Several assumptions about the disruptive influence of developing technology on the supply chain have emerged throughout time. So far, none of them have come to fruition. Any logistics company wants to concentrate on the lucrative terrain of a tightly connected and profitable logistics supply chain that adapts to changing client needs. Despite the fact that digitalization is a huge task, doing nothing is not an option. In addition, being reluctant to adapt to developments might disrupt your market and stifle a company’s growth.
Rapid technological advancements, combined with rising consumer demands, have created a slew of logistical issues for ecommerce. Appointing adedicated team to pick them up when an online order is placed and deliver them to the customer is the solution in this scenario. But it’s not as simple as it sounds. So, how is India overcoming the challenges in e-commerce logistics? Read on.
• Collaboration with an e-commerce logistics partner
If logistics is an e-commerce company’s main skill, outsourcing makes a lot of sense. Warehouse concerns, allocating store space for product storage, and the complexities of selling to new nations are all things to consider. Outsourcing gives you the power to buy-in professionals who do it 24/7, whether it’s technology, resources, knowledge, or new geographies. From a financial standpoint, there are also benefits. 3PLs typically benefit from economies of scale and infrastructure, resulting in lower costs per unit than enterprises can achieve on their own. It can be difficult to choose a third-party logistics (3PL) provider, but the appropriate 3PL partner can save you time and money.
• Making free (or quick) shipping a top priority
Free shipping is no longer sufficient. “10-business-day delivery” is no longer an option. Customers expect prompt delivery of their orders and are disappointed when this is not possible. Customers increasingly want their orders delivered quickly, but they don’t want to pay for it. There are ways to keep the cost of free shipping down, such as requiring a minimum purchase amount or only offering it with certain promotions or items. However, any free delivery service option requires a cost-effective ecommerce logistic solution. Last-mile logistics can account for up to 53% of a product’s overall shipping cost, so it’s critical to choose a logistics partner who can keep up with sending large volumes in short periods of time while allowing you to keep customers.
• Include automation in the system
Most 3PLs may offer different rates for different shipments, which can save you a lot of money. However, in order to make the greatest shipping selections, you’ll need the right technology, information, and abilities. You’ll need specific capabilities to take advantage of these various carriers. The most crucial is rate service shopping, which uses technology in your WMS or transportation management system to help you make the best shipping option possible.
What is the ZIP code of origin? What’s the plan? What is the weight of the package? What are its measurements? Rate shopping across those providers to see which is the most cost-effective option? Consider whether you can automate any portion of the logistics process while researching the technology a 3PL has to offer.
Logistics firms can use automation technology to pick and move packages to multiple destinations, among other uses that make operations faster and smoother, by combining fundamental technical skills of devices, data, and automation.
• Ascertain the quality of the product and the accuracy of the order
The most crucial capabilities to look at before onboarding potential vendors are quality, order accuracy, and getting goods out of a fulfillment center in a timely manner. Make use of advanced technological options to make the buying journey on your ecommerce website sets up your 3PL provider for success. This could imply:
- Swift payment gateway experience
- Correct barcoding and SKUs for products sold online
- After entering the zipcode, inform clients of the estimated delivery time.
- Allowing clients to track their packages in real-time
• Implement newly introduced government policies and regulations
The government’s economic policies also impact whether the logistics sector will develop or be stifled. Due to cross-state transportation and a fragmented tax system, the logistics space in the ecommerce business has encountered significant hurdles in the past. The supply chain’s stumbling blocks and complexities hamper distribution efficiency and turnaround time, putting a damper on growth. The sector, on the other hand, has benefitted from the upcoming implementation of the Goods and Services Tax, as it is projected to provide ease and simplicity to the supply chain, allowing the industry to make significant growth. The government is likely to introduce policy-driven efforts centered on the establishment of integrated logistics strategies in light of the current infrastructure situation.
• Faster shipping of large volume shipment
Seasonal sales and promotional activities are an important aspect of online retail, especially during the holiday season, when logistics businesses’ cargo handling increases. Seasonal planning begins as early as six months before the start of the season with extensive work on temporary staffing, space planning, resource mapping, and network build-up. Due to a lack of planning for this increased volume handling, enormous pile-ups of shipments occur in backlogs, extending the post-peak season recovery period. By actively interacting with the industry, logistics businesses adopt new techniques to handle volume during the season like air cargo services. Air cargo services help in fast shipping and fast delivery.
• Simplifying the process of warehousing
It’s tough and expensive to serve customers across the country from a single location while also satisfying their expectations in terms of delivery time. In order to determine the most efficient fulfillment site, retailers must cover several warehouses, dropshippers, and brick-and-mortar stores across multiple nations.
Managing such fragmentation is now easier thanks to Ecommerce logistics service providers who can offer door-to-door pickup and delivery options. Air carriers are now offering ‘warehousing in the air,’ in which products are picked up from vendors and delivered to customers directly. This saves time, money on warehousing, and time on delivery.
• Planning the reverse logistics
It’s more than just getting the product to a customer in e-commerce logistics. You’ll need a reverse logistics procedure in place to handle products moving in the opposite direction. Allowing customers to return items purchased online in-store is a common reverse logistics approach.
It’s a considerably better consumer experience because it eliminates the need for printing labels, cardboard boxes, and, most crucially, the need for shoppers to wait for their money to be returned. Most logistics partners will gladly accept the returned merchandise, analyze it, and place it back on the shelf, ready to be picked up when another purchase is placed.
To Conclude,
While speed and reliability are essential for e-commerce businesses to provide a consistent client experience, innovative logistics solutions are necessary to stay up with changing customer demands. The booming e-commerce business will necessitate the use of high-quality logistics to ensure that purchases are delivered on time, boosting the logistics sector’s growth. To summarize, as responsible partners in the e-commerce industry’s development, both ecommerce and logistics firms will need to collaborate with the goal of broadening consumer inclusion and expanding customer choices. SmartKargo offers air cargo services that are associated with major Indian airlines implements the above technologies that give e-commerce businesses numerous benefits.
About The Author
Dan Taylor
Dan is responsible for content marketing and branding at GuestPostBlogging. He writes about topics related to startup naming, branding and entrepreneurship.
