How Distribution and Logistics Management Help eCommerce Businesses
In the world of eCommerce, there are many obstacles that business owners must overcome. Setting up a business from scratch can be a challenge in addition to establishing long-term growth plans and staying competitive as more competitors join the market.
However, one of the biggest challenges of all is distribution management.
When it comes to the distribution of products, timing is everything. If raw goods are delivered too early, they can go bad before consumption. At the same time, if other products arrive too late, it could lose your business’ valued customers.
Proper distribution and logistics management systems prevent either scenario from occurring. It needs to be in place to maintain oversight of the movement of goods. It ranges from the supplier/manufacturer to the wholesaler/retailer and finally to the end customer.
Distribution management is crucial because, in most cases, your business’ profit margins depend on the speed at which it can turn over products. The faster and more efficient your distribution is, the more products you can sell and the more money you make.
Improving distribution speeds through distribution management can involve several factors, including management of raw goods vendors, packaging, storage, warehousing, inventory, supply chain, and logistics.
What is Logistics Management, and Why is it Important?
Although distribution management and logistics management often get confused with one another, they are, in fact, two separate matters. Yet they are equally important when running a successful eCommerce business.
Logistics specifically entails the detailed planning and processes involved in the effective supply and transportation of goods. It includes activities and processes like supply management, bulk and shipping packaging, temperature controls, security, fleet management, delivery routing, shipment tracking, and warehousing.
In this way, logistics relates to anything to do with the physical distribution of goods. Meanwhile, distribution is a management system within logistics focused primarily on order fulfillment throughout various distribution channels.
Typically, a company must organize and manage many aspects of its logistics. It ensures cost efficiency and customer satisfaction. Good logistics systems allow for customers’ orders to be processed optimally.
Not only will orders need to be processed without any errors, but they also need to be processed as swiftly as possible to keep customers pleased.
What Are the Benefits of Distribution and Logistics Management?
There are many ways that your eCommerce business can benefit from the implementation of sufficient distribution and logistics management. The following are some of the main advantages that come from these management systems.
Without a systematized supply chain, products would go directly from manufacturers to retailers. It would pose several problems like shops receiving bulk orders that they are unprepared to store. On the other hand, with good distribution management systems in place, you can maintain a smoother supply chain.
2. Error Reduction
Well-managed logistics and distribution services remove errors in delivering products to customers. It also clarifies timelines for product delivery. That way, the right products are always shipped to the proper place at the right time, ultimately leading to better outcomes and happier customers.
3. Simpler Inventory Monitoring
When you have strong distribution and logistics management systems, it is much easier to monitor your inventory levels, as the systems will account for everything. Knowing the precise amount of inventory coming in and going out will help make informed decisions when ramping up or cutting down on production, ordering, etc. Staying on the ball with inventory tracking will also help prevent you from ever having to deal with problems like backorders.
4. Lower Costs
Streamlining stemming from good distribution and logistics management can save your business money. Without worrying about last-minute delivery fees, you can earn more from the orders than you receive. Over time, this can make a considerable difference in your overall revenue.
With advanced distribution and logistics management, you can order the exact items you need within a given time. That way, your customers will not miss out on products they regularly order, and you will not miss out on making any sales. You can also track order patterns to better prepare for future orders, allowing you to get ahead of the game.
6. Flexibility and Scalability
Another reason you need a good distribution and logistics management system is that it allows your business to remain flexible and scalable. It is important in eCommerce, as product demands are constantly fluctuating. You will find it easier to keep up with increases or decreases in order volumes when you better understand your inventory, distribution, and all the other factors.
How Wills Transfer Limited Can Help With Your Distribution and Logistics Management
If you need distribution and logistics management, Wills Transfer Limited can help in several ways. With our third-party logistics distribution services, you can store your goods at one of our six distribution centers. We can also help you complete your supply chain by distributing them to your clients.
Outsourcing the management of this system to a 3PL company like ours will allow your business to reduce costs, improve efficiency, and expand your capabilities for growth and success.
When you take advantage of our distribution services, you can benefit from our warehouse management system, Excalibur. Excalibur is a platform that will optimize your distribution channels while offering logistics solutions that can improve your decision-making processes. This system includes a robust customer web portal containing real-time inventory and job status giving a complete picture of your operation. This innovative technology will also make it easier than ever to access up-to-date and reliable inventory information conveniently.
We have also streamlined the process of container de-stuffing to ensure proper preparation, planning, and organization during offloads and the palletization of your products.
On top of that, our vendor-managed inventory service will help you optimize your performance within the supply chain by helping you and your vendors to validate product inventory levels. We also offer several other distribution services, such as order fulfillment, pick and pack services, and commercial storage and distribution.
Our industry experts have helped businesses grow and improve customer satisfaction rates and revenue streams for over 75 years. We would love to do the same for your business by caring for all your distribution and logistics management needs.
For more information about our distribution and logistics management services, or to learn more about the other 3PL services we offer, call Wills Transfer Limited at 613-704-7549 or contact us here