5 Ways To Manage eCommerce Returns To Increase Efficiency

Manage Ecommerce Return Management

Managing eCommerce returns can be a headache for online retailers. If a rise in sales makes eCommerce merchants extremely happy, an increase in product return neutralizes that happiness.

There is no doubt that online stores have higher return rates than offline stores and there are strong reasons to back this fact.

Basically, customers can try out a product in a physical store. They can touch it, hold it, feel it and find out the flaws at that moment, which is not possible in the case of an online store. This is why e-retailers face excessive returns and it becomes quite a difficult task to manage them.

We will discuss how you can manage eCommerce returns with a best return management system and improve customer satisfaction.

1. Create a flexible Return Policy :

One of the important points in the return management best practices is to craft your return policies well. Be clear about the terms and conditions. Mention what kind of returns you accept, what should be the condition of the item to get its replacement, what is the time span for returning an item, what is the procedure to raise a return request, etc.

A well-written eCommerce return policy helps a user to understand your return management procedure better. Also, avoid using any hard language that is difficult for a user to understand. Product return policy not just helps you handle customer returns efficiently but also encourages users in their purchase decision process.

2. Allow Customers to make a Return Choice :

Adding to the list of eCommerce return management is letting customers decide what they want to do with the product they wish to return. Whether they want to replace the product, raise a full refund or need the product amount in the form of points/store credits, the choice should be left to them.

Providing a return choice is a persuasive tactic to make customers return to your store in the future. For example, if a customer opts for the credits worth the product amount, providing him with that would ensure that the customer is going to come back to your store in the near future and make a purchase.

3. Automate your Return Process :

If you have a large e-commerce store, you will have more product returns. Imagine how difficult it would get if you manually handle product returns. Moreover, it will be very time-consuming.

Automating your eCommerce return with the best return management system can save you a lot of time and effort. You would not need to handle each and every step on your own. From informing the customer about the placed return request to notifying them about the return status until the process is over, make everything an automatic process. This will decrease the return processing time.

4. Speed up your eCommerce returns :

Speeding up your return process is a vital point in eCommerce return best practices.

Right after a customer places the return request, they expect their money’s worth in some form to the earliest. Though it can take a few days at least, you should not make your customers wait for too long. A long delay creates frustration among customers and they would think a few times before placing an order from your store again. Make sure the returns are processed as quickly as possible. It improves customer loyalty.

5. Provide free shipping :

Customers do not like to pay an extra penny for returning a product. In fact, no one would like to pay some extra amount for a product that is defective or doesn’t match their expectations. If there is already a defect and on top of that, customers are asked to pay a small charge for returning it, they will feel annoyed.

To avoid this, you can allow free shipping on returns and keep your customers happy and satisfied.

How can you manage your returns easily with the eComGlobus Return Management System?

Considering all the above points, if you want to handle your product return easily and make the product return process in your store well-structured, you can opt for eComGlobus, a Complete eCommerce fulfillment platform to manage your eCommerce logistics operations.

With eComGlobus, manage your returns efficiently while reducing your processing and logistics costs. Highly configurable returns processing solution with guided workflows for receiving, inspecting, and grading product returns.

eComGlobus will be providing features for accepting the return orders and assigning them to 3PL for pickup. With the eComGlobus Return Management System, you can track the movement of the reverse shipment easily in a single platform.

Top 5 Major Challenges in 3PL and Distribution Industry

Major Challenges in 3PL

Logistics has always been a very important part of every economy and every business entity. The worldwide trend of globalization has led to many companies outsourcing their logistics functions to third-party logistics (3PL) companies. This helps them to concentrate more on their core competencies and hence generate higher revenues.

With more sellers, the demand for third – party logistics ( 3PL ) warehouses has never been higher. Businesses need third parties that can handle the intricacies of their logistics so they can double down on their core competencies.

To help you navigate the new realities of a booming supply chain, and more specifically 3PL warehouses, we’re highlighting some of the most crucial challenges you’ll need to tackle head-on in 2021 and beyond.

1. Scalability :

Exponential growth without the logistical backbone to support it is a recipe for disaster. This is one of the prime reasons why businesses rely on 3PLs. They want to delegate the logistical headaches to a third party so they can focus exclusively on compounding growth.

All of a sudden, the systems and processes of the 3PL warehouse are going through a rigorous stress test, and many are already snapping. Hence why we believe scalability is going to be one of the biggest challenges for 3PLs moving forward.

2. Seasonality :

Between rent, salaries, and other commitments, the traditional brick-and-mortar stores have to pay a premium regardless of business activity. But eCommerce brands can run without any major financial commitments, allowing them to scale costs back when things are slow. It’s not surprising then to see internet brands thriving in highly seasonal categories.

Unfortunately, this also means that 3PLs are under intense pressure to accommodate these massive shifts from season to season. Running out of space, dealing with untrained seasonal workers, and filling the cracks in processes to accommodate the new peaks—and then scaling everything back to lows once the season runs out—is painfully challenging.

This is especially true for 3PLs that specialize in helping clientele in seasonal categories. Examples include merchants selling winter sports gear, air coolers, and even metal detectors. This ties in with our previous point, as scaling down is just as important as scaling operations up.

3. Shipping :

There’s no denying that the modern consumer wants cheaper and faster shipping. With Amazon constantly pushing the boundaries of the shipping experience, we’re seeing no signs of this trend slowing down anytime soon.

In other words, faster and cheaper shipping is turning from a nice-to-have into a must-have for digital merchants. It can literally make or break their business.

Merchants are naturally turning to 3PL warehouses to fulfill this demand. But with the costs of shipping rising worldwide, not to mention the challenges that come with handling a wide variety of products at scale, many 3PLs are struggling to keep up.

As a result, they’re losing clients to warehousing providers who have developed creative solutions to reduce shipping costs for their customers and have the resources to tackle these challenges.

4. Storage Space :

Traditional warehouses were designed according to the needs and requirements of the time. There’s only so much growth a store in some small town can hope to have in a year. But in the world of online commerce, a single viral campaign can expand the sales of a business by hundreds if not thousands of percentage points. So flexibility is incredibly important for 3PLs as they are exposed to exponential growth on two sides: their own business and that of their customers.

Unfortunately, one of the first side effects of exponential growth is that warehouses run out of space. Failing to offer adequate capacity can put a deep dent into the reputation of any 3PL. Add to that the massive price hikes in real estate across the nation, and you can see why space requirements are going to be a massive challenge this year.

5. Storage Space :

Finding the right talent is never easy. With the sudden growth in logistics, we have more companies fighting for expansion than ever, and as a result, workers have many options to pick from. Amazon, for instance, is expanding its workforce aggressively, both in terms of acquiring talent and offering competitive compensation. Then there’s the fact that acquiring talent is only half the battle. Retaining the ones who are genuinely driven and hardworking is easier said than done.

The result is that hiring, training, and retaining the right people, all while keeping costs at the minimum to keep your pricing competitive, is yet another major challenge 3PL warehouses are facing today.

How does the Logix Platform help you to overcome these challenges ?

At Logix Platform, our mission is to arm 3PL warehouses with sophisticated warehouse management system (WMS) solutions that can level the playing field for them. We have connected solutions to automate nearly every aspect of your warehouse, for, receiving, picking, packing, shipping, and overall warehouse management.

At LogixPlatform, every action we take while fulfilling your order has an automatic, corresponding digital counterpart in our dashboard, which keeps 3PL order fulfillment processes efficient and consistent. Each step is directed by information that is automatically populated in the dashboard when an order is placed. It also comes up with e-commerce and carrier integrations to enhance your business experience.

With Logix Platform, get access to eComGlobus, an advanced eCommerce Fulfillment platform that offers all eCommerce logistics solutions in a single platform to manage your eCommerce/Shopify store very easily.

What is the Agile Methodology and How Does it Apply to Ecommerce business?

Agile Methodology

Scaling an eCommerce business can be hard work, but having an agile mindset can make it easier to grow the business. In fact, a recent global survey reveals that a majority of executives believe being agile plays a crucial role in delivering the right products and services, accelerating decision-making and speed to market, improving the customer experience, and staying ahead of the competition.

Agile Methodology ?

We are surrounded by new technologies all around us, which in turn help us to develop even more modern technologies. The Agile methodology is one of such developments, which is specially created for eCommerce websites, apps and software.

  • Individuals and interactions over processes and tools
  • Working software over comprehensive documentation
  • Customer collaboration over contract negotiation
  • Responding to change over following a plan

In eCommerce business, the agile methodology involves uncovering challenges and developing solutions through collaborative, self-organized, and cross-functional teams. It is concerned with the flow and performance of the entire eCommerce system and also involves creating a feedback loop to increase product efficiency while encouraging continuous improvement through testing.

Benefits of Being Agile in Ecommerce business :

While not all companies have adopted the agile methodology, studies show that 98% of companies that began using agile benefited from it. In addition, research from the Project Management Institute found that Agile organizations are more likely to finish projects on time (65% vs. 40%) and hit all their goals (75% vs. 56%) when compared to non-agile teams. Agile companies even grew their revenue 37% faster! Here are the top seven advantages of agile methodology for eCommerce businesses.

1. Improving Speed and Flexibility : In today’s competitive marketplace, eCommerce businesses need to battle everyone from disruptive startups to Amazonian giants. This makes the prospect of a fast-moving, adaptive organization highly appealing. Agile methodologies streamline production from the initial conception of an idea to the final deployment stages, keeping eCommerce business highly flexible and adaptive. It also helps them meet the ever-changing needs of modern consumers by allowing for quick product changes based upon user feedback.

2. Meeting and Gauging Market Needs : What do consumers want? And what might they want that they don’t yet even know they need? Many eCommerce businesses need to introduce new products and features consistently to generate interest and revenue. By meeting consumer needs, and introducing new products or features proactively to determine whether there’s any interest, companies can stay on the cutting edge and serve customers in the best possible way.

3. Creating Higher Quality Products : With the agile methodology, everything goes through regular and rigorous QA checks to ensure customers receive the highest quality products. Of course, it doesn’t stop there; QA is continuous, and ways to improve deliverables are always in development (whether it’s a new or complementary product or simply adding on a new feature).

4. Taking Fewer Risks Through Transparency : The agile methodology provides transparency or visibility into all aspects of the business to all departments, from marketing to design to logistics. When all the players are on the same page, working together to achieve the same goal, the risks of failure are reduced considerably.

5. Conducting Continuous Testing : Quality assurance checks are critical for product launches and for maintaining consistency over time. Following the agile methodology, products are tested in a variety of ways as soon as they are developed, and any defect can be identified and ironed out. During testing, opportunities may also be discovered that can be implemented to improve the final product.

6. Improving Customer Experiences : By following an agile methodology, eCommerce business can develop a higher-quality product, quickly make improvements and add new features, and meet and exceed customer expectations. The result? Happier customers who will make more purchases and act as brand advocates, telling others about their positive experiences. Read more about developing a customer experience strategy.

Conclusion :

As your eCommerce business evolves and grows, following an agile methodology process can help you improve your products, increase your revenue, and build your customer base. To do this, however, it’s important to keep the lines of communication open, cultivate a collaborative work environment, and embrace the right technologies.

With eComGlobus as your technology partner, you can also scale to your full potential and improve the customer experience by using our eCommerce fulfillment system, which manages your warehouse operations and eCommerce fulfillment process. eCom Globus offers visibility to your entire inventory and manages supply chain fulfillment operations from the distribution center to the store.

Why do you need an eCommerce Fulfillment software to improve your eCommerce business?

eCommerce fulfillment

Ecommerce businesses were responsible for around $4.5 trillion in sales in 2021, and that number is expected to reach a whopping $7.5 trillion by 2023. There are millions of growing online businesses out there contributing to these high numbers. But, while it’s clear there is a lot of competition in this industry, even the biggest eCommerce companies in the world like Shopify, Amazon, Magento, eBay.

Did you know :

61% of shoppers will abandon their cart if shipping, taxes, and other fees are too high, 53% of shoppers say that speed of delivery is an important factor, 38% of shoppers will never shop with a retailer again if they had a poor delivery experience & 25% of shoppers have canceled an order because of slow delivery speeds.

Why? – You could have the best product, website, and eCommerce platform in the world – but a poor fulfillment experience could ruin your customer experience and the potential for future revenue from repeat buyers.

How? – Let’s look at the major reasons you need an effective fulfillment system!

Key reasons you need Effective eCommerce Fulfillment service :

(a) To Align with Consumer Preferences : Thanks to modern technology, consumer preferences have shifted over a couple of years. Now that Amazon Prime-speed shipping is the new norm, consumers have higher expectations than ever on delivering timelines.

As a result, when someone buys online, no need to wait a week to get their package- they’re expecting it within a few days tops.

In fact, 47% of respondents in a recent study said they would be willing to pay extra for same- or next-day delivery and a whopping 74% of consumers who received same-day delivery said they’d be more likely to purchase from that company again.

Your eCommerce business moves fast, so you need advanced eCommerce fulfillment software to manage your eCommerce logistics requirements effortlessly. If your shipping speeds are slow, your customers simply won’t buy from you again. Instead, they’ll turn to the competition who can deliver literally on the shipping timelines they’re expecting.

(b) To Improve Accountability : Today’s consumers are also demanding more transparency and accountability from the brands they buy from. For example, let’s say your website boasts that you have guaranteed two-day shipping. If your eCommerce fulfillment company isn’t actually able to deliver on that timeline, your customers won’t be very happy when they’re sitting around waiting for a package they expected to arrive days ago. If they decide to call you up to inquire about where their package is, but you aren’t able to tell them because your fulfillment provider doesn’t give you visibility into their shipping processes, they’ll be even less thrilled.

This negative customer experience can prevent your customers from ever buying from you again. Furthermore, they could leave a negative review online about your slow shipping speeds, lack of transparency, and unkept promises that could prevent new customers from giving your eCommerce business a chance. So, the key here is to not make promises you can’t fulfill. Working with a fulfillment provider who can guarantee predictable, accurate, and timely fulfillment will ensure full visibility equals a better customer experience—resulting in happier customers and more positive reviews.

(c) Better Customer Experience : With millions of eCommerce businesses out there, you need a way to differentiate. By aligning your eCommerce fulfillment services to meet modern consumer preferences (like the fast shipping speeds and increased transparency we just discussed), you can deliver the customer experience your buyers are actually looking for. This can give you a huge competitive advantage over other eCommerce businesses who are simply ignoring changing consumer preferences, or simply don’t have the resources to meet them.

Providing a smooth, seamless customer experience is so valuable because it can turn one-time buyers into repeat, loyal customers who are advocates for your brand. After all, if a customer has an amazing experience buying from your brand, next time they need something you offer, why would they even bother looking at the competition? This can help you drive additional revenue through repeat business, making it possible to meet your business growth goals sooner!

(d) To Improve Efficiency While Decreasing Costs : Robust eCommerce fulfillment processes will help your business become more efficient while saving you time and money. Plus, a positive fulfillment experience that translates into a great customer experience will help you attract new customers and better satisfy your existing ones. Between the cost savings of outsourcing effective eCommerce fulfillment services and the additional revenue from repeat customers, you can put that extra income back into your business.

For example, you could invest in developing a new product, increase your marketing budget, hire additional employees, or allocate more resources towards your customer service initiatives. At the end of the day, eCommerce order fulfillment isn’t just about shipping products. If done correctly, it can be a powerful way to realize higher profit margins that makes it possible to expand your business faster and with ease!

Benefits offered by Logix eCommerce fulfillment Software :

Logix eCommerce fulfillment system that supports easy integrations with a variety of eCommerce marketplaces helps you manage your eCommerce business very easily.

Here are some of the benefits offered by Logix eCommerce Fulfillment System :

1. Cloud-based eCommerce fulfillment system : Logix eCommerce fulfillment running on AWS cloud system to secure durable and scalable infrastructure which eases eCommerce workflow in regards to logistics activities associated with delivering the shipment and providing a transparent process to connect with the suppliers.

2. Inventory management : Are you selling through multiple e-stores? If yes then, you can track your inventory from all your sales channels through the Logix eCommerce fulfillment system with full visibility and control over your inventory.

3. API Integrations : With Logix Platform, accelerate business through the API integrations which allows the system to easily exchange information with different ERPs/WMS/Supply Chain Solutions.

4. Customized System : We offer a customized fulfillment solution that enables you to customize the system as per your business needs and help your brand showcase and create its own unique story.

5. Return Management : Logix eCommerce Fulfillment system offers return handling. The system can auto-detect defective or excess products back from customers and support customers who have problems with delivered products.

To enhance your customer’s experience in a fast and effortless way, you can get in touch with our team and see how we can help.

The Role of AI-Powered Logistics in eCommerce

Role of AI Logistics in eCommerce

Today, the eCommerce business has entirely revolutionized retail. It has significantly influenced the buying behavior of customers across the globe and pushed retailers to sell online owing to the tremendously rising competition. According to Statista, 21.8% of the World’s population buys online, and in 2021, the number is expected to rise to over 2.14 billion.

Logistics is an indispensable part of the eCommerce business and plays a major role in the way the industry operates. AI-backed logistics solutions in the eCommerce business are evolving with growing business requirements and are acting as an important lever for business growth.

Let’s look at some of the most innovative solutions in logistics fulfillment that are reshaping the future of the eCommerce business supply chain.

Increase in First Attempt Delivery :

Geocoding is the technology of converting physical address descriptions into precise geographical coordinates on a map that can be easily identified. Advanced geocoding solutions combine machine learning, natural language processing, and rule-based improvements to gather complete address information and convert even the fuzziest addresses correctly, precisely to door number, lane, and locality. Implementing a geocoder can help eCommerce business improve First Attempt Delivery Rates (FADR) as well as cut down on delivery costs and time significantly.

Route Planning Solution :

In a world of one-day, two-day, and same-day fulfillment, delivery agents are loaded with hundreds of parcels to be delivered in a day. Finding the most effective, time-saving route is not possible with human intelligence anymore. A route planner or journey planner is a search engine that automatically plans and optimizes deliveries, taking into consideration various business parameters, like SLAs, geographical, and traffic constraints. Route planning software not only helps businesses plan deliveries smartly but also assists in effective decision-making.

Logistics Tracking and Analysis :

Logistics management involves several phases, including transportation, packaging, warehousing, materials handling, and condition management. Any deviance at any stage could cause a delay in last-mile fulfillment, increasing logistics costs and impacting customer satisfaction.

The future of eCommerce logistics lies in tracking, tracing, and predicting. Logistics tracking and analytics solutions allow businesses to track products, material, or on-ground resources in real-time, send notifications to logistics managers in case of any divergence or delay, and offer critical insights using the power of analytics.

Intelligent Shipment Sorting and Fleet Allocation :

eCommerce logistics hubs have to deal with a wide-ranging category of products to be delivered in different locations on a daily basis. Sorting packages based on Zip codes and areas manually is time-taking and error-prone. Intelligent shipment sorting is an automated sorting solution that helps businesses sort bulk delivery orders based on multiple factors, saving time and effort significantly, thereby improving operational efficiencies.

Some AI-logistics solutions also offer intelligent fleet allocation, assisting companies in allocating specific goods in specific vehicles as well as offering the most optimal mix of owned and rental fleet to drive cost efficiencies to manage your eCommerce business.

Smart Reverse Logistics and On-Demand Routing :

A key element of eCommerce logistics is reverse shipment, which includes all the processes associated with product returns, repairs, maintenance, etc. New-age logistics solutions have introduced smart reverse logistics solutions, helping on-ground agents plan reverse logistics systematically along with forwarding logistics. Nowadays, companies also are AI-assisted on-demand routing and re-routing solutions along with scheduled orders, enhancing customer satisfaction.

Conclusion :

Logix Platform will offer you a comprehensive eCommerce fulfillment solution for merchants and service providers to redefine business strategies and implement our platform across key areas of operations, especially logistics, in order to cut costs, optimize processes and ensure maximum customer satisfaction.

Are you looking for the best eCommerce Logistics Platform to manage the logistics operations of your eCommerce/Shopify store?

eComGlobus is an All-in-One eCommerce logistics platform that offers advanced eCommerce logistics features which will support you to manage your warehouse operations, fulfillment, procurements, last-mile delivery, return and refund management.

Top 5 Key Trends of eCommerce Logistics to follow in 2021

Ecommerce logistics trends

Ecommerce has become an essential part of the global retail framework in recent years. Like many other industries, the ecommerce landscape has changed dramatically since the outbreak of the COVID-19 pandemic. According to Shopify, at the height of the pandemic, 10 years of eCommerce growth happened in just 90 days. Statista reveals that over two billion people purchased goods or services online in the same year.

Therefore, the competition between online retailers has never been this heated. In this ever-changing eCommerce environment, brands should keep up with the latest trends and updates in their respective areas and implement them into their business models in order not to fall behind.

Faster and Flexible delivery options :

According to a report by Walkersands, 79% of US consumers are more likely to shop online if they are given a free shipping option, and 54% of US consumers under the age of 25 would prefer the same- day delivery option. On top of that, around 62% of US consumers will readily pay a premium to get their orders shipped the very same day.

Having better and faster shipping options not only increases your bottom line but also provides a positive customer experience. For this kind of trend to work for your eCommerce business, first, understand your customers’ shipping expectations from you by conducting a survey. After the survey , you’ll be able to offer the right shipping options with the help of timely delivery extension, and accordingly, you can make changes to your logistics system.

Direct to consumer D2C Fulfillment :

For e-Commerce businesses , victory is not achieved when an order is placed into the shopping cart, but only when the product is bought and paid for. As online retailers try to meet consumer expectations, there are many considerations to take into account when choosing an e-commerce fulfillment model.Factors like technology adaptability, customer service, growth potential, ease of inventory adding, inventory management, and more.

This model has gotten more traction after the launch of Amazon’s Seller Fulfilled Prime, which enables its sellers and merchants to ship directly to the customers eliminating the middleman.

Cross- Border shipment :

Cross- border e-commerce shipment is another trend that has gained large popularity among customers due to many reasons. Today consumers would choose to buy international products because of the reasons such as easy & flexible shipping options, payment methods, product quality, etc., Cross-border e-Commerce shipments benefit retailers as they get the opportunity to reach new customers throughout the world.

Since online consumers can choose to buy products from international sellers from anywhere on the globe, retailers have felt the need to make global shipping easier to execute in a world wide market.

Cross border e-Commerce benefits the retailers as they get the opportunity for selling products internationally throughout the globe and by improving their brand awareness in the international market.

Smart Solutions for Shipping Returns :

Since the number of people shopping online is increasing and will go on increasing in the future as well, eCommerce businesses will have to plan and deploy smart solutions to manage their returns.

Smartly handling the returns might help you retain a customer that might have had a bad experience with your product or overall experience.

Before anything, ask yourself if you can afford to offer free returns. If you do not, then make your return policy transparent and easy to understand. Most importantly make sure the experience of your customers with the returns is as stress-free as possible.

Robots & Drones for Product Delivery :

Technavio market research report suggests that the autonomous delivery market is poised to grow by USD 16.86 billion during 2020-2024. Chinese e-commerce companies are also deploying robots to deliver orders in an effort to prevent the spread of the deadly coronavirus.

These drones are expected to revolutionize the last mile delivery, which usually costs businesses a lot of money. Not only that, but they can also help in improving the customer satisfaction levels.We can’t deny the fact that adapting to this trend will require a lot of capital, but the expected ROI is also quite high. Plus, you can expect better customer loyalty because, well, it’s 2021, and they’ll be receiving their parcels from a drone, just like they imagined.

Conclusion :

Do you need to improve your return management, fulfillment models, or delivery options? It’s never too late to catch this latest e-Commerce trend. As Logix Platform, we offer the world’s simplest Cloud-based ERP software to automate an Augmented Reality solution for businesses. To elevate your customers’ online shopping experience in a fast and effortless way, you can get in touch with our team and see how we can help. It comes up with e-commerce and carrier integrations to enhance your business experience.Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce.

With Logix Platform, get access to eComGlobus, an advanced eCommerce Fulfillment platform that offers all eCommerce logistics solutions in a single platform to manage your eCommerce/Shopify store very easily.

 

Top 5 Logistics and Transportation Industry Trends in 2021

Top 5 transportation and logistics industry trends in 2021

Digital transformation in the Logistics and Transportation industry is extremely fast-paced. Consumer expectations around product delivery and speed are growing manifold, especially in a COVID world where a majority of purchases are being made online. This is putting immense strain on how logistics and transportation service providers manage their supply chains and embrace trends that aim to optimize warehouse operations and fleet management as well as reduce the overall cost of freight.

5 Logistics and transportation Trends to Watch out in 2021 :

Digital advancements in the business landscapes have put organizations in a tight spot. In 2021, organizations in the logistics and transportation industry will have to embrace cutting edge technologies today to design and sustain supply chain solutions for tomorrow.

Here are 5 trends that are going to shape the future of the logistics and transportation industry in 2021 :

1. Robotic process automation: In 2021, organizations struggling to cater to the ever-increasing volume of customer orders will have to embrace robotic process automation at each step of the fulfillment process and implementation solutions that help optimize and scale warehouse and distribution center capabilities. Robotic process automation, when deployed at warehouses, will enable organizations to drive complete automation across the supply chain.

2. Artificial intelligence : In 2021, AI is set to drive continuous innovation like never before. With the ability to mimic humans and automate manual tasks, this year will see AI-powered systems exhibit human intelligence and improve efficiency – by learning through experience.

AI can also help in predictive and preventive maintenance, improve procurement and planning, optimize fuel consumption, as well as pave the way for substantial inventory optimization.

3. DRONES: As last-mile delivery gets more and more challenging and expensive, logistics companies have been on the lookout for ways in which they can fulfill orders in a timely manner. For such organizations, enabling delivery through drones is going to become a popular choice to improve the efficiency of last-mile delivery while reducing costs.

With enterprises like FedEx, Amazon, and DHL already utilizing drones for delivery, 2021- 22 will see a lot more companies join the bandwagon to improve delivery speed and efficiency, and regulatory authorities smooth the way for drone deliveries.

4. Autonomous Vehicle: In 2021, the possibility of self-driving cars becoming a reality is also huge; studies suggest the autonomous vehicle industry will be worth $556 million by 2026. These autonomous vehicles that can operate without any human assistance will help the sector navigate traffic congestion.

They will also help to reduce the rate while detecting obstacles, monitoring engine conditions, and recommending the best routes for quick delivery of goods between warehouses and consumer locations.

5. IoT – led Sustainability: In 2021, the technology will help deliver on the promise of sustainability – and pave the way for long-term social and economic development. IoT -led innovations will allow organizations to unlock new value while giving greater control over their supply chains.

From offering ways to eliminate wastage to improving energy efficiency: IoT will enable companies to act on real-time data and improve decision-making across energy optimization, customer experience as well as the supply chain.

Conclusion :

At Logix Platform, we provide you with a modern machine learning algorithm. Such automation will help eliminate manual tasks, boost order management, improve after-sales service, and alleviate labor shortages while enriching customer experience and enabling business agility. Logix Platform provides Logix TMS which is a fully customized and integrated transport management system to manage the logistics flow. Logix Platform is a cloud-based ERP software which is a modern age ERP system that manages your warehousing, logistics and transportation operations without hassle.

Importance of 7 R’s in Logistics and Supply Chain Management

7 Rs of logistics

7R’s or 7 Rights plays a significant role in the backing of supply chains and international logistics. Every organization wants to excel in its functionality. They want the work to be done with optimal utilization of resources. Supply chain management corresponds to the management of products & services from the point of production to the end-user. It includes planning, designing, implementing, managing, and tracking supply chain activities.

Managing supply chain management is central to all industries. A supply chain is very much important for the organization. SCM’s main aim is to take care of 7 R’s as it continues to follow.

Role of 7 R’s :

1. Right Product : The essential component of the supply operations is the goods delivered to the customer from the supplier. Supply chain managers should be aware of this. What kind of product they need to make, treat and transport. The net approach is to pick a product that is in demand and which can guarantee income. Getting the right information and using the right product would help maximize the time and money efficiently.

2. Right Quantity : It’s also necessary to submit the right amount of goods in logistics. The supply chain administrators are charged with identifying the right amount of deliverables and working with the production and distribution department to get the best quantity of goods distributed to the customers. All things should be taken proper care of and handled wisely. While packing it must be checked that the quality should be according to the demand. Less quantity will take the customer towards the wrong perception of the company.

3. Right Condition : The product should reach the customer in good condition. Of utmost importance is the consistency of the deliverables. The procurement department is obligated to ensure that the products are properly packed and shipped in the right condition to the customers.

4. Right Place : The next important aspect is that they will give the right material to the correct location. Supply chain administrators should ensure that they have competent and qualified logistics personnel to deliver the content at the proper place. Managers should build a comprehensive position tracking distribution system so that both consumers and suppliers should monitor the products at the exact location & deliver it to the right spot.

5. Right Time : In logistics, the duration is a crucial factor. The happiness of consumers and the long-term partnership are only possible if the goods are delivered to consumers at the perfect time. Managers tasked with creating a tracking system and working with the distribution team to get the items shipped before the deadline. Customer satisfaction is the key to success. Thus the delivery time for the product is always crucial for a business as this leads to happy faces of the customer. Proper monitoring is required so that one can catch up with the flaws if any occur in the process.

6. Right Customer : Customers are the cornerstone of supply chain operations. The managers need to learn their target audience. If the goods are sold in the correct market so that the business will receive more leads and they will get the best customers to stick with them for a lifetime. Organizations should always target the right customers.

7. Right Price : Pricing is crucial for companies, as it is the aspect that determines the profit or loss that has sustained. The supply chain manager will analyze industry dynamics and place the products and services at reasonable prices. Also, a program should be in a place that maintains a record of costs and periodically checks them so that the goods sold at the correct cost.

These are the seven R’s of supply chain management that ensures that the whole process of logistics is carried out effectively.

Conclusion :

Logix Platform’s innovative and comprehensive logistics software is capable of managing your whole logistics and supply chain operations effectively. Logix Platform allows you to manage all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows. We also have more than 40+ carriers associated with the system and easy integrations to enhance your business experience.

With Logix Platform, get access to eComGlobus, an advanced eCommerce Fulfillment platform that offers all eCommerce logistics solutions in a single platform to manage your eCommerce/Shopify store very easily.

STRONG DEMAND FOR WAREHOUSING IN 2021

Strong Demand for Warehousing 2021

The warehousing, which comprises around 10% of the overall logistics cost, has a significant impact on optimizing the remaining 90% that includes transportation, inventory management, material handling, packaging, etc. The analysis points out that the industry is growing at a CAGR of 10.5% and is further expected to rise with the Covid-19 vaccine distribution.

The warehousing and logistics industry had an admirable run last year as Covid-19 forced businesses to focus on continuity plans and supply chain constraints. The growth momentum is expected to continue in 2021 as sectors like e-commerce, FMCG and pharmaceuticals look to penetrate deeper into tier II and III cities.

Logistics players and analysts are convinced about the sector’s performance as they say that e-commerce firms will continue to push for cost-efficient and swift last-mile delivery. Besides, the growing demand for cold chains, and with India vying to be a manufacturing hub, the requirement for large automated warehouses and omnichannel logistics solutions will continue to grow.

As per Savills India, industrial and warehousing space absorption is expected to grow 83% y-o-y to 47.7 m sq ft in 2021, driven by robust growth in e-commerce and manufacturing.

This would be driven by the challenges customers faced and had to overcome in 2020, which made it clear for many organizations, especially SMEs, that having the right partners to support their supply chain and logistics needs is a must to enable growth without disruption.

Customers will engage partners who can bring stability, scale and sustainability. There would be a clear shift in customers’ long-term strategy to make some changes to adjust to new norms, which includes an increase in inventory holding and reducing supply chain costs. Customers will also continuously look out for reliability in service and ability of this segment to scale up and down without incremental costs, he added.

Warehousing demand in post-Covid-19 scenario would follow a hub-and-spoke model, largely with product companies focusing on reducing inefficiencies in the supply chain, which happen due to the bullwhip effect, by increasing availability of their products closer to consumption points, he added.

Omni-channel strategy has now become central for most of the companies which are into retail, FMCG and pharmaceuticals and has given a big opportunity to third party logistics (3PL) providers.

Growing demand for cold chain, pharmaceutical warehouses as well as growth in e-commerce and organized retail are likely to drive warehousing demand in 2021. In addition, strong macroeconomic fundamentals and government’s policy support in implementation will continue to fuel growth for the entire sub-asset class of industrial and logistics.

Warehousing players have started to invest more in automation and mechanization for contactless operations. Some of these warehouse technologies are smart analytics, warehouse management system, warehouse mobility solutions amongst others.

For efficient operations, the Indian warehousing sector is gradually shifting to the Internet of Things (IoT). The industry has also started integrating sustainability into its standard operating procedures. Companies are adopting designs and practices that reduce their carbon footprint and operating costs.

The warehousing and logistics market in India started gaining impetus with the highest supply and absorption. The demand is expected to increase in 2021 and reach close to 35 million square feet of absorption, almost similar in line with 2019 levels, supported by growing demand in sectors such as 3PL (third party logistics) and e-commerce. 3PL has become one of the fastest-growing segments in the warehousing space, contributing nearly 35 percent of total net absorption in 2020.

Conclusion :

Logix Platform is a cloud-based ERP software which is a modern age ERP system that manages your logistics, warehousing and transportation operations without hassle. With Logix WMS, get access to integrated, cloud-based and customizable WMS that helps you manage and automate inventories with optimized functionalities. Logix Platform is fully customizable according to your organizational needs. It comes up with e-commerce and carrier integrations to enhance your business experience. Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce. We also have more than 40+ major carrier partners like FedEx, Aramex, DHL, and UPS.

Most 3 valuable services that 3PLs could offer for eCommerce order fulfilment process

third-party logistics

A significant portion of a business’s day-to-day operations involves fulfilling customer orders. The order fulfillment process begins when the customer places an order and ends when the order arrives at their doorstep.

When a business grows beyond its capability to manage order fulfillment in-house, it might be time to consider outsourcing certain functions to third-party logistics companies (aka 3PL services).

How 3PL’s handle Order fulfillment?

Receiving a third party logistics can’t fulfill customer orders if they don’t have inventory, so the first step in the process is moving your inventory to the third-party logistics warehouse.

After a customer places an order, the next step is for the third-party logistics to begin fulfilling the order by “picking” the item. Depending on the type of integrative technology the 3PL offers, this information can be automatically sent to 3PL or you might have to upload orders to their system manually.

Once all items in an order have been picked, they are packaged for shipping. Depending on what options for customization your 3PL offers, you may be able to choose the packaging for your orders.

After the order is picked and packaged, it is forwarded to a shipping carrier. Some 3PL companies have a preferred shipping carrier, while others compare costs to choose the best combination of price and delivery speed. In most cases, shipping carriers pick up orders from the 3PL’s warehouses.

Not all orders end when the shipment hits the customer’s doorstep. Returns are a significant concern for many businesses, and they can get messy if you’re managing a large stock of inventory on your own. When you hand over this aspect of the supply chain to a third-party logistics provider, all returns are directed back to the third-party logistics, where they are processed, restocked, or disposed of according to your company’s policy.

Three Valuable services that third-party logistics offers :

(a) Warehouse Storage :Hiring a 3PL saves you from having to find storage space for all of your inventory. Many third-party logistics providers offer shared storage, managing order fulfillment for multiple clients out of one physical location to maximize efficiency and keep costs down.

(b) Inventory Distribution :Many third-party logistics providers manage multiple warehouse locations so your company’s inventory can be distributed across several fulfillment centers for fast shipment to different parts of the country. With the right technology, 3PL can automate the fulfillment process, automatically routing orders to the best fulfillment center. Third-party logistics providers make extensive use of automation like this to make inventory distribution profitable for their clients.

(c) Picking, Packing and Shipping :In addition to storing your company’s inventory, a 3PL provider has staff in place to perform the specific tasks associated with order fulfillment, including picking the products in each order and packaging them appropriately for shipping.

Conclusion :

At LogixGrid , every action we take while fulfilling your order has an automatic, corresponding digital counterpart in our dashboard, which keeps 3PL order fulfillment processes efficient and consistent. Each step is directed by information that is automatically populated in the dashboard when an order is placed.

It also comes up with e-commerce and carrier integrations to enhance your business experience.

With Logix Platform, get access to eComGlobus, an advanced eCommerce Fulfillment platform that offers all eCommerce logistics solutions in a single platform to manage your eCommerce/Shopify store very easily.