Saturday, December 9, 2017
E-COMMERCE INVENTORY VELOCITY, NUMBER OF LOGISTICS PARTICIPANTS, DIGITIZATION, DISINTERMEDIATION
E-commerce requires inventory velocity to deliver orders that meet customer expectations. The international segment of supply chains, both inbound and outbound cross-border, have many logistics intermediaries--not all are designated by the buyer or seller but rather are a result of present logistics practices.
While no one has measured it, it is logical to assume that there is a correlation between the number of logistics participants in shipments and the likelihood/the risk of less-than-optimum inventory velocity. To mitigate the situation, digitization, with its potential disintermediation of the number of logistics players in trade activities has both logistics benefit and increased supply chain value.