E-logistics: What is it? What are the main advantages of this new method?

Globally, the rapid expansion of digital commerce illustrates the future of shopping as well as the new job opportunities that e-commerce creates. E-logistics has been adapted and developed by logistics firms. But what exactly is e-logistics, and how do they vary from traditional carriers?

New methods and technology have been introduced in the logistics business to help e-commerce grow. All of the logistical processes involved in e-commerce are managed by e-logistics. As a result, it focuses on establishing a positive commercial relationship between e-commerce and customers.

E-logistics encompasses a wide range of duties, including user experience in an online store, stock management, order dispatch (and tracking), and even after-sales care.

For a better understanding of its definition, here is a very complete explanatory video:

Three fundamental concepts arose from the birth of the term e-logistics: e-fulfillment, mass customization and e-procurement:

  • E-fulfillment: Collection of processes that ensure that an order is delivered at the lowest possible cost while meeting the customer’s requirements (price, deadline, and quality).
  • Mass customization: Ability to manufacture a large range of items from a limited number of components, combining the commercial benefits of customisation with the cost savings of mass production.
  • E-procurement: The use of ICT to integrate the company’s procurement operations with its suppliers.

Between the main advantages this new method has brought to the world of logistics and supply chain management, the following ones should be highlighted:

  • Delivery schedules, rapid services, and payment or invoicing flexibility.
  • Stock in transit is monitored in real time, and dispatch systems are controlled.
  • Effective e-commerce logistics performance due to the existence of technical systems.
  • More services are given in order to deliver better service and products.
  • Higher level of customer satisfaction with the purchasing procedure.

Because of these and other benefits, it is concluded that the internet will enable greater visibility across the logistics network, as well as integrated planning and management of activities and processes in the logistics network, resulting in superior customer service and competitive advantages for businesses.

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