Business Logistics In Australia Case Study

1964 words - 8 pages

There are two E-commerce scenarios that have been looked at that face logistical issues in Australian organisations of Big W and Oz Hut and through the analysis of these organisations we will be looking into the systems used and how they are dysfunctional to these companies. Also exploring better ways to improve order fulfilment, third party logistics and the growing online retailing industry of changes needed to enhance competitiveness. With transportation having a substantial impact on the way the e-commerce trade is facilitated been a key element of building trust between sellers and buyers. (Commission, 2012)
The logistical issues faced by both that of Big W and Oz Hut are that of the inadequate supply chain systems that are being used to service these two business customers. These logistical issue ranges from transportation, third party logistics, the handling of goods, forecasting of delivery times and customer service of these clients. Showing that the cost of the logistics system may be affected from various factors such as that of competition in the market, spatial relationship of nodes and the product characteristics (JOHN J. COYLE, 2009)With these consumers left wondering when where and how long it would be until they received their purchased product leaving the seller to receiving bad feedback and not gaining return sale of customers due to not meeting the needs and wants of the customer in a timely manner. Exploring the productivity commissions report in to the retail sector, had found that in Australia there are about 140000 retail businesses with a gross Domestic Product of 4.1 per cent and making up 10.7 per cent of employment. (Commission, 2011)
Current trading conditions along with longer term trends are challenging due to sales growth declining over the past years due to consumers spending directed towards non retail services and saving their higher income earnings. Online retail in Australia only represents six per cent of the total retail sales which are made up of four per cent domestic and the other two per cent from overseas online representing $8.4 billion and $4.2 billion respectfully (Commission, 2011). Australia Post cited in this report that overseas retailers might be giving these postage services at a loss to grow a larger market share by bundling these costs in the price of the product. (Commission, 2011)The growth of online shopping for Australia Post has created shortage of space due to parcels being unable to be delivered the first time due to unavailability of customer at receiving point. (Commission, 2011) Australia has population spread over vast distances which presents these challengers to be competitive with obligations to deliver to remote rural areas which may be deemed unprofitable for private couriers with existing delivery systems able to cope with current activity but may not be as efficiently as some advanced countries. Considerable investment of infrastructure in warehousing and electronic...

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