E-commerce Logistics: How to properly choose your storage solution
Here you go, you just launched your e-commerce business and you are now facing one of the most important problems in this field: managing your merchandise logistics! Whether you are a start-up or an established company, finding an e-commerce logistics solution is key enabler for your growth and customer satisfaction. This article is about the elements you need to be thinking of.
ELEMENTS OF THE E-COMMERCE’s STORAGE AND LOGISTICS TO TAKE INTO ACCOUNT
Logistics are an essential part of an e-commerce business. In this very competitive environment it will allow your company to stand out by offering the best shipping and delivery conditions.
The things to consider are:
MANAGE YOUR PRODUCTS CATALOG
Make sure to have a good inventory management to correctly follow-up on the arrivals and the restocking of products to avoid out-of-stock items. Monitoring your stock will also allow you to discover demand trends and to pro-actively adapt product inventory levels for peak and off-peak periods.
FIFO (first in, first out)
A good management of your logistics will allow you to get rid of the oldest products to make sure that those that are still in the stock are the most recent.
Determine the services needed
- Product transportation.
- Pallets handling.
- Order preparation and conditioning.
- Delivery control and tracking.
- National or international shipping of the orders.
- Management of returns.
Find the right partners
You can be patient and build up an address book of interesting partners for transport, shipping, delivery tracking, … You can however also take advantage of the experience and contacts of your logistics partner to speed up the process and find the best partners for your business.
FINDING THE RIGHT WAREHOUSE
If you decide to insource the storage of your merchandise, you will need to carefully assess the required volume and your planned business growth! More space will give you more flexibility, but will have a negative impact on your costs where a small warehouse will cost less, but could slow down your expansion.
Moreover, depending on the products that you offer, you will need to evaluate the required storage conditions such as temperature, humidity and security.
If you decide to outsource your product storage, all these elements will be customized and will evolve depending on your storage & logistics needs. The storage provider will take care of everything for you.
PRO & CONS OF OUTSOURCING/INSOURCING OF YOUR LOGISTICS
– Flexible & independent stock management without intermediaries.
– Possibility to make changes faster
– No need for dedicated employees.
– Flexible space/volume management according to your needs and following the seasonality of your business. The same applies to the preparation and dispatch of parcels.
– Logistics handled by the storage service.
– Enjoy the services and negotiated pricing level of a selected partner network
– Find suitable warehouse in your neighborhood.
– Selection and availability of warehouse & logistics personal
– Handling of storage equipment & materials (racks, pallets, wrapping, protection, labeling, …).
– Needs for specific logistic SW: order tracking system, inventory management, ….
– Warehouse cost independent of the volume used at any specific time
– Alignment of different parties involved: transportation, clients …
– Difficulties to negotiate the price for small volumes.
– Service and process changes need to be discussed and agreed with your logistics provider.
– Requirements and expectations need to clarified in advance
The e-commerce logistics by Nestore
Nestore is an on-demand storage company providing customized storage solutions for professionals.
We offer a full logistics service for both startups and SMEs. We manage the reception, storage, conditioning, preparation, and expedition of your merchandise and also the update your inventory database.
Do you want to know more about it?