Logistics : Logistics And Distribution Of Physical Goods Essay

1166 WordsNov 21, 20155 Pages
Introduction Source: Leeway Logistics, 2015 Logistics is considered as an operational process which includes activities such as storing, transporting and distribution of physical goods. E- Commerce has made a big change in logistics and distribution processes. Due to introduction of online purchases, way of handling materials have also been changed. Online retail industry is being expanded year to year. According to Goldman Sachs, Online Sales will reach $750B mark by 2016 with annual growth rate of 20%. There was a need of new logistics processes to successfully manage this growing industry. In early days purchased materials were usually delivered via postal, freight network or parcel. Nowadays in the era of E-commerce the ways of operating logistics functions have been changed with introduction of Mega e-fulfilment centres, parcel hubs centres and parcel delivery centres. In first two centres the orders are sorted by post codes so that they can be dispatched to the correct delivery centres for final delivery at customer’s home. Primary advantage of E-commerce logistics system is real time tracking of materials as organizations can track current status of transit goods such as quantity, location and variety. This helps to improve the efficiency and also helps to operate logistics operations with low cost. Below graph shows the growth of online sales against In-store sales. In the era of online retail industry, logistics and supply chain management are key factors to

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