For e-commerce companies committed to quality customer service, the inherent complexities associated with supply chain logistics can be challenging. This multistep process involves many moving parts, yet they all must be well-integrated to achieve success. While some companies choose to tackle e-commerce logistics independently, many are turning to third-party logistics (3PL) providers instead. Not only do 3PL providers like Fratogo have tremendous experience and expertise in e-commerce services, but they also enjoy strong relationships in the industry that leads to fewer costs and better results. With that in mind, let’s explore what’s involved when it comes to e-commerce logistics.
Supply Chains and e-Commerce Logistics
For e-commerce companies in modern times, customers have come to expect speed, quality, and efficiency. Trends were already moving in this direction prior to the pandemic. But, thanks to lockdowns and quarantines, these expectations have grown to even greater heights. As such, the quality of an e-commerce company’s supply chain management now impacts consumer impressions a great deal. And each step of the e-commerce logistics process must be considered in detail as a result.
• Warehousing – Understanding that e-commerce logistics must have products available on-demand for shipping and warehousing is naturally important. Not only must the amount of space required be determined, but geographic location also matters. Warehousing closer to destinations and distribution hubs tends to cost less in shipping while promoting greater delivery speeds. In addition, the use of quality warehousing software can similarly help with other processes like picking and packing. Understanding all these moving parts, many companies choose 3PL providers like Fratogo to manage this logistical aspect.
• Storage and Inventory Management – A key component of e-commerce logistics related to warehousing is storage and inventory management. Again, quality software can help greatly in matching supplies with consumer demand. These technologies are also utilized in forecasting supply needs for seasons and for the future. When performed well, customers can enjoy seamless and streamlined logistics services. And, if not, the impact on the overall customer experience can be significant. Here, too, a quality 3PL partner can go a long way in enhancing e-commerce logistics results.
• Picking and Packing – Depending on the range of goods and their components, picking and packing can be involved. Fratogo manages these services for many companies because they have realized their benefits in efficiency and consistency. When warehousing and inventory management are done well, product and item picking is faster and more accurate. And, when packaging protocols are well known and practiced, product damage and returns are fewer. By ensuring the brand is well represented in the packaging process, companies benefit from positive customer experiences.
• Carrier Selection and Shipping – Quality 3PL providers are well known for their ability to improve the efficiency and cost-savings in product shipping. This is certainly true for e-commerce logistics. While many e-commerce companies do their own drop-shipping, 3PL providers like Fratogo tend to achieve better results. That’s because they have extensive knowledge and experience with various carriers. And they also have longstanding relationships with several carriers, resulting in better negotiation leverage.
• Tracking and Delivery – Once an item has shipped, it’s important to track that item as well. Not only does tracking provide feedback about a carrier’s performance, but it also gives the customer needed information to help facilitate delivery and receipt. Lost items can cost companies dearly and, at the same time, result in an upset customer. Most quality 3PL providers like Fratogo are adept at monitoring package movements with state-of-the-art software. That means companies can enjoy better e-commerce logistics services without having to purchase such technologies themselves.
• Reverse Processing and Returns – Believe it or not, many 3PL providers, including Fratogo, also manage consumer product returns. Also known as reverse processing, this is an important aspect of e-commerce logistics. Ensuring products are returned properly and refunds provided quickly are important for effective customer service. Poor service in this area can undermine brand image as well as future sales. Therefore, it’s essential to verify your 3PL provider handles such services with the utmost care.
e-Commerce Logistics Has Its Advantages
Given the myriad of activities linked to e-commerce logistics, many companies choose to outsource these services. And, if they choose a 3PL provider wisely, they can enjoy many benefits along the way. The advantages of outsourcing e-commerce logistics include improved efficiency, lower costs, and, most importantly, better customer service. Fratogo prides itself in all of these areas. Since all 3PL providers are not the same, it’s important to thoroughly screen potential providers. By examining their practices and reputation in all of the above e-commerce logistics areas, your chances for success will increase significantly.