When I am ordering stuff online, I love the convenience they offer in terms of home delivery, tracking orders and shipments online and getting alerts on when exactly the parcel will arrive. I don’t have to break my routine and go anywhere, e-commerce logistics allows me to stay comfortable at home and await delivery of my goods.
As a consumer, I enjoy every bit of this convenience. However, if I turn the tables, I see a complicated logistics set-up at work for any e-commerce business, big or small. It is not easy to keep your customers happy.
You have to meet several parameters such as on-time delivery, low-cost shipping, correct packaging and an effective system for returns or ‘reverse logistics’. Here are some points to keep in mind for building an effective e-commerce logistics model:
Decide whether to keep logistics in-house or employ a 3PL
This mainly depends on the scale of operations and the volume of sales. If you think you can manage your warehousing and inventory set-up in-house with the help of advanced technology and logistics tools, you can employ the services of a third-party freight operator or delivery partner and you will be fine. This is possible in a smaller scale of operations. If the scale grows bigger, you might want to use the services of a specialized third-party logistics provider (3PL), who may help you to fulfill your terms of service better.
This is possible on a smaller scale of operations. If the scale grows bigger, you might want to use the services of a specialized third-party logistics provider (3PL), who may help you to fulfill your terms of service better.
Use the right tools for inventory tracking and managing your e-fulfillment center
It’s only the best technology that will help you integrate your front-end and back-end operations. While the consumer buys using your front-end, it is the back-end that has to execute the order and make the delivery happen.
Using advanced software for inventory tracking will help you replenish stocks at the right time and coordinate better with your suppliers/ vendors. Using the right ‘warehouse management system’ (WMS) will help you to run your e-fulfillment center (where all the inventory is stocked and individual units are picked up as per orders) in a smooth and hassle-free manner.
Track inventory at each step of the delivery pipeline
A typical e-commerce logistics set-up will have an e-fulfillment center, a parcel hub, a sortation center (where parcels are divided as per pin code) and a final parcel delivery center. You must track the parcel at every step of this pipeline. If you are employing the services of a 3PL, make sure you track at least certain parcels to know how their service is and when they are reaching customers.
Don’t compromise on packaging, labeling and numbering
Efficient tracking of inventory in the delivery pipeline can be done only if each parcel is properly packaged, labeled and tagged/ numbered. In today’s age of barcodes and electronic tracking, this becomes all the more essential. You have to use good quality packaging material and offer cushioning where needed to assure hassle- and damage-free delivery.
Put in place an efficient reverse logistics set-up
In offline retail, it’s simple for a customer to just walk into your store to return an incorrect or damaged piece. In online retail, it doesn’t work like that. You have to put in place a set-up for customers, who may wish to return goods due to certain reasons. For this, you have to arrange for pick-up with certain packaging (set norms for the same) and have the parcels reach back to your parcel delivery center. From there on, the chain has to work in reverse till the e-fulfillment center.