E-Commerce and its impact on logistics management By Mohamemd Alhouty 200900077 Slman Rahimi 200900040
Outline Introduction. Logistics Management and E commerce. Literature Review. Models representing E- commerce process. Benefits of E- commerce in Logistics Management Conclusion.
Introduction Logistics is a process of operation that includes the purchasing, storing, transporting and distributing of physical goods. There are two types of logistics: social logistics and corporate logistics. Electronics commerce offers new opportunities for public and private institutions to improve the logistics and transports process and infrastructure.
The application of e-commerce leads to new distribution channels, new goods delivery concepts, and new networked configurations between goods producers and the suppliers of transport and logistics services. The importance of logistics arises from companies need to: Gain access to new markets. Enhance production efficiencies. Increase their technological competencies.
Logistics Management and E commerce Logistics management is the part of the supply chain process. Logistics management plans implements, and controls the efficient, effective flow and storage of goods, services, and related information. E- commerce is the process of conducting business electronically among various entities to satisfy the organizational and the individual objective. The main key of the EC is the advertisement of goods and services over the internet.
EC contributes to economy in five ways: Shrinking distances and timescale. Lowering distribution and transaction costs Speeding product development. Providing more information to buyers and sellers. Enlarging customers choice and supplier choice.
Literature Review Nagi and Gunasekaran Main objectives They proposed a three party logistics model with five dimensions: strategic planning . inventory management . Transportation. capacity planning. information technology.
Two other writers (Aldin and stahre) presented a model for logistics which consists of three things: Logistics structure. Logistics processes and related activities. Information and reporting systems. Those three components are very essential for 3PL.
Benefits of E- commerce in Logistics Management Reduce purchasing and production cycles Reduce the cost of communication and speed up it. Promote closer relationship with customers and suppliers. Provide a quick and easy way of exchanging information about company. Direct saving. Reduce cycle time. Enhance customer service.
Conclusion The impact of E- Commerce in logistic management has increased rapidly recently as a result of the spread of E commerce. The internet and the advanced computing technologies provides many opportunities to E-commerce. The success of E-commerce depends not only on technological implementation, but also on reengineering the traditional business processes. The new technologies such as mobiles and satellite technologies will enable logistics of E-business. It is expected that the E- business will increase the importance of delivery accuracy , frequency and time in emerging new supply networks.