How eCommerce companies can benefit from logistics management systems?

Victor NunezEcommerce, General, General, Warehousing3 Comments

Large group of cardboard boxes connected to microchip. 3D illustration.

A reality check for contemporary business

Logistics is defined as a series of processes and procedures that facilitate the movement of an item or person from location to location. This is an important aspect of ecommerce as it allows the movement of products from the manufacturer to the customer. It involves third-party logistics which is the term used to refer to professional ecommerce fulfillment services. The main purpose of logistics software is to help businesses manage their operations with ease. This is particularly important when engaged in palletized shipping. 

What are the key aspects of logistics systems?

In ecommerce, logistics systems refer to several software applications that are designed to automate the complex processes of moving goods from one place to another. These are processes that would be unsustainably complex if they were left to human effort alone. Multiple logistics systems may have built-in capabilities that allow them to replace manual systems. They can be used to manage virtually every aspect of the supply chain. Through integration, these apps allow users to share information on a single dashboard. 

Why should you consider logistics systems in your supply chain?

Logistics systems are essential if you are pursuing a strategy of agile management. It is through this efficient approach that the ecommerce industry has been able to survive and thrive, despite a highly competitive market. These systems allow businesses to conserve their precious resources so that their overheads are minimized. Using old-fashioned systems like spreadsheets to track orders may initially appear to be a cost-saving measure but it costs time and money in the long run. This is because of issues of inaccuracy and human error. 

One way of thinking about logistics is to use the analogy of a 3D puzzle. There is a lot of connectivity between and among various segments of the supply chain. That means that a problem in one area is going to affect other areas. These interconnected impacts can be direct or indirect, depending on the circumstances and the level of closeness in the supply chain. Manual work plans are not able to cope with the complexities of calculating the effects of a change in the transportation or manufacturing part of the supply chain. It is therefore neither fashionable nor feasible to engage in order fulfillment by hand.

Understanding the work of logistics systems 

The importance of logistics systems is becoming increasingly apparent to all businesses, regardless of their size. Because supply chains can be unreliable, businesses need the flexibility to pivot quickly in case of a change. The use of logistics systems reduces the impact of any interruptions in your supply chain. Not only does the software automate certain crucial tasks, but it can also provide you with important analytical data that aids your decision-making. It can be argued that logistics systems are the key to managing fast-moving situations in the supply chain. 

Even smaller businesses are now realizing the benefits of logistics systems. This technological aid can help in the growth and development of the business as it responds to the demands of the market. Apps offer safe and easy access to this technology. For the business, it means dealing with less frustration as it tries to stay ahead of its competitors. Logistics systems can play a crucial role in scaling your business. 

How ecommerce companies can benefit from logistics management systems

There are specific aspects of logistics management systems that are geared towards supporting  ecommerce enterprises. This is often achieved using multiple systems. At first, the multiplicity of logistics systems can appear to be expensive or otherwise overwhelming. However, a gradual introduction through free trials can help to overcome some of the teething problems that businesses may encounter. For example, potential clients can try software before they buy. This is an opportunity to identify and resolve potential problems in the system before making a commitment. Other ecommerce apps are even offering free subscriptions or low-cost alternatives for small businesses. 

What are the distinct types of logistics systems available to your business?

There are several categories of logistics systems to choose from, including:

  1. Order management systems: These systems are essential for running order processing operations. Using OMS software, it is possible to automate many or all the steps that are necessary to satisfy an order placed online. For example, they can be instrumental in routing orders to designated fulfillment warehouses. They can also help to create shipping labels. Additionally, these systems are highly effective at tracking an order throughout its journey from the manufacturer to the customer. The use of OMS apps has been credited with easing the operation of omnichannel fulfillment. You can rely on these systems to manage all your sales channels on a single platform with ease. That is where order management systems are fully integrated with the ecommerce platform that is being used. This integration should include your 3PL service provider.
  1. Inventory planning and management: Although this software does not do physical stock counts, it automates so many otherwise tedious inventory management processes. This is vital to your business because you can deal with customer orders as they arise. A business that promptly deals with customer orders is in a good place and will thrive. This is not just about tracking, reordering, or setting safety stock levels. Inventory planning and management software does a lot more in terms of analyzing the ways in which products move from the manufacturer to the customer. It is possible to improve your investment decisions and focus on those areas that are likely to bring greater positive returns. The just-in-time approach to deliveries will help you avoid supply chain disruptions. Inventory management remains a key priority for ecommerce businesses and this software can be of help.
  1. Warehouse management systems: This is a software package that is designed to manage most of the activities that take place in a fulfillment warehouse. Having a 3PL provider can be an advantage in this respect because they will endeavor to take care of the warehouse management system. The WMS can track the movement of merchandise, an extremely helpful aid for ecommerce businesses that have elected to manage their own warehouses. WMS have been associated with efficiency in order fulfillment, saving money that would otherwise be spent on pick and pack operations. One of the merits of working with professional fulfillment service providers is the fact that they will already have taken care to secure a state-of-the-art warehouse management system. You will benefit from expertise and access to the latest technology.
  1. Transport management systems: Businesses in the ecommerce sector must organize their use of drayage trucks and the general transportation of their merchandise. This is where transport management systems come into play. They can tackle all the known complexities of routing deliveries. This type of software can figure out the best route and ensure that all stops are accounted for. This technology is also known for cutting costs. Most ecommerce companies have opted to use the likes of USPS, UPS, and FedEx. The implication is that it is rare for them to privately commission transport management systems. In any case, the major carriers will have already employed expert professionals who understand the full use of sophisticated transport management systems. 
  1. Returns management systems: These are software packages that are particularly relevant in the post-pandemic era when many returns are being triggered. Such systems allow for the efficient and effective management of returns without distressing customers. These systems allow online application and processing that will make returns easier than they have ever been. A quick turnaround means that customers can get their refunds quickly and avoid additional complaints about this. The systems may generate information that can help you track the true costs and prevalence of returns. In this way, businesses can account for returns more accurately when calculating their overheads. 

How to get help in managing your logistics

The use of logistics systems comes highly recommended for businesses that are dealing with a complex supply chain. Through automation, you always have the data you need at your fingertips. Organizations that use logistics systems can achieve a lot more productivity with fewer resources. Nevertheless, some businesses still find logistics overwhelming. 

Using third-party logistics companies, ecommerce enterprises can get rid of this burden. Working with a 3PL is akin to acquiring a new department without having to engage in complex recruitment, training, and development. The 3PL makes everything simple. For example, you only pay for the fulfillment services and storage space that you need. This improves the efficiency of your business. 

When selecting a partner, ensure that they have extensive knowledge of software and management systems. This is the essence of order fulfillment. In other words, you are looking for an IT company that has specialized in order fulfillment. Logistics systems are central to the process of improving the quality of 3PL services. 

Wrapping up

Logistics systems are an essential aspect of ecommerce because they facilitate the movement of goods in the supply chain. Working with a good 3PL provider such as with Shiplilly, means that you can access the benefits of these systems without having to hire anyone. Contact us today for more information.

Victor Nunez on Linkedin
Victor Nunez

3 Comments on “How eCommerce companies can benefit from logistics management systems?”

  1. Victoria Addington

    It captured me when you discussed that logistics systems permit companies to save their treasured resources to minimized their overheads. That’s probably why my friend wants a managed logistics service for his retail store. I think it’s best to work with a company that offers the tools to proactively manage its supply chain.

  2. CargoCloud

    I thoroughly enjoyed reading this insightful blog on how e-commerce companies can benefit from logistics management systems. The points made regarding the efficiency and cost-effectiveness of such systems are crucial for success in today’s competitive market.

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