The paper "Logistics Management at Online Store" is an outstanding example of a business case study. Businesses are looking to function in the global environment which has intensified competition and has made businesses look towards using information technology to strengthen their supply chain network or improve their logistics management so that they have an edge of their competitors. Logistics management involves a series of steps where business work through the interrelated process so that cost can be reduced, value added to the product or services and the utility function can be multiplied.
This paper looks to present the manner in which logistics management for Online Store will help to improve productivity, reduce cost and increase the utility for the customers. To analyze this different area and directions are being looked into which looks towards opening a sourcing station in Singapore where the goods will be selected, procured and sourced to Australia and ensure quick clearance from the Australian Quarantine and Inspection clearance department so that value can be added and at the same time cost can be reduced to improve productivity. Online Store The Online Store which is looking towards ensuring proper supply chain development so that all goods are available to the customers over the internet is looking to identify the manner in which developing the supply chain will help to improve productivity.
The business organizations also look into different factors as the growth in the demand for internet business provides the scope to develop the required infrastructure which facilitates in the procurement and supply of goods at the minimum cost. The fact that international trade is associated so it is important that prior permission and clearance is obtained from the Australian Quarantine and Inspection clearance so that value can be added Literature Review A study also brings forward the fact that development of e-commerce has facilitated the development of logistics network and is becoming the backbone of the business as it facilitates international transactions and helps to develop the required infrastructure to get all the benefits (Delfmann, Albers & Martin, 2002).
This furthers helps to reduce the bottlenecks and ensure better timely delivery of services and goods at a lower price (Gray & Khalid, 2006) which facilitates the manner in which business will be developed. Logistics Management at Online Store This makes logistics management the backbone of the online retailing business which Online Store is looking at.
Logistics management will help Online Store to ensure value as it will lead towards proper services, order, delivery, transportation, storage, handling, and distribution of the materials to the customers looking for it (Gourdin, 2006). Online store through the process of developing their logistic centre in Singapore and sourcing the materials from there will be able to add value as the value chain looks to provide below (Porter, 2005) The process of having a source station at Singapore will ensure that Online Store is able to take advantage of low-cost production prevalent in the Asian countries.
This will help the business to ensure that they are able to get the required materials at a lower cost from the correct sources and will be able to ensure low cost (Bowersox, 2009). The fact that Online Store is developing a business model where they look to develop a consortium through which the goods are to be delivered at Singapore and from there it will be sourced to Australia in big containers it will help to save on cost as sending the same materials in different containers is costly compared to sending them in a single container (Arbulu, Tommelein, Walsh and Hershauer, 2002).
In addition to it, the clearance which has to be obtained from Australian Quarantine and Inspection clearance department will have to be done once instead of for all the individual containers which will help to save on time and cost which will thereby help to multiply the utility of the supply chain network.
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