Analyse the current issues, Future Trends and Opportunities Associated with E-Logistics

Essay by soonnUniversity, Bachelor'sA-, August 2004

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1 Introduction

With the rapid growth of business-to-business (B2B) e-commerce, the logistics players must advance in tandem with business needs. Specifically, fulfilment support strategy become key in determining the way companies 'go to market'. With shortening time to market and cost pressures, this is becoming quite a challenge. Today, the new economy has dictated new challenges, opportunities, and rules. To stay ahead of competition, most of the organization must gear themselves up for the makings of a premier integrated logistics hub in the global e-economy.

This report will critically analyse the future trends and opportunities associated with e-logistics. Simultaneously, the report will also demonstrated the most updated issues for e-logistics, which may bring the impact on the transformation of conventional business logistics.

2 Definition of E-Logistics

With all new technologies, customers became smarter. They want to be able to re-route shipments, determine delivery costs and time in transit, and break up their orders for multiple shipment to different addresses.

This has implies that the shift of the power from the seller to the buyer has created a new era of expectation. Therefore, electronic commerce is demanding an active, high speed, approach to logistics.

E-logistics is highly demanded by the customers, which is define as the procurement, provision and management of logistics/supply chain services electronically through the deployment of information technology (IT) and mainly the Internet, allowing supply chain entities e.g. logistics service providers, manufacturers, distributors wholesalers and retailer and other involved parties e.g. the banks and insurance companies to integrate, communicate and transact with one another on a common platform (http://www.singaporelogistics.com/Papers/LogisticsFutureSurvey2001_pt2.pdf).

2.1 Key Drivers affecting the change in E-Logistics

The changes in the shorter product and technology cycles caused by the rapid pace of innovation and leaded to the uncertainties in supply and demand. For example, customers have increasingly demanded...