E-Commerce in Logistics and Supply Chain Management

Authors: Deva Dharshini P, Aishwarya B

II B.COM CORPORATE SECRETARYSHIP (UG)
Chevalier T Thomas Elizabeth College for Women Tamilnadu, India
Abstract
This paper deals with the revolutionary potential of E-Commerce in transforming the global
economy by examining the effects of e-commerce on logistics and supply chain management.
Traditional supply chain operations are changing to meet the demands of digital age as a result of
rapid growth of online retail.
Introduction
E-commerce logistics is a procedure that an e-commerce firm use a process called e-logistics to
get an order out of the warehouse and into the hands of customer. Following an online purchase,
the order is packed, shipped, delivered and occasionally returned.
In 1970, different retail stores were replaced and suppliers and wholesalers started making direct
shipping. Sellers took a decision in 1980 to improve their store delivery through their own
distribution centres to control them by their own. In 1990, retailers established foundation for
global sourcing. In 2000’s these retailers developed the concept e-commerce to meet the
consumers demand globally.

Key points
• E-commerce
• Supply chain management
• Logistics
• Business
• Trend in e-commerce and supply chain management
Objectives
• Offers a platform for online orders and payments
• Tracking shipments and inventory
• Increasing the rate at which orders are processed Making it simpler for customers to find
products

1.Trends of e-commerce in logistics and supply chain management:

As e-commerce keeps expanding, the importance of the last mile of the supply chain the delivery
of items to the customer has increased. Companies are investing in technologies to improve their
services to the customers.
Increasing use of robotics and automation: The use of automation and robotics is one of the most
important trends in e-commerce logistics. Technology is revolutionizing every part of the supply
chain, from robotic pick-and-pack systems to self-driving delivery trucks. Businesses may save
costs, improve productivity, and improve the overall customer experience by automating regular
tasks and processes. This is particularly visible in warehousing, where it serves to speed up
procedures like picking and packing. Robots function at least twice as quickly as humans, and
they’re available 24/7. Humans can often take between 30 to 3 minutes to pack one order.
Combining AI with data analytics Artificial intelligence (AI) is a further trend in e-commerce
logistics that is gaining up speed. This is a really effective way for etailers to improve the
products they offer to customers. Businesses use data analytics and AI to personalize promotions
and recommendations, and they provide customization choices so that customers can construct
and customize their own orders. Personalization is increasingly commonplace in everything from
product features and functionalities to packaging and branding. AI and data analytics are
extremely useful in logistics. Data is first used in inventory management, for example, to track
incoming and exiting commodities to make sure the right items are In stock to fulfill requests. To
ensure there is sufficient inventory to fill orders from customers, this may entail tracking
inventory levels in real-time and utilizing predictive analytics to foresee future demand.
Following that, information is used in the order processing step to ensure the accuracy of the
order details and that the right items have been chosen for dispatch. This may entail the use of
automated systems for order validation, to compare orders with inventories on hand, or to
identify any discrepancies that must be cleared up before the order can be filled. After the order
has been processed, data is used to streamline the picking and packing procedure to guarantee
that the items are picked and packaged precisely and effectively. Using real-time data to monitor
progress and modify workflows as necessary, this may entail utilizing artificial intelligence to
determine the most effective picking routes and packing procedures. Finally data is utilized to
handle shipping and delivery, including choosing the best shipping method, monitoring the
progress of the item, and updating customers on delivery status. This could entail employing data
analytics to optimize package distribution across carriers, manage carrier relationships, and
improve shipping routes based on past information.
Focus on sustainability
Consumers are paying more attention to sustainability, which is no longer just a trendy word but
a must for companies that want to succeed in the long run. According to Deloitte research, 64%
of customers will consciously reduce their use of single-use plastics in 2022. As Customers’
demands for environmentally friendly methods and products are driving a rise in the Importance
of sustainability and green logistics in e-commerce logistics.
As a result, in order to adopt and keep customers, both e-tailers and logistical service providers
are adopting a variety of “green behaviours”:
 Packaging made of sustainable materials
 Delivering with electric-vehicle transporters to lessen carbon footprint
 Supply chain optimization to reduce waste and emissions
  Collaborating with vendors and logistical service providers who share their values and
objectives on sustainability
 Using eco-friendly technologies at work
Omni channel in logistics
Omnichannel retailing is a type of multichannel e-commerce that links a brand’s physical store
with online operations. Also known as “seamless commerce” or “unified commerce,”
omnichannel retailing focuses on synchronizing data between multiple channels and providing a
seamless experience to the customers. A two-way connectivity between online platforms and
physical stores, as well as seamless transfers between these channels, are essential components
of an effective omnichannel strategy. Enabling a seamless flow of pertinent and accurate
information is the aim. Regardless of the channel they use, the ultimate goal of omnichannel
retailing is to offer customers convenience and a seamless experience. Customers should be able
navigate seamlessly from product discovery to purchase whether they are using social media
platforms, an internet store, or a physical location.
Last -mile delivery
The optimization of last-mile delivery is a crucial trend that will continue to influence e-
commerce logistics through 2023 and beyond. The last mile of the delivery process, from the
distribution centre to the customer’s door, is referred to as last-mile delivery. Due to the fact that
it is frequently the most costly, difficult, and time-consuming step and calls for a high level of
coordination, efficiency, and accuracy, this stage has become a crucial part of ecommerce
logistics. In terms of increasing customer retention, it’s also possibly the key step. In contrast, a
poor delivery experience, such as a delayed delivery or misplaced things, will drive away
customers. To optimize the last mile even further, logistics providers are implementing solutions
such as crowdsourcing and micro-fulfilment centers to ensure faster turnarounds as consumers
increasingly expect fast, convenient shipping options same-day delivery is becoming the norm
rather than the exception.
Studies reveal:
 According to 63% of clients, delivery time is important.
 77% are still willing to pay for faster shipping.
 80% of customers want same-day deliveries.
 Under-35s demand same-day delivery in 56% of cases, and 61% are willing to pay more
for it.
 In 96% of cases, “fast delivery” refers to same-day delivery.
 Businesses will have a big competitive edge in 2023 and beyond if they can provide a
flawless last mile service, which is even better if it includes same-day delivery.
To manage and provide this service to a high degree, though, calls for an extremely effective
process. By accelerating the use of automation and robotics, goods may be picked up and packed
more quickly, which reduces the time it takes to get them “on the road.” More transparency for
the buyer and seller is provided by the incorporation of AI, algorithms, and data analytics.
Customer satisfaction rose as a result of enhanced last-mile delivery made possible by the
aforementioned automation technologies.
Characteristics of an e-commerce logistics platform
Every logistical action in e-commerce shows the characteristics of logistics. Delivery issues
reflect distribution problems. A number of smaller logistical units operating in various Locales,
thus it’s crucial to incorporate every part of Multi-modal distribution, shipping
management ,Tracking of routes, timing, and control of Shipping, receiving, and transportation.
Storing things in The use of electronic commerce implies Mechanism for managing warehouses
that should make product tracking in the warehouse simpler and quickly preparing and sending
the requested products.
Implementation of Orders in e-commerce
Electronic Ordering is the process of placing orders for goods the initial stage of this particular
convoluted logistics procedure. Following the website’s product selection, the buyer places an
electronic order that contains sensitive information like name and email address for electronic
correspondence, address verification, and method of delivery for delivering (which will
determine the product’s disposal window), the payment type, the phone number, and equivalent
data. Most electronic shops employ using a single question as the basis for authentication of
future client, or printing the letters in alphabetical order with a field of numbers. Transfer of
choice verifying the items in the electronic basket the buyer places the order and pays for the
product. The consumer receives an email message that confirms information as confirmation of
the created order and the data entered. The electronic message typically includes a validation of
the data entered and a username and password of a potential client. If customer makes a decision
to make a purchase and verifies the ordering, receiving, and terms of purchase the same email
address.
E-commerce in inventory control
Marketing activity that is one of the least well-explained planning and inventory control are both
a part of logistics. In a perfect world, including in electronic commerce as a result, there would
be no need for inventory. Demand can be predicted by sellers with accuracy, but sadly, there are
imperfect people and places in the world. Predictions are not precise . What’s involved in the
effects of inventory control in online shopping are shown in because it operates in a worldwide
market, When the vendor is unable to foretell the identity of the buyer neither the need for the
goods among consumers. Seems the ideal quantity of is quite challenging to ascertain because to
the lack of inventory and the a product’s size may fluctuate over time; for example, There’s a
chance that future supplies will be greater.
Customer reviews
Consumer reviews and experiences are used to evaluate an e-commerce company’s reputation. It
is an essential component that impacts how quickly an online store grows. For internet shoppers,
price comparison search engines are their first port of call. Customer reviews are used to rank
websites on search engines. The proper product must be delivered at the right time in order to get
positive ratings. Internal key numbers are used by marketplaces like Amazon and eBay to
evaluate the reliability of distributors. Targets for these platforms’ key performance indicators
(KPIs) relate to the supply chain. Penalties such as account suspension may be applied if the KPI
falls below specified minimum values.
3.Supply chain management, for e-commerce companies it guarantees:
 On-time delivery: SCM software keeps track of how items are moving along the supply
chain.
 Inventory control: SCM can simplify stock monitoring and guarantee that resources are
available before they run out.
 Cost reduction: SCM gets rid of different retailers, outlets, and distribution steps. As a
result, the overall cost of goods is decreased.
 Improved efficiency: SCM can lower holding costs and increase cash flow.
Findings
The use of robotics and automation in logistics can significantly enhance efficiency. Businesses
can invest in automated systems for picking and packing to expedite order processing. Artificial
intelligence and data analytics can be utilized to personalize promotions and recommendations
for customers. They can also enhance inventory management and order processing. The growing
demand for sustainable practices in e-commerce logistics suggests that companies should
consider sustainable packaging, electric-vehicle transporters, and supply chain optimization to
reduce waste and emissions. An omnichannel approach that seamlessly integrates physical stores
and online operations is essential to provide a convenient and consistent shopping experience for
customers. The last-mile delivery is a critical step in e-commerce logistics, and optimizing it is
crucial for customer satisfaction. Same-day delivery is becoming increasingly important, and
efficient automation and data analytics can help achieve this.
Conclusion
Businesses should consider investing in automated systems for warehousing, picking, and
packing to improve order processing speed and accuracy. Utilize AI and data analytics to
personalize promotions, optimize inventory management, streamline order processing, and
improve shipping and delivery efficiency. To meet the growing demand for sustainability, e-
commerce companies should adopt eco-friendly packaging materials, electric delivery vehicles,
and environmentally responsible supply chain practices . Implement a seamless omnichannel
strategy that connects physical stores with online operations. Ensure data synchronization and
provide a consistent shopping experience across all channels.
Reference
https://www.bigcommerce.com/ecommerce-answers/what-logistics-and-how-does-it-apply-
ecommerce/
https://www.ithinklogistics.com/blog/evolution-of-e-commerce-logistics-supply-chain-
management/
https://en.codept.de/blog/5-ecommerce-logistics-trends-you-should-adopt-in-2023

https://www.researchgate.net/publication/314093962_E-
Commerce_in_Logistics_and_Supply_Chain_Management