LITERATURE REVIEW

 

 

INTRODUCTION

E-commerce is the process of buying and selling products, services, and information through digital media. This type of trade emerged in the early 1990s, according to Turban and King (2004) and it was from this decade that the market began to be driven by new networking technologies, software, hardware, among other tools that provide transactions.  This means that the media and the way of doing business are undergoing a revolution.

The emergence of e-commerce implies a change in traditional forms of logistics, particularly in business-to-consumer (B2C) which represents the chain's final transactions in the retail-consumer relationship.

The rapid growth of e-commerce is making companies adapt their supply chains having to face the fact that with the Internet the consumer has some facilities such as being able to compare prices at various online stores and also expecting to receive their products quickly and safely. Thus, e-commerce companies had to develop more advanced and specific logistics systems.

According to Fleury and Hijjar (2000), despite the facilities offered by digital technology, it is still necessary to perform traditional activities in the physical world such as; process orders, track inventory, manage shipping, and deliver. Thus it is necessary to manage the entire flow of products in order to make them available at the time, place and quantity desired by the customer. This is the great challenge of logistics, which needs to adapt to the demands of this emerging electronic market.

Thus, traditional logistics skills no longer respond to the demands of this new trade. Huge order quantities, small number of items, geographic dispersion, and high return rates are factors that dramatically increase delivery costs and pose challenges for companies that sell products over the Internet. Existing estimates show that door-to-door deliveries by e-commerce companies are more expensive than those delivered by traditional e-commerce companies (FLEURY; MONTEIRO, 2000).

What are the best logistics methods and alternatives that the market should use and/or develop to serve the growing electronic market efficiently? Can outsourcing within logistics operations be the solution? What is the competitive advantage of hiring a logistics operator? The objective of this paper is to identify and analyze which are the best logistic methods to serve the electronic market efficiently focusing on increasing the level of customer satisfaction. Which is a big challenge since it is a huge demand that e-commerce has been generating and causing problems for companies that do not have a supply chain and logistics activities prepared for such market growth and customer demand.

LITERATURE REVIEW

E-commerce

For Albertin (2004), e-commerce is the realization of the entire business process value chain in an electronic environment, through the intense application of communication and information technologies, meeting the business objectives.

Kotler (2004) defines e-commerce as electronic shopping and selling online, and presents seven ways to gain business advantage in this new market: conduct business research, provide information (products, services, location, support). technical support, etc.), promote discussion forums, offer training, offer online buying and selling, promote auctions and exchanges, and offer products and services through (digitized) bits. Also, Cameron (1997) defines e-commerce as any business transacted electronically, either between two companies or between a company and its customers.

E-commerce is characterized by the large availability of websites, which causes a wide variation in the offer of products and services. The same happens with the demand levels that show differentiations in relation to the traditional commerce (UEMA; LAZZARI, 2008). According to Deitel et al. (2004), this type of commerce also encompasses some business models, among which the most significant is the “online shop” or “online store” model. In this model, the buyer and seller interact directly. It combines transaction processing, online payment, security and information storage to enable virtual and electronic product sales. To manage this kind of e-commerce you need to organize online product catalogues, process orders through the site, accept payments with a secure platform and environment, ship merchandise, manage customer data and publicize the site to potential customers.

Logistics concept and Evolution

For Carlsson and Sarv (1997), the concept of logistics emerged when the post-war economy of production came to be dictated by the market, in which customer problems became more visible. Bowersox and Closs (2007) comment that there was no formal concept of logistics before the 1950s. During this period, logistics functions were considered as support or support operations, having no interface or coordination between the other business functions (production, marketing, finance and human resources, among others), generating duplicity of work and waste.

According to Lambert, Stock, and Vantine (1998), historically, both in the academic and business areas, they referred to logistics using various names: physical distribution, materials management, distribution, logistics management of materials, engineering of distribution, etc. All of these terms concerned the management of the flow of materials or goods from the point of origin to the point of consumption. Even, according to these authors, the concept of logistics began with military operations and over the years has evolved.

Logistics was first examined, from an academic perspective, between the late 1960s and the early 1970s. Logistics, according to Carlsson and Sarv (1997), is a business concept that has relationships with various areas: production / operations, marketing, quality, etc. For Ballou (2006), logistics studies how management can provide the best level of profitability in distribution services to customers and consumers through planning, organization and effective control of supply, storage, handling and distribution activities, which aim to handle planning and controlling the flow of materials from suppliers to end users (JONES; HESTERLY; BORGATTI, 1997, TUCEN; ALPAN, 2010).

For the Council of Logistics Management (CLM) (2003), logistics is the part of supply chain management that plans, implements and controls the efficient and economical flow and storage of raw materials, inputs, semi-finished or work in process and finished products. (finished), from the point of origin to the point of consumption, in order to meet customer requirements. Thus, logistics involves information integration, transportation, inventory level, warehousing, material handling and packaging. And the challenge is to coordinate individual task-specific knowledge into an integrated competency focused on customer service (BOWERSOX; CLOSS, 2007).

In addition, collaboration is an essential element in integration, as strategic collaboration is required to enable communication of cross-functional logistics activities and joint efforts between business partners (FLYNN; HUO; ZHAO, 2010). Stock (1990) also states that logistics, in general, is increasingly focused on the efficiency and effectiveness of the performance of logistics activities and, as a result, on organizational performance.

According to Christopher (2007), logistics is a process of strategically managing the acquisition, movement and storage of materials, parts and finished products, as well as related information flows, by organizing their marketing channels (or channels). to maximize present and future profitability and profitability by fulfilling orders at the lowest possible cost. And this includes suppliers, service providers, manufacturers, distributors and resellers across every material, product, service and information flow (Kopczak 1997).

Novaes (2007), in turn, points out that logistics can be understood as a process of efficiently planning, implementing and controlling the flow and storage of materials and products, as well as the services and associated information, Covering from the point of origin to the point of consumption, in order to meet customer or consumer requirements, is a network of companies interacting to deliver the product or service to the end customer (ELLRAM, 1991).

Therefore, logistics is the part of the supply chain process that efficiently and effectively plans, schedules, and controls the shipment, reverse flow, and storage of goods and services, as well as related information flow, between the point of origin and the point of consumption, in order to meet the needs and / or wishes of customers (FARIA; COSTA, 2005). Aktas and Ulengin (2005) also reinforce that companies, when adopting the concept of logistics, should focus on their core business and, at the same time, can outsource their logistics activities.

It is clear that the authors agree that the ultimate goal of logistics is to meet customer or consumer expectations over time. The authors also highlight some other aspects that are intrinsic to the definition of logistics: supply chain management, moving and warehousing services, material flow, customer and consumer services, profit and profitability.

Some authors also highlight the flow of information (CHRISTOPHER, 2007; NOVAES, 2000; FARIA; COSTA, 2005; KOPCZAK, 1997), and Bowersox and Closs (2007) extend the concept by mentioning the word “knowledge”, understanding that, rather than managing information, logistics must manage knowledge. Therefore, Kobayashi (2000) emphasizes the strategic role of logistics and postulates that it is a process with which the strategic transfer and storage of materials along the value chain of the organizations.

Thus, it can be said that organizations tirelessly seek their permanence in the market and, with sustainability, this can be effectively made possible by having proper logistics management.

Logistics, therefore, is a link between the market and the company and between the company and its suppliers. It is through the company that occurs the coordination of material and information flows that enable the search for possible advantages that differentiate it from competitors and provide profit and profitability. The finer the logistics management, the faster the company's response to the market will be (DORNIER et at. 2000; BOWERSOX; CLOSS; STANK, 2003; BALLOU, 2006; BOWERSOX; CLOSS, 2007).

In the globalized market, Visser (2007) notes that there have been technological innovations, shorter product life cycles and a constant change in consumer profile and behavior, which affects the overall business environment. Business processes have become more specialized and with some activities outside the business domain being developed by business partners. These changes also influence the operating market of logistics operators, where companies need to focus on their core competencies, and for this reason, outsourcing of logistics activities to specialized companies may occur.

Accordingly, Fawcett, Ellram and Ogden (2007) claim that there has been an increase in supply chain complexity because the best supplier may be on the other side of the world and customer expectations, needs or wants are often scattered. In this context, Christopher (2007) points out that a competitive advantage can be found in the ability of the organization to differentiate itself from its competitors in customer perception and the ability to operate at low cost and with higher profit, in different processes and activities that produce value in the organization. products and / or services available to the final consumer (CHRISTOPHER, 1992).

According to Novaes (2007), therefore, logistics is the business function that has the potential and the ability to add value to the supply chain, value derived from the time, place, quantity (volume) and quality and information dimensions, eliminating processes. or activities that have no customer value. Value addition, therefore, can come through reliable, faster deliveries, smaller quantities (lots), greater product variety, and better customer service. These facilities may, in certain markets, become a valuable differential for buyers and perhaps difficult for competitors to imitate.

Logistics seeks efficient and effective solutions, optimized in terms of cost and service level. Thus, Novaes (2007) argues that logistics incorporates: (i) compliance with deadlines along the chain; (ii) the effective and systemic integration between all areas of the company; (iii) effective and close integration with its partners (suppliers, customers and other stakeholders); (iv) the optimization of supply, production, marketing and distribution processes, with their rationalization and cost reduction, when possible; and (v) customer satisfaction, with adequate service levels. Therefore, the ultimate goal of all organizations is to balance total costs and maintain safe margins for business consolidation and perpetuation (DORNIER et al., 2000; BOWERSOX; CLOSS; STANK, 2003; MILAN; 2006 ; MILAN; PAIVA; BLACK, 2006; BOWERSOX; CLOSS, 2007; NOVAES, 2007; VIEIRA; MILAN; OTT, 2008).

However, the evolution of logistics, according to Wood Jr. and Zuffo (1998), has been slow and most organizations are in their early stages. Even Kent and Flint (1997) divide the evolution of logistics into six eras or phases: (i) cultivate to market (first age): it is possible to perceive transportation and distribution with the main focus on the marketing of products, as in the middle ages or even in ancient times, with the main focus of transporting the produce from the farm to the point of sale, until World War II, when agricultural economies were very influential; (ii) Segmented Functions (Second Age): World War II marked the beginning of this period until the end of 1950, which marks its end. Military demands of troops and supply movement during the wars led to the processes of transportation, and efficient physical distribution and storage; (iii) integrated functions (third era): began with the integration of functional areas around 1960. There was a shift from physical distribution to the main focus on logistics; (iv) customer focus (fourth age): early 70's. Customer was considered the main focus of the organization; (v) logistics as a differential (fifth era): early 1980s. Logistics began to be considered a fundamental means for differentiating the company, and seen as a critical component in corporate strategy; and (vi) crossing behavior and limit (sixth era): understanding customer perceptions of logistics systems, cross-functional cooperation and how boundaries partially disappear becomes essential to understanding the whole chain.

Global economic development, for Bozarth et al. (2009), made areas that previously worked differently such as procurement, logistics, and operations management converge into the supply chain management area. It reinforces Ying and Dayong (2000) that supply chain competition overlaps with competition between individual companies, and only when the supply chain reaches high competitiveness can the company effectively envision its sustainability in the market for a long time.

Thus, logistics chain management focuses on how companies use processes and their suppliers, technology and the ability to improve any potential competitive advantage, being a philosophy that extends to traditional intra-organizational activities, bringing business partners together with the company. common goal of optimization and efficiency (TAN; KANNAN; HAND'EL, 1998).

For Bengtsson, Berggren and Lind (2005), this motivates the outsourcing of processes and activities that are not the core competency of companies, mainly because companies are looking for greater flexibility, operational efficiency, better service levels for their clients. a greater focus on your business. And all this, with the possibility of obtaining some performance improvement or some advantage when hiring logistics operators (AGUEZZOUL, 2008).

In this environment, where the complexity of logistics services, coupled with the need to reduce costs and improve the level of customer service, logistics has become an area capable of streamlining organizational resources and optimizing the production process of companies (CHRISTOPHER, 1997). This new environment was responsible for the growth of logistics outsourcing, giving rise to logistics operators, companies specialized in carrying out logistics activities and with the necessary knowledge to make the best use of available tools and enabling companies to focus their efforts on their core activities. These companies occupy a space that was previously occupied by carriers, in order to meet the companies' strategic goals (FLEURY; AVILA; WANKE, 1997).

Logistics in the E-commerce

Internet use has the potential to revolutionize the way organizations operate, providing significant productivity gains, reinventing processes, reducing operating costs and eliminating non-value-added functions (TURBAN et al., 2004).

Despite the numerous possibilities of the Internet, the physical product cannot be shipped over the network. Thus, the distribution system is crucial to the success or failure of companies that work with e-commerce. This changing scenario creates enormous challenges and opportunities for the development of logistics everywhere e-commerce is evolving.

Companies involved with e-commerce are beginning to realize that in order to fulfil orders directly from the end consumer, it becomes necessary to have distribution centres that allow high-efficiency individual item picking, as well as systems that enable the administration of large orders, composed of a small number of items and often placed by new customers, about which there is no registration information, either from a business point of view or from a location point of view. In addition, selling over the Internet tends to substantially increase the return rate of purchased goods, because in making the purchase decision the customer does not have the opportunity to have physical contact with the selected products and is often disappointed when physical delivery occurs.

At the same time as reducing inventory and improving the quality of logistics service, competition between companies in a globalized environment has also required reduced costs and short lead times. To achieve this feat of improving service levels while reducing costs, companies have largely relied on information technology (NOVAES, 2004).

B2C e-commerce requires differentiated logistics with particular characteristics that are not present in traditional logistics, such as the integration between information about the availability of a product by the site and the actual availability of this product in stock. In fact, in traditional logistics, one thinks of a good as something material, with its well-established physical position. In virtual retail logistics, the important thing is its availability when needed, no matter where it is, not even if it is already manufactured or not, provided it can be made available when required (COELHO; CRISTO, 2007).

What is observed in this new logistics structure is that the internal processes of organizations tend to be lean, simplified and standardized, seeking to reduce uncertainties in demand and delivery. Bowersox and Closs (2001, p. 19) state that, “The purpose of logistics is to make products and services available where they are needed, at the time they are desired, at the lowest possible total cost.” However, because of the in this new economic era, where each access can represent a new purchase order and, consequently, a transport and distribution operation, the logistics concept takes on broader meanings, where speed and accuracy in delivery become a fundamental factor of survival and survival. Also, basic rules to have a competitive differential against the market.

Given this scenario, it is easy to understand the fundamental role of logistics activities in the new world of e-commerce. The revolutionary power of the Internet lies in its ability to break the paradigm of the trade-off between wealth and breadth. Wealth refers to the ability of personalization, interactivity between buyer and seller and the diversity and depth of the information provided. Scope refers to the number of customers that can be reached, as well as the variety of items that can be marketed.

According to Alves et al. (2005), in the world of the old economy, when a company wants to operate broadly, that is, to offer a wide range of products to a huge number of customers, it is forced, for economic reasons, to limit the wealth of information and communicating to your potential customers. On the other hand, if you want to use a personalized marketing strategy that is rich in information and interaction, it will have to restrict the number of customers approached and products offered.

Alves et al. (2005) also reinforces that with the Internet and its power of network communication, this trade-off tends to disappear, allowing companies to combine breadth with great wealth in the communication process with their customers. So by limiting the number of locations reached, or the number of items offered, virtual retail is giving up one of the most revolutionary features of e-commerce. To get rid of these constraints as a result of the difficulty of servicing and delivering physical products marketed over the Internet, companies will need to invest in new and creative logistics structures as a way to effectively and cost-effectively meet the challenges of this fantastic new world.

The Table presents the main differences between traditional logistics and e-commerce logistics, according to Fleury and Monteiro (2005).

 

Traditionallogistics

E-commercelogistics

Loadtype

Palletized

Smallpackages

Customers

Known

Unknown

DemandStyle

Pushed

Pulled

Stock Flow

Unidirectional

bidirectional

AverageOrderPrice

Over 1000

Under 100

Ordersdestination

Concentrates

Scattered

Responsible

Onecompany

The wholechain

Demand

Stableandconsistent

Uncertainandfragmented

 

The table analysis makes clear the need to develop specific logistics systems to meet the demands of e-commerce. The existing systems certainly do not fit the characteristics of this new concept. For this reason, there is a strong tendency to seek new arrangements to meet this challenge. Many of these arrangements involve three types of actors: the e-commerce company responsible for the selection, purchase and sale of goods, a specialized logistics operator responsible for order fulfillment and a courier or express delivery company responsible for the delivery activity. physical. Experience has shown that unlike one can imagine, the biggest bottleneck in e-commerce is not physical door-to-door delivery activity, but fulfillment activity, which comprises order processing, inventory management, supplier coordination and the sorting and packaging of goods.

Many companies using e-commerce face difficulties in achieving operational scale and translating B2C specificities into appropriate logistics solutions. And they should be very careful about some logistics specificities in B2C, especially when it comes to picking, packing and delivery, and order processing speed, which are activities that can directly influence customer satisfaction.

According to Bayles (2001) Logistics now plays an even more important role in B2C, as the great transformations that the Internet has provided, such as convenience, 24/7 access to global markets, and trade flexibilities, amplified the potential commercial transactions without, however, evolving proportionally in the physical distribution of the product to the final consumer. On the contrary, the logistic requirements increased, both in volume of operations and complexity of services.

To meet these requirements, new technologies have been developed to help businesses, such as Enterprise Data Interchange (EDI), Warehouse Management System (WMS), Enterprise Resource Planning (ERP), and Transportation Management System (TMS), which They are great allies in order to assist in the optimization of logistic processes, and in the search for the lowest total logistic cost.

Soon will be highlighted the model most adopted by companies to apply their logistics strategies facing the challenges of the e-commerce market seeking competitive advantage.

Logistics Operators

According to Rao and Swarup (2001), logistics began to gain importance in the industry with the breaking of the mass production paradigm, especially with the philosophy of just in time and lean production, as companies began to demand deliveries of raw materials. raw materials and products on time and in smaller batches, making logistics a more complex activity, requiring specialists to manage it. In addition, Fuchs (2003) adds that customer relationships and information speed together are considered critical success factors, while customer interaction, product capacity / speed, and related information are viewed as drivers of value.

Then came the need to provide logistics services and this growth was due to companies focusing on their core business. In this process, the opportunity was created for the presence of the logistics operator, who meets the demands for logistics services in an integrated, customized and personalized way.

As the tendency of companies is to outsource much of the logistics services, through partnership with logistics operators, its importance in the competitiveness of companies has been evolving (Dorner et al., 2000). In the United States, based on a 2004 survey by Bentz and Lieb (2005), it was found that at least 80% of large manufacturing companies used the services of logistics service providers (PSLs). To make a comparison possible, the same survey, implemented in 1991, showed that only 38% of companies outsourced logistics activities. For Lieb and Miller (2002), the globalization of markets favoured the expansion of logistics operators on a larger scale.

The logistics operator, for Coyle, Bardi and Langley (2003), is an external supplier, a service provider that performs all or part of a company's logistics functions and covers services such as transportation, warehousing and distribution. Neves (2003) states that logistics operators offer management and operation services for transportation, material handling and storage related to inventory.

This logistic operator terminology, according to Lieb and Randall (1996), emerged in the United States in the 1980s and is currently widespread in European countries under the name Third-Party Logistics Provider (3PL). In addition, Berglund, Sharman and Wandel (1999) associate the term 3PL with the company that provides, by means of a contract, transport, handling and warehousing operations and management services.

Fleury and Ribeiro (2001) point out that in the 1980s, the trend of integrating logistics activities between two or more activities performed in a coordinated manner was becoming more frequent, leading some authors to associate the expression 3PL with companies capable of providing more than one type of logistics service in an integrated manner. That said, for Van Laarhoven, Berglung and Peter (2000), a logistics operator encompasses all kinds of logistics activities, however simple, not necessarily reflecting the technological and operational advances of a supply chain.

That is, a logistics operator is a company that conducts the efficient planning, implementation and control of material flow through the supply chain, as well as all associated services and information from the point of origin. to the point of consumption, meeting the demands of customers (AGUIAR, 2001).

Simply put, it is possible to understand the logistics operator as a service provider who has recognized competence in logistics activities, performing functions that may encompass the entire logistics process of a client company or only part of it (AFRIC; CALKINS, 1994; SINK; LANGLEY; GIBSON, 1996; ABML, 1999; RAZZAQUE; SHENG, 1998; COYLE; BARDI; LANGLEEY, 2003).

For Murphy and Poist (2000), the development of long-term formal relationships between logistics operators and their customers will be increasingly relevant for companies to increase their level of competitiveness. In this sense, Payne et al. (1999) reinforce the importance of the relationship between these partners due to competition being between supply chains and no longer between individual organizations. Thus, relationships between such business partners are the foundation on which an effective supply chain can be built and solidified (WATHNE; HEIDE, 2004).

Fulfillment

According to Lee and Whang (2001) the fulfillment, ie the set of operations that begin on order receipt, through order processing, inventory management, picking, packing, invoicing, until order delivery, is very important., especially for virtual retail. The authors report that fulfillment can be the most costly and critical activity. This way, the company that performs this set of tasks more cost-effectively at a given level of service can gain competitive advantage.

According to Bayles (2001), this amplification of the fulfillment importance for virtual retail happens due to several of the e-commerce characteristics, among which we can highlight:

a) The possible amount of sales that virtual retail can make in a single day can reach the theoretical limit of the number of people who can access the site in that period, which can be countless times higher than retail purchases. consequently, amplifying operations such as order processing, goods sorting, inventory and re-supply control and management, packaging, deliveries, and returns.

b) Breaking geographical barriers.

c) The demands of virtual consumers tend to be much higher.

d) Return operations can be very costly.

These features make logistics activities a great competitive advantage for virtual retailers.

For Bayles (2001), virtual consumers "buy" the convenience of placing their orders with mouse clicks, and have them delivered to home as soon as possible and without fail (such as exchanged products or delays). If this does not happen perfectly, the consumer will probably make their next purchases at another virtual retailer. Faithfulness is now on the line. E-fulfillment occurs right between mouse clicks and the right availability for delivery.

 

Companies have now revised their operating strategies from an exposure to US 98- and 99-year-old problems due to their systems nearly crashing due to lack of product availability, incorrect orders, and late deliveries.

E-Fulfillment

According to Harrington (2000), all processing of an order begins with the purchase. At this stage it is important to proactively manage the information in the consumer's order. From a fulfillment point of view, it is important to have an online inventory of the company in order to pass the product availability information to the consumer. Once the purchase is made, the information should be passed on virtually to the process participants, which would be: fulfillment officer, financial institution and carrier, for example. Because the sale is only made after the consumer's credit rating confirmation, credit rating becomes a critical activity. So this is an activity that needs to be done as soon as possible so that fulfillment processing can proceed.

This entire process must be performed for each request independently, and in real time, ie the flow of information must follow continuously. In addition to working each order independently, personalization is also required, meaning that messages must follow along with the order as well as gift packaging. These are services that can add value to the order.

According to Saab and Gimenez (2000), inventory management should be performed using advanced management and demand forecasting techniques.

According to Harrington (2000), another need is real-time order tracking, this process is important to have more than one company involved in fulfillment (retailer, logistics operator and carrier) and the order may be in the power of any of the three during the process and it is important the customer has this information. Another important service that consumers increasingly demand is information on the status of their purchases, ie, at what point in the process the order is, has already been dispatched, has already been delivered, among other information.

Now that the technology in favour of logistics comes in, the systems developed are capable of handling a large number of orders, consisting of a small number of items, and often made by new customers who are not registered, either from the point of view of location. or even from a commercial point of view.

And the big and most noticeable difference from traditional fulfillment to e-fulfillment is the customization of orders that retailers have incorporated, where personalization equipment is needed and a different layout from those found in traditional distribution centres.

Express Deliveries

According to Saab and Gimenez (2000), delivery is perhaps the most important point of e-commerce. The delivery process is of great importance to e-retail because of its characteristics that make it an initially high cost process. However, if well managed, it can become a competitive advantage for the online retailer. The company must offer different pricing options and delivery times through the use of express freight companies, carriers, post offices, or even one or more transportation service providers.

According to Bayles (2001), home delivery can be seen as one of the foundations of e-commerce, since it is through it that the convenience of consumers can make their purchases without having to leave home. And precisely because it is one of those foundations, home delivery can serve as a source of customer generation: as virtual consumers seek convenience, the level of service provided by delivery acts as one of the deciding factors at the time of purchase by the consumer.

To be successful and maintain a high and efficient level of delivery satisfaction, companies adopt the express delivery model, according to Coleman et al. (2000), express delivery companies have been around much longer than the internet, already having somehow a structure set up for use in e-commerce. They even fit your needs, as the express delivery market is also characterized by small volume demands.

Leading express delivery companies have already noted the important role they play in e-commerce, and the competitive advantages and experiences that can be used in their business strategies in this growing and important market. More and more investments are being made in order to achieve better interaction and matching of needs between e-commerce and express delivery.

 

 

Questionnaire analysis

Question 1. In your opinion centralizing logistics activity management is considered something:

(x) Good 100%   ( ) Bad 0%

According to the answers collected, 100% of the people interviewed agree that the centralization of logistics activities is considered a good thing, and this is when the logistics operator enters and becomes an important player within the business. Some benefits of having a logistics operator were mentioned in the previous chapter, but the main benefit of hiring one is that it centralizes all information in one point, thus facilitating decision making, logistics operators become more assertive ahead. problems and as a result can have a major impact on customer satisfaction.

Question 2. Do you think that outsourcing within logistics operations is considered as something:

(x)  Good 77,8%  ( ) Bad 22,2%

A question where there was a slight divergence of opinion of the people interviewed, but the vast majority opined that outsourcing within logistics operations is considered as something good, something positive. And once again, outsourcing is believed to be extremely positive for e-market logistics operations. Hire a carrier, who can act with greater flexibility of schedules, meeting the customer's needs in a personalized way, meet on time, with quality. Or even a logistics operator as mentioned above, where he can have all the management, optimizing operations, all centralized information, always thinking and having as a priority to maintain a high level of customer satisfaction.

Question 3. In your opinion which is the importance level of the information clarity within a logistics operation?

( ) High 100% ( ) Medium ( ) Low

Another question where there was unanimity in the answers, 100% of respondents said that the clarity of information is highly important. Which brings us back to the importance of a good fulfillment operation. Many errors within logistics operations occur simply because of information failure, often the chain is long and there are many links, and information is not always passed effectively and accurately. Many companies are unaware of how important information exchange is, and focusing more on that is certainly something that can make e-commerce logistics more effective and thereby increase the level of customer satisfaction.

Question 4. Do you think it is valid for logistics companies to invest more in express logistics?

(x)  Good 77,8%  ( ) Bad 22,2%

Because e-commerce logistics have some peculiarities, such as a high number of orders, scattered locations, small packages, among others, hiring a company that works with express delivery or even the investment to adjust operations is an alternative that should be prioritized by companies that meet the demand for e-commerce.

Question 5. In which level warehouse management can affect the final outcome of the delivery process?

( ) High 55,6% ( ) Medium 44,4% ( ) Low

In this question there was also a divergence of opinion, a slight majority of respondents say that good warehouse management has a high impact on the delivery process, followed by another part of respondents stating that the impact is medium. Again it is worth quoting about the efficiency of a good fulfillment. Many of the mistakes can be avoided if the warehouse is efficiently managed, another important fact is regarding time, if the management is optimized, the delivery time can be reduced, thus increasing the customer satisfaction level.

Question 6. What is the main reason for customer unhappiness regarding order delivery?

( ) Delivery Delay 44,4% ( ) Package left in an unsecured place 33,3% ( ) Damaged Package 22,2%

Perhaps because this is a question with a high number of alternatives, it is the question where there was a greater divergence of opinions on the part of the interviewees. The vast majority felt that late delivery is the customer's main source of unhappiness, followed by a package left in an unsafe place and soon after damaged packaging. The important thing is that all these problems can be solved with the correct application of alternative tools to attend the electronic market logistics.

Question 7. In your opinion, what is the main factor behind delivery delays?

( ) Logistics and Warehousing 55,6% ( ) Courier 22,2% ( ) Other 22,2%

The vast majority of the people interviewed stated that the major culprit for delayed deliveries is due to logistics and warehousing problems. Followed by a draw between carrier and others. As stated earlier, warehousing problems can have a major impact on the delivery date, as well as good management can influence the speed of order picking and save time.

Question 8. If you were the CEO of a logistics and operations company, what would you invest in most to boost your business?

• Make sure to keep up with the change of times people ’skills and equipment

• Staff training but also up to date operating systems.

• Technology to ensure I am up to date with the ever-changing needs of the ecommerce world. Customer service staff also, when there is a problem the first port of call is going to be the help desk. Well trained, well-motivated staff are always going to maintain positive customer relations and increase retention of those customers.

• Customer feedback and Eircode for all packages.

• I would invest heavily in staff with a good work ethic, also promoting a positive work place with rewards and recognition for good work.

• Decent equipment with well-motivated staff.

• Customer service / People

• Staff & Training

Being cited in the vast majority of responses, team training and motivated staff were considered two most important aspects to be invested, closely analysed and which has great potential to make a difference. Followed by appropriate and up-to-date equipment and good customer service training.

Findings

Question 1

Centralization of logistics activities is considered a good thing, and this is when the logistics operator enters and becomes an important player within the business.

Question 2

Outsourcing within logistics operations is considered as something good, something positive.

Question 3

The clarity of information is highly important which brings one back to the importance of a good fulfilment operation.

Question 4

E-commerce logistics have some peculiarities, such as a high number of orders, scattered locations, small packages, among others, hiring a company.

Question 5

Good warehouse management has a high impact on the delivery process, followed by another part of respondents stating that the impact is medium.

Question 6

Late delivery is the customer's main source of unhappiness, followed by a package left in an unsafe place and soon after damaged packaging.

Question 7

The major culprit for delayed deliveries is due to logistics and warehousing problems.

Question 8

Well trained, well-motivated staff are always going to maintain positive customer relations and increase retention of those customers.

Discussion

Question 1

Centralization of logistics is to exercises is viewed as something worth being thankful for, and this is the point at which the co-ordinations with administrator enters and turns into a significant player inside the business (Kawa, 2017). A few advantages of having co-ordinations administrator were referenced in the past part, however the principle advantage of employing one is that it incorporates all data in a single point, subsequently encouraging basic leadership, co ordinations administrators become progressively self-assured ahead. issues and subsequently can majorly affect consumer loyalty.

Question 2

Redistributing inside logistics with co-ordinations within tasks is considered as something great, something positive. Indeed, redistributing is accepted to be incredibly positive for e-commerce with their activities. Contract a transporter, who can act with more noteworthy adaptability of calendars, addressing the client's needs in a customized way, meet on schedule, with quality (Mangiaracina et al., 2015). Or on the other hand even the administrator, where they can have all the administration, improving activities, all concentrated data, continually thinking and having as a need to keep up an elevated level of consumer loyalty.

Question 3

The perfect clarity of the available data is exceptionally significant and it takes to the significance or rather a decent satisfaction activity. Numerous mistakes inside the given tasks happen basically in view of data disappointment, frequently the chain is long and there are numerous connections, and data isn't constantly passed viably and precisely (Nica, 2015). Numerous organizations are ignorant of how significant data trade is, and concentrating more on that is positively something that can make online business co-ordinations progressively successful and in this way increment the degree of consumer loyalty.

Question 4

In developed on account of economies, the advancement of internet retailing depended more on fragments, for example, plan, electrical and ICT items, as opposed to nourishment (Wu and Lin, 2018). The abovementioned, in which the obtained articles are regularly assigned through a postal association, bundles or products, the Internet plans of action have caused a torrential slide of new ones request trade have a few eccentricities, for example, a high number of requests, dispersed areas, little bundles, among others, employing an organization that works with expedited service or even the speculation to modify activities is an elective that ought to be organized by organizations that fulfil the need for web-based business.

Question 5

In the first place, legitimately from providers to clients and stock advancements, a conveyance focus (WMS) the executive's system improves all its stockpiling exercises. A dispersion focus organization structure enables an organization to consistently screen stock, with existing data, for example, the latest solicitation, shipment or receipt and any advancement in the middle. Great stockroom the executives highly affect the conveyance procedure, trailed by another piece of respondents expressing that the effect is medium. Again it merits citing about the productivity of a decent satisfaction (Xu and Huang, 2017). A large number of the slip-ups can be maintained a strategic distance from if the distribution center is productively dealt with, another significant reality is in regards to time, if the administration is upgraded, the conveyance time can be diminished, hence expanding the consumer loyalty level.

Question 6

Great client support can make a business stand apart from the challenge and ought to be something all organizations take a stab at. To some extent, this is on the grounds that fulfilled clients make incredible diplomats, as the normal glad client will inform nine individuals concerning their positive involvement in an organization (Xu, Cheng and Huang, 2015). Late conveyance is the client's fundamental wellspring of misery, trailed by a bundle left in a hazardous spot and not long after harmed bundling. Interestingly, every one of these issues can be unravelled with the right use of elective instruments to go to the electronic market.

Question 7

Lack of capacity in a warehouse, for example, compartments prompts postponed conveyance times as it is important that specialist organizations hold up until proper space is accomplished and deferred conveyances are because of warehousing issues (Yu et al., 2016). As expressed before, warehousing issues can majorly affect the conveyance date; just as great administration can impact the speed of request picking and spare time.

Question 8

  • More prominent Warehouse Efficiency as distribution center administration innovation stockroom effectiveness is critical (Zhang et al., 2017). A muddled and wasteful distribution center can cost you a great deal of time and cash, so discovering approaches to amplify effectiveness is significant.

 

  • Better Inventory Management with a TMS, you can screen and track the lifecycles of requests and shipments continuously.

 

  • Diminished Costs through Carrier Selection as the more you utilize your transportation the board framework, the more you can spare

Conclusion

In developed economies, web-based business co-ordinations talk about the colossal most recent motor of advances in the coordination and physical dissemination frameworks, which have grown impressively in the course of recent years or something to that effect. Right now, it remains the case that, while the online business keeps on growing, a large portion of the shippers, specifically the multichannel shippers, are simply beginning to determine what this will involve for their scattering association structures. Toward the start of the online movement, it was an issue of tolerating the solicitation for an article from home.

 

 

References

Kawa, A., 2017. Fulfillment service in e-commerce logistics. LogForum13.

Mangiaracina, R., Marchet, G., Perotti, S. and Tumino, A., 2015. A review of the environmental implications of B2C e-commerce: a logistics perspective. International Journal of Physical Distribution & Logistics Management45(6), pp.565-591.

Nica, E., 2015. Environmentally sustainable transport and e-commerce logistics. Economics, Management, and Financial Markets10(1), pp.86-92.

Wu, P.J. and Lin, K.C., 2018. Unstructured big data analytics for retrieving e-commerce logistics knowledge. Telematics and Informatics35(1), pp.237-244.

Xu, S.X. and Huang, G.Q., 2017. Efficient multi?attribute multi?unit auctions for B2B E?commerce logistics. Production and Operations Management26(2), pp.292-304.

Xu, S.X., Cheng, M. and Huang, G.Q., 2015. Efficient intermodal transportation auctions for B2B e-commerce logistics with transaction costs. Transportation Research Part B: Methodological80, pp.322-337.

Yu, Y., Wang, X., Zhong, R.Y. and Huang, G.Q., 2016. E-commerce logistics in supply chain management: Practice perspective. Procedia Cirp52, pp.179-185.

Zhang, M., Pratap, S., Huang, G.Q. and Zhao, Z., 2017. Optimal collaborative transportation service trading in B2B e-commerce logistics. International Journal of Production Research55(18), pp.5485-5501.

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