The Development of E-Logistics - Essay Example

?E-Logistics Table of Contents Table of Contents 2 0 Overview 3 2.0 Reason for Emergence of E-Logistics and Its Distinguishing Factors 4 References7 Bibliography 9 1.0 Overview E-logistics is the basic structure of global model of e-business. E-logistics replicates the major features of traditional logistics. Logistics is a complex sort of business. Several firms have the false opinion that they can solve the logistical problem by making it simpler to the highest extent i.e., by developing a central warehouse, delivering goods within 48 hours to customers for a single fee and selecting a single logistics provider. But this is not possible in reality. As e-business (e-commerce) develops there is an evolution in the logistical services offered by companies (Beebe, n.d.). E-logistics is a system of ‘automating logistic process’ that provides an integrated, end-end completion of services and supply chain management of services to players, who perform logistic practices (Zhang & Et. Al., n.d.). The development of logistics comes under three categories such as military logistics, business logistics and e-logistics. Nowadays, e-logistics has become the most modern concept in the logistics industry. It can understand and recognise the utility of electronic technology, automation as well as network technology (Weixi & Jian-Jun, n.d.). 2.0 Reason for Emergence of E-Logistics and Its Distinguishing Factors E-logistics signifies a process of acquisition and storage of goods and services and also the products’ and goods’ movement and their information in an appropriate manner with best service and lowest cost. The competitive environment has enabled e-logistics to function more effectively. Customers are provided best services with the help of e-logistics. Due to e-logistics, the products are delivered with better quality, reduced costs and shorter lead time. Companies can gradually organise their operations in synchronised time and make the information available according to customer’s needs and the products can also be prepared in time. Customers require not only latest information, but also immediate information regarding the place and disposition of the entire productive assets. They expect to have the information of the location of the asset with available transportation facilities. Based on this present situation, logistics is becoming chief enabler of ‘real-time response’ to the needs of customers. It is becoming tools which create space for important cost reduction. Overall financial perspective drill benefits from improving in various areas. E-logistics is advantageous for a company to investigate its internal resources as well as collective resources of vendors, suppliers, customers and buyers. The emergence of e-logistics represents challenges and opportunities for a company. Information need to be passed through both organisational boundaries as well as distances that split and span the whole enterprise. The power of E-logistics is present in its ability while bringing together former unlinked information access to the entire supply chain production and for developing effective tools in order to handle complex flow of information as well as materials (Jovovic, 2010). The challenges faced by e-logistics include limited retailing experience and in certain cases volume of return is not definite (Sarkis, 2011). E-logistics is an outgrowth of e-commerce revolution. As the information is gathered rapidly, a company can develop the logistics service with low cost (Business Week, n.d.). E-logistics leverages the power of internet and other wireless technologies in order to provide vital information to supply chain participants. It also offers extraordinary levels of visibility across the entire supply chain. Emergent e-logistics solution providers as well as service companies are blowing into this prospect. They are tapping by means of addressing logistics issues which includes supplier selection, order fulfilment, asset utilisation, inventory management, order visibility and pricing (Beebe, n.d.). The development patterns are separated into two groups of e-logistics. The first group is e-logistics information market and the other group is e-logistics system. E-logistics information is related to the information in the internet. In this group, the information related to the logistics of the consignor and serviceable vehicles of the transportation company are input on the internet and according to the information provided, both the parties can be able to sign a contract. The major function in this group is information search, bid and dissemination. For example, National Transport Trade market is an electronic market for transportation of goods and services. It develops a trade internet by means of internet technology for a logistics company, consignor and transporter. The second group is related to the e-logistics system which is expert in providing supply chain management for logistics enterprises. In this pattern various technologies along with logistics services are inter-connected with each other. In China, development of e-logistics has prior value as it is related to up-to-date information and modern construction (Weixi & Jian-Jun, n.d.). E-logistics has both advantages as well as disadvantages. It can sustain focus on core competency and provide importance to the efficiency of the product handling of services. The disadvantage is that it is officially liable if anything goes in a wrong way (Bayles, 2002). E-logistics can be explained from the case study of “e-logistic and e-marketing for paysans.fr”. Paysans.fr is a “farmer market” in France, which provides fresh foods to the customers of the nation. They make delivery through internet. The firm has 2,000 customers today after working as a pure-player for 24 months. E-commerce of foods accounts for 10-12% of sales revenue of electronic trade in France. Over past few years several producers had experienced online selling. E-logistics platform enables them to make order, inform the producer of food and make delivery to the customer within 72 hours. The service is technologically processed by means of a single website. It covers various stages starting from ordering to the home delivery management encompassing the approval and the preparation of goods. They prepare the order within 24 hours after approval of the order and the parcel gets prepared within the stipulated time. Online marketing has become a vital distributional channel for Paysans.fr though food industry in constrained. The major innovation in the distribution method of delivery of foodstuffs of the organisation facilitates new market opportunities and assists that the business power of small-scale firm can also be enhanced. However, the online marketing entail a permanent version of new support mechanisms as well as distribution channels, for example, either by means of mobile phones or by television, and the development of an offer of related services (E-business Watch, 2005). References Bayles, L. D., 2002. Pros: Arguments for Outsourcing E-Logistics. E-Logistics & E-Fulfillment: Beyond the “Buy” Button. [Online] Available at: http://r0.unctad.org/ecommerce/event_docs/curacao/bayles.ppt [Accessed March 18, 2011]. Beebe, A., No Date. Enter E-Logistics. 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 March 18, 2011]. Business Week, No Date. Transactions. Business-to-Business Fulfilment Grapples With Complexity. [Online] Available at: http://www.businessweek.com/adsections/chain/2k/logcomplexity.htm [Accessed March 18, 2011]. E-business Watch, 2005. Background and Objectives. Case Study: E-Logistic and E-Marketing For Paysans.Fr. [Online] Available at: http://www.ebusiness-watch.org/studies/case_studies/documents/Case%20Studies%202005/CS_SR01_Food_4-Paysans.fr.pdf [Accessed March 18, 2011]. Jovovic, R., 2010. Introduction. Global Business Models Based On E-Logistics and Its Financial Measurement. [Online] Available at: http://www.mnje.com/XI/069-074%20Jovovic.pdf [Accessed March 18, 2011]. Sarkis, J., 2011. Reverse E-Logistics and the Natural Environment. E-Logistics and the Natural Environment. [Online] Available at: http://www.google.co.in/url?sa=t&source=web&cd=1&ved=0CBwQFjAA&url=http%3A%2F%2Fwww.clarku.edu%2F~jsarkis%2Fe-logistics%2520and%2520the%2520natural%2520environment.ppt&rct=j&q=Reverse%20E-Logistics%20and%20the%20Natural%20Environment%20%2B%20clarku&ei=kT2HTe2SFcXtrAfH1eQs&usg=AFQjCNHK70E6Byr1knmHjLf_Nmxq3VQ5xA&sig2=mSfhrrSgbhsaUERe6_WZXA&cad=rja [Accessed March 18, 2011]. Weixi, Z. & Jian-Jun, W., No Date. Introduction. New Tend of E-logistics. [Online] Available at: http://www.seiofbluemountain.com/en/search/download-file.php?id=1024 [Accessed March 18, 2011]. Zhang, J. L. & Et. Al., No Date. E-logistic Processes Integration. ELPIF: An Logistics Processes Integration Framework Based on Web Services. [Online] Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.23.2231&rep=rep1&type=pdf [Accessed March 18, 2011]. Bibliography Alluson, D. A., 1999. Logistic Regression Using the SAS System: Theory and Application. SAS Publishing. Branch, A., 2008. Global Supply Chain Management and International Logistics. Taylor & Francis. Chartered Institute of Logistic and Transport in the UK, 2007. Global Logistics: New Directions in Supply Chain Management. Kogan Page Publisher. Christopher, M., 1998. Logistics and Supply Chain Management: Creating Value-Added Networks. Pearson Education India. Fandel, G., 2004. Modern Concepts of the Theory of the Firm: Managing Enterprises of the New Economy. Springer. Jahre, M., 2008. Northern Lights In Logistics And Supply Chain Management. Copenhagen Business School Press DK. Liu, S., 2010. Advances in Grey Systems Research. Springer. Waters, J. D. C., 2007. Global Logistics: New Directions in Supply Chain Management. Kogan Page Publishers. Read More