Comparison between Traditional Logistics and E-logistics - Literature review Example

E-Logistics By Table of Contents Table of Contents 2 Introduction 3 Introduction to E-Logistics 3 Comparison between Traditional Logistics and E-logistics 5 Advantages of E-logistics 5 Disadvantages of E-Logistics 8 Conclusion 8 References 9 Introduction It is an admitted fact that the Internet has turned out to be a main driver for financial growth of firms for the reason that the modernism brought by the Internet has revolutionized the ways of carrying out business activities. Without a doubt, the development of internet based platforms has modernized not only the ways in which products, goods, and services are bought and sold, but also how they are delivered to sales and service centers, customers, stores, and dealers. In this scenario, the logistics is the process of managing an operation that involves supplying labor and materials to be supplied. Basically, the idea of logistics is based on the procedures of tactically managing the movement, acquisition and storage of products, parts, materials and finished inventory from the companies and its marketing channel. As a result, the present and future productivity is improved all through the cost-effective accomplishment of orders. In addition, the logistics operations those that are automated through the Internet offer supply chain visibility and are able to be part of the accessible workflow of e-commerce systems in a corporation (Nigel et al., 2010; Turban et al., 2005; Laudon & Laudon, 2005; Somuyiwa & Adewoye, 2010). In the past few years, e-logistics emerged as an attractive trend and the majority of business organizations have started adopting this trend. This essay presents an analysis of e-logistics, its characteristics, advantages and disadvantages. This essay also discusses how e-logistics is different from traditional logistics. Introduction to E-Logistics Logistics can be defined as an efficient and effective storage and flow of goods and products from their point of origin (supply of raw material) to the point of consumption (delivery to end-users). Basically, it comes under the process of supply chain that plans, puts into practice and keeps record of the flow of goods. The majority of production companies use logistics to manage their inventory operations in rest or in motion. Historically, the term “logistics” was initially used by the military sector for explaining the process through which they had to supply a battleground with supplies, equipment and troops. However, with the passage of time, the use of this term has become very common in every kind of business (Fang & Zhang, 2005; Babbar & Prasad, 1998; Crystal, 2013). In their paper, Wang et al. (2004) presented a detailed analysis of e-logistics. According to their viewpoint, e-logistics is a collection of different aspects such as computing, communication and collaborative technologies that work collectively in order to convert key logistical operations into customer oriented operations, by sharing information, data, and knowledge in a timely manner with the supply chain associated. Additionally, e-logistics also allows business organizations to synchronize their supply chain operations. In this scenario, it provides an excellent support for decision-making. The basic goal of e-logistics is to facilitate an organization to distribute the accurate goods and products in exact quantities at the right time and place to the right customers. In order to achieve this goal, e-logistics makes use of a wide variety of tools and technologies such as the internet wireless, which allows business organizations to get purposeful data and information and share it with their supply chain associates and provide them with extraordinary levels of visibility all the way through supply chain. In fact, at the present a large number of firms are providing e-logistics solutions which are aimed at resolving a wide variety of logistics issues for instance supplier selection, pricing, asset utilization, inventory management, order fulfillment and order visibility (Wang et al., 2004; Babbar & Prasad, 1998; Fang & Zhang, 2005; Sarkis et al., 2004). Comparison between Traditional Logistics and E-logistics In their paper, (Wang et al., 2004) discussed how e-logistics is different from traditional logistics. In this scenario, table1 clearly outlines major differences between e-logistics and traditional logistics. (Wang et al., 2004) used different variables to compare both kinds of logistics. However, the overall analysis shows that e-logistics improves the efficiency of business organizations and they can derive strategies according to demands and expectations of their customers. Table 1Comparison of Traditional logistics and e-logistics, Table Source: (Wang et al., 2004) Variables E-Logistics Traditional Logistics Type of delivery or shipment Parcel or prroperly packeged Bulk or massive quanitity Customer Generelly covers a huge customer base Only a few identfied customers Customer Services E-logistics improves the capability of comminications with customers thus provides excellent mediums for communications and customer support Reactive or rigid. It depends on the nature of the customers when and how they communicate Distribution channels or mediums Demand driven pull Supply-driven push Inventiry/order flow Flows in both the directions Flows in only one drection (either inward or outward) Target customer based Highly dispersed Focused Demand Highly seasonal Stable Expected nature of orders Variables Predictable Advantages of E-logistics According to Arabe (2001) one of the major advantages offered by e-logistics is the visibility across the supply chain. In other words, customers have more accurate access to their orders and shipment details. This is simpler to manage at the present those truckers and brokers to post information in real-time. Certainly, e-logistics based technology offers exact as well as the real-time technology that is reliant on the excellence of the technology supplier. It goes without articulating that corporations should check around previous to settling on a service supplier. In this scenario, a high-quality place to start research is to discover out the names of the e-logistics supplier’s technology partners as well as what type of credentials they have. As discussed above, e-logistics based products and services based arrangement offer more accurate practice in managing the business services and areas. In addition, corporations are able to control the products and services availability in a better way. This also offers facilities of handling and controlling the movement of the business supplies. These all actions lead toward the better and enhanced handling of the corporate supply chain management aspects (Arabe, 2001; Beebe, 2009). Up till now a large number of researches have been conducted on e-logistics and its impacts on business organizations. Many researches outline the advantages of e-logistics. In this scenario some of the important advantages of e-logistics discussed by Somuyiwa and Adewoye (2010), Zhelyazkov (2012) and Gunasekaran (2002): E-logistics makes it easy for business organizations to manage global supply chain through fast and secure logistics processes. Better stakeholder management Primarily benefits for the both buyers and suppliers of the product or the service. Reduction of travelling costs Selection of most shortest and convenient route Security of transactions Fast response Logistic tracking Offers a great deal of competitive advantage Sharing plus visibility of business information Support for global supply chain management Better transparency through sharing information among stakeholders Creation of better external links for better business information management In addition, some of the latest inventions especially in the areas of information and communication technologies (ICTs) and next generation communication technologies have made it possible to establish effective communication links between corporations and for numerous organizations. In this scenario, the web based environment of businesses has highlighted the significance of ICT in global supply chain and logistics management areas. Moreover, a number of researchers have found that ICT integration into business operations allows a business to improve its supply chain (Somuyiwa & Adewoye, 2010; Zhelyazkov, 2012; Gunasekaran, 2002). Disadvantages of E-Logistics Though e-logistics offers a wide variety of opportunities and advantages to business organizations but it also involves various issues. Some of the important issues are: (Turban et al., 2005; Sawhney, 2012) Virus Attacks (in view of the fact that e-logistics works in Internet supported platforms so there is chance of virus attacks) Hacking and other security issues (a hacker or opponent can hack the information that can be used to destroy the business or some part of the business) Additional investment (the implementation of e-logistics requires huge investment. In fact a business organization has to train its staff members in order to manage their logistics operations effectively. Conclusion This essay has presented a discussion on e-logistics. This research has covered a wide variety of aspects related to e-logistics. Without a doubt, the Internet has changed the traditional practices of carrying out business activities. At the present, the majority of business organizations are well aware of the fact that they need to make use of latest tools and technologies if they want to survive in this ever-increasing competitive business world. In this scenario, e-logistics is a latest emerging trend, which allows business organizations to make use of the latest tools and technologies to support logistics and supply chain operations. This paper has discussed the advantages and disadvantages of e-logistics. One of the major advantages of e-logistics is that it facilitates an organization to distribute the accurate goods and products in exact quantities at the right time and place to the right customers. In this scenario, a business organization focuses on the products that are needed by the customers and when they want them. In short, e-logistics improves the efficiency and effectiveness of supply chain operations. References Arabe, K.C., 2001. An E-Logistics Roadmap. [Online] Available at: http://news.thomasnet.com/IMT/archives/2001/08/an_elogistics_r.html [Accessed 04 Februay 2013]. Babbar, S. & Prasad, S., 1998. International purchasing, inventory management and logistics research: An assessment and agenda. International Journal of Physical Distribution & Logistics Management, 28(6), pp.403-33. Beebe, A., 2009. Taking Advantage of E-Logistics to Strengthen The Competitive Advantage Of High-Tech Manufacturers In Taiwan. [Online] Available at: http://www.mercatela.com/html/solution/e-logistics.pdf [Accessed 03 February 2013]. Crystal, G., 2013. What is Logistics? [Online] Available at: http://www.wisegeek.com/what-is-logistics.htm [Accessed 07 February 2013]. Fang, L. & Zhang, C.-q., 2005. The e-logistics framework in e-commerce. In ICEC 05 Proceedings of the 7th international conference on Electronic commerce. New York, 2005. ACM. Gunasekaran, A., 2002. Benchmarking in logistics. Benchmarking: An International Journal, 9(4), pp.324-25. Laudon, K.C. & Laudon, J.P., 2005. Management Information Systems: Managing the Digital Firm, 9th edition. New York: Prentice Hall. Nigel, S., Stuart, C. & R, J., 2010. Operations Management. 6th ed. Pearson College Div. Sarkis, J., Meade, L.M. & Talluri, S., 2004. E-logistics and the natural environment. Supply Chain Management: An International Journal, 9(4), pp.303-12. Sawhney, M.S., 2012. Advantages And Disadvantages Of E-commerce. [Online] Available at: http://www.manjeetss.com/articles/advantagesdisadvantagesecommerce.html [Accessed 04 February 2013]. Somuyiwa, A. & Adewoye, J., 2010. Managing Logistics Information System: Theoretical Underpinning. Asian Journal of Business Management, 2(2), pp.41-47. Turban, E., Leidner, D., McLean, E. & Wetherbe, J., 2005. Information Technology for Management: Transforming Organizations in the Digital Economy. New York: Wiley. Wang, J., Yang, D., Guo, Q. & Huo, Y., 2004. Taking Advantage of E-Logistics to Strengthen the Competitive Advantage of Enterprises in China. In In proceeding of: The Fourth International Conference on Electronic Business - Shaping Business Strategy in a Networked World. Beijing, 2004. Zhelyazkov, G.I., 2012. The impact of ICT systems on road transport SMEs in Australia. [Online] Available at: http://galinzhelyazkov.com/wp-content/uploads/2012/05/The_impact_of_ICT_systems_on_road_FINAL.pdf [Accessed 08 February 2013]. Read More