Introduction
The implementation of internet and electronic communication systems is changing the original face of freight forwarding and the delivery industry must change with it. It really is visible that e-commerce is no longer an appearing technology and it has recently conquered a major place in the center of freight forwarding business. Electric communication system is becoming one of the primary trump card in transport industry to live up the higher expectations of a person. This paper will review briefly the applications of e-commerce generally and in particular to the move sector especially freight forwarding business.
E-Commerce
Electronic commerce is thought as the electric exchange (delivery or business deal) of information, goods, services, and repayments over telecommunications sites. It will involve mainly circulation, buying, selling, marketing and servicing of products or services by using electronic means including the Internet, and other computer networks. E-commerce has grown exponentially due to the convergence of technical advancements, the merging of the telecommunications and processing companies, and globalised business models. The common adoption of the Internet not only led to further rapid expansion of the B2B sector, but also created a new business-to-consumer (B2C) market. The primary factor that put e-commerce towards the top of the general public is the popularisation and commercialisation of internet. E-commerce now details virtually all areas of economic and sociable life. (Swamidass, 2000)
Freight Forwarding
Freight forwarders works as an intermediary between exporters, importers or other companies organising efficient travel of goods. They makes arrangement for travel of goods by fulfilling the client requirements using various services like Shipping and delivery lines, Airlines Road and Rail freight operators. There are a great number of companies involved in freight forwarding business and these varies according to the size and type. In some cases the freight forwarders will only deal with particular goods only and they'll be restricted to certain geographical areas. Following are the functions completed in freight forwarding business
Cargo loan consolidation and multimodal transport
Transhipment
Packing, warehousing and syndication.
Arranging cargo insurance
Documentation and customs clearance
Payment of freight and local taxes
Saved fax, mobile and courier costs
Possibility to reuse information and create templates
Transport distribution analysis and transportations arrangements
(UNESCAP, 2011)
Greater quickness in transactions
In e-commerce, deals are faster than traditional commercial orders. Before the advancement of e-commerce, freight forwarders well prepared the documents by making use of a legal professional and great deal of stamps were used. The main benefit of e-commerce is the fact that it allows electronic exchange of cargo documents through internet like expenses of lading instructions, freight invoices, box status messages, motor unit carrier shipment instructions, and other documents with increased correctness and efficiency through the elimination of the need to re-key or reformat documents. It also enables streamline doc controlling for shippers, freight forwarders and trucking companies without the monetary and time investment required by the traditional record delivery systems and so paperwork is significantly reduced and the transport team will therefore be more reliable. (ELC, 2011). For instance US Traditions Service helps an EDI-based system for sea cargo which can survey, electronically, the cargo manifest, bill of lading and other shipping-related information. This online data system has proved to be beneficial in permitting quicker cargo release and increased carrier efficiency through reduced cargo-processing time. It has also helped some slot authorities to become more competitive by reducing cargo customs clearance and digesting times. (GXS, 2011)
Use of e-commerce in cargo handling records helps in:
- Reducing costs
- Improving data accuracy
- Simplifying business processes
- Accelerating business cycles
- Enhancing customer service. (ELC, 2011)
Shipment tracking
Clients need connectivity with the Freight Forwarding systems to gain access to their documents for position, to extract records from Freight Forwarding directories, and have their shipments refined in an error free and timely manner. Shipment monitoring engages global positioning systems(Gps unit), which keep an eye on vehicles so that customers will get out exact located area of the shipment at a given time. This gives instant delivery information usage of anyone in the business, from any location. The best demands for shipment tracking has developed in exhibit or parcel delivery services. (ELC, 2011)
DHL is an example of a business where tracking is definitely a crucial element of operations, which began with customers making phone calls to customer service to track their goods. Now a number of options are available (Smith, 2002) Business Asia).
Customer orientation
E-commerce assists with providing better services with their customers like providing websites which helps the customer to gather information about the freight forwarders whom they would like to transit their goods. The customers can make right decision regarding their selection of the right freight forwarders. Some companies provide tariff home elevators the web sometimes along with calculators, allowing the shipper to insight details such as cargo origins and destination, cargo characteristics, etc. , providing the mandatory freight rate instantly. These systems provide appreciable profit to shippers by simplifying and expediting numerous duties involved with freight score, which would otherwise involve time and effort, cost and human resources to complete. Another simple truth is that these website helps in improving, branding and accumulating the goodwill of the freight forwarders for the purpose of marketing. (Lai & Wang, 2008)
FedEx uses their secure saver which helps the program to set up a web catalogue and the order-handling system hooks into a user interface which really helps to sign-up online customers requests and make sure of confirmation quantities. With automatic inventory updating you'll be able to pack the order. (Timmer 1999). . FedEx also offers an E-Commerce Constructor program, that provides Web site design, hosting, order management, real-time financial arrangement, and fulfillment to small and midsize companies, at no cost. (Business wire, 2011)
Shipping portals
These have grown to be a major proper positioning exercise by liners, but inside strategies change. The three major liner transport portals online are
GT Nexus, an e-logistics software company, using its portal to operate a vehicle its strategy of becoming a global leader in e-logistics software and services;
INTTRA, a business portal rather than software provider, looking to facilitate the interaction between users and their providers;
CargoSmart, aiming to add value to center booking and traffic monitoring facilities and to provide a more complete treatment for users. (Wn, 2011)
3PL Logistics
Increased adoption of logistic out-sourcing by developing companies has led a reliable growth of third party logistics (3PL) and lately, most of the original freight forwarders have altered into 3PL. For the soft operation of the company It is important to get successful information exchange between your parties involved in the business and to cooperate with distant warehouses and inland transfer company. Here e-commerce takes on a essential role in assisting the freight forwarders to sort out the issues with effective communication systems and tools like EDI and ETF while they may be emerging wholly as a 3PL. (Bumstead and Cannons, 2002)
ILG is a traditional freight forwarding company and now has emerged into a 3PL and services like delivery, e-commerce support, warehousing, fulfilment and the business believes that without the help of e-commerce they wouldnt have emerged as a 3PL (ILG, 2011)
Crown logistics, a freight forwarding company in Hong Kong with the help of e-commerce have helped to improve the usage of its resources, such as warehouse space & travel fleets, customs strategies, specialized packaging and transports, on-time delivery and tracking technology. Company itself is along the way of expanding its operations across better China, with the aim of becoming a full-pledged 3PL company (Crown logistics, 2011).
Port services
Several maritime ports across the world, including those of NY, Rotterdam, Singapore and Hamburg have electronic digital systems which link up various parties involved in the activity of freight through the dock, including shippers, forwarders, customs, terminal operators, carriers and other port users.
Singapore TradeNet, an EDI system that has significantly reduced turnaround times for producing information about ship arrivals, loadings and unloadings and departures. (Applegate et al, 1993)
According to Lee and Whang in the near future, you will see an explosion of business-to-business applications of the web as visionary companies develop new paradigms of e-business for future years. This is comprehended also to make reference to new solutions that stretch the ambit of e-business, such as mobile marketing communications technology. (Lee & Whang, 2001)
Conclusion:
E-commerce is an essential need in modern business methodology that reduces costs and at exactly the same time escalates the quality of services and so achieving higher efficiency in freight forwarding business. The scope and selection of these benefits helps it be clear that e-commerce in the form of e-business processes and systems can have an enormous impact in conditions of benefits to the entire resource chain.
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