Figure 4 demonstrates how a closed ELM can be used to manage the order-fulfilment process
and speed up communications across the whole supply chain. The process starts with the
customer generating a purchasing order in the ELM and the order is automatically transferred
to the shipper. Following this, transport planning and execution takes place between the
shipper and carrier. During the goods-in-transit period, the system gives a constant update on
the status of this consignment (for instance via real time tracking using GPS) to all parties
involved. A closed ELM could be either hosted in house or by a third party technology service
provider based on cloud computing. The latter is often referred to as a cloud-based ELM. One
of the major advantages of using a cloud-based ELM is that it provides centralised
management of all the data relating to a particular consignment. Therefore, any change can be
simultaneously communicated to all the different parties involved. This increased visibility
enables companies to be in more control of the supply chain and be proactive in responding to
exceptional events. The system can also facilitate financial settlements and performance
reviews such as total delivery cost and on-time delivery. By changing the structure of
communications between shippers, carriers, an ELM integrates various modes of transport
into an inter-connected streamlined supply chain and brings multiple benefits including cost
reduction and customer service improvement (Wang et al 2007b).