Ways to Improve Ecommerce Supply Chain Through Integrated Logistics
A seamless supply chain and network is an integral part of any ecommerce and retail business. This is applicable to a number of industries that manufacture and ship products to different parts of the world. For any manufacturer, carrying out the entire supply chain from packaging to shipping, tracking, and delivery, it can be extremely challenging. This is why most businesses outsource this crucial activity to third party logistics services providers. For any third party ecommerce fulfillment services company, it is crucial to constantly find areas of improvement and implement the best practices in supply chain on a continual basis. This post discusses the ways in which supply chain services and vendor network can be improved through integrated logistics.
Are you planning to boost your supply chain profits through integrated logistics? Contact our experts at 3PL Business. We help our clients to choose the right shipping type to enhance their efficiency, customer satisfaction, and profits.
What is Integrated Logistics?
Integrated logistics is a concept wherein all the functions or operations of supply chain are integrated. These operations may include procurement from vendors, warehousing and packaging to dispatches, shipping, and the last mile delivery. This makes the entire process quick and efficient because of a common information sharing and tracking system. Communication between two departments is much clearer with integrated logistics, and this helps eliminate lapses, time lags, and errors. To put this in perspective, integrated logistics works much like ERP software in an organization which integrated all the departments in a single software and the important information of any department is accessible to the other in real time. This helps make strategic decisions as well as the management has access to real time data of all the functions. In case of supply chain, it helps identify the most urgent dispatches, or forecast demand for a particular part or product, estimate price changes, and so on.
How Integrated Logistics Can Help Improve Supply Chain Processes?
From the above information, one can easily notice how incorporating integrated logistics would benefit the entire supply chain which encompasses procurement vendors, the 3PL ecommerce fulfillment company, client of OEM, transporters, shipping companies, and end users. Here are some useful pointers regarding the same.
Warehousing: For a warehouse or a storage unit, it would help forecast or project product demand based on various categories. This would help ensure these high-demand products are always there in the inventory.
Procurement: Part vendors in this case get a good visibility in real time about the product demand along with the product or part number. They can quickly procure the same if it is not available with them through the vendor network.
Shipping option: The 3PL company can choose the type of shipping based on real time visibility. This helps avoid delays and may save on costs depending on the route. This helps ensure fast deliveries to end customers and reduced time-to-market in case of product launches in a particular region.
Technology: This integrated logistics software can be used efficiently and the entire process is automated. The order processing, fulfillment logistics, shipping labels, warehouse management, and other related processes are automated. This further enhances speed and accuracy.
Overall Benefit: The benefit of data integration in real time is huge. An integrated system would enhance communication with part suppliers or vendors for procurement, client or OEM for requirement gathering as well as tracking in the later stage, shippers, transporters, and all other entities involved in this process.
Overall, integrated logistics offer flexibility in terms of choosing parts as well as shipping type. It saves time and costs as well as enhances the efficiency of each area or function of the supply chain process.
If you are an OEM and require any type of ecommerce fulfillment solutions such as pick pack and ship warehouse, order fulfillment services, and more, you can contact 3PL Business. We offer end-to-end services till last-mile delivery and are known for on-time deliveries. We have advanced software for warehousing as well as shipping & tracking.
Our technology investments coupled with our customized solutions have helped several small- and mid-sized businesses scale up their operations. You can call us at (732) 983-4801 or write to us at sales@3plbusiness.com to know more about eCommerce supply chain capabilities.