How to Improve Your Logistics Planning

Tips for improving your logistics planning

There are a few simple methods that ecommerce businesses may use to enhance logistics planning performance in every sector. Here are some ideas for streamlining your supply chain as a whole, which will also assist future-proofing it.

Multiple regions and locations should be able to access your inventory

Splitting inventory between many, strategically positioned fulfillment centers will make portions of your product much closer to clients who live in or near those areas than they were previously (this is simple with a 3PL).

The goods are then transferred along the automated transport chain to the center closest to the order’s delivery location.

Because some of the items may be in stock, you can also eliminate a quantity of time and money by transporting them together. This lowers shipping distance — which reduces transport costs — and shortens shipping time, which delighted clients, increased conversions, and prompted repeat purchases. Distributable inventory saves time, money, and effort for both you and your client.

However, before you arrange your logistics around dispersed inventory, there are certain conditions to consider. When it comes to distributed inventory, the following are the situations in which it is most effective:

  • The AOV and profit margins of a firm are very large.
  • Heavy goods or bulky items
  • Customers are not concentrated in one area; instead, they are scattered across the country (or world).

If any of these statements are true for your business, you should evaluate how to put your plan into action. Partnering with a 3PL is frequently the most cost-effective choice for achieving distributed inventory because you don’t have to buy or rent a warehouse yourself.

Don’t put all your eggs in one basket when it comes to delivery and transportation

If you only have a single carrier with no back-up plan, any unforeseen difficulties with that carrier might create major problems for your company.

When it comes to logistics planning, it’s critical to examine several carriers and choose the one that best suits your needs. Consider their coverage area, pricing, 2-day capacity, technology, and reputation when selecting a shipping service.

Don’t overlook regional parcel carriers, either; they may be less expensive than bigger carriers like DHL or FedEx and can provide modifications or access to places that bigger ones can’t.

Use cutting-edge logistics planning technology and software to your advantage

The ability to optimize and “future-proof” your current logistics operations management is easier than ever thanks to more modern technologies. Software like IMS and WMS streamlines and digitizes key processes such as order processing, inventory management, storage, and fulfillment, allowing for more efficient day-to-day operations with less effort.

These solutions also include features that make logistics planning simple, such as real-time inventory tracking, which helps guarantee demand estimates are accurate. Automation in the processing of orders and warehouse functions also lowers labor costs while increasing order accuracy.

It’s important to note that the majority of these platforms do not currently require a user login or registration. Many, if not all, should automatically gather and store data for future study and storage in one place. The merchant dashboard on ShipBob was created with this in mind – specifically, it integrates directly with your ecommerce platform so you can view all of the information.

Because we use a full-stack approach, you won’t have to worry about juggling different tools and platforms to handle multiple facilities.