Traditional Logistics Versus eCommerce Logistics (serious post)

April 23, 2014

Today’s post is to highlight the differences between traditional logistics and eCommerce logistics.

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Although this is not the most riveting post, it is important to demonstrate the fundamental differences between traditional logistics and eCommerce logistics.

With the evolution of the retail model, there should come an evolution to the ways in which logistics practices are carried out. Too many logistics providers have maintained their existing models and ‘plugged’ a new form (eCommerce) into their existing framework without understanding the idiosyncrasies that eCommerce logistics brings.

The eSolutions team works very closely with its operating brands Dawn Wing and Time Freight to ensure that eCommerce Logistics thinking is applied to their eCommerce deliveries.

 

The table below summarises the main “hard” differences between Traditional and eCommerce logistics:

Logistics activity

Traditional Logistics

 

E-logistics

Orders Predictable VS Variable/fluctuating
Order cycle time Weekly VS Daily, Hourly
Customer Strategic (B2B) VS Broader base (B2C)
Customer Service Reactive, rigid VS Responsive, flexible
Replenishment Scheduled VS Real-time
Distribution model Supply-driven (push) VS Demand-driven (pull)
Demand Stable, more consistent VS More cyclical (or seasonal)
Shipment type Bulk VS Smaller shipments
Destinations Concentrated VS More widespread
Warehouse configuration Weekly or monthly VS Continuously changing

 

To learn more about our eCommerce logistics please contact eSolutions