A company’s supply chain functions may seem just fine. However, any competent and ambitious eCommerce business is aware that “fine” is never enough. Investing in new ways to bring about expedited shipments and rapid order fulfilments is always beneficial for a business. The best 3PL service providers in Kolkata suggest ways to achieve seamless supply chain functions through efficient logistics systems.
What are logistics systems?
Logistics systems are interconnected networks of operations that physically move goods through a supply chain and deliver orders to customers. There are five major types of logistics systems. Regardless, supply chain companies in India emphasize the importance of three of them that directly concern quick order fulfilments to end customers.
These logistics systems operate together to streamline the flow of items from suppliers to end customers. By optimizing each of these processes, a lean supply chain will work smoothly, ensuring that the customers of an eCommerce receive the correct order at the right time and the right price.
Types of Logistics Systems:
In the notion of a layman, supply chain functions kick in when a customer makes a purchase. In reality, businesses have a logistics system in place much before a customer even places an order. It is the system that procures finished goods from the manufacturer into the inventory. Supply chain companies in India refer to this stage as procurement logistics.
Procurement logistics can be very complex and delicate. It affects the cost, functionality, and timing of every downstream operation. Therefore, retailers must choose a flexible yet dependable supplier to collaborate with to set their supply chains up for success.
Building a solid relationship with manufacturers equips businesses to:
- deal with the complications of international fulfilment (such as customs, import tariffs, and VAT)
- choose how to distribute inventory
- satisfy the volatile demands of clients
Production logistics is the planning, management, and control of the internal storage of a business. It involves handling, and transit procedures for acquired parts, raw and auxiliary materials, spare parts, operating supplies, and other goods.
Resultantly, it covers all logistics measures, operations, and difficulties related to the supply of services. It acts as a link between procurement and distribution logistics.
Sales logistics (also known as distribution logistics) deals with the planning, execution, and control of the movement of goods. Distribution logistics is the bridge between the production and sales of a company.
It encompasses all the storage, handling, and transportation operations of goods from the factory to the client. There are three parts of distribution logistics: strategic, tactical, and operational functions.
3PL companies in Kolkata suggest improvements in procurement, production, and sales logistics, which can show significant positive results for a growing eCommerce business.
Here are ways to improve the efficiency of the logistics system recommended by the best 3PL companies in Kolkata:
Implement an order management system:
A seamless order is fulfilled to the customer’s specifications, with goods delivered as promised at the time of sale. To achieve this, 3PL companies in Kolkata recommend having an advanced system that organizes and updates the data related to orders.
An order management system (OMS) is incredibly helpful in efficient order capturing, tracking, and providing updates on fulfillment. It is a computer software system that is used to enter and process orders in a variety of businesses.
Inventory Management software:
Managing stock is one of the most time-consuming processes in logistics systems. Competent eCommerce businesses cannot afford to waste that much time and make the customers wait.
Hence, there is a growing need for advanced inventory management systems. Inventory management is also a broad term for inventory auditing, inventory control, and purchase order management software. For businesses to streamline their inventory production and order fulfillment processes, it is crucial to invest in leading-edge inventory management software.
Warehouse management system:
There cannot be enough emphasis on the fact that warehouse management systems are vital for the growth of an eCommerce. WMS systems benefit companies to maximize their manpower and space usage by providing visibility into the inventory in distribution centers. These systems also help maximize equipment investments by coordinating and optimizing resource usage and material flows.
In today’s omnichannel fulfillment market, supply chain companies in India are adopting state-of-the-art warehouse management systems.
Automating a warehouse:
Warehouse automation can occur in several ways. While the general notion is of robots that assist humans with inventory procedures, it also includes drones, forklifts, and systems like blockchain and IoT.
According to 3PL companies in Kolkata, automation is beneficial in:
- Better resource allocation
- Lowering labor and operational expenditures
- Reducing human error
- Improving customer service
Split inventory across different distribution centers:
Splitting inventory across various distribution centers has several advantages. They can reduce risk in the event of an emergency, save shipping costs and deliver products more quickly, and send large volumes of orders. If the location of distribution facilities is updated online, inventory splitting can also help a business rank higher in marketplace search results.
While logistics systems are typically seen as cost centers, the top supply chains in India can help manage eCommerce logistics so that they generate income and help a company expand.