How Can E-Commerce Companies Cope With Logistics Challenges?

Logistics Software for Ecommerce Companies

As per a Statista’s report, over 2.14 billion people all over the world are expected to purchase products online in 2021. Another report by the same company reveals that the retail ecommerce market sales worldwide will reach $6.54 trillion in 2023. This number was $3.53 trillion in 2019.

On top of this, the ongoing pandemic has brought a sudden boom in the e-commerce industry. Consumer expectations and industry trends are changing; hence, the companies are considering new ways to manage their deliveries and achieve customer satisfaction. Apart from safe and timely deliveries, contactless delivery has also become the new norm that every e-commerce brand has to follow. Besides these three, there are many other logistics challenges that almost all the online businesses are facing. Here are a few of them-

Slow delivery

As per an online report, around 38% of the online shoppers are not happy with the online deliveries with major reasons being delivery charge and speed. Therefore, accelerating the pace of deliveries by processing each parcel quickly is one of the main concerns ahead e-commerce brands.

Difficulty in managing both online and offline activities

To expand reach and cater to wider audience from different regions, e-commerce companies connect with the local delivery services or establish local warehouses. By doing this, they are trying to fulfil the demands of customers quickly. However, it’s still challenging for most of the brands to balance the pace of online and offline activities.

Inability to monitor logistics operations

This is yet another problem most of the e-commerce brands are experiencing. Keeping a watch over the logistics processes is necessary to avoid the occurrence of issues that can cause delay in deliveries. However, doing this manually takes a lot of time and doesn’t even guarantee efficient management.

Poor communication with clients, riders, and logistics professionals

Lack of communication with everyone involved in the logistics management along with the end-customer can lead to customer dissatisfaction. To manage that manually, businesses need a big team of professionals, which can increase the operational cost.

Inefficient courier delivery planning

Inability to connect with the courier partners or local delivery providers and plan the deliveries can cause unnecessary delays and high last-mile delivery cost. Most of the e-commerce companies are struggling to overcome this problem with their traditional logistics management system.

How e-commerce companies can overcome logistics challenges?

Now the main question is to find a solution or way to get rid of these as well as other logistics management problems. And the simplest solution is to bring logistics automation. By automating the existing logistics management system, companies can avail the following benefits-

Accelerate the speed of product delivery

To make same-day or next-day delivery (mainly in the large cities) possible, it is imperative to increase the speed of logistics operations and courier processing. With logistics automation, done using logistics management software, the goal can be achieved effortlessly. The software automates operations like order segregation and allocation, AWB generation, label printing, route optimization, and more, which needs a great deal of time, and processes the order quickly for further delivery.

Minimize the overall logistics cost

Use of logistics management software can reduce the operational cost by minimizing dependency on human resources. With complete vehicle capacity utilization, the software can also ensure more deliveries can be done using fewer vehicles, which decreases the fuel cost. Every improvement in the logistics management increases the chances of first attempt delivery and timely deliveries, which further reduces the overall shipping cost.

Monitor performance of riders or third-party logistics partners

Reliable logistics management software, like the one provided by Shipsy, comes up with a feature using which end-customers can submit delivery feedback. By looking into the feedback as well as generating delivery (successful, failed, delayed, etc.) reports, e-commerce companies can cope with the logistics challenges.

Offer end-customer visibility

With end-customer visibility, your customers can check delivery ETA, reschedule deliveries, ask for online payment links, and submit delivery-related feedback. This helps in improving customer experience and achieving customer satisfaction.

After reading this article, you must know whom to turn in to get rid of your logistics woes. So, what are you waiting for? Call Shipsy’s experts today!