Impacts of Information and Communication Technology on Logistics System

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The prices of Information and Communication Technology (ICT) have been reduced dramatically so that private firms and consumers are now changing their behaviors, and without doubt it has influenced the logistics system. One scenario is that e-commerce would make it easy for the consumer to purchase products from his home and then them delivered right to his door. The increased volume of freight vehicles required to fulfill delivery requirements would aggravate traffic congestion and environmental problems. Another scenario is concerned with its positive impact on transportation. Monitoring consumer demand through the Internet makes it possible to produce and transport goods only on demand. Furthermore, the private sector will try to find solutions with the help of Internet and Intelligent Transport System (ITS) ; for example, real-time procurement of transportation services from third party logistics (3PL).In the research we built a framework to evaluate the impacts of ICT on logistics based on review results on the past literatures concerned, and conducted case studies. The evidences indicates that the ICT and ICT and ITS highly influence the logistics system. In particular freight traffic can be reduced by outsourcing logistics services to the couriers and 3PL with ICT ability, and by development of e-logistics and e-fleet management. Concerning marketplaces of logistics services, however, it is uncertain whether they would satisfy the risk-averting shipper's strict requirements. ICT will give the government opportunities to effectively implement the policies on logistics as well. The government is expected to provide the fundamental transportation and information infrastructure, such as the databases of digital map and traffic information.