Logistics for E-Commerce

Automate freight, procurement and inventory management

Logistics for E-Commerce

Logistics involves purchasing, storing and shipping goods between the manufacturer and the end customer. Logistics is an area that has been given lots of attention in recent years because the development goes fast but also points in several directions. At one end there are great giants like Amazon and Alibaba, and in the other, the independent smaller producers who sell directly to the end customer in their web shop. Both opportunities greatly benefit because the IT and automation processes make increasingly sophisticated logistic scenarios economically feasible.

The core of the logistics service the consumer expects today is:

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Current stock status and free shipping in connection with the purchase
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Fast shipping and live shipping status during shipment
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Flexible delivery and long return after receipt

Some internal features and processes can be customised and targeted to deliver a service level and speed that matches customer expectations. We provide you with the tools to evaluate your logistics needs from a variety of perspectives.

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Needs and Vision Protection

Start your analysis of your logistics needs by describing your current logistical requirements towards the company's vision. Then consider the needs that the company will face in a few years that affect the logistics of your business. Also, consider what changes in the market you want to be vulnerable to, so you can cover up too quickly for sudden changes or new competitors.
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Customer Packages

Once you have clarified the company's ambitions and needs, turn the analysis around and take the journey through your business's customer service. Who are your customers? Does B2B or B2C sell and deal with the two segments differently? Where does the customer experience reach its peak and where does it sometimes fall? What is the customer's lifetime value? How do you handle return goods? What problems are your business trying to solve for the customer?
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In or Outsourcing?

Logistics can be a significant expense, and therefore it will always be a business case worth calculating. What is to be delivered by one's organisation? and what it pays to outsource. To assess the level of your logistics costs, it may be a good idea to break down the individual elements of logistics into freight, stock and purchase and make a benchmarking with alternative suppliers as part of this assessment.

There are services available on the market that can solve logistics features for your business. Here is a selection of them.

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Automated Returns Processes

With Return Returns (RMA), you can ensure that returned goods are handled according to certain standards, and within the deadlines, you promise the customer. With such a system, it becomes "logged" if a product is returned from the customer and is traced through your return management setup based on an authorisation number or serial number. This will automatically give the customer the necessary information about how far the return shipment is reached, whether the return is accepted and when and how much the customer will be refunded for the item. In addition to the customer service item, you can chain these data together with your inventory management data to keep the list updated and any depreciation of damaged or defective items posted.
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Warehousing/Showroom Hotels

Outsourcing of storage and packing to an external supplier can release space and crew for other tasks. Also, you can quickly establish a new warehouse in an area, thus achieving shorter shipping times and lower freight costs to a new or growing market.
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Inventory Management

You can monitor inventory and durability data or fully automate the stock recharge when the stock is low. It demands requirements for your data structure and your ERP system but can shorten inventory binding and optimise inventory turnover.
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Live Data Feeds

By integrating third party services, you can get data feeds for outsourced services such as freight or inventory management that can be used to automate processes or deliver more relevant marketing efforts to customers.
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Click and Collect

The customer can order the item for pickup from a drop point to the customer's own choice. This means that the customer should not be home for delivery, but can pick up the item quickly and conveniently near home or work.
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Drop Shipping

Drop shipping is an E-Commerce solution without stock. When a customer orders a product, it is sent directly from one manufacturer to the end customer, so no unnecessary handling of the item takes place. If you sell items like drop shipping, you can integrate with your suppliers and get secure stock data and live prices in your E-Commerce platform, which the customer can see. The customer's order will be sent directly to your supplier for packing and shipment without your involvement. 

Want to know more about logistics and E-Commerce?

Contact me to discuss a solution to your concerns
Adam Peter Nielsen
Adam Peter NielsenGroup CTOSend e-mail