Guest Post: Logistics — A Necessity in E-Commerce

May 05, 2022

The Basics of Logistics

Logistics is the process of efficiently transporting and storing things from their place of origin to their point of consumption. When applied to e-commerce, it enables businesses to ship orders out for delivery with precision timing so that they can reach their destination on time, cost-effectively, and hassle-free!

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Originally, logistics was only for transferring military people, equipment, and products. While logistics is as vital in the military as it has always been, the term is now more generally used to refer to the movement of commercial commodities within the supply chain.

Now, it has also become a necessary part of e-commerce. This is why all kinds of businesses need to ensure that they have a well-functioning logistics partner or system in place in order to be successful in their field. E-commerce businesses cannot function without logistics, since it is the process of managing and coordinating the flow of resources, including goods, services, and information, in order to meet the needs of customers or clients. Some critical components of logistics involve Transportation, Warehouse, Inventory management, and even Customer Service. They need to make sure that they have a solid plan for each of these areas. Sounds a bit complex, right? Indeed, but without it, your business might be just another fish in the sea.

How Do Logistics, Consumer, and Modern E-Commerce Intersect?

In the past, the balance of power between business and consumer was substantially skewed in favor of the former. The balance has shifted, however, as a result of the digital transformation and the growth of e-commerce. Consumers now have the ability to influence how shops and service providers interact to suit their needs and desires.

Same-day delivery may have sounded unthinkable a decade ago, but with online business-changing customer expectations, merchants and service providers must collaborate to simplify, innovate, and streamline their delivery capabilities in order to fulfill those expectations.

Whether it be large or small, modern companies increasingly rely on back-end supply chain management for their success and survival in this digital world we live in now. The best way to avoid the hassle of managing inventory is by outsourcing it. This not only ensures that your business activities run smoothly without having to worry about storing and shipping products, but also saves you time!

If you can’t have your own logistic system, there are now a lot of businesses that specialize in logistics like DHL, Fed Ex, or for startups, Parcel Perform is a great option. The majority of these companies offer the service to manufacturers, merchants, and other industries with a high need for product transportation. Some companies possess everything from jets to trucks, warehouses, and software, while others specialize in one or two areas.

What’s The Typical Logistic Process For A Business?

Almost all logistics companies provide simple and reliable processes. They often have an app or software that even small businesses can access and create an account. This app or software is used when you either need to ship or store your products. You can schedule a pick-up depending on when you want it and their system will provide you with a label to be used accordingly.

In online businesses, logistics typically encompasses the following processes:

Transportation

Guest Post: Logistics — A Necessity in E-Commerce


Transportation is a critical part of any logistics system. It is important to choose the right shipping method to ensure that products arrive at their destination on time. There are many different shipping options available, such as express shipping, standard shipping, and economy shipping.

E-commerce businesses need to have a way to get their products to their customers, whether it is by shipping them directly or using a fulfillment center. They also need to be able to track their shipments and ensure that they arrive on time. 

Warehouse

Logistics — A Necessity in E-Commerce

Warehousing is the process of storing products that have not yet shipped to customers. The warehoused goods can then be tracked through various means, including computerized records and visual inspections by warehouse employees for quality control purposes before they’re sent off or sold at a discount from their original price point if needed.

Warehousing is another important aspect of logistics. A good warehousing system can help to improve inventory management and ensure that products are stored safely and securely.

E-commerce businesses need to store their products somewhere, whether it is in their own warehouse or in a fulfillment center. They also need to be able to manage their inventory and keep track of what products they have in stock.

Inventory Management

Guest Post: Logistics — A Necessity in E-Commerce

In the world of e-commerce, logistics play a vital role in ensuring that businesses can operate smoothly and efficiently. Without a well-run logistics operation, it would be impossible to manage inventory, fulfill orders, and provide excellent customer service.

That’s why many e-commerce businesses invest heavily in their logistics operations, making sure they have the right systems and infrastructure in place to support their growth.

There are a few key areas that are essential for any e-commerce business when it comes to logistics especially, Inventory management.  In order to keep track of all the products that your business sells, you need a robust inventory management system. 

This system should be able to track stock levels and identify when new products need to be announced. You can cut down on time spent counting your stock by adding label stickers to packaging. They make it easy for you and give an accurate count of what’s out of stock, saving precious minutes.

Customer Service

Guest Post: Logistics — A Necessity in E-Commerce

Customer service and shipping are two of the most important aspects of logistics. If a company can’t answer questions about its products or resolve issues with customers, then it won’t be able to win over new clients in time.

They also need tracking information so that people know where an order is at all times, especially when sending packages internationally where there may not always be full transparency from counterparties like postal services which handle this type of transfer-of-content between parties involved.

A good customer service team can help to answer questions about products, track orders, and provide support if there are any problems with delivery. 

When any inconvenience arises, you can always give your customer some relief. A great way to do a service recovery is to print out flyers or postcards with an “apology + discount code” on it, which your customers can use on their next purchases.

Is It Possible To Track Stored Or Transported Goods On The Back End?

The digital age has made it easier than ever for businesses to keep track of their inventory. With the use of their website or app, logistics software can provide updates about what’s left in stock so that you never miss out due to customer demand again.

Logistics providers also give out unique tracking numbers per package or item. These fulfillment numbers can be used to track orders and ensure they reach their destination.

It is critical to keep your customers updated too on the status of their orders. GPS tracking is available up to the last mile with most delivery services. Both the package’s sender and receiver can see how far or close the delivery truck is to the drop-off spot. Clients may view the precise routes, roads, streets, and highways used by the delivery driver conveying their things. Furthermore, this function provides the item’s projected delivery time, so your clients can have an approximate notion of when they can expect to get the products, providing them with a sense of trust and security.

Challenges That E-Commerce Logistics Face

Your items’ delivery is one of the final phases in the consumer experience, and it will create a lasting impression on your business. Only by offering a flawless post-purchase experience to your clients will your eCommerce shop stand out. This is mostly determined by how effectively your selling operations and logistical setup are coordinated. As a result, setting up a logistical area that defines a successful delivery is critical.

However, while on the hunt, you may encounter certain logistical issues that have a direct impact on your online businesses. Below are some of the common challenges e-commerce players face when it comes to logistics are the following:

  • Order Processing Delays

    It makes no difference whether you sell through a single retailer or several outlets. When clients place orders for items, you must process them as soon as possible and within the service level timeframe that you set. Most marketplaces and sales platforms anticipate processing orders in one or two days. Delays in processing inevitably lead to problems in the shipment and delivery processes, resulting in dissatisfied consumers and low review ratings.

  • Identity Theft

    If your clients’ credit card details are taken when they’re attempting to buy anything from your site, it might be catastrophic to your business. Because they can no longer deal with your company, the consumer will be compelled to leave their carts. In the long term, cases of data theft on e-commerce sites affect the logistical process since customers have difficulty placing orders and are unable to enjoy order fulfillment.

  • Free Shipping Costs

    Free delivery is becoming more common among online businesses as a means to entice customers to buy more things. Most individuals are unaware of how much it costs a shop to provide such a service. If your company uses a third-party logistics vendor, you’ll have to cover the charges, which can cause you to incur losses.

  • Unreliable Logistics Providers

    The majority of Southeast Asian vendors do not have their own logistical operations and rely on third-party fulfillment providers. Looking for a reliable logistic partner is a significant portion of your operations. There are many cases where your brand’s or online store’s reputation suffers as a result of a mistake made by them.

  • Technical Errors Caused by Inventory Management or Shipment Tracking Software

    Mishandling and inaccuracies in stock updates might also stall your logistical activities. Damaged items and a lack of stock result in refunds, cancellations, and the necessity to compensate the dissatisfied consumer. Your logistics partners may charge you for all of their services, which basically makes you lose money.

How Do You Address E-commerce Logistics Problems?

To take your e-commerce logistics up to a notch, a comprehensive shipping strategy avoids logistical snafus for a variety of clients. As a vendor, this gives you more control and transparency. Needless to say, your consumers will have a better delivery experience.

You want customers and revenue coming in constantly, but it takes more than just that for an online store, especially when there’s no physical presence! You need efficient delivery systems with quick response times so all operations stay afloat; this means finding companies who can meet these needs as well as having clear communication between parties involved at every stage (from pickup through billing).

E-commerce companies that want to delegate transport and logistics to other companies might benefit from third-party logistics arrangements. Working with a 3PL allows you to take care of all parts of fulfillment, store and monitor inventory, and oversee inbound shipments.

Conclusion

Guest Post: Logistics — A Necessity in E-Commerce

The e-commerce logistics industry is booming, with the rise of popular delivery services and online shops. These companies also face new challenges that require faster performance from their supply chains in order for them to continue growing at a fast rate.

The logistics sector is a challenging place to succeed in, but if you want the opportunity then it’s important that your e-commerce business incorporates some of these strategies. These will help ensure smooth processes for both sales and delivery.

About the Author: This article was written by OnTimePrint, an online printing startup in Singapore that offers fast, convenient, and affordable mass printing customization services for all kinds of businesses.

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