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Information Technology as a Revolutionist in the Current Logistics Evolution

Edmon Fung, Chief Operation Officer of E-Commerce Logistics Limited (ECL), regards Information Technology as a revolutionist in the current logistics evolution. "IT has re-aligned logistics into a more systematic mode which integrates the complex logistics processes involved in the supply chain into a comprehensive array, thus eliminating non-value added transaction costs and improving efficiency."

Mr Fung claimed that as a result of globalization, the trading market will be opened up to all, with the result that competition will become increasingly striking. Apart from this new challenge, the loyalty of customers becomes hard to maintain, and customers tend to seek better services with lower prices through new channels offered by the web. Coping with these challenges, enterprises have to make good practice of Information Technology and enhance the movement within their supply chains, while at the same time expand their business across the globe through the web. By doing so, they can explore more business opportunities.

Under the growing influence of a 'Just-in-time' concept, more and more companies are seeking shorter cycle time with more frequent distribution schedules, so as to minimize the financial burden imposed by excessive inventory and stock which has definitely exerted great pressure on the fulfillment capability of business operators.

As stated by Mr Fung, "'E-fulfillment' is the core business of ECL. We aim to take up the role as a bridge electronically and physically to link up global merchants and direct marketeres to their customers in the Asia-Pacific region. To keep pace with the ever-changing market, 'real-time' operation is vital for gaining competitive edge."

"To ensure that our systems are so strong to suit the specific needs of the Asia-Pacific market, ECL has deployed experts with strong IT coding background to develop a set of logistics software that enables tailored customer services. All the processes of our operations including telemarketing, customer care, payment gateway, warehousing, distribution, data management and accounting are now linked up with one another in the system."

Mr Fung added that their on-line inventory system is a real-time system, which allows all the trading parties involved to receive up-to-date-in-stock information and future delivery information.

He stressed that as the economy is now evolving, success in this era of new economy will depend on the development of an e-chain which is a leaner, faster and more flexible supply chain. "An efficient fulfillment system will become a kind of system to be increasingly required by the market and become even a source of differentiation among survivors in the new economy.

"Competition on the web is just one click away, and new revenue opportunities will only be offered to those players that deliver value-added supply chain solutions."