Poor logistics hobbles e-commerce progress

Lack of uniformity in global marketplace Ed Richardson Logistical support for e-commerce (e-logistics) needs to be improved if e-commerce is to realise its full potential, according to the United Nations Conference on Trade and Development (Unctad) "E-commerce and Development Report 2001". According to the report, e-logistics problems arise largely from the fact that e-commerce has grown faster than either the technology needed to support it or legislation. Software and information technology are not enough. It is estimated that by 2000 worldwide sales of software, hardware and services used in electronic logistics had reached US$ 277 billion. They are expected to reach US$1 trillion by 2005. Despite this investment, we have seen the closure of numerous e-commerce ventures due to their failure to deliver the goods on time. "While these figures appear to be on the high side, they nevertheless provide a useful indication of the importance being given to the issue of logistics in e-commerce," says the report. The main problem in the development of software to improve logistics is a "general lack of integration between the various applications used for different logistics functions".