The warehousing, industrial, and logistics management sectors (WIL) are assumed to fuel India’s vision of becoming a US$ 5 trillion economy in a few years. It acted as a major force during the COVID-19 crisis, boosting its share from 2% to 20% annually. The seismic shift was an obvious after-effect as online buying skyrocketed during the trying times.
The expansion of logistics management promises a robust economy, infrastructure and a favourable business environment. And so does its contribution to the GDP, as this sector employs over 22 million people now and the numbers are expected to grow in future.
Although the promises seem bright and indispensable, what does logistics management actually do for your business?
To clear such fundamental queries, let’s delve deeper.
What is Logistics Management?
Picking, packaging and shipping orders – although the task might seem very mechanical, a lot goes into it. In short, logistics management is a tremendous undertaking.
It refers to planning and administrating inbound and outbound cargo and reverse logistics. These three major sectors are the crux of the consumerism chain.
Besides this, logistics management looks into the fleet, warehouse, network design, inventory control and the management of 3PL providers.
What are Its Functions?
Logistics management’sfunctions include:
- Ordering, acquiring and storing inventory across the distribution hubs.
- Tracking the inventory as it goes through the supply chain
- Building the warehouses to store the cargo and looking after packing workflows
- Integration of technology and automation to make the process more streamlined
- Finally and most importantly, the main objective of logistics management is to deliver cargo reliably and on time
Besides these, they also look after customer services, procurement and sourcing, assembly and other key operations. In a gist, logistics management includes various levels of planning and execution involving various tactical strategies.
Reasons to Consider Logistic Management for Your Supply Chain
As it oversees the entire e-commerce supply chain, logistics management is a crucial part of any business. The main goal is to meet the customer’s expectations and deliver the goods efficiently while reducing internal costs.
If you are considering boosting your E-Commerce business, then logistics management extends a helping hand. Here is how:
1. Timely Delivery of Products
In the competitive landscape, direct-to-consumer (DTC) brands want higher order accuracy rates. Although 100% accuracy might be a utopian concept, the accuracy rate must be around 95% at a minimum. Anything below that shows that there is room for improvement.
In such cases, logistics management emerges as a great partner, improving workflows and finding avenues to reduce human error while optimising budgets.
2. Keeping the Costs to a Minimum
Proper management of logistics will add value to your business by reducing costs. Here is how they can help:
- Reduction of sourcing costs by partnering with local suppliers near the warehouse
- Storing products that are performing well
- Outsourcing third-party logistics management to save money in the long run
- Storing goods in hinterlands where the demand is high
- Improving overall customer satisfaction
- Optimising the logistics management by incorporating automation and technology
With the right resources, these factors have the potential to provide you insights related to your operation so that you can identify the shortcomings and improve. For instance, tracking inventory becomes crucial to identify the reordering of stocks. With the help of historical logistics management data, you will have a better sense of your articles and avoid overstocking or stockouts.
3. Improved Customer Satisfaction
The most critical pillar of a business is its customer satisfaction. Receiving a wrong order ruins the whole unboxing experience and can earn you a lower rating, impacting your E-Commerce significantly. Delayed orders or lack of communication are other hindrances towards the shipping experience.
Comprehensive logistics management serves as a ray of hope as the post-purchase journey relies totally on an efficient supply chain. Without it, meeting customer expectations and maintaining affordability becomes a challenge.
When supervised properly, it can help your business gain customer loyalty and a brand reputation.
Best Practices in e-Commerce Encompassing Logistic Management
Supply chain planning requires effort and time. To set you up for success, here is a list of the best practices for your E-Commerce business.
1. Implementing Supply Chain Automation
With the advancement of technology, manual operation needs to make more sense. Rather, repetitive warehousing operations can be freed by harnessing automation technology in logistics management. Think of voice picking or goods-to-person systems that will free up your staff’s time so that they can focus on sales.
2. Devising a Robust Logistic Management Plan
Getting the right suppliers on board, looking out for high-quality materials, meeting delivery timelines and more seem like a lot of tasks to juggle. Accuracy and speed are additional factors to keep in mind while running a one-man show.
Logistics management partners can reduce the load on your shoulders so that you can rest assured.
Ending Notes
Leveraging the benefits of logistics management will help you streamline the efficiency of your business by leaps and bounds. So, partner with a reliable company today and set your business up for success.