The Benefits And Challenges Of Elogistics

The Benefits And Challenges Of ElogisticsThe increased competition in all sectors collectible to globalization has forced the companies to reduce business organization prices. To reduce cost the companies argon forming new management strategies like supply bowed stringed instrument management and e- logistics. E- logistics delegacy applying the concept of logistics electronically via the internet in order to conduct the business electronically. According to AMR Research( Challenger,2001), E- logistics helps to reduce cost by 10%. According to Sahay,B.S.(2003) logistics raise to 10 to 12% of GDP . Based on two references e-logistics helps to carry through somewhat 1.2% of GDP. That is why the companies like Dell, Compaq, Hewlett Packard is favourable to the E- logistics and supply chain management.E- physician logistics are the activities that ensures that nodes get what they need at right time at right place and at minimum cost. E- trading logistics face many challenges in ontogenesis countries like higher tariffs, Complicated global trade rules, spheric Terrorism and Geographical Barriers. The need of knowledge of total cost in online merchant is the main cause for the failure of many electronic commerce in past decades.According to Hesse 2002, Gunasekaran et al 2003, E- logistics is an internet enabled logistics value chain that offer competitive logistics run like contract warehousing, public warehousing, diffusion management, target consolidation and transport management.E- logistics consist of four comp ints like one and only(a) stop value added services, information management, automation in warehousing earnings and a transferee network.The one stop value added services helps to change customer satisfaction .For example in government service one stop value added services like making queries and application, to search council services and to make payment can be done all at one time. Information management is where the information is excha nged through electronic medias like WWW, Internet and EDI. Automation in warehousing surgical procedure go out reduce human involvement in updating consolidation, despatch and unloading. A Transportation network helps to increase flexibility and reduce transportation costs.The difference between tralatitious logistics and e- logistics are as follows. In trip of traditional logistics the volume is very low because liberal amounts of goods are displace to lesser location like retail stores. But in suit of clothes of e- logistics the lesser amount of materials are sent to many customers quickly. In en cause of traditional logistics the objective is that it is efficient and cost effective save in subject area of e- logistics it is more speed and can meet customer expectation.In case of traditional logistics the information is gathered through fax, paperwork and Management Information System(MIS) but in case of e- logistics the information is gathered through Internet, Electro nic information Interchange (EDI), Radio Frequency Identification (RFID) and Integrated IS. The E- logistics is more unquestionable and fast than traditional logistics.In Traditional logistics accountability of shipments is linked to especial(a) supply chain but in e- logistics the accountability is expanded in whole supply chain. In E- logistics the customers have high expectation about quality of service and speech of shipments but in case of traditional logistics the spoken communication of products is taking long time as the expectation of customer is not met because todays customer needs faster delivery of goods. In case of traditional logistics there is less complexity in fulfilling international trade but in case of e- logistics there is bigger complexity in fulfilling international trade. In e- logistics it is possible to place hold orders with distributors and producers and overly helps in accessing more sellers globally but in case of traditional logistics it is main ly done through fax and paper plant as it takes expensive and takes long time in getting answer from producers and distributors. In case of E- logistics the demand for shipment is lacking stability and in any case not predictable due to huge number of customers but in case of traditional logistics the demand for shipment is predictable .The challenges of e- logistics in ontogeny countries are economic and educational breastworks, lack of infrastructure, security, trust and privacy, channel conflicts, delivery logistics, security problems and global terrorism and geographical restraints. In economic and educational barriers the main obstacles for e- logistics is the lack of economic resources, internet usage and standard of education. just about of e- logistics are used by advanced users in developing countries because of lack of resources to use the internet and shop online. Lack of infrastructure means developing countries poor telecommunication infrastructure and short acce ss of computers create barrier in e- logistics .Internet access cost also result in barrier to e- logistics. Security,privacy and trust is different in different countries and there is no supplying in many countries govt rules that e- logistics should be legally binding and trust cum laude as such it create barriers in E- logistics.According to survey conducted by Forrester Research said that they turned off global trade because of hassle in process in e- logistics. The main barrier for e- logistics for this is the language and heathenish barriers that destroys the different stages of internet infrastructure and adoption and also incapable to partake in with direct global orders.According to Leung et al 2000, Gunasekaran and Ngai (2004b), the benefits of e- logistics are enhancing customer service, minimizing cost and also meeting product delivery deadlines. It helps to develop web ground inventory control and also helps in building relationship with large logistics companies like DHL,UPS and FedEx. It help to concentrate and understand the customers more readily. It helps in B2B2C commerce for third part logistics (3PL) , it helps to SMES to develop strategic alliance and also help to meet growing demand.In conclusion due to globalization the importance of e- logistics is growing eventhough there are many challenges in e- logistics the importation of e- logistics cannot be ignored. In order to use e- logistics effectively we should understand the strength and weakness of e- logistics effectively and we should use in a proper way and should not misuse it. Last but not least in the coming future the importance of e- logistics will be higher and it will be used by many people in the future.