When a consumer buys a particular product on an e-commerce portal, he can’t wait for it to arrive. Optimizing logistics for e-commerce is vital because it is a question of making the transition from the request for an item to the delivery of the product a reality. And of all this, the owners of an online store are perfectly aware. Various complex dynamics are initiated following a click relating to the purchase confirmation, which must be efficient for that e-commerce portal to function at its best.
The task of logistics, therefore, is to organize and manage the distribution chain in the best possible way, strategically coordinating everything that closely concerns the flow of goods. Optimizing logistics for e-commerce means that after purchasing the items, the customer receives them on time, clearly indicated in the specific information section dedicated to delivery.
The Potential Of E-Commerce: There Is Still Much Work To Be Done
However, mainly due to the Covid-19 pandemic, there has been recent progress in the logistics system. A whole series of services must improve, from the storage of goods which must be more efficient, to shipping which still needs to be more flexible and not always precise and in terms of delivery times, we can and must do better. Furthermore, returns management needs to be optimal and parcel tracking, although it works, is yet to be a process that benefits the marketing branch. Only by making progress in each aspect above can e-commerce companies prove themselves highly competitive on the internet.
What Will Be The Challenge For Companies In The Future To Optimize The Logistics Chain For E-Commerce?
In all likelihood, a large part of the energies and investments will concern the timing and methods of delivery. Even if the process is delegated to an external courier, a late shipment is a significant problem for any online store. Defining delivery as the tip of the scale that indicates the level of customer satisfaction is by no means hyperbole: to consider it a vital element of the business, speed, efficiency and optimization will be the keywords. Any company will have to be updated on cutting-edge systems for making deliveries (think of drones, for example), the efficiency of product collection, the reliability of tracking solutions and the accuracy of reporting systems.
What Are The Differences Between E-commerce Logistics And Traditional Logistics?
The dynamics of e-commerce logistics differ from those of physical stores: the storage of goods, shipments, transport and customer assistance service, consequently, are characterized by different management. In addition to shipment punctuality and delivery reliability, which are essential on the Web, given that they must take place in the right timescales and without additional costs, in the world of e-commerce, personalization is a highly requested service.
Consumers have specific needs: some prefer home delivery, and those who, perhaps, work too much usually fix it in the office. Those who do not have particular deadlines and intend to keep everyone from knowing what they have purchased online typically opt for the deposit hold. Then there are those who, due to health problems, require delivery to the floor, trust the neighbors and specify that the package can be delivered to them if not at home, etc. Remember the product needs that require impeccably organized warehouses with various items.
To fully achieve the goal of efficient delivery, constant inventory updates, the efficiency of the e-commerce portal, which must be user-friendly in terms of navigation, and valuable tools for order management are equally crucial for the stock. The differences between e-commerce and traditional logistics are abysmal: however, those who have a store and use the website to expand their catchment area, addressing at least potentially the whole world, must be careful in making sure that the two logistics models coexist within an omnichannel solution. Here are some aspects that must be carefully evaluated so a company can optimize logistics for e-commerce.
How To Optimize Logistics For E-Commerce
Warehouse Management For E-Commerce
As with any workplace, order and organization of spaces are essential to express yourself at your best. And warehouse management is certainly no exception. It takes less time if you already know where the goods are, perhaps because you scan them to keep them under control and close at hand. Pallet racks, shelving with roller conveyors, mezzanines, roller conveyors, walkway systems and supporting structures represent the best options for optimizing space. Deposit and withdrawal are made quickly.
Actions that can improve logistics are the creation of a mapping of the warehouse, the identification of stocks of goods, which should be disposed of using the rotation index of the articles, the quality and quantity control to be carried out when the goods arrive at their destination and when they leave for delivery to the buyer.
Receipt Of Goods
To improve the functionality of the warehouse, it is advisable to work with criteria with suppliers. The reception must be carefully planned and coordinated with the supply chain processes to prevent any mixups. Furthermore, the reception staff must carry out all the necessary checks regarding the list of packages and the purchase orders, which must coincide with monitoring the general condition of the packaging and packaging and the registration of the goods, which must always be labeled.
Picking After Checkout
Often it needs to be taken with due consideration by numerous online stores: however, the checkout instead concerns, and not a little, the conversion rate of an e-commerce portal. When notification of purchase arrives, the machine is activated, facilitating the execution of the order as quickly as possible and at low costs. Only in this way will the customer be satisfied. The integration of product flows, such as, for example, the handling of the goods, the shipment of the package, the activation of customer care and customer assistance, are steps that give rise to an articulated process that today is the rule and no longer the exception.
Customers, more often than not, buy individual products. For this reason, it is a wise choice to optimize picking routes. Extracting the item the customer wants from a shelf using computer systems proves to be very complex. Knowing how to orient yourself and choosing from a massive list of things is anything but simple. To optimize the path, order, organization and automation of each process as much as possible are necessary.
Preparation Of The Goods
Any item must necessarily be cataloged, possibly processed, and packaged in the best possible way and with all the necessary documentation attached, from the invoice to the delivery note, as well as the labels, possibly to be scanned.
Optimizing logistics for e-commerce means respecting delivery to the final destination within the required times. The package must then arrive in perfect condition. Only then will there be no complaints or negative reviews. This is why it is essential to carefully select the best courier so that we can offer a quality service without problems. It is also necessary to take into consideration the possibility of insuring the package to possibly proceed with a new shipment in case of issues and all without suffering economic remittances
Tracking Of Shipments
The service with which shipments are monitored involves receiving a link via e-mail or SMS containing the package number. It will be possible to see in what state the goods are and when the delivery is expected. Exciting is transactional communications that help customers feel safe and cared for and have a marketing value.
Italy is the fourth country belonging to the European Union concerning the number of returns, whose management must be short. If goods in e-commerce return between 15% and 30% of the total cases, in physical stores, dissatisfied customers who return the goods are just 8%. On the other hand, it was to be expected that those who buy online do not touch the good with their own hands. To bypass this obstacle, e-commerce logistics appear optimized when the user experience on the online store seems as realistic as possible. Everything works best if returns are recorded, the customer’s reasons are clear, and the procedure is automated if returns are processed on a per-item or per-supplier basis.
A dissatisfied customer with the final purchase reviews the company negatively on one of the many portals dedicated to consumer opinions. And negative feedback is certainly not a sound calling card for a company. Understanding what is wrong and opting for alternative transport methods for personalizing shipments and tracking orders is the correct behavior to put into practice. Customer loyalty and logistics optimization for e-commerce also pass through measures such as those just mentioned.
Optimizing logistics for e-commerce can be a complex undertaking for any business. The support of our Chief Digital Officers allows you to better plan the activities of your online store, organize the warehouse, receive goods, post-checkout picking, product preparation (labeling included), shipping, tracking, delivery, any returns and their management with customers.
In short, Maia Management is a valuable ally also in terms of customer satisfaction. If you intend to have a precise process mapping, fill in our digital test. The calculation of the digital test to understand the level of digitization of your company and the corresponding needs is the first step to take to identify the strengths and weaknesses of the reference work context.