Electronic commerce - a need for new solutions for distribution and warehousing?

The report summarizes the findings from an analysis of the effects that e-commerce will have on warehousing and distribution solutions. The analysis is based on available litterature. E-commerce will lead to significant changes in the physical distribution of cargo, where both warehousing and distribution systems will be affected. Today’s systems are important bottlenecks for future growth in e-commerce. If e-commerce is to be established as an important sales channel, it is substantial that effective solutions for warehousing and distribution are implemented. In a phase of rapid growth, however, the challenges of optimising the infrastructure are significant. Both traditional retailers and wholesale dealers with e-commerce activity as well as pure play online retailers are likely to improve today’s solutions. The market size as well as the profitability of operations will most likely be higher if distribution services are differentiated after customers’ willingness to pay.