E-Logistics is the electronic management of materials flow through an organization, from raw materials through to finished goods.

In recognition of the increasing importance of globalization and the resulting need for greater, faster and more flexible communications, a framework is required to allow companies to establish themselves to make optimum use of their applications and run efficiently with minimal cost input. To do this, e-logistics was put to task with the increased use and acceptance of the world wide web. Consumers are buying into the idea that it is easier to complete transactions online as opposed to other mediums such as, phone or retail. Just as consumers have come to rely on online purchasing for convenience, businesses have come to rely e-logisitcs for today’s new e-commerce.


E-logistics can be broken down into 7 different steps: 

1. Company

2. E-commerce Site

3. Shopping Cart

4. Merchant account

5. Order Fulfillment

6. Warehouse Management System

7. Final Destination


I.              Company

The company is the original organization that has set up a value chain or network of complimentary companies that will cooperate through business process to bring a product from conception to reality. Over the years companies have taken a large step towards fully integrating their business flow electronically, predominantly via the web. The convenient access of e-logistics has allowed companies and their products to grow and sell more volume with more intensity than ever before.


II.            E-Commerce Site

The e-commerce site refers to any site that allows a customer, be it a business or a individual, to purchase a product or service. The e-commerce site is not a new idea; rather it is much like going to the store down the street to pick up your favorite type of syrup, only now we can do it electronically. When businesses or people go online to make purchases they essentially step into a “virtual store” much like “the store down the street”; people can search for their desired products and order them if they so desire.


III.           Shopping Cart

The shopping cart allows a business to manage a store electronically, control online and offline payment options, set up real time shipping options, contact the customers, and manage shop inventory.  More recently, with online biding and purchasing, stores like eBay and Amazon, can attach customer satisfaction in response to both the seller and the product.


IV.          Merchant Account

A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account also serves as an agreement between a retailer, a merchant bank and payment processor for the settlement of credit card and/or debit card transactions. Some businesses might choose to do business through particular merchants based on the level of service they provide and also the rate that a merchant will charge based on a predetermined agreement.


V.           Order Fulfillment

Order fulfillment includes the following services:

A.   Order processing – Processing the ordered item or service, the payment, and the customer information.

B.   Shipping – The process by which an item or delivered is brought to the customer’s specific location.

C.   Return Processing – Return processing is the process by which a customer is able to return or exchange a purchased item.

D.    Call Center – Product support and request line.


VI.          Warehouse Management System

Warehouse Management System is the management and movement of supplies and products in order to process and fulfill a transaction/order. Warehouse management deals with receipts, movement of goods and storage, usually finished goods, to intermediate storage locations or to the final customer.


VII.         Final Destination

           The final destination refers to complete cycle of e-logistics. From the raw material to the purchaser. Where the item finally ends up.

Links also serve as citation.