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THE IMPORTANCE OF LOGISTICS IN THE ERA OF ECOMMERCE

26/03/2018

The management and knowledge of logistics processes has become a key factor in e-commerce and is one of the pillars of the Dominion Commercial division.

If we consider the data that the last Black Friday campaign has left us, in Spain nearly one million packages were sent within 24 to 36 hours; a scenario that may have seemed unrealistic a few years ago, but which has now become completely normal.

 

We have recently witnessed a disruptive change in e-commerce that has affected all sectors; consumer habits, marked by service and customer experience, have undergone a spectacular transformation that affects the entire trade value chain, especially logistics. As a result, an online distributor or store is not only valued for the products or services it offers, but also for the time it takes and how it does it; whether it is home delivery, or whether it is necessary to go to a delivery point to pick up the order (or both options exist). And, therefore, the purchase is not completed until the package has been delivered.

 

Drivers for successful logistics

 

First of all, the quality of the logistics system is crucial, linked to shipping rates, customer service and messaging (everything to do with communicating with the user through the chosen channel, be it email, telephone or SMS, notifying of the status of the order or delivery time). In this way it is also possible to manage traceability and control incidence rates to always provide a good experience.

 

Regarding the internal organization of a business, the logistics in the ecommerce channel is also fundamental, since it is responsible for locating the product required by a customer at the lowest possible cost and best possible service. The key to achieving this is based on the combination of different factors:

 

  • • Supplies: it is important to have a constant flow of material with suppliers and/or manufacturers because this way you can satisfy the demand.
  • • Systems are the key, as it is the system that makes it possible to integrate the entire flow between the final customer and all the participants in the supply chain, in addition to providing real-time information on availability, types of delivery services, delivery times, etc.
  • • Warehouse/Preparation: it is important to have very well defined processes and warehouses, since depending on the customer's requirements it can have one process or another.
  • • Transport and distribution. This is the last factor, but not the least, since it is the final step in the sale process. To achieve this, it is important to have agreements with logistics operators to guarantee the delivery times offered to the customer.

 

Dominion Commercial, at the forefront of logistics

 

Dominion Commercial has companies that are giants of distribution and logistics that work every day to achieve excellence in the flow of shipments and storage management, so that this leads to greater internal efficiency.

 

For example, in the case of the retailer with a wide network of stores distributed throughout Spain, a large volume of shipments is moved daily, both internally (from the warehouse to the stores and vice versa) and to the customer. In addition, services such as in-store collection within one hour or free home delivery within 24 hours may also come into play.

 

If we look at the network of warehouses, there are countless factors that influence the daily flow of orders, such as the preparation stations, where there is a management system that monitors the operations. There are also systems that allow the preparation of hundreds of simultaneous orders and sorting belts that separate the shipments by agencies, controlling their weight and validating if the content is correct.

 

If we continue to talk about systems, they are fully integrated with transport agencies. The data is updated immediately, thus ensuring total traceability of the shipment and being able to obtain data on the quality of service.

 

Thus, it is possible to prepare an average of 9,000 shipments that serve the B2B and B2C channels, with B2C accounting for 90% of the volume of orders.

 

There are different types of orders:

  • - Swap (exchange of products at the point of sale)
  • - Normals
  • - Exclusive deliveries
  • - Signing of contracts or documentation
  • - Cash on delivery collection

 

Last but not least, good reverse logistics must be understood and worked on. It is essential to take this into account, as it allows the return of products that are in perfect condition for sale to be put back into the logistical flow.

 

In this way, we can say that logistics has become one of the strongest pillars on which most businesses and online shops are based, as well as one of the factors on which it depends for it to be a clear case of success, as in DOMINION COMMERCIAL.

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