Logistics are the entire process of coordinating people, materials, inventory, equipment, and resources from one location to at the desired storage location as part of the chain of production. Logistics are a major part of e-commerce businesses as products and inventory must move, in some way, from supplier to seller to customer.
Why are logistics important?
In order for your business to succeed, your products need to reach your customers. Your business needs to be as efficient as it can be with its limited resources when it comes to buying and transporting raw materials. If a product isn’t delivered in a timely manner, customer satisfaction decreases and this negatively affects the company’s profitability.
- Inbound transportation
- Outbound transportation
- Fleet management
- Materials handling
- Order fulfillment
- Inventory management
- Demand planning
1. Plan ahead: Plan your transportation costs and fees ahead of time in order to avoid any logistics failures. Using a product research tool can help you understand fees ahead of time.
2. Use automation: Use a business process software to give you and the customer timely updates about the movement of your goods.
3. Improve your relationships: Establish a good relationship with everyone in the chain of production whether it be the delivery man or warehouse manager. Properly train your employees and keep them up to date with the latest techniques in the logistics industry so they are the most effective that they can be.
4. Warehouse management: In order to have proper warehouse management, make sure you are maximizing the storage capacity your warehouse by using vertical storage columns and that your products can be easily located.
5. Transport effectively: Find the shortest yet safest delivery route in order to cut your gas costs and to save you time.
6. Measure: Analyze the metrics related to different aspects of the chain of production in order to help you improve your business.