LOGISTICS

MANAGEMENT
ASSIGNMENT

EBAY

TEAM MEMBERS NAME:

PIYUSH BOKADE (PRN 19021241083)

NAYAN BALBUDHE (PRN 19021241071)
KARTIK AHIR (PRN 19021241050)
 QUE 1:
LOGISTIC NETWORK OF EBAY

Ebay company have the merchants all over the world to whom Ebay provide the platform to sell their
products to the needed customers. Merchants first maintain their inventories according to there
inventory management system & if there inventories are less, they order it from there supplier. The
products are then advertised by the Ebay. If any customer makes an order of any product, Ebay
provide the purchasing information to the merchant. Then the product is delivered to the customer
from the nearest possible warehouse of Ebay where the inventory of the merchant are been stored.
After the delivery of the product a feedback of the merchant and the product is been taken by the
Ebay.
 QUE 2

KEY ISSUES OF EBAY LOGISTICS SYSTEM

1. Inventory-
Retail stores keep stock of each product to a extend .but the difficulty lies that how much to store
i.e. the amount of stock maybe finished or component part to be kept for each product and the
location to store the good so as to meet changes in demand .

2. Storage facility-
It is necessary for retailers to manage warehouses , distribution centres or stock rooms depending
upon demand of the products. Neither excess nor shortage of products should act

3.Communication-
it is important for retailers to know demand , supply, volumes, stocks, movements to get
products where retailers need them . so retailers must communicate and have information so that
they work efficiently and effectively.

4. Transportation-
Retailers have to manage transportation of goods from production to consumption . This journey
may involve different stages of transportation , arranging drivers and trucks , availability of
containers. . 

5. Packaging –
Retailers develop products that are easy to handle and do not cost much to package and handle
with retaining their selling possibility . Consumers prefer to buy products in small quantity and
they also buy products depending on packaging and presentation.
 QUE 3
STRENGTH OF EBAY

 The real Strength of ebay is its Quality and Reliability.

 Basically, Strength is that which can be used to develop the advantages that are
competitive.

 The company has already established the trust for the brand and reduced the production
cost also the customer service is been supervised and the web presence is very strong.

 The strenght of ebay is defined as the it is one of the most valuable and trusted brand of
the online e ccommerce. The company is gaint market place used by more than 100
million and more peoples toa buy and sell all manners of things to each other.

 The brand has grown diffrent types innovation and strategies to develop the organisation
and they achieved huge market in competetion.
 QUE 4
TRANSPORTATION MODE USED IN EBAY

Ebay uses different modes to delivery different types of products to their costumer. Total types
of delivery method used by Ebay are Airways, Roadways & Seaways.

Method of choosing the type of delivery totally depends upon the 3 aspects as follows

1) Distance of delivery.

2) Time for delivery.

3) Product characteristic.

If the product is to be delivered across the border, Ebay uses Seaways or airways. If the product
is order in the urgent basis, it is majorly delivered by airways. If the product is very sensitive and
is been delivered within the border of the country, it is been delivered by the roadways.

EBAY uses a various combinations of transportation facilities like:

Maritime transportation-

This is used for heavier products which have port near so the transportation is done through
cargo.

Air transportation-

This way of transportation is used for products which are very urgent and freight specific.

Intermodal Transportation-

It uses all the above means of transportation and deliver the products as and when required.
 QUE 5
ADVNTAGES AND DISADVANTAGES OF LOGISTIC SYSTEM
OF EBAY
Advantages

1] Economies of scales.

As the Ebay is an American giant which comprises of huge no of carriers this makes them
feasible to serve distinct places with relax and quite simpler way . Most of the attributes given by
Walmart are taken from the unknown source or known source which makes them shuffle the
buinsess.

2] It reduce the burden of back office management.

As the planning curve appears to be simple and sending packages from point 1 to point 2.

The time packages have been sent before for delivery there are lots of paper work auditing and
verification shall be conducted and documented.

3] On time clarity of inventory.

Walmart use ERP systems or cloud-based inventory handling system to help track inventory on
a real time base.

Disadvantages.

1].Expensive packaging

The packaging is often very expensive at FedEx. The packaging is not always professional and
sometimes the items also arrive damaged.

2].Items arrive late

On some occasions the item would just stop moving or spend days at one location before moving
or spend days at one location before it moves again. Other times an item might go to a
completely different state in an opposite direction before going to where it is supposed to go.

3].Items arrive damaged

It has been reported by customers that at multiple occasions, their packages have been damaged
while being delivered to them. There have been a large number of complaints about items
arriving damaged.
 QUE 6
KIND OF INVENTORY MODEL USED IN THE EBAY

There are two kinds of Inventory model broadly utilized in business.

1)Fixed Reorder Quantity System.

2)Fixed Reorder Period System.

 Fixed Reorder Quantity System is an Inventory Model, where a caution is raised

promptly when the stock level dips under a fixed amount and new requests are raised to
renew the stock to an ideal level dependent on the interest.
 The time when the stock is requested for recharging is named as Reorder Point. The stock
amount at Reorder Point is named as Reorder Level and the amount of new stock
arranged is alluded as Order Quantity.

Major inventory processes that are adopted by Ebay are as follows :

1.Inventory that holds the goods that are finished
2. Inventory that comprises of buffer stock
3. Inventory that are in the transit stage
4.Inventory that comprises of holding stock in accordance with anticipation
 QUE 7
INTERMMEDIARIES SERVICES USED AND PROVIDED BY
EBAY

An intermediary is described as the ability of those organization which provide the third-party
supply chain logistics services to achieve the desired goal within time, safe and meeting with
accordance with rules and standards delivery of the goods through the international supply chain
at a lower price.

The intermediaries play a critical role in international commerce and the development of the
global marketplace. The intermediaries it links the international supply chain by facilitating
market access to the exporters.

The types of intermediaries use by the company are:-

1 Freight Forwarders

2 NVOCC’s

3 Customs Brokers

4 Export packers

5 Export Management Companies

6 Export Trading Companies

1) Freight Forwarders

They act as the shiper’s agent during the transportation of goods they select the mode and
carriers for the clients shipment, provide and also processes the documentation procedure and
make the freight, terminal and handling of the payments on behalf of their clients. A freight
forwarder can engage a number of intermediaries at both the end of the cargo movement.

2) NVOCC’s

Non-Vessel Operating Common Carriers they buys the space from the ocean carriers for
compounding shipments from various clients. They are specialised in (LCL) less-than container
load. NVOCC’s are common carriers that uses containers rather then using vehicles or vessels.
3) Custom Brokers

Custom Brokers are those who escorts the goods through the custom process and have
experience with local customs rules and regulations and trade practices. The broker ensures that
the documentation is done properly by following al the laws and is completed properly.

4) Export Packers

The Export packaging firm supplies the packaging materials and services for overseas shipment.
They are expert in packaging maximum shipment with cost efficiency and are familiar with any
agricultural restrictions. Mostly the clients of the Expert packers are those who are producers and
are capable of marketing products locally but lack the expertise to correctly protect their goods
for their international movement. Packers are employed by the exporter which requires a specific
packing of their goods for the transport

5) Export Management Companies

They act as the domestic agents for the domestic firms in overseas market. With the help of
EMC, a producer gets immediate access to the foreign market, knowledge and know-how,
regardless of its experience in international markets. These Exports acts as the exclusive export
sales department for the producer or an industrial group. An EMC functions in international
markets just a sales representative or exclusive wholesaler functions for a manufacturer.
 QUE 8
WAREHOUSE STRATEGY OF COMPANY

Ebay is a platform where merchants from all over the world sell their products. Ebay is
coming with the new strategy in which it will be opening its warehouse all over the world
by which their merchant will be able to rent the space in their warehouse so that the
inventory will be close to the customer.Because of which Ebay will be able to ship the
product to the customer in the minimum time possible.

Advancement in Technology
 Long with the technology advancement Ebay has been successfully able to boost the process of
supply chain and in turn the customers receive the lowest prices they can get on the goods and
services . Modernisation is the key to global success .Here companies have adopted to the modern
means of communication ,technology advancements etc.

 Togetherness here was the main key for the profit earned by the company .

 To gain more and more profit.

 Some of the advancement that Ebay adopted are :

1. Retail link System
2. Video Communication which is done in one way only .
3.RFID technology here electronic codes which are on the product are scanned and thus
distribution of the products and displaying makes them easy and quickly .

Inventory Management Processes

 They employed several models which has helped them to gained efficiency and effectively .

 Ebay plays the role of overlooking the transfer of goods from the storage facility to the retail
stores .

 It comprises of ABC analysis ,Inventory Information Systems and the Bullwhip Effect