The logistics of moving your products from their point of origin to end consumers can be a costly nightmare.
When ecommerce giant Alibaba invested $249 million to expand its logistic services, the whole industry was shocked. But the company was totally aware of the inevitable outcome and knew that the whopping investment would surely increase competence to make 24-hour deliveries throughout Asia.
By emulating the prominent success of enterprise-level companies, startups and small businesses are also valuing the investment of logistics and more entrepreneurs are looking ahead to expand logistics operations.
If you too want to witness the same success on a smaller scale, there are plenty of things to consider when planning logistics to improve operations and make your business a success. No matter whether you provide truck logistics services in India or shipping goods across the world, logistic services are an essential part of every supply chain that involves physical goods.
Logistics should meet mobile demands.
To align with the growing importance of logistics, understanding mobile device usage by shoppers is equally as important. According to warehouse reports, two-thirds of consumers conduct product research online before buying from local vendors. Avoiding delays and excess shipping cost are two of the common concerns that play an important role in purchase decision making.
To survive in this competitive online marketplace, creating effective logistics operations is crucial. Follow the strategy that bigger brands like Amazon, Walmart, Ebay, and other similar companies are using and adapt them to a smaller operational scale.
Don’t overlook automation.
Since mobile shoppers’ on-demand expectations are continuously rising, it’s very important to meet them in an equally quick manner. To match their demands, automated logistics systems work wonderfully. All successful businesses provide automated logistic solutions that are appropriate for smaller companies.
To make good use of such solutions, it’s important to utilize trustworthy fulfillment and carrier service providers. It will ensure correct, real-time data is quickly and easily accessible to mobile shoppers and in-store sales representatives.
Consider cost measurement.
Underestimating shipping and handling costs is one of the most expensive and nerve-racking logistics mistake an entrepreneur can make while focusing on quick delivery. It’s not wise to depend on guessing shipping costs, especially when you intend to ship internationally.
Falling short to substantiate shipping rates has been found to cost some companies a whopping $24,000 in extra fees. In order to avoid paying extra penalties, cut down verified rates and other essential data including delivery and address confirmation. Bad data is costly.
Faster is always not better.
To manage same day delivery for certain markets, Amazon is currently creating a robust logistics infrastructure. Wired contributor Davey Alba reports: “By offering same-day for free, Amazon looks to be relying on the same growth-before-profits strategy that has led to the massive growth of its core retail business.”
The appeal is simple. “If e-tailers can give customers the near-instant gratification of buying in a store, they can eliminate one of the most powerful advantages held by their bricks-and-mortar competitors. Alas, costs and complexity have largely kept same-day delivery … out of reach and, at best, a niche offering (strategy+business).”
However, there is complexity in maintaining tight timetables that can ultimately result in customers complaining that their orders are repeatedly missing deadlines. Likewise, it sounds to be a waste of money for various markets to pay for the next-day delivery where they don’t support anything prior than the next day. So, before selecting the fastest delivery options, pay close attention to the logistics costs and how to sustain them without crippling your bottom line.
This article has been edited and condensed.
Saurabh Jain is the founder of LoadKaro.com. He is a Delhi IIT Graduate and completed an MS from US-based Clarkson University. He has worked with Siemens and Capitol One. He has been running a successful Steel fabrication business for many years. Connect with @LoadKaro on Twitter.
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