E-commerce & Logistics Harvard Case Solution & Analysis

Statement of Problem

The use of electronic commerce has increased competitiveness and the integration. However, it is notable to understand that not every company becomes successful with its ecommerce activities. The influencing role of e-commerce has played a role in the development of firms’ growth in the recent times. According to a study, success of e-commerce is solely dependent upon the contribution of complementary assets, which include the services, logistic capability, internet and the computer. Companies that look to introduce e-commerce need to control and respond to the inevitable demands of every customer. This paper will also focus on the impact of e-commerce logistics management in China with respect to the post office for the efficient utilization of service delivery in China and in the United States (The World Bank, 2006).

Research Question

Enormous growth of e-commerce along with the significance of third party logistics has created a rather direct relation with the firms. Companies look to outsource their logistics operations to various companies and look to support customers as well as look after clients. The purpose of the thesis is to study why the third-party logistics is significant for the e-commerce.

What services do e-commerce offer to the customers

Relationship between e-commerce and logistics and its effectiveness in China

Relationship between e-commerce and logistics and its effectiveness in USA

China Post Office has a significant impact on e-commerce logistics.

Review of Literature

This is the modern age of technology and innovation where e-commerce plays a crucial role in various businesses and industries in all global regions. Companies that continuously practice e-commerce are taking huge benefits from it due to the quick service and facilitation to the customer (Saqib Iqbal, 2009). E-commerce provides 24/7 online support to both buyers and suppliers and totally encourage the process of buying and selling electronically in order to ensure quick service delivery and customer satisfaction (Elsevier.B.V, 1988). A major advantage of e-commerce technology is knowledgeable buyers because currently everybody is interested in technology and advancement and wants to learn about online facilitation services as much as possible. Companies are running their business efficiently with the help of e-commerce technology. At global level, business to consumer sales (B2C) has  increased to a great extent over the last decade and as a result there has been a significant increase in online customers that has changed consumer behavior, needs and priorities (James, 2010).

E-commerce Logistics also plays a great role in driving success to the logistics companies. Different companies have different E-commerce Logistics models developed for a different kind of products and services as per the need of customers (Kelly, 2005). Successful implementations of E-commerce Logistics models are rapidly changing the physical distribution network for companies. Third party logistics is a firm that offers “Outsourced” services to customers in order to ensure the best performance in supply chain management functions. Third party service providers are expert in integrated operation, warehousing and transportation services based on the customer needs and priorities as per the market conditions (H.Brumme, 2010).

Over the past decade, strong development in the e-commerce has influenced different industries in business operations as well as in making an organization successful. Using e-commerce within customers in the third party logistics market has become increasingly popular. Third party logistics have been actually confronting the increasing changes in the market environment in their respective enterprise industries. However, it is important to understand that the implication of e-commerce is still minor or not at a large scale (Leahy, 1995).

The appearance of electronic commerce has been highly recognized in terms of customer related activities such as marketing, sales and order receiving, which is called the front end of every e-commerce process. The movement of goods from one place to another is called the logistics and if the same process is carried through a third party then the same service, which is now being performed by someone else or the third party is called the third party logistics. Besides this third party logistics is the concept of electronic business or the electronic e-commerce, which is no longer stranger to users as it has a significant impact on the social life of firms. E-commerce is gradually replacing a part of the traditional business and is also leading to the new practices that are rising quickly. The appearance has also become quite an important tool in helping distributors, suppliers, retailers and the manufactures in various business activities.....................................

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