Cloud computing representing the
network and service oriented technology trend. Depending
on the needs of each individual user, it dynamically
provides consideration and allocates resources such as
storage, network bandwidths, software and etc. It has
advantages in dynamically expandable, low operational cost,
easy manage and resource-friendly[3].
As a new processing model based on the internet
information sharing simulation, cloud computing provides
virtual resource storage and superior abilities in data
processing, data storage and management, users can enjoy
the benefits in cost reduction, better efficient and data
sharing and thus obtain and use information easily.
2.2 Framework of Logistic Information Network
Logistic Information Network is a logistic company’s
database that stors customer information, market
information and business information for company’s
internal data sharing. It relies on transport nodes between
different information networks that builded up by
up-to-date networking technologies. Its duty is to integrate
different manufacturers, suppliers, cargo owners, system
users, transportation systems and government departments.
Build up a large scale of Logistics information platform and
information exchange centre network. Use tools like RFID,
2011 Seventh International Conference on Computational Intelligence and Security
978-0-7695-4584-4/11 $26.00 © 2011 IEEE
DOI 10.1109/CIS.2011.285
1286
EDI and GPS to provide logistics information management,
information sharing and logistics online tracking and
maintenance.
There are four layers in a logistics information network,
base layer, support layer, service layer and business layer.
See Figure 1.
The first layer is base layer, it includes information
system hardware facilities (telecommunication network,
network equipment, computer hardware, logistics facilities),
logistics information standards (product electronic code,
EDI standards) establishment and application, and logistics
political environment and personnel development.
The second layer is support layer, It is a logistics
information platform covering the entire supply chain,
exchange and share various logistics links and nodes of
information,Its main features include public
database ,certification and data exchange.
The third layer is the logistics information services
layer,It includes the operation of logistics information
platform, the development platform, and service Platform.
The fourth layer is the logistics information business
layer. It is constituted by warehouse management
system,transportation management system,customs
system,order management system,etc. which fulfils
business functions、knowledge management and database
developing to implement task of high-level information
processing and handling .
Figure 1 : Framework of Logistics Information Network
III. THE LEVEL OF CLOUD COMPUTING AND SERVICE
MODULE ANALYSIS
3.1 The Service level of cloud computing
According to service type, cloud computing service is
divided into four levels:Application layer,Platform
layer,Infrastructure layer and Virtualization layer. Each
layer corresponds to a subset of services.
Figure 2: Level of cloud computing services
The level of cloud computing system can be divided,
and each level can complete user's request seperately.
3.2 The application modules of cloud computing in the
logistics information network
Cloud computing performance of a variety of forms,
their applications are very extensive. For logistics
companies, Mainly used in the following areas.
3.2.1 Software-as-a-Service
The current logistics enterprises in the information
construction process,mostly develope the software by their
own IT section. Current logistics enterprises mostly have
their IT departments responsible for soft development in
their process informationization,but the cost is high. And
also some enterprises turn to professional software
providers for technical support; hovever, the purchased
information networks are seldom compatible with their
needs. In SaaS, all the logistics software providers can
arrange the applicable softwares such as TMS, WMS with
servers or intranets, and meet customers’ needs for logistcis
softwares via Internet. Customers can use web-based
softwares to manage logistics activities by renting.
According to this mode, small and medium-size logistics
enterprises can make use of relevent hardwares, softwares
and maintenance services and have the right to use them
and have them upgraded by paying some charges in renting
via Internet wherever and whenever it is available.
3.2.2 Platform as a Seivice
Platform as a Seivice is to provide customers with
development environment, server platform, applicable
software development, databases, applicable servers, and
experimentation.
PaaS integrates existing businesses, which can be
classified into applicable servers, business access, business
engin, open business platforms.PaaS estimates the
capability of basic service according to the need of business
and offers business manipulation services, monitoring all
the resources on the platform and making them accessible
to SaaS users. By exploring its immense power of
calculating,we can improve PaaS’ ability of data-processing
Application layer
Platform layer
Infrastructure layer
Virtualization layer
SaaS
PaaS
IaaS
HaaS
The models of Cloud computing The Sub Service of Cloud computing
1287
and, find out its relevance rules to make intensive and
in-depth utilization, so as to work out more inclusive and
accurate data.
3.2.3 Infrastructure as a Service
IaaS renders basic computing equipments in the form
of service, as the most deep-rooted and fundamental service.
It rents basic equipments(computer resources and storage)
as services, such as processor, storage, networks and other
forms of computing resources. Users will not manage or
control equipments, but can manipulate the choice of
system, storing space, deployment, and are likely to have
control of restricted network gadgets
The current hardware environment mode of logistics
enterprises is that enterprises spend much in purchasing
network products, creat network environment, appoint
specialized personnel for maintenance.The mode of
investment costs much and along with constant upgrading
of products is the frequent input of personnel. As a result,
many domestic logistics enterprises,small and
medium-sized ones in particula, are out-of-date in
informationization. The IaaS-based new mode is to, in
accordance with the needs of enterprises,“rent products”and
“purchase service” from service providers. By this mode,
they can get sound hardware environment with less rents
and without considering upgrading of the products. This is
of positive significance to pushing up information network
construction for domestic small and medium-sized logistics
enterprises.
IV. CLOUD COMPUTING-BASED LOGISTICS INFORMATION
NETWORK CONSTRUCTION
Abundant information including data, fly sheet,
materials, and documents, is circulating on the logistics
information network platform. This has called for great
demand for both software service and hardware facilities.
The construction of cloud computing-based logistics
information network provides ideal environment for the
growth of logistics enterprises.
1. To speed up the construction of logistics enterprises
informationization
Logistics enterprises should highly value logistics
information network construction by choosing appropriate
channels of construction in consistence with their own size,
development goal and demand. During the course of
construction,they should not only consider meeting the need
of current development, but also considering the strategy of
the enterprise development in order to accommodate the
future market and the need of enterprise development. The
enterprise should pay close attention to the new trend of
informationization technology and adopt the international
standard or industry standard, especially for the interface, in
order to lay good technological foundation for the update of
information platform and expansion. The government
should increase research and development of logistics
information technology, esp. logistics information technolo-
gy, take effective measures to encourage logistics
technology innovation and support enterprises to improve
logistics management and operation by adopting
information technology, support the network construction
and management innovation by way of information
exchange and information sharing.
2. To enforce the facilities construction of cloud
computing
Although mature cloud computing can provide logistics
operation with software service, platform service or
equipment service, and can be a great driving force for the
operation of logistics enterprises and the development of
logistics, cloud computing is still in its infancy in China.
Therefore, the current facilities is far from meeting the
demand of the development of cloud computing. Fast
and stable internet, instant data delivery and channels,
large-scale and stable data processing centers are all the
necessities for normal cloud computing. Therefore, in the
development of Internet, the Internet bandwidth and
stability should be further assessed according to the
requirement of cloud computing development, attempting to
satisfying the cloud computing development when laying
the facilities, and in the meantime, benefits the perfection of
logistics information network.
3. To value key technology development of cloud
computing
The key technology of cloud computing should be
researched and developed according to the industrial
foundation, technology development trend, and demand of
application by making full use of all sources from
production, colleges and research institutions. The technical
nature of cloud computing is the virtualization of IT
software and hardware, including computing, storage,
servers, and internet applications. Key science and
technology development fund and industrial development
fund can be used to increase investment in key fundamental
technology and common technology research and
development. Meanwhile, national labs and industrial
technology public service platforms can be set up.
Enterprises can be encouraged to import, digest and absorb
cloud computing technology by strengthening their
international exchange and cooperation. The key
technology of cloud computing can be mastered on the
basis of commercial application, to realize technology
innovation and service mode innovation simultaneously, to
achieve integration and scientific layout, avoiding following
suit and repeated construction. The sound and rational
development of cloud computing can be driven in this
way[4].
4. Logistics information resource pooling
Because a large number of logistics enterprises in
China have small sizes, poor data processing and
information delivery, poor internal coordination,
poorly-coordinated functional departments, well-coordinat-
ed value chain among production, supply and marketing
cannot be shaped, which causes the poor application and the
holistic optimization cannot be achieved. Although some
1288
logistics enterprises have achieved a certain amount of
achievement, most of them only have internal service.
Effective resource integration, process optimization and
improvement of management have not been achieved. The
key of logistics information resource integration is to build
information sharing platform, to connect limited logistics
resources from the enterprises and disperse resources from
the society, to form resource pool on the cloud computing
platform. In this way, advantageous resources can be better
integrated to provide customers with high-quality and rapid
logistics service.
5. Foster the application of cloud computing based
logistics information network in the market
Cloud computing has great potential for wide
application in China. Nevertheless, it is still in its infancy.
In logistics enterprises, application of cloud computing is
mainly limited in express delivery and dispatching. Its
advantage in scale efficiency,intensification, standardizatio-
n in supply chain has not been exerted. It is very difficult to
pull the development of cloud computing only by the force
of logistics markets. Therefore, government can play a role
in the following areas: planning cloud computing
development, optimizing cloud computing industrial layout,
setting up ideal market context and cloud computing
industrial standard and key product technical standard
system, exerting the fundamental role of markets,
motivating the enterprises to engage in technology
innovation, fostering market, regulating the market order,
creating a fair and ideal environment for the sound
development of logistics enterprises.
V. CONCLUSIONS
The cloud computing-based logistic information
network offers a brand-new mode in hardware environment
construction, software development, network platform
management, and can speed up the informationization of
small and medium-sized logistics enterprises by lowering
by large margin investment in initial phases. So enterprises
have only to pay for services actually used and can obtain
immense amount of data in cloud computing and software
and platform services, and realize rapid expansion of
business. With the deepening of research on cloud
computing, it is exerting a even greater impact on logistics
and is condusive to rapid development of logistics industy.
VI. REFERENCES
[1] Jie Xu. A connotative Analysis on MF Network. Journal of Beijing
jiaotong University(Social Science Edition), 2005, 6: 22-26.
[2] Aleksandra Mojsilovic; Bonnie Ray; Ssmer Takriti. A logistic
regression framework for information technology outsourcing
lifecycle management. Computers & Operations Research. 2007,
34(12).
[3] Pallis,George . Cloud Computering:The New Frontier of Internet
Computing ,IEEE internet computing ,2010,14:87-95
[4] Ning Lin. China Cloud Computing Standardization and Suggestion
Information Technology & Standardization. Information Technology &
Standardization, 2010, 12: 34-37.
[5] Hang Li,Houjin Chen.Key Technology and Application Prospect of
the internet of things. China Science and Technology Forum, 2011, 1:
81-85.
[6] Huafeng Yu, The Construction of Logistics Information Platform
Based on cloud computing. Science & Technology
Information .2010,1: 51-52
[7] Di Tang,Lin Li. The Application of Cloud Computing in Scientific
Research Information Construction. Office Automation, 2011, 1:
10-13
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