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.

Agree?  Thoughts?