Key Points:
- Logistics operation is the movement of goods from either the supplier or manufacturers to the consumers
- Logistics processes can include warehousing, inventory, transport, material handling, and control
- Partnering with a third-party logistics company like Easyship helps take the stress out of logistics operation and management
Logistics operation is an essential aspect of the supply chain of any eCommerce brand today. These operations impart a business's ability to meet the demands of their customers and drive future sales for the running of the business.
Through strategic planning and development, businesses can optimize logistic operations and management with the help of advanced technology and software. There are also vital and practicable processes that a business can incorporate into its logistical function to have a competitive advantage in the market.
In this article, we will walk you through the vital aspects of what is logistics in business that you can maximize for improved productivity. Let's get started.
Table of Contents
What Is Logistics Operations?
Logistics operation is a vital part of any business supply chain concerned with the flow of products from the producer or supplier to the consumers.
For many businesses, logistical functions include inventory management, order fulfillment, inbound and outbound transportation management, project management, material handling, warehousing, and third-party logistics management.
Because businesses are focused on delivering quality goods and services to their customers, logistical operations play an essential role in determining the success of an eCommerce business in the long run.
Furthermore, the size of a business can determine how the logistical process is handled. Therefore, for small and medium-sized companies that manage their logistics process themselves, there are crucial aspects they need to focus on to create an optimized operations system.
Key Processes of Logistics and Operations Management
To effectively optimize your logistics operation, there are key aspects you should focus on for your business. These aspects work together to optimize the supply chain and make logistical processes less tasking.
Choose the right suppliers and manufacturers
At the top of the supply chain is the procurement of goods from suppliers or manufacturers. The kind of supplier or manufacturer you choose has a lot to say about the type of product you sell. On the one hand, manufacturers or suppliers can determine if goods are sellable and if they meet the standards of your customer base.
Similarly, your suppliers or manufacturers must be reliable to provide you with goods duly to make logistics in business successful.
Understand how fulfillment centers can help
For many eCommerce brands, partnering with a third-party logistics company like Easyship helps take the stress out of logistics in business. With the help of 3PLs, companies can effortlessly ship inventory to fulfillment centers closest to their customers for easy distribution of goods. This way, customers get their goods faster, and less money is spent on shipping.
Establish a warehouse management system
Warehouses are used to store the products that a company sells to customers. A good warehouse management system includes security for goods, inventory storage, and inventory tracking control. All these contribute to optimizing any eCommerce business's logistics operations and management.
Create a world-class shipping policy
Shipping leads to the last phase of the logistics process - customers receiving their products. This stage determines your relationship with customers. The shipping carriers and services you use are your choices. You can also rely on a logistics partner with access to major carriers.
Related post: Shipping Terms Glossary
5 Ways to Optimize Your Logistical Processes
Now that you know the key processes to work on in building successful logistics operations and management, these practical steps can help you have an improved logistical process.
1. Utilize automated order fulfillment
ECommerce brands can utilize automated order fulfillment processes through a 3PL. Order automation allows you to integrate your online store with your 3PL software. Once items are fulfilled, your customer receives a notification with tracking details. This process makes fulfillment easy.
2. Prioritize customer satisfaction
While keeping logistics steady, paying attention to the customer base and how the operations affect them is essential. Customers want fast delivery. More importantly, they want impeccable customer service to answer all their shipments' questions.
Focus on managing and monitoring deliveries, getting access to tracking information, and causes of delays. These areas will improve logistical processes and, invariably, customer satisfaction.
3. Implement inventory management software
With the help of inventory management software, you can efficiently track your inventory levels and reduce inventory storage costs. Inventory management software also helps you identify products that need restocked and automatically reordered. In addition, logistics operations work optimally with inventory management software.
4. Set and measure KPIs
Regularly setting and measuring your KPIs (Key Performance Indicators) help you evaluate the effectiveness of your logistics operations. It also enables you to identify loopholes and weak points in the supply chain.
With consistent evaluation, you can work on revisiting your logistics plans and develop ideas to make them more effective.
5. Establish warehouse management systems
An effective Warehouse management system is effective in helping brands achieve an optimally functioning logistics operation. WMS manages inventory levels and order fulfillment while saving time and reducing error.
Logistics and Operations Management with Easyship
Logistics operations are a significant determiner of any business performance. Besides ensuring the flow of goods from the source to the consumers, a brand's logistics process imparts the relationship between a business and its customers.
Many aspects of the supply chain can affect the smooth running of logistics operations which makes improving the logistics operations of any company essential. In addition, logistics operations can be time and resource-tasking for companies who single-handedly handle that aspect of their business.
Rather than optimizing your logistics operations by yourself, Easyship can handle order fulfillment for your business. In addition, Easyship gives you a competitive advantage with integrated software and features, allowing you to focus on other aspects of your business and satisfy your customers better.
- Free Shipping Rates Calculator: Access high-volume discounts from major couriers. Plus, get instant access to delivery lead times from premium shipping couriers
- Global Fulfillment: Easyship has warehouse partners on four continents to reach your customers worldwide. Plus, Easyship helps scale up fulfillment capabilities without increasing overhead costs
- Shipping Policy Generator: Our shipping policy generator helps merchants and crowdfunding campaigns generate their shipping policy by providing tracking and insurance options, plus other vital information for your shipping process
Ready to ship? Sign up for a FREE Easyship account and learn how you can optimize your logistics and operations management
Logistics Operations FAQ
What is logistics meaning in business?
In business, logistics entails storing and transporting products from the manufacturer or supplier to the consumers.
What do operations mean?
Operations refer to every activity within a company geared towards keeping a business running.
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