Importance of Logistics in E-Commerce

Estimated read time 4 min read

A retailer may already know that demand for certain products is low everywhere and, therefore, wants to sell them in bulk to a retail discounter so that they can recoup their investment faster. Among other things, logistics in this scenario include demand planning and inventory control. Pulling and packing the products to be sold may also be an important logistical function. The retailer may also use third-party sellers to ship the bulk of their inventory to different stores. As a retailer, their role in logistics management is to pinpoint potential shipping and distribution companies and to continuously evaluate their effectiveness.

Automated Dispatch Planning

With e-commerce sales continuing to rise and the need to meet increasing customer expectations, delivery operations have become more complex. Several factors have increased the amount of time and resources required for delivery, including higher-order volumes and the epidemic. In addition, customer demands for same-day deliveries have increased competition and increased costs, so shippers must find ways to improve efficiency and optimize delivery processes. Technology advancements have made it possible to implement automated dispatch planning and delivery software.

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Dispatch management software can be used to optimize routes based on real-time conditions, including traffic patterns, weather, and customer demand. It can also send updates to the dispatch center and drivers, which results in decreased driving time and fuel usage. As a result, a well-designed delivery route can save a business anywhere from 20% to 40% in fuel and drive time. Automated dispatch planning solutions enable a business to make smarter, more efficient decisions to increase customer satisfaction and reduce costs.

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Optimal Routing and Accurate Geocoding

While there is a lot of controversy around how to determine optimal routing and accurate geocoding in E-commerce, there are a few fundamental elements of efficient route planning and delivery. Address characteristics and vendor selection influence geocoding error. The latter represents a trade-off between the risk of missing data and errors in estimating spatially defined attributes. The best method of controlling geocoding error is to make informed selections and adjust analyses accordingly.

One of the most essential criteria for routing is having adequate signal strength. By checking signal strength, telecommunication companies can determine which routes are optimal and which ones aren’t. This allows them to achieve their other goals. Optimal routing and accurate geocoding in E-commerce can make logistics easier and more efficient. Optimal routing can also improve the cost-efficiency of a delivery. It is also possible to automate sorting processes and geocodes validation.

Real-Time Visibility

Today’s consumers expect to know where their packages are in real-time. Whether it’s tracking information or a drop-off location, customers expect to be kept up-to-date. But turning this data into valuable business intelligence is a challenge. A real-time visibility platform can transform the flood of data into powerful business intelligence. Real-time visibility can impact areas beyond logistics, including innovation, value creation, pricing, and more.

Accurate data on logistics can help businesses resolve logistics issues and improve productivity. The increased visibility can eliminate vehicle idling and route diversions. Today’s customers are smarter than they were a decade ago and expect faster delivery. Customers’ satisfaction is the ultimate goal of any organization, and Real-Time visibility of logistics is critical to meeting expectations. By understanding where and when a package is due, businesses can improve their bottom line.

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A simple solution: Smart-Rider Allocation

Using advanced route planning solutions, food delivery companies can automate their logistics processes. They can schedule orders faster and determine the best route based on a combination of on-ground and off-ground constraints. These solutions will also help reduce fuel consumption, vehicle miles, and logistics costs. They also can find and assign appropriate executives to specific tasks based on multiple factors. Moreover, they can use AI-enabled rider allocation software to find the best route to deliver each order.

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The SmartRider is a credit-card-sized smartcard incorporating a microchip and internal aerial. This device communicates with the processors at the Transperth locations. The microchip in the card stores information such as the current balance, the concession status, and tagging location. Once a transaction is complete, the SmartRider card processor sends information to Transperth. Once the transaction is complete, the information is available online and to the logistics staff.

In Short

Logistics is the bread and butter of the eCommerce fulfilment cycle and its importance must not be taken lightly. COntinous monitoring, integrating with AI based systems and achieving efficiency in logistics goes a long way in improving the corporate and brand image of an eCommerce company. Use of analytics to understand trends, pitfalls and using it to constantly improve is the way to go in the long run.

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