Investigation of the E-Commerce and Associated E-Logistics - Coursework Example

E-logistics and SCM Table of Contents Table of Contents 2 Introduction 3 Supply chain management systems 4 Modern logistics and supply chain management systems 5 Modern logistics and traditional logistics 6 Technology of the E-Logistics 7 Advantages of E-Logistics 8 Disadvantages of E-Logistics 8 Conclusions 9 Bibliography 9 Introduction Electronic commerce has changed and revolutionized not simply the means through which goods, products, and services are sold, however how they are delivered to buyer. In addition, with the presence of electronic commerce based technology customers demand products distributed at extremely high speed through complete order convenience and flexibility. Furthermore, at the present clients desire to be able to track their order quickly (online), in other words, the time they place an order in anticipation of the moment they take delivery of it at their doorstep. However, with the help of modern and up-to-date technologies web based customers have become smart. Since, they desire to have the capability to re-route shipments, decide deliverance time and costs in transportation, as well as divide their orders for various shipments to dissimilar addresses (Laudon & Laudon, 2006; Turban et al., 2005). Groznik (2008) stated that these all aspects denote that the transfer of the power from the seller to the buyer has formed a modern age of opportunities. In addition, at the present, new e-commerce based e-logistics offers the buyers more power and they would not accept bad experiences like that poor product return strategy, partial shipment of goods or appropriate back orders. Furthermore, the main and mostly accepted shape of logistics has conventionally been based on moving the huge shipments of products in bulk to choose intentional customers in a small number of geographic locations (Groznik, 2008). However, all the conditions have changed. Since, every person logging into e-commerce website is a customer. This paper presents detailed analysis and investigation of the e-commerce and associated e-logistics. This paper will analyze and investigate the e-logistics and supply chain management (SCM) by distinguishing e-logistics and traditional logistics, to clarify the benefits and challenges of e-logistics. Supply chain management systems According to (Laudon & Laudon, 1999, p.55), “supply chain management integrates the supplier, customer logistics requirements, and distributor into a single consistent practice. Here, the supply chain is a group of corporal attributes such as industrialized plants, distribution centers, conveniences, personnel, retail outlets and information, which are linked with side to side activities such as procurement or logistics, to deliver goods or services from starting place to the target” (Laudon & Laudon, 1999). Xiao & Zhang (2001) stated that electronic commerce and SCM have developed great and significant interest in public and private associations in recent times. Since, this is the inspiration of offering privileges to client as well as enhancing working performance in the contemporary digital economic system in the course of an incorporated, internet enabled supply chain that offers facility to jointly manage the manufacturing and logistics service divisions rapidly. However, there are possible reimbursements that corporations could realize and achieve from electronic commerce since effective and efficient administration of the supply chain (SC) is capable to achieve the enhanced information and its processing. However, at the present corporations have to take full advantage of “network technology”, and reach the markets wherever individual trade no longer so popular (Xiao & Zhang, 2001; Huhns et al., 2002; Turban et al., 2005). Sreenivas (2007) outlined that the historical development of supply chain paradigm could be traced back to the growth of quick response plans. However, the quick response (QR) is the most important feature of electronic supply chain that is an “approach where the producer struggles to offer goods and services to its trade clients”. In addition, the main intention in the present traditional business practice is about the smallest amount of time delivery of the customer products. However, the modern electronic SCM involves the scanning, bar coding, and web based electronic communication to deal with data and information among sellers and distributors through electronic information data interchange (Sreenivas, 2007). In addition, the main intention of supply chain management is not only toward the association and management among producers and buyers. However, the supply chain management necessitates manufacturing as well as distribution. In addition, to implement this administration technique effectively, organizations need to reorganize, realign their operational associations, and operating systems through other linked parties. Furthermore, association among SC associates and the use of IT (information technology), that aids internet based communications and dealings; become necessary enablers of supply chain management plan (CNET, 2000), (Fang & Zhang, 2005) & (Bayles, 2002). Modern logistics and supply chain management systems Logistics services are very old paradigm that is developed and established to address inefficiencies in the transportation business; typically concerning products/goods ordered online that could be delivered to the customer in an efficient and timely way. In addition, the logistics services might encompass order management, order entry, vehicle and shipment tracking, reporting and communications (Bitpipe, 2009; Turban et al., 2004). Thus, it can be said that in the future the logistics and modern supply chain management systems will turn out to be more significant tools for the competitiveness of markets in the web based infrastructure. In addition, the modern supply chain management system and logistics service have reformed and modernized the method through which the products/goods are produced, supplied, returned and delivered (Economic Commission for Europe, 2009), (Fang & Zhang, 2005) and (Doursat & Ulieru, 2008). However, through the consumer demand as well as the globalization of trade and production, presently distribution and supply chains are getting longer. In addition, JIS (just-in-sequence) or JIT (Just-in-time) production, supply and distribution systems more and more necessitate flexible, reliable, efficient and fast transport systems. Furthermore, these arrangements have an imperative impact on alternatives made through the manufacturing (rail, road, sea, inland water, and/or air transport) (Economic Commission for Europe, 2009). Modern logistics and traditional logistics Groznik A. (2009) outline that the demand style of the traditional logistics is unidirectional, on the other hand, in the e-commerce based logistics it is bi-directional and pull. However, the targets for old or traditional logistics are concerned with the stable consistent demand, but for e-commerce logistics targets are extremely dispersed through fragmented and seasonal demand. The entire of these basic dissimilarities in traditional logistics against web based commerce logistics is an opportunity to transfer to electronic logistics. However, the prospects are happening next to improved service customer; however it is one more business or a consumer. In addition, the electronic-commerce is a narrow term functional to the procedure of carrying out straightforward transactions on-line (Groznik, 2004). Electronic business, though, is the overall addition of electronic procedures all through the vital purposes of a corporation. In addition, it is a complete solution that encompasses e-fulfillment, e-logistics, enhanced customer satisfaction, supply chain optimization as well as a blend of additional intangible and tangible benefits. However, building, designing, developing, and maintaining an e-business website comprise both soft costs and hard costs. In addition, that is normally allocated in three methods: direct project costs, infrastructure costs, and distributed costs. However, the traditional logistics involves simply the hard costs those are common in the booth logistics. In addition, the hard costs consist of costs for tangible goods like that wiring, hardware, telecommunications lines, software applications and other similar things. Also, these costs cover the major part or the corporation’s expenditures as well as easy to measure and allocate. On the other hand, soft costs comprise training, labor, gain or loss of sales opportunities, and signify intangible factors those are hard to measure as well as hard to assign. However, this fundamental principle of e-business nowadays is being executed by various organizations (having different types and sizes) carrying out their business activities on-line, also they have shaped a novel environment used for transportation along with logistics. Furthermore, the web based businesses are attracting and forcing a basic shift in the services and structure of logistics and transportation businesses (Inter-Log, n.d; Ray, 2004). Technology of the E-Logistics Here I will outline the some of the main technologies those are utilized for the e-logistics (TECC, 2009): Bar-coding Radio Frequency Identification Tags Environmental Consignment Monitoring  Track and Trace Pick and Pack Mobile Computing Devices Business Online Technology Advantages of E-Logistics The most important advantage offered by the e-logistics is the visibility across the supply chain. In other words, customers have more accurate access to their orders and shipment details. This involves the real-time logistics information management that is offered through the business network permits corporations to undertake a variety of developments in the ideas that could be able to drive savings, augment revenues, and enhance the overall competitive advantage (Beebe & Taiwan, 2009). Some of additional advantages are given below: Better Order Tracking Enhanced Inventory Management Efficient Shipment Planning Repaid Mode Selection Quick Performance Measurement Reverse Logistics Optimization Disadvantages of E-Logistics Some of the problems are also linked with the e-logistics and electronic supply chain management system. Here I have outlined some of the main problems below (Marcbowles, 2009) & (Daly & Cui, 2002): Virus Attacks Online attacks of hackers Information theft Additional investment Conclusions This paper has presented a detailed analysis of the e-commerce, supply chain management and e-logistics. This paper has shown how corporations are taking advantage of modern and innovative tools to offer facilities to their customers. Presently new high-tech supply chains need effectual logistics management to convene the needs of gradually augmenting demanding global clients and offering them to select when, how and where they desire to take delivery of their goods. In addition, the importance for development is being speed up through the extensive adoption of internet technologies as well as implementation of the e-commerce (Venus, 2009) & (Wailgum, 2009). I hope this research will offer a comprehensive overview of the E-logistics and SCM. Bibliography Bayles, D.L., 2002. E-Logistics & E-Fulfillment:Beyond the “Buy” Button. [Online] Available at: http://r0.unctad.org/ecommerce/event_docs/curacao/bayles.pdf [Accessed 14 February 2010]. Beebe, A. & Taiwan, M., 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 14 February 2010]. Bitpipe, 2009. eLogistics Services. 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[Online] Available at: http://www.unece.org/trans/doc/2009/itc/ITC-71-inf11e.pdf [Accessed 15 February 2010]. Fang, L. & Zhang, C.-q., 2005. The e-logistics framework in e-commerce. In ACM International Conference Proceeding Series; Vol. 113, Proceedings of the 7th international conference on Electronic commerce. Xian, China, 2005. ACM New York, USA. Groznik, A., 2004. E-Logistics: Informatization of Slovenian Transport Logistics Cluster. [Online] Available at: http://74.125.153.132/search?q=cache:fRFe2OBbnMMJ:hrcak.srce.hr/file/29885+e+logistics+and+traditional+logistics&cd=7&hl=en&ct=clnk&gl=pk [Accessed 15 February 2010]. Groznik, A., 2008. E-logistics: slovenian transport logistics cluster creation. WSEAS Transactions on Information Science and Applications, 5(4), pp.375-84. Huhns, M.N., Stephens, L.M. & Ivezic, N., 2002. Automating supply-chain management. 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The Role of Supply-Chain Management in E-commerce. [Online] Available at: http://unpan1.un.org/intradoc/groups/public/documents/un/unpan001216.pdf [Accessed 15 February 2010]. Read More