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11.2 E-logistics

As defined by the Council of Logistics Management in 2004, logistics is

that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer requirements (http://clm1.org/Website/AboutCLM/Definitions/Definitions.asp)

E-logistics is simply the involvement of ICTs to automate logistics processes within the overall management of the supply chain from product origination through to customer fulfilment. The challenge confronting e-logistics include the need to overcome

(See van Rensberg, 2004:2)

In terms of shipping management the challenge has been compounded as e-commerce has accelerated new business models such as 3PL ( third-party logistics providers) and 4PL (fourth-party logistics providers). 3PL plays an important role in modern logistics, usually providing specialist services in conventional warehousing operations, inventory management, order fulfilment, delivery, tracking and such like (Colin, 2001:36). 4PL providers tend to augment the traditional 3PL offering with interfaces that span all the information systems needed to ‘mobilise all of the resources of the upstream (suppliers) and downstream (distributors, service providers) actors involved in the e-supply chain’ (Colin, 2001:36).

However, without wider reform the development of 3PL and 4PL providers can cause discontinuity between supply chain partners. This can have advantages for those involved when competing against more ‘backward’ companies, but for national and regional policy makers or companies involved in supply chain relationships, solutions (particularly multi-modal solutions) are often impossible if all businesses within the supply chain are not addressing the above list of e-logistic challenges in a coordinated manner.

The evolution of new business models in the e-logistics arena seems set to continue: for instance, the need to design eSCM, integrated logistics information systems and physical logistics systems has even given rise to a new business model, 5PL providers

 

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