E-commerce Logistics

Manage the delivery commitment made to the customer, along with stock, warehouse, carrier, and service capacity.

E-commerce logistics is not limited to simply clearing an order from the warehouse. It requires an end-to-end system encompassing the shipment of the product from the correct source, preparation, packaging, delivery to the carrier, delivery to the customer, and even retrieval if necessary.

While delivery speed is important, the fastest option may not be the lowest cost or the most sustainable option for every order. The system should offer the customer realistic options and make promises that are consistent with the business's capacity.

Logistics life cycle

1. Stock availability and delivery forecast.
2. Selection of welcome source and booking
3. Warehouse picking, packaging and quality control.
4. Creating the shipment and selecting a carrier
5. Shipping label, document and tracking record
6. Transportation events and customer notification.
7. Proof of delivery and exception management
8. Return and reverse logistics

Welcome models

• Shipment from central warehouse to customer.
• Shipment from regional warehouse or store.
• Store pickup or pick-up from the store
• Direct delivery from the supplier.
• Production to order or pre-order
• Fulfilling the same order from multiple sources.

Logistics decision criteria

• Delivery date and service level
• Stock and resource availability
• Collection and storage capacity
• Transportation cost and distance
• Package volume, weight, and product characteristics.
• Customer priority and delivery preference
• Cost and experience impact of splitting an order.

Logistics visibility

The customer, operations, and customer service should be able to see the same basic shipping events. If data from the carrier is delayed or incomplete, the system should indicate this; it should not present unconfirmed information as a guaranteed delivery date.

Manage e-commerce logistics not as a back-office operation, but as an integrated business capability that determines customer experience and profitability, from delivery information on the product page to returns.