Successful Logistics Strategies for eCommerce Businesses

“Strategy without tactics is the slowest route to victory. Tactics without strategy are the noise before defeat.” 

- Sun Tzu

Great words said, but did you understand what they are based on? Just two things!

What’s your strategy?

The long-term objectives of your fulfilment organization are defined by strategy, along with how you will achieve them. The best fulfilment plans incorporate or align with the company's overarching business objectives.

What are your tactics?

The more focused actions known as tactics include problem analysis, alternative generation, and wise decision-making. Following the development of project plans and tasks, employing the applicable best practices, determining the resources required to achieve the strategy goal, and launching implementation initiatives, tactical decisions are made. Not Savvy?

Simply, let’s understand these things.

Companies are now reducing shipping delays and inefficiencies to deliver better service by incorporating efficient tactics into their supply chains. Digital systems can improve supply chain procedures thanks to technological advancements. However, before choosing a provider and system, organizations must underline their strategic goals if they want to get the most from digital transformation. Let’s find some supply chain management tactics for businesses, especially, online retailers.

1. The efficiency of the Supply Chain Management

First comes first! To keep delivery times minimal, it's essential to get your products on time. Choose a supply chain provider with a track record for excellent customer service, packing, and communication if you want to boost your incoming efficiency. Like leading supply chain and warehousing management company, AWL India. Where if their present vendors are causing delays, they look for more effective replacements or cooperate with them to reduce the delays. This improves efficiency and improves performance. Not hard to understand!

2. What’s your warehouse potential?

Companies can improve worker productivity, lower inventory errors, and eliminate safety concerns by updating their warehouse floor plans. Segment the plan into distinct zones for goods-in, shipping, and returns to make the most of every square inch of available space. Systems like WASS (Warehouse As A Solution) at AWL India are integrated with upgraded software, robotics arms, drones, sophisticated automation and a single dashboard for the customers to get complete insights into their products stored at AWL India’s warehouses. Cutting the length of aisles or creating cross aisles are two strategies that can save picking time. For that, a warehouse needs technology, period.

3. What’s beyond the horizon?

Just when the logistics and warehousing needs look done, the process has just started yet. Last-mile and reducing delivery time is the critical step. Companies might lessen delays resulting from their location by moving activities to a multi-distribution centre. Customers increasingly compare all online retail delivery, even giants like Amazon. Thus, many businesses would benefit from moving shipments closer to their target markets. Although setting up new facilities takes time and necessitates hiring more people, the flexibility benefits can be worthwhile. AWL India has operations in over seventy countries, warehouses across India with 10 million sq. ft of storage and cold chain area running at highly advanced automation. It’s always better to take help from an established professional instead of inserting your hands into the sand.

4. How accurate are you? And, what’s your processing speed?

Businesses may easily follow products in transit and gather specialized size and SKU information by using barcodes or radio-frequency identification (RFID). Overall, tagged selection, packing, returns, and cycle counts reduce delays and improve the accuracy of projected shipping timeframes. Since the products (fashion, clothes, and cosmetics) don't obstruct tag readability, RFID technology typically performs extremely well for e-commerce. Opportunity, be precise and be quick!

5. Human resources would never fail!

Reassessing human labour can help businesses that lack the resources to engage in comprehensive warehouse automation still save time. Effective training programmes can help workers operate more quickly and safely, and the use of modest wearable devices can ease the process of picking and packing consignments. Costs per line, unit and order can be reduced by these modest modifications. And for all that, a human hand is always needed, no matter how much automation!

6. How much are you charging for logistics?

Over 70% of all logistical costs are still incurred by eCommerce shippers as outbound shipments. Businesses should look at the same data that logistics and carrier companies use to calculate freight expenses to negotiate effective rates. As a result, businesses will be able to bargain based on the circumstances at hand rather than last year's goals. They should consider adding smaller businesses that are giving fantastic prices and value to your current fleet of major shipping suppliers. AWL India is also collaborated with numerous associates and has become India’s leading (third-party logistics) 3PL and 4PL (fourth-party logistics) company. If your shipment is reasonable then businesses have no problems, if it’s hefty, consider options for reducing the cost involved. By doing so, businesses are avoiding workload, infrastructure, and continuous maintenance. Hence, it’s affordable. Otherwise, no logistics company can survive in this competitive world.

7. Update your automation

Companies can distribute their items based on the stock turnover by implementing innovative warehouse management systems (WMS) like WAAS at AWL India. Products that often sell out more quickly can be kept in convenient warehouse locations, and staff members can adjust to unforeseen demands for certain models. Cold chain management and logistics are crucial elements of warehousing too. Cold chain management companies in India and abroad are specifically focusing on cold chain supply forecasting the increasing need for perishable goods in the world today.

Conclusion

This strategic goal is something that many businesses ought to have, whether they use an ERP, OMS, or WMS. As a basis for more sophisticated technology and automation, many businesses need to update systems regularly. However, they need to keep in mind that research and experience both suggest that roughly 50% of larger installations (those costing over ₹100 million) are not completed on time or under budget. So, speed is the key. Due to the inflation in the market and poor methods of implementation, these initiatives can occasionally put businesses in danger. Businesses need to just keep in mind two things:

1.  Avoid poor project management because it is the main cause of issues with complex system implementation.

2. Give the designated project manager the responsibility for tasks.

Savvy, now?

Also Read: Future Warehouses