Traditional logistics versus e-logistics: what are the differences? - Nordlogway 3PL logistics provider in Barcelona (2024)

FAQs

Traditional logistics versus e-logistics: what are the differences? - Nordlogway 3PL logistics provider in Barcelona? ›

Order management

Manual vs automated processes

Traditional logistics rely heavily on manual processes. Digital logistics involves the automation of many tasks through technology and software.

Traditional logistics (or forward logistics)

Traditional logistics relates mainly to the physical movement of materials, the management, and distribution of supplies and goods, focusing mainly on procurement, production, sales, and distribution, sometimes covering the maintenance and inventory management.

E-Logistics is software with set of technologies for communication that transform important and essential processes of logistic department by sharing information & knowledge with partners involved in supply chain process.

3PL providers often own many or all the necessary assets you need to run your supply chain including trucks, distribution centers, and warehouses. In contrast, 4PLs are normally non-asset based—they may own IT systems and intellectual capital, and mainly provide logistics expertise.

Data analysis and improvements. Traditional Logistics: In traditional logistics, data collection and analysis processes are very slow and limited. E-logistics: By analysing big data, e-commerce operations can continuously improve their business processes, determine their shortcomings and improve them.

While traditional supply chains are linear, digital supply chains are networks. Traditional supply chains often rely on standalone systems, while in digital supply chains, information from IT systems and OT (operational technology) systems are integrated.

It ensures that businesses deliver products and services on time and in a cost-effective manner. Simply put, logistics includes three main categories: inbound, outbound, and reverse logistics. Each of these categories has characteristics and processes, and businesses must understand them to operate successfully.

The four types of logistics are inbound logistics, outbound logistics, reverse logistics, and third-party logistics (3PL) or fourth-party logistics (4PL).

The reverse logistics process usually involves returns, recalls, repairs, repackaging for restock or resale, recycling and disposal. Traditional logistics involves direct order fulfillment, hub services, pick-and-pack services and shipping.

What are the e-tracking systems used in e-logistics? ›

E-Commerce Logistics refers to the processes involved in storing and shipping inventory for an online store or marketplace. This includes inventory management, pricing, packing, and shipping of online orders. Was this information useful?

It can be concluded that e-logistics system could be described as a networking that creates value process: factor of reliability, maintenance, software and facility, transportation and handling as well as other factors that influence e-logistics system.

FedEx Supply Chain, formerly known as GENCO (General Commodities Warehouse & Distribution Co.) is a major third-party logistics (3PL) provider in the United States and Canada. It serves various industries, including: technology & electronics, retail & e-commerce, consumer & industrial goods, and healthcare industries.

Amazon FBA is a commonly recognized 3PL provider. Partner sellers access Amazon's warehouses, a fleet of shipping vehicles, and impeccable delivery times. That being said, there are plenty of other 3PL providers as well.

4PL solutions like DHL Lead Logistics Partner can transform your business, leveraging expertise and digital tools to design, manage, operate, and continually improve your supply chain.

Digital logistics refers to the automation and digitization of processes related to the movement of goods. Whenever there is a routine logistics process that relies on pen and paper and repetitive manual effort, there's an opportunity to make it digital and automated. That's where digital logistics comes in.

Traditional supply chain focuses only on production and provision, whereas Modern (digital) supply chain focuses on the needs of the customers in general, also aims to improve the value of the product delivered to the customer, rather than just focusing on the aspect of distribution.

If you prefer to have the instant price, carrier availability, real-time visibility and automated documentation, a digital freight forwarder may be a better option. Flexibility: Digital freight offers more flexibility in terms of shipping options and services.

Digital business model transformation refers to the shift from traditional business operations to models that leverage digital technologies and platforms to create new value propositions and revenue streams.