Best Practices for Streamlining eCommerce Logistics Operations

 

While starting an eCommerce business of your own, you often juggle several challenges in the initial phase such as deciding your niche, making a user-friendly store, framing an engaging promotional strategy, developing a unique brand voice, strategising a robust shipping and eCommerce logistics plan, etc. Among all, streamlining logistics operations doesn’t come easy. 

 

Logistics planning and management is a process that demands a certain degree of knowledge, expertise, and experience and for someone starting new in the business, it’s not a piece of cake! So how do eCommerce sellers fulfil their logistics needs? Well, the answer is via 3PL which is Third-Party Logistics providers.  

 

3PL providers are the companies that handle your every logistics need, like order processing, warehouse fulfilment, picking and packing, and shipping on a contractual basis. As per your business ideas, some of them do offer customised and premium solutions. They help you streamline your logistics operations with their strong connections in the industry and expert professionals. 

 

Outsourcing your logistics to a 3PL is just one facet of streamlining your eCommerce logistics operations. There are several other ways through which you can streamline and optimize the logistics operations of your business. Let’s explore those other ways in this blog further. 

 

What Does Streamlining in eCommerce Logistics Mean?

 

Streamlining logistics refers to adopting methods, strategies, and apt technology to optimise every facet of supply chain operations and cut down on the cost involved, along with aligning all of it to your business growth and long-term goals. 

 

The significance of streamlining logistics lies in the fact that with ever-changing industry trends and consumer behaviour, businesses in today’s world need to become more agile and adaptable to change. This is only possible with upgradation and streamlining and thus, every business, be it online or offline, needs to simplify the process of logistics for better business growth. 

 

Streamlining logistics can involve everything from integrating technology to reducing the number of large warehouse spaces to owning small ones in strategic locations. Further, replacing a traditional fleet of vehicles with EVs, establishing transportation management systems, employing route optimisation methods, etc, all come under the umbrella of streamlining logistics operations. 

 

What Are The Other Ways Through Which Logistics Operations Can Be Streamlined? 

• Implement An Advanced Logistics System

To automate order processing, tracking, and inventory management within e-commerce logistics, it is essential to integrate innovative technologies.

 

Order Management Systems (OMS), for example, are essential to the management of an order’s lifetime. They effortlessly integrate with a warehouse management system (WMS) to guarantee shorter processing times and an accurate reflection of inventory levels. E-commerce operations run more smoothly from order receipt to delivery when a warehouse management system is integrated. This lowers errors and increases customer satisfaction. 

• Smart Warehousing

Warehouse management is one crucial element of the logistics process which comes at a heavy cost, such as a bigger workforce, fleet management, operation systems, and so on. Efficiency in warehousing is the key to faster and more accurate order fulfilment, particularly last-mile delivery and thus automated solutions need to be employed within the warehouse spaces to fastrack this stage of eCommerce logistics operations.

• Outsourcing Logistics to a 3PL 

Logistics and transportation management are not something that can be managed by anyone without a solid understanding of the industry. eCommerce businesses, particularly small and medium-scale enterprises prefer to outsource logistics operations to a third-party logistics provider, who handles everything from order processing to picking, packing and shipping on behalf of the business which hires them. 

 

Some of the major advantages of working with a 3PL are that they bring you better price negotiation, options for multiple carriers, integration to diverse eCommerce marketplaces and channels, faster COD remittance, a user-friendly dashboard, low RTO rates, a wide coverage network, and what not!

 

India’s leading tech-enabled logistics aggregator NimbusPost brings you all these features and enables a seamless shipping experience for global eCommerce businesses.

• Employing Data Analytics for Optimisation

A key component of improving the efficiency of logistics is data analytics. Businesses may spot inefficiencies, anticipate trends, and make wise decisions by assessing data gathered from various points of the logistics chain. Businesses can respond to shifting consumer preferences and market conditions faster because of this cycle of continual development.

 

The scope of data analytics is vast in logistics operations. Right from route optimisation to inventory management and demand forecasting, data analytics can help in achieving efficiency and productivity in all these stages by leveraging historical data. 

 

Data analytics can not only amplify the process of real-time tracking in logistics but can also help predict future patterns of demand and supply, thus helping businesses avoid the situations of overstocking and understocking inventory. Further, data analytics can empower logistics companies to predict the likelihood of potential disruptions in the supply chains, such as geopolitical crises, natural disasters, cybersecurity threats, etc, thus helping in risk management. 

• Implementing Transportation Management System(TMS)

In many crucial areas, a TMS system provides considerable cost savings for the business as well as the end user. It lowers administrative expenses first. Finding the best alternative for carrier rate comparison is made simple by TMS software. Additionally, it simplifies the booking process, substituting effective digital booking for laborious phone calls. For increased productivity and fewer errors, the software automates, integrates, and simplifies tasks including contract, payment, and order scheduling.

 

TMS also reduces the cost of shipping. The software helps find the most economical options—some of which might be overlooked in a manual method—by automating the rating comparison process.

 

Conclusion

The first step towards streamlining the logistics operation is via deep analysis of your existing strategies and finding the fault lines. Then, it will become easy for you to employ the most apt technology and operating systems to address the issues faced in the supply chains. Thus, optimising eCommerce logistics would become more of a simple process for your business.