Question

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Q3. Explain in brief, at least 4 logistic consequences regarding the rise of e-commerce? (5+5+5+5 = 20 Marks)

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Answer 1

ANS. In developed economies, e-commerce logistics represents the latest big driver of change in logistics and physical distribution networks, which have evolved substantially over the past 40 years or so. Currently, it remains the case that as e-commerce continues to grow, most shippers, particularly multi-channel shippers, are still only just beginning to work out what this will entail for their distribution network infrastructures.

E-commerce logistics models have led to a wave of new demand for four distinct types of logistics functions:

1. Mega e-fulfillment centers where the merchandise is stocked and picked at item level. These facilities, which are either operated by the retailer or a logistics service provider, are typically 500,000 sq ft to one million sq ft in size, or even larger. They often operate 24/7.
2. Parcel hubs/sortation centers which sort orders by zip or post code so that they can be delivered to the relevant parcel delivery center for final delivery to the customer’s home or designated collection point.
3. Parcel delivery centers which handle the ‘last mile’ delivery to the customer
4. Seamlessly integrated technology where shopping carts connect via API, web xml or some other connection to a transportation management system so shoppers are getting the exact price quote of shipping of larger items more suited for less than truckload modes, as these technology products for logistics, such as a TMS, must accomplish along with the shopping cart for better management:
   1. Ability to organize and track shipment no matter what mode
   2. Online order status and documentation
   3. Online dispatch documentation and invoice, such as a bill of lading and freight invoice
   4. Auto reminder for payments
   5. Seamless interface with existing SCM or ERP system
   6. Online alerts for critical information via text or mobile
   7. Information systems reports on past data analysis, delivery history, etc.