Blog / e-Commerce Logistics Management

How to implement e-commerce logistics management efficiently? Using cloud software to enhance logistics services for online stores

In recent years, there is no doubt that the e-commerce industry and online store logistics is booming. The advancement of network technology, changes in public consumption habits, and the impact of Covid in 2020 have not only accelerated the rapid development of e-commerce, but also constantly increase consumers' demand for delivery services. Therefore, online store management services and e-commerce logistics management have become the key factors for each e-commerce business to stand out from the market. The shipping time and the process of product returns and exchanges are all factors that affect the brand favourability. If you want to improve your brand favourability and customer loyalty, it is necessary to grasp the three main factors of e-commerce logistics while using the cloud software to bring down logistics costs in order to improve the efficiency of e-commerce logistics service and online stores.

What is e-commerce logistics?

E-commerce logistics is the process an e-commerce business uses to get products to customers. Whether it is delivery from merchants to consumers or the process of product returns from customers, the transportation of these products is a part of e-commerce logistics. The reason why e-commerce logistics is so important to e-commerce is precisely because it is the segment closest to consumers in the entire e-commerce shopping process. However, the e-commerce shipping process is complicated. To learn how to improve the delivery efficiency and customer experience while taking into account the company's expenditure and benefits, it is necessary to understand the three main focus of the e-commerce logistics management in order to enhance brand competitiveness.

Focus of e-commerce logistics management

The focus of e-commerce logistics management is "fast, economical and accurate". First of all, merchants must allow consumers to receive the products in the shortest possible time. For that reason, a successful e-commerce company should keep their "fast delivery" promises. In order to shorten the waiting time for consumers to receive the products, major e-commerce companies have successively launched fast delivery services, such as 24-hour delivery, same-day delivery, 12-hour delivery, 6-hour or afternoon delivery for orders in the morning, etc. In terms of logistics, it is even more important to choose a logistics company that they can coordinate with at any time.

Second, saving shipping costs is also an important aspect that e-commerce companies need to consider. It is for sure that consumers expect to buy the most valuable products with the least amount of money and therefore the word "free shipping" is still irresistable to consumers. If you collaborate with a third-party operator of the logistics platform, you will save the cost of building your own fleet without having to increase your own logistics costs in order to provide consumers with free shipping discounts. While saving shipping costs for customers, you will also save logistics costs. Other than fast delivery, on-time delivery and the integrity of the products are also very important to consumers. Only a good shopping experience can cultivate long-term loyal customers.

Solutions to optimise e-commerce logistics management

In addition to insight into market trends and consumer habits, continuous improvement and optimisation of your own logistics system can provide better logistics services. E-commerce business should establish a logistics distribution network to achieve the smooth operation of logistics activities such as warehouses, transportation, and distribution. When establishing a logistics distribution network, on the one hand, enterprises must maximise the use of idle logistics resources in society, and on the other hand, they must also consider cooperating with professional logistics companies to achieve low cost and fast expansion.

Furthermore, it is even more necessary to make extensive use of technology in order to keep up with the changes in the digital age. In order to achieve logistics automation, e-commerce companies need a variety of technological support. ISL uses a comprehensive enterprise resource planning system (ERP System) to effectively help companies with operational planning, cost reduction, and on-time delivery and improve product quality. With the rapid development of technologies such as the Internet of Things (IoT) and 5G, the concept of ERP has been further digitised by integrating traditional internal operating processes of enterprises, including warehouse management, asset management and procurement management, with network technologies such as electronic mobile devices and the cloud. Through the ERP system, Hong Kong enterprises can automate and simplify the tasks of daily processes, and understand the business operation in real time. The ERP system particularly emphasises the integration between modules because each module comes from the same ERP system and shares the same cloud database. The frontline and logistics staff can grasp the latest information in real time, such as the latest inventory status of the warehouse module. For the manufacturing department, sales department and the purchasing department, these data are extrememly important and must be kept updated at all times.

Integrated Solutions Limited has provided e-M-POWER and the cloud version called e-M-POWER on Demand. e-M-POWER can provide one-stop enterprise resource planning solutions for Hong Kong enterprises in various industries. No matter whether you have any inquiries about e-commerce, online store logistics services or e-commerce logistics management, please feel free to contact us. Our professional team will provide suggestions that best suit your needs based on your business and scale.

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