The Benefits And Challenges Of Elogistics Information Technology Essay

August 2, 2017 Information Technology

The increased competition in all sectors due to globalisation has forced the companies to cut down concern costs. To cut down cost the companies are organizing new direction schemes like supply concatenation direction and e- logistics. E- logistics means using the construct of logistics electronically via the cyberspace in order to carry on the concern electronically. Harmonizing to AMR Research ( Challenger,2001 ) , E- logistics helps to cut down cost by 10 % . Harmonizing to Sahay, B.S. ( 2003 ) logistics contribute to 10 to 12 % of GDP. Based on two mentions e-logistics helps to salvage approximately 1.2 % of GDP. That is why the companies like Dell, Compaq, Hewlett Packard is favorable to the E- logistics and supply concatenation direction.

E- commercialism logistics are the activities that ensures that clients get what they need at right clip at right topographic point and at minimal cost. E-commerce logistics face many challenges in developing states like higher duties, Complicated planetary trade regulations, Global Terrorism and Geographical Barriers. The deficiency of cognition of entire cost in on-line merchandiser is the chief cause for the failure of many electronic commercialism in past decennaries.

Harmonizing to Hesse 2002, Gunasekaran et al 2003, E- logistics is an cyberspace enabled logistics value concatenation that offer competitory logistics services like contract warehousing, public repositing, distribution direction, mark consolidation and transport management.E- logistics consist of four constituents like one halt value added services, information direction, mechanization in warehousing web and a transit web.

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The one halt value added services helps to better client satisfaction.For illustration in authorities service one halt value added services like doing questions and application, to seek council services and to do payment can be done all at one clip. Information direction is where the information is exchanged through electronic media`s like WWW, Internet and EDI. Automation in warehousing operation will cut down human engagement in updating consolidation, lading and droping. A Transportation web helps to increase flexibleness and cut down transit costs.

The difference between traditional logistics and e- logistics are as follows. In instance of traditional logistics the volume is really low because big sums of goods are sent to lesser location like retail shops. But in instance of e- logistics the lesser sum of stuffs are sent to many clients rapidly. In instance of traditional logistics the aim is that it is efficient and cost effectual but in instance of e- logistics it is more velocity and can run into client expectation.In instance of traditional logistics the information is gathered through facsimile, paperwork and Management Information System ( MIS ) but in instance of e- logistics the information is gathered through Internet, Electronic Data Interchange ( EDI ) , Radio Frequency Identification ( RFID ) and Integrated IS. The E- logistics is more dependable and fast than traditional logistics.

In Traditional logistics answerability of cargos is linked to limited supply concatenation but in e- logistics the answerability is expanded in whole supply concatenation. In E- logistics the clients have high outlook about quality of service and bringing of cargos but in instance of traditional logistics the bringing of merchandises is taking long clip as the outlook of client is non met because today`s client demands faster bringing of goods. In instance of traditional logistics there is less complexness in carry throughing international trade but in instance of e- logistics there is larger complexness in carry throughing international trade. In e- logistics it is possible to put direct orders with distributers and manufacturers and besides helps in accessing more Sellerss globally but in instance of traditional logistics it is chiefly done through facsimile and paper works as it takes expensive and takes long clip in acquiring answer from manufacturers and distributers. In instance of E- logistics the demand for cargo is missing stableness and besides non predictable due to immense figure of clients but in instance of traditional logistics the demand for cargo is predictable.

The challenges of e- logistics in developing states are economic and educational barriers, deficiency of substructure, security, trust and privateness, channel struggles, bringing logistics, security jobs and planetary terrorist act and geographical barriers. In economic and educational barriers the chief obstructions for e- logistics is the deficiency of economic resources, internet use and criterion of instruction. Most of e- logistics are used by advanced users in developing states because of deficiency of resources to utilize the cyberspace and store online. Lack of substructure means developing states hapless telecommunication substructure and short entree of computing machines create barrier in e- logistics.Internet entree cost besides result in barrier to e- logistics. Security, privateness and trust is different in different states and there is no proviso in many states govt regulations that e- logistics should be lawfully adhering and trust worthy as such it create barriers in E- logistics.

Harmonizing to study conducted by Forrester Research said that they turned off planetary trade because of trouble in procedure in e- logistics. The chief barrier for e- logistics for this is the linguistic communication and cultural barriers that destroys the different phases of cyberspace substructure and acceptance and besides incapable to cover with direct planetary orders.

Harmonizing to Leung et Al 2000, Gunasekaran and Ngai ( 2004b ) , the benefits of e- logistics are heightening client service, minimising cost and besides run intoing merchandise bringing deadlines. It helps to develop web based stock list control and besides helps in edifice relationship with big logistics companies like DHL, UPS and FedEx. It help to concentrate and understand the clients more readily. It helps in B2B2C aa‚¬ ” commercialism for 3rd portion logistics ( 3PL ) , it helps to SME`S to develop strategic confederation and besides assist to run into turning demand.

In decision due to globalisation the importance of e- logistics is turning eventhough there are many challenges in e- logistics the significance of e- logistics can non be ignored. In order to utilize e- logistics efficaciously we should understand the strength and failing of e- logistics efficaciously and we should utilize in a proper manner and should non misapply it. Last but non least in the approaching hereafter the importance of e- logistics will be higher and it will be used by many people in the hereafter.


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