The Measures of Logistics and System Support, Essay Example

Electronic commerce, otherwise known as ecommerce is a business concept that has evolved in the past 2 decades. In the last 10 years, in particular, ecommerce has become an important facet of the business world. Of particular interest is the extent to which e-commerce has affected logistics and system support. E-commerce has considerably influenced logistics and system support through different applications of ICT

RFID Technology

ICT has permeated the logistics and transportation industry on all levels. All processes currently have ICT integrated and as a core pillar.  A study conducted by the Ferrier Hodgson in 2014 highlighted some of the challenges that the transport and logistics sector in Australia experiences. One of the most significant challenges in the cost impact of technological advancements that have to adopt in order to remain competitive and relevant in a rapidly transforming market.

The introduction of technology such as RFID technology have become integral in monitoring all procedures and processes (Ferrier Hodgson, 2014). However, such technology comes at a considerable costs. It requires upgrading and/or replacing existing systems. These increase in costs has become a problem for TLM as companies continue to drive towards the mitigation of costs and maximization of revenue and profits.

As environmental issues become more apparent and gain popularity, the logistics and transportation industry is placed on the spotlight. Research has found that logistics and transportation has been forced to adopt technologies and techniques that mitigate pollution and the carbon print that the industry has on the environment. This has also led to the increase in certain costs that are associated with green processes and procedures within the industry.

The supply chain has become concerned about the environment, a factor that did not exists about a decade ago. By applying environmentally friendly techniques, green logistics aims at mitigating the carbon print its functions and operations have on the environment (McKinnon, 2014). Green Logistics is essential in ensuring sustainability and will become integral in the next decade.

References

Ferrier Hodgson. (2014). 2014 Transport and Logistics Insights. Melbourne: Ferrier Hodgson.

McKinnon, A. C. (2014). Green Logistics: Improving the Environmental Sustainability of Logistics (2nd ed.). Philadelphia: Kogan Page Limited.