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  Logistics  in  E-­‐commerce   International  sourcing  and  procurement  logistics   Ana  Hadzi-­‐Jovancic  &  Agnieszka  Losiak    ABSTRACT   Final  report  summarizing  our  presentation  from  13.04.2015         TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Table  of  Contents     Introduction    3     E-­‐commerce  in  Europe    4     Changes  in  logistics  caused  by  e-­‐commerce    4     Logistics  solutions  for  e-­‐commerce    5   4.1   In-­‐house    5   4.2   Drop-­‐shipping    5   4.3   One  stop  e-­‐commerce  (outsourcing)    6     Challenges  in  e-­‐commerce  logistics    7   5.1   Delivery  time    7   5.2   Availability  of  goods    8   5.3   Fluctuation  in  demand    8   5.4   Software  application    8   5.5   Lack  of  ICT  infrastructure  and  economic  and  educational  barriers    8   5.6   The  challenge  of  geography    8     Current  trends  in  e-­‐commerce  logistics    9   6.1   Reverse  logistics    9   6.2   International  trade  (cross-­‐border)    9   6.3   IT  solutions    10   6.4   Same-­‐day  delivery    12     Conclusion    13   References:    14             TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Introduction   Electronic   commerce   is   a   form   of   trading   goods   using   Internet   network   Oxford   dictionary   describes   e-­‐commerce,   which   is   a   common   name,   as     “commercial   transactions  conducted  electronically  on  the  Internet”1   E-­‐commerce  is  getting  more  and  more  popular  The  share  of  this  kind  of  purchases  in   the   total   trade   is   still   marginal   but   we   are   observing   an   increase   of   importance   of   online  transactions     Online   shipping   is   associated   with   the   delivery   to   the   final   customer   –   the   final   process   in   the   supply   chain,   which   is   very   complicated   The   small   scale   of   operations   of   companies   selling   online,   excessive   fragmentation   and   difficulties   in   servicing   customers   were   the   reasons   of   aversion   of   courier   companies   few   years   ago   Today,   online   trade   is   the   main   topic   in   the   logistics   industry   and   the   “parcel   segment   witnessed  an  impressive  increase  in  volumes  due  to  the  rise  in  e-­‐commerce”2   Logistics,   next   to   the   marketing,   plays   a   key   role   in   managing   an   online   store   It   allows  attracting  new  customers  (by  availability  of  goods,  variety  of  delivery  options,   short   lead   time   and   low   shipping   cost)   and   also   helps   to   keep   good   relations   with   clienteles   who   already   placed   their   orders   Some   years   ago   a   good   logistics   service   (punctuality,   conformity   of   goods,   no   damages,   flexibility)   was   a   competitive   advantage  in  e-­‐commerce  and  today  is  rather  “must  be”   “The  e-­‐commerce  market  is  evolving  quickly  and  is  increasingly  demanding  both  in   terms  of  innovative  business  solutions  and  consumers  expectations.”3  The  logistical   needs   of   this   market   are   diverse   due   to   the   increasing   variety   of   delivered   goods   (from   books,   through   clothing,   up   to   household   appliances),   with   different   values,   weight  and  volume  Customers  also  demand  receiving  information  about  the  status   of   the   shipment,   flexible   delivery   options   and   free   returns   of   the   goods   with   prepaid   label  attached.4    OxfordDictionaries  (2015)    Manners-­‐Bell  J  (2013,  p  238)    European  Commission  (2012,  p  5)    Dethloff    J  (2015,  p  19)     TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics E-­‐commerce  in  Europe   “E-­‐commerce  is  widely  acknowledged  as  a  key  contributor  to  economic  growth  and   increasing  employment  levels  across  the  European  Union”5     In   2013   the   online   revenue   of   goods   and   services   in   Europe   reached   almost   €370   billion  In  the  next  years  a  further  increase  is  expected  –  up  to  €625  billion  in  2016   The  European  GDP  reached  €16,5  trillion  in  2013,  of  which  2,2%  resulted  out  of  e-­‐ commerce  This  value  is  estimated  to  be  triple  by  20206     The   level   of   sophistication   and   popularity   of   e-­‐commerce   is   very   diverse   in   the   Member  States  of  the  European  Union  While  82%  of  Internet  users  in  the  UK  bought   something   online   in   2012,   only   11%   did   so   in   Romania7   The   UK’s   E-­‐commerce   market   is   the   largest   in   Europe   with   a   total   turnover   of   107,2   billion   euros   It’s   almost   as   much   as   Germany   (€63   billion)   and   France   (€51   billion)   together.8  For   comparison,  the  turnover  of  e-­‐commerce  in  the  United  States  amounted  in  2013  up   to  $419  billion  and  in  China  $328  billion.9     E-­‐commerce   provides   direct   and   indirect   employment   of   about     million   people   in   Europe   It   is   estimated   that   the   total   number   of   e-­‐business   is   approximately   645   thousand  and  they  send  more  than  3,7  billion  shipments  annually  The  average  value   of  the  shopping  cart  in  the  EU  is  €1  376.10   Changes  in  logistics  caused  by  e-­‐commerce     E-­‐commerce   logistics   is   complicated   and   operationally   complex 11  With   the   introduction  of  e-­‐commerce,  the  traditional  logistics  had  been  transformed  Some  of   the   major   e-­‐commerce   characteristics   that   imposed   new   requirements   on   logistics   services  are:12   • a  larger  number  of  on-­‐line  customers  (mostly  unknown  to  the  seller)  leads  to   larger  number  of  smaller  parcels  and  packages    European  Commission  (2012,  p  2)    Ecommerce  Europe  (2013)  European  B2C  Ecommerce  Report  2013    European  Commission  (2013,  p.18)    Ecommerce  Europe  (2013)  Infographic  Europe  2013  Key  data  at  glance    Ecommerce  Europe  (2013)  Infographic  Global   10  Ecommerce  Europe  (2013)  Infographic  Europe  2013  Key  data  at  glance   11  Kuo,  B.J  (2014)   12  Bayles  D.L  (2002)     TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics • origins  and  destinations  of  shipments  are  more  widely  spread   • more  customers  place  direct  order  with  manufacturers  and  distributors     • accountability  for  shipments  extends  through  the  entire  supply  chain   • higher  customer  expectations  about  quality  of  service  and  higher  demand  for   fast  delivery   • higher  rate  of  return  products  back  to  the  seller   • demand  for  online  shipment  tracking     • focus  on  one-­‐to-­‐one  marketing  (customized  delivery)     • higher  complexity  in  fulfilling  international  orders   • increase   in   the   volume   of   small   shipments   leads   to   growth   of   demand   for   warehousing  transport  and  other  logistics  infrastructure       • greater  scope  for  customer  self-­‐service   Logistics  solutions  for  e-­‐commerce   There  are  three  possible  ways  of  doing  logistics  for  e-­‐commerce  business:  in-­‐house,   drop-­‐shipping  and  one  stop  (outsourcing)   4.1 In-­‐house   This   first   approach   is   the   most   popular   It   allows   full   control   over   the   companies   activates  and  there  is  no  dependence  on  external  contractors  The  one  of  the  biggest   challenges  of  in-­‐house  logistics  comes  with  the  situation  when  the  number  of  orders   increases   This   situation   will   require   an   additional   man   power   and   warehouse   space,   in  other  words,  more  investments.13     4.2 Drop-­‐shipping     Drop-­‐shipping14  is  a  method  where  the  stores  don’t  keep  the  products  that  they  are   selling   When   the   store   sells   a   product,   it   purchases   it   from   the   third   party,   a   wholesaler  or  manufacturer,  and  has  it  shipped  directly  to  the  consumer  As  a  result,   a  merchant  doesn’t  stock  or  own  inventory   13  Kawa,  A  (2014)    Shopify  (2015)   14   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Advantages  of  drop-­‐shipping:15   • less  capital  is  required:  when  starting  an  e-­‐commerce  store  there  is  no  need   to  invest  a  lot  of  money  in  inventory  up  front   • easy  to  get  started:   o no  cost  for  a  warehouse   o no  packing  and  shipping   o no  tracking  inventory   o no  handling  returns   o no  managing  stock  level   • low  overhead:  lower  compared  to  traditional  brick-­‐and-­‐mortar  businesses  as   there  is  no  need  for  managing  a  warehouse  and  purchasing  inventory   • flexible  location:  as  long  as  one  has  access  to  the  internet,  he  or  she  can  run   and  manage  its  business   • wide   selection   of   products:   because   there   is   no   need   to   pre-­‐purchase   the   products,  a  greater  selection  of  products  can  be  offered  to  customers   Disadvantages  of  drop-­‐shipping:16   • high  competition   • low   margins:   thanks   to   the   high   competition,   prices   for   the   products   are   very   low   • Inventory  issues:  high  dependence  on  suppliers     • shipping  complexities:  due  to  the  fact  that  multiply  suppliers  are  used,  there   will   be   different   shipping   costs   for   each   of   them   (e.g   a   customer   makes   an   order   for   three   different   products   which   are   available   from   three   different   suppliers)   • 4.3 supplier’s  errors   One  stop  e-­‐commerce  (outsourcing)   One-­‐stop   for   e-­‐commerce 17  is   a   service   which   specialized   companies   provide   to   brands   and   e-­‐retailers   on   outsourced   bases   Most   often,   smaller   retailers   cannot   15  ditto    ditto   17  Kuo,  B.F  (2014)   16   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics 5.2 Availability  of  goods   Limited   availability   or   absence   of   certain   goods   in   the   warehouse   is   one   of   the   greatest  weaknesses  of  e-­‐commerce  Unfortunately,  sometimes  it  happens  that  the   customer  makes  an  online  order  believing  that  the  good  is  available  but  it  come  up   that   he/she   must   wait   longer   than   usual   for   a   delivery   due   to   the   absence   of   the   ordered  good  This  can  discourage  customers  to  buy  from  the  same  e-­‐retailer  in  the   future.20   5.3 Fluctuation  in  demand   The   difficulty   in   the   use   of   online   shops   is   a   large   variability   in   demand   which   causes   problems  in  the  planning  It  is  difficult  to  predict  the  exact  sale  because  an  e-­‐shopper   can   be   anyone   who   has   access   to   the   Internet   Fluctuations   in   demand   also   cause   difficulties  in  planning  the  number  of  employees  of  storage  E-­‐commerce  is  seasonal   Especially  the  demand  increases  during  the  holiday  season.21   5.4 Software  application   In  e-­‐logistics,  the  data  is  the  most  important  Handling  of  data  is  of  great  importance   to  the  company  Appropriate  software  and  databases  are  needed  The  movement  of   data   between   different   parties   involved   in   buying,   selling,   and   shipping   goods   is   of   the  key  importance  in  e-­‐logistics.22     5.5 Lack  of  ICT  infrastructure  and  economic  and  educational  barriers   Lack  of  Internet,  standards  of  education  and  economic  resources  are  problems  of  the   less   developed   countries   who   would   like   to   adopt   the   use   of   e-­‐commerce   and   its   associated  activities.23   5.6 The  challenge  of  geography   The   delivery   to   the   location   of   some   customers   -­‐   poorly   inhabited,   hard   to   reach   places,  away  from  the  center  -­‐  can  be  quite  challengeable.24   20  ditto    Kawa,  A  (2013)   22  Bayles  D.L  (2002)   23  ditto   24  ditto   21   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics 6.1 Current  trends  in  e-­‐commerce  logistics   Reverse  logistics   E-­‐commerce  delivery  also  includes  an  important  element  of  reverse  logistics,  where   consignments  are  shipped  from  the  customer  back  to  the  e-­‐retailer      “Reverse   logistics   is   the   process   of   moving   goods   from   their   typical   final   destination   for   the   purpose   of   capturing   value,   or   proper   disposal” 25  In   recent   years,   the   number  of  returned  goods  purchased  via  the  Internet  has  increased  significantly  The   most   common   reasons   are   technical   defects,   delays   in   delivery,   erroneous   orders   and   damages   in   transit   Unfortunately,   some   of   the   returns   are   made   at   the   customer's  expense.26  For  many  customers,  this  is  one  of  the  major  barriers  to  the   development  of  electronic  commerce  Customers  would  buy  more  products,  if  they   had  more  opportunities  or  easier  chance  to  return  goods   The   biggest   problem   for   e-­‐buyers   is   the   cost   of   delivery   In   the   case   of   returned   goods   transportation   has   to   be   paid   twice   -­‐   when   the   goods   are   sent   in   to   the   customer   and   the   customer   returns   them   Additionally   to   this   there   are   also   costs   of   correction  of  invoices,  inspection  of  goods  and  refund     The   current   trend   is   to   give   a   customer   a   return   option   “in   advance”   The   return   label   is   sent   together   with   ordered   goods   (or   by   e-­‐mail)   and   with   all   necessary   information   The   sender   bears   all   costs   of   return   parcel     This   requires   additional   agreement  between  the  online  shop  and  the  carrier  Easy  and  free  of  charge  return   process   helps   to   keep   customer   satisfaction   even   if   the   product   was,   for   example,   defected   The   other   trend   in   reverse   logistic   is   an   exchange   of   returned   goods   The   courier,   picking   up   the   parcel   from   the   customer   and,   at   the   same   time,   delivers   the   substitute   6.2 International  trade  (cross-­‐border)   According   to   the   European   Commission   a   cross-­‐border   service   is   the   future   of   e-­‐ commerce  but,  on  the  other  hand,  the  international  delivery  is  considered  to  be  an   obstacle   57%   of   European   retailers   consider   cross-­‐border   delivery   as   problematic,   25  Hawks,  K  (2006)    Lupicka,  A.,  Nowak,  A  (2013)   26   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics while   46.7%   of   consumers   declare   they   worry   about   the   delivery   in   cross-­‐border   transactions.27   One   of   the   biggest   barriers   of   cross-­‐border   trade   is   the   cost   of   shipping   It   was   observed  that  “cross-­‐border  delivery  prices  often  are  3-­‐5  times  higher  than  domestic   delivery   prices”28  what   have   a   negative   impact   on   e-­‐commerce   There   are   also   some   additional  restrictions  on  sending  shipments  with  high  volume  or  weight  as  well  as   delivery  charges  in  advance  A  possibly  lower  price  of  a  product  in  a  foreign  country   doesn’t  compensate  the  cost  of  delivery  Also,  the  delivery  time  is  much  longer  (at   least  a  few  days)  and  a  day-­‐to-­‐day  delivery  is  logistically  almost  impossible   One   idea   to   solve   this   problem   would   be   market   places   where   the   shipments   are   consolidated   from   various   senders   depending   on   the   country   of   delivery   Parcel   brokers  are  able  to  offer  lower  price  for  the  service  to  smaller  e-­‐commerce  retailers    National  postal  operators  also  started  to  cooperate  with  respect  of  common  labels   (with   information   on   the   recipient’s   name   and   address   as   well   other   necessary   information   for   processing   a   delivery)   and   common   platforms   (for   example   emonitoring.poczta-­‐polska.pl)  for  tracking  parcels  sent  abroad.29     6.3 IT  solutions   Information   technology   plays   a   key   role   in   e-­‐commerce   not   only   because   it’s   necessary   to   start   an   online   shop,   but   also   to   exchange   all   necessary   information   New   IT   solutions   support   more   than   the   selling   process   but   also   integrate   the   whole   supply  chain  The  most  important  is  the  all-­‐time  availability  of  information  about  the   current  stock  level  –  especially  if  3PL  also  provides  warehousing  and  transportation   service   After   selling   any   good,   the   information   should   go   immediately   to   the   warehouse   where   the   package   will   be   then   prepared   for   sending   The   customer   should   receive   an   update   about   every   important   step   (acceptance   of   the   order,   receiving  payment,  preparing  a  package,  sending  for  transportation  etc.)  and  have  a   possibility  to  track  the  parcel   One  solution  is  to  incorporate  e-­‐retailer’s  module  with  3PL’s  system  A  database  of   the  seller  can  be  integrated  with  a  database  of  the  logistics  company  by  using  an  ERP   27  European  Commission  (2012,  p  3)    European  Commission  (2013,  p.27)   29  European  Commission  (2013,  p.28)   28 10   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics (enterprise   resource   planning)   system   ERP   uses   common   database   of   all   applications,   which   results   in   more   effective   operation   performed   almost   in   real   time   Unfortunately,   the   implementation   of   this   system   is   mostly   time   consuming   and  requires  identifications  of  all  business  functions     Another  option  is  “easy-­‐to-­‐use  seller  tools”  UPS  for  example  offers  ready  solutions   for  the  seller  active  on  the  biggest  marketplaces  (e.g  Amazon,  eBay)  which  simplifies   a   shipping   process   by   printing   labels,   and   getting   detailed   tracking   information   24   hours  a  day,  directly  from  the  online  shopping  platform   Using  this  kind  of  solution  is  also  helpful  if  the  e-­‐seller  wants  to  expand  its  activity  –   for  example  in  the  foreign  country.30  Being  supported  by  well-­‐known  parcel  service   operator  is  a  kind  of  guarantee  for  quick  delivery  good  shipping  service  and  may  help   to  gain  more  customers  abroad     The   logistics   companies   provide   also   marketplaces   where   e-­‐sellers   can   start   the   activity   and   obtain   favorable   commission   rates   An   example   for   this   can   be   meinpacket.de  –  the  online  platform  powered  by  DHL.31  Using  this  kind  of  solution   enables  faster  delivery  and  lower  shipping  price  Retailers  registered  on  this  platform   are  some  kind  of  priority     Another   important   function   of   information   technology   in   logistics   is   a   parcel   tracking   Most   of   the   shops   send   a   tracking   number   by   which   the   customer   can   check   24/7   were   the   package   is   and   was   Unfortunately,   the   current   solutions   provide   only   the   information   from   logistics   centers   We   can   easily   check   when   our   parcel   was   send,   from   where   and   when   it   reached   the   next   point   The   innovative   idea   is   to   use   GPS   system   for   tracking   parcels   This   solution   would   provide   a   possibility  to  track  the  parcel  in  real-­‐time  also  during  transportation  process  With  a   total   integration   between   e-­‐commerce   platform   and   logistics   providers   and   dedicated   customer   interface,   this   shift   would   also   allow   to   change   destination   by   the  customer  in  the  real  time.32  Of  course  this  option  requires  some  limitations  like   area  within  the  delivery  location  can  be  changed  as  well  as  the  last  point  when  the   new  destination  can  be  still  requested   30  UPS  (2015)    Mein  Paket  (2015)   32  Lierow  M.,  Jansses  S.,  D’Inca  J  (2014,  p.5) 31 11   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics 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6.4 Same-­‐day  delivery   In  terms  of  new  delivery  solutions,  logistics  service  providers  for  e-­‐retailers  have  to   be  faster,  and  more  innovative  In  recent  years  e-­‐commerce  companies  are  making   same-­‐day   delivery   their   priority   Same-­‐day   system   enables   to   receive   the   parcel   at   the  day  of  shipment  and  it’s  used  for  a  local  service  or  when  immediately  delivery     There   are   three   standard   models   used   for   same-­‐day   delivery   The   most   common   solution   is   using   a   courier   network   This   model   is   based   on   integration   of   retailers   and   local   curriers,   who   can   deliver   goods   even   within   few   hours   or   during   time-­‐ window  required  by  customer  With  this  solution  even  small  or  medium  size  sellers   can  provide  same-­‐say  delivery  service  in  the  given  urban  area  It  is  also  fast  and  easy   to  implement  as  the  searching  of  the  currier  is  done  by  brokers  The  problems  might   arise   form   the   necessity   to   provide   real-­‐time   overview   of   all   inventories   in   all   locations  (stores,  warehouses)   Many  of  the  grocery  retailers  use  their  own  delivery  fleet  since  this  kind  of  business   may  require  special  kind  of  trucks  (for  example  refrigerated  vans)  With  this  option   they  can  keep  control  over  the  whole  delivery  process  Unfortunately,  this  solution  is   relatively   expensive   Company   has   to   invest   in   the   fleet   and   be   flexible   to   meet   fluctuations   in   consumers   demand   The   volume   and   the   quantity   of   operations   have   to  be  significant  to  provide  low  cost  service.33  Additional  to  this  the  current  trend  is   to   focus   on   core   competences   and   outsourcing   rather   than   keep   additional   activities   in-­‐house   Postal   providers   or   parcel   carriers   also   offer   same-­‐day   solution   This   solution   is   cheaper  than  a  courier  service  mentioned  before  but  it’s  better  for  bigger  companies   with   a   higher   volume   of   shipping   The   model   requires   postal   provider   to   be   more   flexible   and   move   form   the   standard   hub-­‐and-­‐spoke   system   The   solution   can   be   a   parcel   kiosk   The   goods   can   be   received   from   the   seller   and   delivered   to   the   dedicated  point  selected  by  customers  The  set  of  parcels  for  different  customers  is   delivered  to  the  same  location  form  where  each  parcel  can  be  collected  in  the  any    Lierow  M.,  Jansses  S.,  D’Inca  J  (2014,  p.8)   33 12   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics 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convenient   time   period   Kiosks   can   be   located   close   to   work   places   or   commercial   facilities,  not  necessary  in  the  area  where  they  live.34   Conclusion     Precise  and  secure  delivery  of  purchased  goods  is  the  key  element  of  the  process  of   online   shopping   and   the   use   of   Internet   as   a   medium   of   commerce   today   The   successful   delivery   logistics   can   single-­‐handedly   increase   the   attractiveness   of   online   retailer  and  therefore  contribute  to  the  overall  success  of  their  website,  disregarding   the  quality  of  other  elements  in  the  process  of  online  shopping  With  the  constant   increase   of   the   share   which   online   shopping   holds   in   the   market   today,   the   expectations   of   the   customer   -­‐   the   final   link   in   the   chain,   will   continue   to   grow   Customers   are   often   willing   to   make   compromises   when   it   comes   to   price   of   the   goods  they  buy  online  and  to  pay  more  for  the  quality  they  get  in  that  way;  but  they   are   rarely   willing   to   compromise   on   the   quality   of   the   shipment   of   purchased   goods,   disregarding   the   price   According   to   everything   presented   in   this   analysis,   we   may   conclude  that  the  e-­‐commerce  delivery  logistics  will  continue  to  experience  further   pressure   in   fulfilling   constantly   increasing   customers’   expectations   for   a   secure,   precise  and  fast  delivery                      European  Commission  (2013,  p.134)   34 13   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics References:     Bayles  D.L  (2002)  E-­‐logistics  &  e-­‐fulfillment:  beyond  the  “buy”  button  Retrieved   March  23rd,  2015,  from:     http://r0.unctad.org/ecommerce/event_docs/curacao/bayles.pdf     Dethloff  J  (2015)  presentation  “Logistics  –  Introduction  and  Overview”     Ecommerce  Europe  (2013)  European  B2C  Ecommerce  Report  2013 Retrieved  March   23rd,  2015,  from: www.ecommerce-­‐europe.eu/news-­‐ articles/publications/2013/european-­‐b2c-­‐ecommerce-­‐report-­‐2013   Ecommerce  Europe  (2013)  Infographic  Europe  2013  Key  data  at  glance  Retrieved   March  23rd,  2015,  from:  www.ecommerce-­‐europe.eu/facts-­‐figures/infographics  -­‐   report  Key  E-­‐commerce  data  Europe  2013     Ecommerce  Europe  (2013)  Infographic  Global  Retrieved  March  23rd,  2015,  from:   www.ecommerce-­‐europe.eu/facts-­‐figures/infographics  -­‐  report  E-­‐commerce  data   Global  2013     European  Commission  (2012)  Green  Paper  -­‐  An  integrated  parcel  delivery  market  for   the  growth  of  e-­‐commerce  in  the  EU  Retrieved  March  19th,  2015,  from:   http://ec.europa.eu/internal_market/consultations/docs/2012/parcel-­‐ delivery/121129_green-­‐paper-­‐parcel-­‐delivery_en.pdf     European  Commission  (2013)  E-­‐commerce  and  delivery;  A  study  of  the  state  of  play   of  EU  parcel  markets  with  particular  emphasis  on  e-­‐commerce  Retrieved  March   20th,  2015,  from:   http://ec.europa.eu/internal_market/post/doc/studies/20130715_ce_e-­‐commerce-­‐ and-­‐delivery-­‐final-­‐report_en.pdf     Hawks,  K  (2006)  What  is  Reverse  Logistics?  Retrieved  March  20th,  2015,  from: www.rlmagazine.com/edition01p12.php   Kawa,  A  (2013)  Szczyt  paczkowy  w  polskiej  branży  KEP  Retrieved  March  23rd,  2015,   from:    http://finanse.wp.pl/kat,1033691,title,Szczyt-­‐paczkowy-­‐w-­‐ Polsce,wid,16247251,wiadomosc.html?ticaid=114a55     Kawa,  A  (2014)  Logystika  e-­‐handlu  w  Polsce     Kuo,  B.F  (2014)  How  onestop  internet  is  powering  ecommerce  for  brands  Retrieved   March  23rd,  2015,  from:     http://www.socaltech.com/how_onestop_internet_is_powering_ecommerce_for_br ands/s-­‐0058208.html     14   TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Thao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logisticsThao.luan.logistics.international.sourcing.and.procurement.logistics 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