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Analyse The Current Issues, Future Trends And Opportunities Associated With E Logistics

3708 words - 15 pages

1 IntroductionWith the rapid growth of business-to-business (B2B) e-commerce, the logistics players must advance in tandem with business needs. Specifically, fulfilment support strategy become key in determining the way companies 'go to market'. With shortening time to market and cost pressures, this is becoming quite a challenge. Today, the new economy has dictated new challenges, opportunities, and rules. To stay ahead of competition, most of the organization must gear themselves up for the makings of a premier integrated logistics hub in the global e-economy.This report will critically analyse the future trends and opportunities associated with e-logistics. Simultaneously, the report will ...view middle of the document...

For example, customers have increasingly demanded better and more innovative goods and services customized to meet their unique needs. The key drivers affecting change in the logistics industry are:Ø Reliance on core competencies and customers centricity companies to work with different partners in fulfilling each customer order ,Ø Greater degree of return on assets and expectation of financial markets for shorter cash-to-cash cycles has lead to the need for supply chain and financial chain integration,Ø Incorrect market forecasting or delayed delivery to customers has resulted in the application of risk management techniques for supply chain and real-time monitoring and control of supply chains to quickly respond, andØ Pressure to improve profitability resulting in application of revenue management and dynamic pricing strategies as well as development of new services e.g. the reverse logistics (N. Viswanadham, John J. Jarvis and Roshan S Gaonkar: 2001).3 Current Issues and Impact associated with E-LogisticsDue to the changes in the political, strategic and security environments as well as the new threats, there are significant changes occurred within the military doctrines and structures of many countries. Business logistics has changed over time as the new, asymmetric battlefield creates new requirements for logistics systems. Many countries and their armed forces face the same challenges i.e. reorganizing the armed forces and reducing defense budgets. The dilemma all nations face is whether to change their military logistics systems or to depend on old principles and doctrines (Saarinen, T.K., Jan/Feb 2003).Recently, with the threat of war with Iraq looming, it is more likely that it will cause the supply chain problems. The dual threats have forced a significant decline in global trade and investment. Furthermore in U.S., the shippers and carriers are wondering whether the government will invoke the Voluntary Intermodal Sealift Agreement (VISA), where they can commandeer commercial vessels. However, 36 of its Ready Reserve Force (RRF) ships have been activated to keep in reserve status by the U.S. Department of Transportation's Maritime Administration, which is used for rapid, massive movement of military supplies and troops (Ranch, H.: March 2003).Furthermore, in search of greater value, companies are seeking out new market and cheaper sources of raw materials and components throughout the world. However, globalisation, more and more outsourcing and the integration of every greater numbers of services companies are making delivery chains or supply chain management more complex, demanding, difficult and becoming more distinct from the core competence of the customer. In order to efficiently and effortlessly manage operations across all their global facilities, companies hoped that an alternative operator model in supply chain management i.e. the fourth party logistics will provide the solution to takes on the job...

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