Logistics Management: The 7 Functions Of Logistics

The Internet has turned the world into a global village. The globalised economy for a business could be drawn down through e-commerce. Hence, in the current times, the efficacy of logistics and its management can be maintained. Handling production, marketing, and logistics all in-house is a daunting task. However, agencies can help by hiring agencies with supply chains in India and across countries based on the reach and needs of your business.

The blog will highlight essential advanced logistics management guides and the key functions of a logistics operation.

What is Logistics Management?

Logistics management is the efficient coordination and management of movement, storage, dispatch and distribution of goods or services based on your business, which involves supply chain management.

Logistics management services can be customised as per the e-commerce business you own. Logistics covers sourcing raw materials, transporting the finished products, managing the inventory, warehousing and shipping to the customers.

Effective logistics management is an essential determiner to the success of your business. It can make the business easier if the product or service is delivered to the right person at the right time and place, then the customers will be happy, and there will be less pressure on the customer support department. Moreover, it will also increase the repeat orders by customers.

Curious about logistics vs. supply chain management? This blog breaks down the difference between logistics and supply chain management and their roles in business success. Check it out.

Are Logistics and Supply Chain Management the Same?

It is undeniable that logistics and supply chain management are often interchangeable. However, relative, the two are the different aspects of the same process. Logistics is the overall process that primarily focuses on moving and storing goods within the supply chain. At the same time, the supply chain is where the product is out for delivery and is executed to be delivered to the customer or any other warehouse or B2B client. This difference is essential to understand for achieving a successful product-based e-commerce.

7 Key Functions of Logistics:

1. Order Processing:

When the e-commerce app or website is launched, the company has its own system for letting customers place their orders. In many cases, the process is the same. Order processing hence, is the first step of the logistics department. The soft copy of the bill mailed to the buyer confirms, indicating the system received the order and, if there are any issues or discrepancies, can be addressed via the order number issued later. The same can also be used for tracking the order. Efficient order processing also involves, minimising delivery errors, timely delivery and matching up to the customer's satisfaction level.

Order processing is crucial to having customer satisfaction in your corner. You can also send the customer a separate thank you mail with their name to tell them how grateful you are that they're shopping from your business. It is also important to streamline your order processing to handle high-volume deliveries.

2. Inventory Management:

Inventory management is the maintenance of adequate stock in just the right measure, that it doesn't consume too much space, and the product is wasted, and not even too little that it runs out every other time. Overstocking a particular product may lead to damage, and the storage costs would elevate, too. At the same time, understocking can delay the product shipment and delivery, leading to late shipment and customer dissatisfaction, eventually leading to decreased sales.

3. Transportation:

Transportation is the backbone of logistics, responsible for moving goods to and from every process. Whether it is for warehouse stacking order shipment or exchange and returns. The best route for commuting is also an essential aspect, like selecting whether the products should be transported via air, land, sea, rail or road to minimise the costs and delivery time, considering that the product is not harmed or damaged.

The best transportation service manages speed, cost and reliability. A global supply chain is a complex transportation route as it involves custom clearance formalities and regulations with compliance with both domestic and international laws. Hence, hiring an agency to handle the functions smoothly is advisable.

4. Warehousing:

Warehousing involves the storage of goods until they have to be dispatched. The function of warehouses is not merely storage but also the distribution and dispatch of goods after they're packed.

Efficient warehousing ensures that products are easily accessible and organised so that there is no confusion, as it'll reduce the time-consuming process when the delivery of an order has to be aligned. Many modern warehouses also have an automated system.

5. Packaging and Handling:

Engaging and secure packaging is essential to ensure that the product is not damaged and that the goods are delivered in good condition. Delicate goods can be easily damaged during handling or transportation.

6. Information Flow and Communication:

Information flow in logistics is as important as the flow of goods. It involves assigning an order tracking number, which consists of tracking the order status for the customer and the supplier to ensure the order and inventory status.

Advanced logistics systems use tech-savvy software that allows real-time tracking via mail and links; this helps the supplier make informed decisions, and everyone is updated if there is any delay.

7. Customer Services:

Customer service is the most important yet often the most neglected part. Customer service is also an undeniable aspect of logistics management. The primary role is ensuring the customer receives the ordered product on time and in good condition with no damage. Good logistics always reflect customer satisfaction, and all seven functions must be performed efficiently to ensure that. Timely deliveries are a psychological way to build trust and brand loyalty and a key strategy to get repeat orders.

Logistics management must handle returns, exchanges, complaints, and other customer-related concerns. It's essential to address these issues promptly and efficiently to manage customer satisfaction. Good customer service resolves problems and reflects a growing and successful eCommerce business, helping build trust and long-term customer loyalty.

The key objectives of inventory management and why it's essential for business efficiency. Read the full blog here.

Optimise your Logistics Management Using ILS Indian Logistics Service

As your e-commerce business grows, managing logistics can be challenging and time-consuming because it involves various tasks. There's no need to worry. The ILS Panel (Indian Logistics Service) is here to help the top logistics management, specialising in simplifying operations for businesses of all sizes.

Manage orders, shipping, or warehousing smoothly so you can focus on growing your business and keeping your customers happy. ILS connects eCommerce stores with multiple courier partners. Also, cutting-edge technology and real-time tracking solutions make logistics management smoother than ever.

With seamless integration into various eCommerce platforms like Shopify, Wix, WooCommerce, and Magento, ILS takes the hassle out of logistics by automating key tasks. By choosing ILS for your logistics management, you can save time and money on shipping.

Learn the fundamentals of logistics and how it plays a vital role in global supply chains. Dive into the details here!

Conclusion:

Logistics management and its efficiency and importance can be maintained in a growing or successful e-commerce business. The seven functions that are essential for the e-commerce business namely order processing, inventory management, transportation, warehousing, packaging and handling, information flow, and customer service, are the founding pillars of logistics management.

For an e-commerce business to expand globally and have increased engagement, keeping up with the newest trends as customer expectations and technology evolve is important. Businesses that master these functions will always have a competitive edge by delivering outstanding services and making customers feel valued.