Impact of E-Commerce on Logistics and Transports

17. The marked increase in product offerings, which allows for more customer choice, creates logistical challenges in terms of identification, storage and tracking. Another interface involves the amount of particular SKUs to hold. Marketers often prefer to carry higher quantities of particular items because this reduces the likelihood of stockouts. Product design is often the purview of marketers and can also have important implications for logistical effectiveness and efficiency.

The book elucidates on the various means of ensuring efficient transport system while at the same time keeping the risks at an all time low. It highlights the various ways through which a person can identify and minimize risks in the process of transporting goods from one point to the destination. This will be useful in sourcing for information on the kind or type of goods that can be handled in which manner and categorization in terms of risk level of goods and how this can be used in

E-commerce is the capability of an organisation for having dynamic presence over Internet that allows the company for conducting their business electronically, in spirit of having an electronic shop. Thus, the products can be sold, paid and advertised electronically without the requirement to be processed with the help of human being. Because of massiveness of internet advertising and website can be un-covered to millions of people all around the globe with the information being able to be transformed almost promptly the site can always be kept updated with all latest products for matching with the demand of the consumers (Lee, 2005).

B2B is one of the major forms of e-commerce. Here the seller and the buyer participate as the business entities.

That is to say, using e-commerce not only can increase services level to keep customers, but also make profits more than before. Nowadays, there are many companies using e-logistics and e-procurement for customers, because those will be an optimal way to extend and increase business processes in supply chain management and also those are real value methods to attract more customers than before. Therefore, e-commerce can create a lot of additional values in the company in order to maximize its chances of success.

There are several ways and strategies through which an organisation distributes its products to provide customer convenience. Placement and distribution of the products the right way results in saving the customers’ time as well as one of the fast ways of growth in the organisation’s sales target. The product can pass through many distribution channels depending on the type of organisation and the kind of business they’re doing. However, the organisation has to deal with costs such as transportation and storage facility. The wider the distribution chain, the more costs the organisation needs to put in.

This study will prove that e-commerce has grown because it adds value to people’s lives. It will show that e-commerce will not disappear but evolve into something even greater than what it is right now.

Distribution costs and time is also another factor that the economy plays part it. Because of the requirements of modern distribution, the issue of time is becoming increasingly important in the management of commodity chains. Time is a major issue for freight shipping as it imposes inventory holding and depreciation costs, which becomes sensitive for tightly integrated supply chains (Dr. Jean-Paul Rodrique and Dr. Markus Hesse, “Logistics and Freight Distribution,” 12/30/2007, http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/cn5c4en.html, accessed on April 15, 2008).

Therefore, the company’s distribution plan of products is required to be flexible since each product has to be moved around the world and forecasting is an important key in logistic activities. The shipper must be able to adjust and deal with a swing in business activity. This may require a versatile transportation plan to keep the global supply chain moving smoothly. Moreover, the company also focuses on the cost of every painstaking aspect of the shipping process. The smaller the product packaging means the higher number of items that can fit into an individual case. The more cases that can fit into the shipping container means a larger number of items that can be shipped at one time. This cuts down on the transportation costs of fuel, paid driver hours, and vehicle maintenance cost. All these savings can be passed on to the customer who comes back to the manufacture and the shipper with customer loyalty.

Compare the other retailers, logistics is an essential problem in e-commerce and e-business. Over country shipping and one-day shipping are more and more popular in the past years, like Amazon one day shipping, Amazon fresh keeps food in a good condition and deliver in a specific time. Retail leaders Amazon started same-day deliveries and drone shipping careers in 2015, but it hasn't expanded to all industry. The customer's satisfaction degree is closely connected with delivery ability, which makes the logistic problem more important.

Businesses over the years have learned from their mistakes, and make the necessary adjustments within their organizations to eliminate the issues and prevent them from occurring again. By conducting market testing, manufactures can collect input from the end user, then analyze the information to determine the best location to place their products for purchase. The various demands received by manufactures can be mind boggling and without proper handling it can lead to devastation. Daily, manufactures deal with internal demands from their employees; from adjusting work schedules to allow for vacations, to better healthcare insurance, or higher wages. Moreover, companies receive demands from their distributors, requesting an increase in product production to meet the demand from the retailers. Along with increase in production, there is demands for transportation, which all of these demands affect the manufacture’s bottom line and without proper planning and budgeting, these demands may lead the manufacture out of business. Product distribution is critical and when the product is not available it affects more than just the manufacture. Understanding the direct and indirect approach for distributing a product along with choosing either an extensive, intensive, or exclusive distribution channel will allow the product to reach the distributor, retailer, and consumer all while making everyone in the supply channel happy.

This is a research project aimed at four different topics within e-commerce and the dynamic landscape of logistics within this emerging field. I will first be focusing on current landscape of e-commerce. Secondly the focus will be shifted to a global perspective and the difference of markets based on region. Thirdly I will cover the future trends of e-commerce, and the differences that we may see. Finally, I will present data on select countries and how they are affected by e-commerce currently and the changes that we can expect to see in the future. While researching this broad and developing topic, I have found that there are a handful of takeaways that can be seen in the entirety of this paper:

E-commerce has origins that trace back to the mid 1900s. In these times very few organizations had access to the very expensive electronic data interchange (History of E-Commerce, n.d.). E-commerce is now being used in all types of business, including manufacturing companies, retail stores, and service firms. E-commerce has made business processes more reliable and efficient. Consequently, e-commerce is now essential for businesses to be able to compete in the global marketplace. “E-commerce is now being used in all types of business, including manufacturing companies, retail stores, and service firms. E-commerce has made business processes more reliable and efficient” (Smith, K.T., 2011, p.3). Consequently, e-commerce is now critical in order for businesses to compete in the global marketplace. Knowledge that was distributed over this network paved the

Unfortunately it there is a limited number of stations near factories and rail is slow because rail freight has to fit around passenger services.

The concept of logistics involves the integration of information, transportation, inventory, warehousing, material handling and packaging.