Importance of logistics in e-commerce

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Because of the huge increase of e-commerce, more and more people see the importance of logistics.

When we speak about logistics, most of the people think of delivery, but in fact, logistics is a broader concept than delivery, it is only one step of logistics. In a general business sense, logistics is the management to control the flow of things and the information correlative, the objective is making resources correspond to requirement.

  1. Type and process of logistics

In-House Logistics: it means that there is a professional logistics team in your company. This type of logistics is the most professional and convenient, but there is also a disadvantage, this type of logistics could produce a large cost.

Third party logistics: when the company can’t constitute its own logistics system, it can find a logistics company and constitute a long-term relationship. We call this logistics company a third-party logistics.

TMS logistics software: this is the most economic type of logistics. The company uses the software to control the logistics service.

 

The process of logistics: the first step is warehouse logistics, the company should manage commendably the stock. When the company receipt an order, we will go to the next step, it’s packing process, we should find the merchandise and pack them, and prepare the document of delivery. The final step is delivery services, there is one important thing in this step is that when the consumer is dissatisfied of goods, a return of goods will be achieved.

 

       2.Importance of logistics and conditions of success

 

Every order of e-commerce includes three types of flow, goods flow, information flow and capital flow. Much of these flows should be achieved by logistics. Logistics represent the quality and the value of goods and services. If the logistics of e-commerce is not efficient or modern, consumer will perhaps choose over again the traditional commerce.

To get an efficient system of logistics, companies should firstly have a good foundation :it means that it should establish different plans of logistics on the basics of different areas or different seasons. The second condition is an efficient service.  Companies should prepare the order as soon as possible and use software to track the order. The third condition is calculating of rentability because the rentability is one of the most important goals of a company.

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