The ‘Logistics’ Pillar of ecommerce

The latest trend in eCommerce is to decrease the time taken from order-to-delivery to the customer. With the two-day shipping model becoming a standard part of their platform, eCommerce organizations will have to lease more warehouses, hire labor, negotiate shipping discounts, and so much more which takes time and requires significant investment. Companies will have to reduce the cost associated with shipment and fulfillment of orders to remain profitable, and hence they partner with 3PLs.

3PL companies tend to specialize in providing support that an eCommerce business would need. These companies can provide services through the following segments of logistics

• Inbound and outbound freight
• Customs
• Freight consolidation
• Warehousing
• Distribution
• Order fulfillment
• Cross-docking
• Inventory management
• Return Management

While considering a 3PL service provider, ensure that they have systems in place to provide real-time data on sales and inventory management. This will go a long way to help in strategic decision-making. The 3PL organizations would need to have relationships with specialized service providers and niche logistic carriers for regional and local parcel services for same-day deliveries. Reducing shipping distances brings down costs and helps improve service and, in turn, customer satisfaction.