Business done on internet and in an electronic (vs a physical one) environment is called electronic busines, or
shortly e-business. It provides unique advantages both to the supplier and to customer.
Suppliers benefit from logistics advantages such as stock keeping flexibilities. Without having the obligation
of physical presence in a wide range of geography, they can consolidate their inventory in strategic and central
locations and cater their customers from those spots. Related cost advantages make them more competitive in
Customers have the big advantage of having access to all available alternatives quickly. They can compare
different qualities, prices, payment and delivery conditions, product / service guarantee conditions. Making
purchases online brings convenience, location flexibility and time usage efficiency to its users. Price
advantages suppliers offer thanks to their reduced cost is another plus for customers.
Although it had a constant growth trend over the last 3 decades, Covid 19 has boosted the e-business
tremendously. Companies and organizations who will excel on e-business will be the most successful ones in
In this Project you are asked to design an e-business model in B2C field. Your company is a retailer with a
long history and several physical stores across different regions and cities of Turkey. This retailer is already
in e-business with its web site and mobile application for the last 12 years but it wants to undergo a digital
transformation to adopt state-of-the-art Logistics 4.0 concepts.
The retailer has analyzed the Big Data achieved in the last 12 years and concluded that especially milkbased
products constituted the largest portion of its revenue and an improvement in the delivery of this product group
would contribute to its business success.
Your company’s business slogan under its logo is ‘’sustainable customer satisfaction’’ and the value
proposition of to its customers is ‘’In your fridge within an hour!”
Following product items have been assigned to the project team you are leading:
These products have relatively much shorter ‘’best before’’ dates compared to other food stuff. Therefore in
order to make sure that you acheive
– avoding excess amount of inventory in your warehouse – 99.8 % fill rate (FR) average in
targets at the same time, you are asked to design your warehouse and logistics systems. The task list is as
– Suggest a sensor system to keep stock level under constant check in each warehouse – Design an information sharing system among warehouses in which they communicate in intranet
system to keep stock level balanced across all depots
– Define Last Mile Delivery problem. Especially for remote spots of the country suggest a Route
Optimisation strategy. Bring alternative solutions (motor courrier delivery, cooperation with a petrol
station, -grab your order- kind of new and innovative models)
– Suggest an efficient tracing / tracking system for your delivery vehicles to keep control over your
– Define Big Data concept. Suggest an approach to analyze the data you collect from purchases on your
web site and mobile applications
– Define Aritificial Intelligence (AI) and suggest an AI system to make accurate forecats
You need to return the Projects on ITS Learning system, in Word format. The project should have minimum
Certain citations from web are welcome but similarity index should be max. 15%.
I wish you success in your final exam.