TThe impact of electronic commerce on logistics functions is considerable. It will foster the necessity of coordinating particularly marketing and logistics functions. The use of electronic commerce will lead to significant reductions in cost and increased revenues
(sections 6 to 10). The most important being: significant reduction in distribution cost (section 9).
Incremental revenues through reduced inventory of seats (section 8)
The costs of implementing electronic commerce are significant, however savings in airline operations costs of up to 70% have been reported, depending on the share of electronic tickets. As long as this share remains low, short-term revenues cannot be expected (section 11).
Inhaltsverzeichnis (Table of Contents)
- WHAT IS ELECTRONIC COMMERCE
- DEVELOPMENTS IN ELECTRONIC COMMERCE
- EC TECHNOLOGIES
- SECURITY OF ELECTRONIC COMMERCE
- STRATEGIC ISSUES OF ELECTRONIC COMMERCE
- PURCHASING
- ORDER PROCESSING/BILLING
- INVENTORY
- DISTRIBUTION
- CUSTOMER SERVICE
- COSTS & REVENUES OF EC
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report analyzes the impact of electronic commerce (EC) on the logistics functions of an airline company. It examines the potential of EC to create win-win situations for airlines and their customers, while also considering the challenges of security and cost. The report aims to provide a comprehensive overview of the opportunities and challenges presented by EC for airline logistics.
- The definition and scope of electronic commerce
- The growth and development of electronic commerce in the airline industry
- The technological implications of electronic commerce
- The strategic challenges and opportunities presented by electronic commerce for airlines
- The impact of electronic commerce on various logistics functions, including purchasing, order processing, inventory management, distribution, and customer service
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter defines electronic commerce as the conducting of business transactions through electronic media and communication. It emphasizes that EC is a business concept, not defined by a specific technology. The second chapter examines the rapid growth of EC in the airline industry, highlighting the increasing use of online ticket sales. The third chapter discusses the technological advancements facilitating EC, including Electronic Data Interchange (EDI) and the Internet.
The fourth chapter focuses on the challenges of security in EC, recognizing it as a major inhibitor for widespread adoption. Chapter five explores the strategic implications of EC for airlines, stressing the importance of long-term commitment and senior management leadership. The remaining chapters delve into the impact of EC on specific logistics functions, such as purchasing, order processing, inventory management, distribution, and customer service.
Schlüsselwörter (Keywords)
This report examines the key aspects of electronic commerce (EC) as it pertains to the logistics functions of airline companies. It focuses on areas like online ticket sales, inventory management, distribution, customer service, and the associated costs and revenues of implementing EC. The report emphasizes the potential of EC to streamline processes and reduce costs while exploring the challenges of security, technology adoption, and strategic planning.
- Quote paper
- Paul Freudensprung (Author), 1998, The impact of e-commerce on the logistics function of an airline - Executive Brief, Munich, GRIN Verlag, https://www.grin.com/document/186330
