April 12, 2015
Intro to Logistics & SCM (21259)
Dr. Sam Khoury
LOGISTICS AND E-COMMERCE
E-commerce is the buying, selling, and exchanging of goods and services over the internet whereby the terms of sales are electronically. Many new companies in e-commerce have failed or are struggling to survive in the market because of neglecting logistics. How goods will be delivered to the customers is an important issue and significant to the success of e-commerce. There is the need for the e-commerce and logistics to coordinate.
Logistics entails a supply chain that is conventional retailing, where the customers are responsible for purchasing of their goods at the retailer’s location (Rodrigue, 2015). …show more content…
However, the geographical barrier has become a limiting factor. The location sites have to be centralized with a distribution model that reduces delivery time. This requires an investment in facilities and inventories given the breadth of the geographical coverage.
Despite the substantial growth, e-commerce does not shift the practice of an industry. It is only but a share of the demand. Traditional retail still holds a higher portion in influencing the demand for an industry’s products. Many customers are finding the existing logistics is meeting their needs. The consumer needs the personal touch to the product. Ordering through the online denies them the immediate verification and comparison of products, which would have been possible when shopping directly through the traditional retail logistics system.
Logistics industries will increasingly develop because it assumes an important task. It takes the virtual stores of goods into the hands of customers. E-commerce stimulates the growth of logistics by use of the technology. The continuous development of the logistics has resulted in new logistics concepts and mode of operation. IT increases the efficiency of the supply chains and decision-making on the supply …show more content…
A new economic model requires a new logistics model. E-commerce will suffer without an efficient and reasonable logistic system as no one to delay their shopping.
The development of e-commerce influences the development of logistics. Customers through the internet can easily find logistic companies. Such companies would expand nationally and worldwide. It also attracts a large market. The 3PL logistic is considered cheaper compared to the self-logistics, as it requires low investment.
E-commerce usually does not possess a real store as customers get information from the web page, which might vary in color or shape. Sometimes when the customer get the actual product may be dissatisfied. The return process in most cases is through the online application and some products such as electronics may require an appraisal report for the damage to prove it wasn’t the customers fault. It is the reason most people would not opt for