What is e-logistics?

We find the term “e-logistics” all over the place in the modern business world. It is a frequent visitor in the thoughts of managers and transport companies.

In this article, we will explore this broad concept, which is becoming increasingly important for today's markets.

Definition

E-logistics involves the use of current technology, especially the internet, to manage the movement and distribution of products. This can include, for example, new solutions for inventory management, storage or order processing.

In another sense, it can also be said to be the type of logistics characteristic of online commerce, compared with buying in a physical store, or with traditional ordering as it existed before the rise of the internet. Part of this distinct identity is the automatic processing of orders and the emphasis placed on fast delivery of orders to the customer.

Some benefits of e-logistics

These are some of the possibilities and positives that e-logistics represents. We focus in particular on some of the most important and recent technologies associated with the term.

1. Communication

We live, as is widely recognized, in the information age, which also means the communication age. This word is inseparable from the concept of e-logistics.

A basic illustration of this fact is the unprecedented access to new domestic and international markets, which is only possible thanks to the internet. Markets are fiercely competitive, but also full of opportunities. Small shops often carry out logistics operations on a huge scale. Communication that no longer depends on traditional means, such as the telephone, facilitates, for example, multimodal delivery solutions.

The current context also favors a new model of parcel shipping: non-home deliveries, in which InPost specializes, are an agile, efficient and convenient strategy, fully designed for the demands and challenges of e-commerce.

A communication technology that has become important in recent years is the Internet of Things. This involves establishing a network of sensors and interconnected devices to enable the instant exchange and coordination of information.

2. Large-scale data analysis

This term covers a practically infinite world of ideas: the use of planning, often with the help of computer software, to promote optimization and efficiency. Some examples are the ease of comparing supplier prices, inventory management, transport route planning, assessment of operational efficiency or analysis of customer feedback.

We discuss in this other article an innovation that seeks to make full use of the potential of data analysis, as well as many of the other technologies we mention here: the smart warehouse.

3. Visibility

Visibility, meaning above all access to concrete information in real time, is a key concept. It is extremely convenient, for example, to know instantly the availability and location of a product in the warehouse, or whether an order is about to arrive. This gives peace of mind to the customer and allows greater operational efficiency for the company.

The ultimate visibility criterion from the perspective of the end consumer is the ability to track the order. Statistics show that this is a valued feature and frequently used by online shoppers.

4. Increased productivity and reduction of errors

It is evident that, from the manager's point of view, the new resources require investment and are associated with costs. However, it should not be overlooked that there is a real counterbalance in the way they can automate many tasks, increasing productivity. Technologies such as EDI (Electronic Data Interchange) allow the automation of invoicing, orders to suppliers and other processes.

On the other hand, manual processes are inevitably vulnerable to human error: sometimes, a single incorrectly entered number is enough to cause major complications. Digital resources help avoid many problems.

Some challenges of e-logistics

These are some of the logistics challenges that e-commerce companies face, and which are expected to remain relevant in the future.

1. Speed

Studies show the central importance that speed has for the typical consumer today. In addition to expecting prompt delivery, delays easily damage the relationship between the company and the customer. This must, of course, be weighed against what is technically and financially feasible.

2. Complexity

Digital commerce can be complicated and requires attention to many aspects. For example, for exporting companies, expertise may be needed regarding the required documentation.

3. Need for infrastructure

Digital commerce depends on infrastructure prepared to support it. At a general level, for example, it depends on the quality of roads or access to the internet. But this also applies, on an individual scale, to the necessary equipment and investments.

4. Sustainability

We cannot fail to mention one of the great challenges of the modern era: environmental problems, which the popularization of e-commerce has been worsening. Also in this area, the non-home delivery model shows advantages by generating a significantly smaller amount of pollution. Visit our website to learn more about our commitment to sustainability and all the other advantages that the InPost service can offer you.