A Comprehensive Guide to Logistics Management
Effective logistics will improve your customer relations and increase your profit margins. Here’s a guide to logistics management.
Are you looking for ways to streamline your eCommerce company’s logistical needs? Are you tired of disorganized inventory inside your house/shop? If so, then you need to invest in logistics management with an order fulfillment center.
Doing so can help your business model in so many ways. You’ll be able to focus more on the creative side of things, knowing that an experienced and trusted brand is taking care of logistics. That includes things like packaging, inventory management, and shipping.
See below for an in-depth guide on what a logistics management service is, why you need to find one you can trust and the benefits of doing so.
What is Logistics Management?
Before they go into business, many aspiring eCommerce business owners believe that products get sent directly from their manufacturer to the client fresh off the product line.
That might be the scenario in a perfect world, however, there’s one factor that often prevents that from happening: demand. No matter what products you sell, demand fluctuates all the time. That’s due to factors outside of your control, such as how the customer decides to spend their money (and when).
That’s why inventory management is so important. Your eCommerce business’s goal should be to have inventory fully stocked and organized. That way, when demand does go up, your company is ready to take advantage by picking, packaging, and shipping.
A logistics management service can help you streamline this entire process. They will stock your inventory in their warehouse, organize it, and then pick and ship items to the customers as soon as they place the order.
Logistics management is crucial to helping you increase your profit margins. By having one service perform all your logistics, you’ll save money in the process. They can also help you look into freight shipping such as FTL (full truckload) and LTL (less-than truckload) freight shipping.
How to Find a Trustworthy Logistics Management Service
Now that you understand what logistics management entails, let’s look at how to ensure that you’re teaming up with a trustworthy service. After all, the efficiency of the service you hire will either help or harm your reputation with your customers!
First things first, we highly recommend that you look for a third-party logistics (3PL) provider. This is the best option for eCommerce businesses because it allows you to outsource all of your logistics management needs to experienced eCommerce fulfillment centers.
Once you’re certain that the service you’re considering offers third-party logistics, take the time to research their online reputation. Google their business and read the online reviews that pop up. These are comments left by previous clients of the 3PL service (eCommerce owners such as yourself).
Be sure to ask yourself a few questions as you read those reviews, such as:
- Do the clients seem satisfied with the communication level they have with their 3PL provider?
- How long have the clients been working with the 3PL provider you’re considering?
- Do they offer the services that you’re looking for?
- Are any of the clients within your eCommerce site’s niche? (this is a good sign, if so!)
Benefits of Logistics Management for Your eCommerce Business
Now that you’ve seen what logistics management is and how to find a reputable 3PL provider, let’s take a look at all of the potential benefits of logistics management for your company.
We mentioned this earlier in the article, but it bears worth repeating: a third-party logistics provider can help your company see significantly higher profit margins.
The distribution process is one of the most costly aspects of any business model, eCommerce or otherwise. By outsourcing your logistics needs to an experienced service, they’ll help you find new ways of cutting costs with your packaging, shipping, and inventory management.
Fewer distribution costs equal more profits for your business. Every time your customers make a purchase, you’ll see a higher return. Who wouldn’t want that?
Sadly, most eCommerce businesses have no way of telling their customers where their packages are or how quickly they’ll arrive. They simply set an “ETA”, then hope for the best.
If that shipment goes south, you risk the customer never purchasing from you again. One mistake is all it takes.
Logistics management can help you fix that issue. They’ll give you access to software that will keep both you and your customers in the loop at all times. They can also direct you to efficient and trusted shipping companies to ensure a faster (and safer) arrival for your clients.
Worry-Free Business Model
Not only is distribution one of the most expensive aspects to a business, it can also be one of the most stressful if it’s put into the wrong hands.
Imagine being able to take inventory off your list of daily tasks. Think of how much more time you would have to work on your site, think of creative ways to market, and interact with your site visitors.
With a 3PL provider on your side, all logistics management needs will be put in their care. That way, you can sleep easy at night, knowing it’s in the best hands possible.
Invest in Logistics Management Right Away
Now that you have seen an in-depth guide on logistics management and why it’s so important for your eCommerce fulfillment needs, be sure to use this information wisely.
Why us? We’ll tell you why! Visit this page to read up on several client case studies and how Fulfilltopia was able to meet the needs of their growing business. We look forward to assisting you further.