Page 299 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes 14.3 Electronic Logistics

The use of modern technology, such as the Internet, enables logistics supply businesses to grow
and allows for significant improvement of their logistics customer service (LCS), which is very
much needed to meet the challenges and expectations of their global consumers. If utilized
correctly, the Internet could enable logistics supply chains, even for smaller firms, to effectively
market their products and services worldwide through web-based commercialism.
Electronic logistics is use of web –based technologies to support warehousing and transportation
management processes. E-logistics enables distribution to couple routing optimization with
inventory tracking and tracking information.
In international trade and distribution, computerization is slowly but surely tacking hold of
every aspect of business. From computerized trade leads available through the department of
commerce, to electronic letters of credit, to telecommunicated documents, to computerized
freight booking, tracing and documentation system, to electronic freight tariffs, automated
freight payment systems, computerized loss and damage reporting.

There is a tremendous scope of the application of IT in logistics. In fact, modern supply chains
are held together by the strength of IT, through its ability to transmit huge amount of data
speedily, or make global data available to expedite the decision-making process.
Due to the advantages offered by IT, many logistics providers are planning to handle majority
of their commercial transactions electronically. Also, exporters are already using IT for various
activities ranging from e-procurement of goods to availing transportation services on the net.

14.3.1 Important Electronic Tools

Shipping lines are keen to encourage their customers to use the internet and have developed a
number of attractive tools. The biggest benefit of these tools is that both shippers as well as
shipping lines gain by using them. Following are some of the important tools:

Electronic receipt of vessel schedule information
Tracking and tracing of cargo
Remote bill of lading (B/L) printing
Single data entry reporting
Exception reporting

Online tendering, etc.
1. Electronic Receipt of Vessel Schedule Information: Shippers can visit a logistics portal to
check the schedule of different shipping lines and choose what suits their supply chains
the best. This saves shippers time and effort. The shipping lines, too, benefit as they do not
have to inform individual shippers about their voyage schedules. At present, the only
limitation to this system is that not every portal maintains information about every
shipping line, nor does every shipping line provide updated information on their sites or
related portals.
2. Tracking and Tracing of Cargo: The biggest benefit shippers enjoy as far as e-logistics
is concerned, is tracking and tracing the cargo. With e-connectivity they need to spend
less time per enquiry with shipping lines about the status of their cargo and significantly
improve their supply chain visibility. However, different portals offer different
services.

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