In: Operations Management
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Q6. Write a short notes on (2*10=20 Marks)
a) E- commerce and its effects on the logistics activities
b) Distribution Requirement Planning
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Q6
a)
Effect of E-Commerce on logistics activities
The growth in the E-Commerce sector has influenced logistics activities in different ways. Traditionally the logistics were concerned with the movement of products from the place of the manufacturer to the place of the consumer but in the times of E-Commerce this traditional route of logistics has undergone a lot of changes. The logistics companies started many distribution centers that helped them to deliver products to people as fast as they can, they have even made efforts to distribute products on the same day itself. The logistics companies tried to reduce their cost of operation in these times. The improvement in the E-Commerce Sector contributed also to the trend towards reverse logistics for facilitating customers to return the products if they are not satisfied with it.
Reference:bpinetwork
b)
Distribution Requirement Planning
Distribution requirements planning or Distribution replenishment planning is a planning approach to make the distribution of products more efficient. Distribution requirements planning is helpful for an organization to meet its forecasted customer demand efficiently. It also helps in avoiding shortages in the supply of products. This approach considers three major aspects of distribution such as the type of goods, quantity, and location. Distribution Requirement Planning can be of two types such as Pull and Push. Goods are moving up in the distribution network in the case of the pull approach where local managers have a greater role to play. Goods are moving down in the distribution network in the case of the push approach because the distribution takes place on a global scale from a central location.
Reference:SearchERP
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