Modern customers are more inclined to shop online than visit a traditional brick-and-mortar store. The prevalence of ecommerce can be attributed to the convenience of shopping online from anywhere, a plethora of buying options, same-day delivery and liberal return policies.

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Consequently, the rising ecommerce industry needs streamlined logistics, i.e first-mile delivery, shipping and last-mile delivery, to cater to the customer’s requirements.

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Logistics management, the complete supply chain process undertaken by an ecommerce brand to source and deliver a product, can help meet the requirements of the booming ecommerce industry.

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However, logistics management requires overseeing numerous processes, which makes it complex and challenging. But you would be relieved to know that logistics management can be handled expertly by taking the right steps. Are you wondering what these are? Let's unravel them together.

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In this blog, you will learn what logistics management is, the processes involved in it, why logistics management is important and how to excel at it.

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What is logistics management?

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Logistics management refers to the process of overseeing the ecommerce supply chain, from sourcing inventory to delivering orders to a customer's doorstep. Logistics management aims to deliver orders quicker and cheaper while creating a positive Customer Experience (CX).

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What are the processes involved in logistics management?

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To manage logistics, one must first understand its elements. Let's have a look:

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1. Ecommerce warehousing

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The first step in logistics management is receiving and storing inventory at an ecommerce warehouse or fulfilment centre. Ecommerce brands can aim to store inventory in such a way that it optimises workflow, speeds up the packing process and reduces holding costs.

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2. Inventory management

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Inventory management includes keeping track of inventory levels, orders, their status, returns and more. To efficiently handle this tedious task, you can use an Inventory Management System (IMS)- a combination of hardware and software technology that simplifies tracking inventory. Inventory management also helps ensure adequate stock levels.

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3. Order processing

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Once an order is received, the next step is to pick the product from its designated location in the ecommerce warehouse and pack it. Finally, the packed order is marked ready to ship and handed over to a courier partner. The quicker an order is packed, the faster it can be delivered.

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4. Ecommerce shipping

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Ecommerce shipping refers to delivering an order from an ecommerce warehouse to a customer's doorstep. Optimising ecommerce shipping can help reduce shipping costs and boost customer satisfaction through lightning-fast delivery.

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5. Returns management

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As an ecommerce seller, you are accustomed to returns. Once a customer requests a return, the product must be picked up and returned to the ecommerce warehouse or fulfilment centre. A returns management process can help you deal with returns such that they don't burn a hole in your pocket.

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Why is logistics management important?

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Ecommerce logistics management involves overseeing all ecommerce operations, from procuring inventory to delivering orders and is important for all ecommerce brands; let's see why:

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• Streamlines business processes
• Enhances efficiency in logistics operations
• Improves order accuracy
• Reduces logistics costs
• Increases customer satisfaction
• Builds customer loyalty

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Logistics management aids ecommerce brands meet customer expectations around fast and accurate delivery while optimising operational costs. Thus, ecommerce brands deliver a better customer experience and increase operational efficiency.

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How to excel at logistics management?

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Now that you know what logistics management entails and how it is beneficial for you, let us understand how you can use it to make your ecommerce brand stand out:

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1. Distribute your inventory

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Statistically, 80% of customers want same-day delivery, making it an important customer satisfaction metric. One way to ensure faster delivery is by decentralising inventory across multiple ecommerce warehouses. Splitting inventory helps you store it closer to customers, thus reducing the transit time of orders. It can also help reduce shipping costs as the distance the order needs to cover is reduced.

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For example, Eshopbox splits inventory across multiple state-of-the-art fulfilment centres PAN India based on your requirements.

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2. Utilise an IMS

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A powerful Inventory Management System (IMS) will help you control inventory in a simplified manner through automation, thus saving time and effort. Research shows that 34% of businesses shipped an order late as they sold a product that was not in stock. An IMS can help you deal with such situations and prevent damage to your brand's reputation.

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For instance, Eshopbox uses a robust IMS to give you complete inventory visibility. Moreover, it prevents stock-outs by giving timely replenishment reminders and updating inventory levels across sales channels every 5 minutes to prevent overselling.

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3. Process orders fast and accurately

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As ecommerce sales grow, it can be challenging for ecommerce sellers to ship orders in time or ensure a high order accuracy rate. Thus, ramping up order processing capabilities is important to ensure seamless fulfilment. Some ways to optimise ecommerce shipping are:

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• You can have a Standard Operation Procedure (SOP) for picking and packing orders.
• Ecommerce sellers can introduce automation in their order fulfilment process.
• Ecommerce brands can use expedited courier services.

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For instance: Eshopbox wields technology like conveyor belts in order processing to ensure a 99.65% order accuracy rate. Moreover, Eshopbox complies with the guidelines of all marketplaces and ships orders within the required turnaround time (TAT) through SOP-driven order processing.

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4. Reduce logistics costs

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In an attempt to ship orders quickly and ensure fast delivery, ecommerce sellers may end up spending too much on operational costs, which can cut into your profits. Thus, it is essential to maintain a balance between fast order fulfilment and operational costs, and one way to do this is by reducing shipping costs.

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Some ways to reduce shipping costs are:

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• Splitting inventory to store it closer to customers
• Reducing the weight of the package
• Using pre-paid shipping
• Tieing up with multiple courier partners

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For example, Eshopbox helps ecommerce brands get discounted shipping prices due to the bulk order volume Eshopbox deals in.

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5. Ace returns management

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Proper returns management can reduce the menace caused by returns and even make them profitable. Some ways to efficiently manage returns are-

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• Having a clear return policy.
• Ensuring that you have a simple process for initiating returns.
• Encouraging customers to exchange products instead of returning them.
• Aligning return pickups with deliveries in the same areas to save on return shipping.

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For instance, Eshopbox makes handling returns a seamless process for ecommerce sellers. The following picture shows how:

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Summing up

Logistics management is essential for ecommerce brands, and while faster shipping capabilities are advantageous for all ecommerce sellers, many do not have the logistics network to do so. A tech-enabled 3PL (Third-party logistics) can help you streamline your logistics network and ensure seamless fulfilment to ace the competitive ecommerce landscape.