E-commerce
The explosion of the information highway has led to new dimensions in retailing. One of the
most dynamic markets is as e-commerce. In 1998, inter-businesses transaction undertaken
through e-commerce accounted for 43 billion $US while business to consumer transactions
accounted for 8 billion $US. In 1999, e-commerce boomed to reach 150 billion $US, 80% of
which was between businesses. These numbers are expected to reach 1.3 trillion and 108
billion $US respectively by 2003. In 1999, the computer manufacturer and distributor Dell
sold 15 $US million worth of computers a day strictly from orders placed on its Web Site.
This is made possible by an integrated supply chain with data interchange between suppliers,
assembly lines and freight forwarders. Even if for the online customers there is an
appearance of a movement-free transaction, the distribution online transactions create may
consume more energy than other retail activities. The distribution activities that have
benefited the most from e-commerce are parcel-shipping companies such as UPS and
Federal Express that rely solely on trucking and air transportation. Information technologies
related to e-commerce applied to logistics can obviously have positive impacts. For instance,
the National Transportation Exchange (NTE) is an example where freight distribution
resources can be pooled and where users can bid through a Web Site for using capacities that
would have otherwise been empty return travel. So once again, the situation may be seen as
paradoxical.