CHALLENGES OF LOGISTICS IN ECOMMERCE

Logistics Costs

Payments and Billing

Omnichannel

Storage Nodes

Handling of Merchandise

Sustainability

Returns

Customer experience

Transport

Traceability

Applied Technology

Logistics costs include expenses related to resource acquisition, product distribution, and other expenses that make up a company's production, sales, and delivery chain. Managing logistics costs well goes beyond getting the product to the consumer.

Logistics costs generated in the storage and management of stocks. Logistics costs generated in internal transport. Logistics costs generated in the distribution of finished products. Logistics costs generated in Sales and Customer Services


Logistics cost of distribution, related to the transport of merchandise from the producers or distribution centers to the points of sale or final customers.


These are generally ground transportation costs.

Procedure to determine logistics costs


Establish the calculation bases of each of the elements of logistics costs by category. Prepare the report of costs and logistics services. Analyze the results. Validate the results.

What is logistic calculus?


This is the average number of days it takes for stock to run out. This calculation must be made during the last 52 weeks to have a reliable KPI that takes seasonal fluctuations into account and makes this logistics stock data more efficient.

The main form of payment that is known is through credit and debit cards, where each person must enter all the card information and can make their payments and purchases easily.

"E-logistics" is the term that designates the operations carried out by a company to complete an e-commerce transaction.


This set contains, in addition to digital actions, all the physical operations that are triggered when someone buys something online.

In essence, electronic commerce or E-Commerce is just the buying and selling of goods and services using the Internet, when you shop online. However, the term is often used to describe all of a seller's efforts in selling products directly to consumers.

The law requires that an E-commerce issue an invoice for each transaction. The invoice must be numbered consecutively. For tax purposes, in addition to customer and e-commerce tax information and the type of tax used for the transaction, you must also include the issue date of each invoice.


If the structure of the electronic invoice is reasonable, you will control your accounting and you will be able to comply with your tax obligations without causing problems.

Omnichannel logistics is the integration and management of the user experience of all the channels in the market that make up the sales process, from the way of making the product known with the marketing mix that is developed, to the management of inventories in warehouses, requests for deliveries or returns.

Omnichannel logistics is the synchronization of elements that make up multichannel logistics, so as to generate a shopping experience that meets what customers expect, that is, satisfying their needs as much as possible.

E-commerce logistics has the task of managing all the activities necessary to move the products, take them to their final destination quickly and efficiently and generate customer satisfaction. Let's see a summary of the points to be discussed: Warehouse management for e-commerce. The receipt of the merchandise.

The omnichannel warehouse


An omnichannel store is different from a traditional one, even though the space remains the same. The main difference is that an omnichannel warehouse must manage order entry online, from physical stores, and from other possible channels together.


The central axis of the Omnichannel strategy is to ensure that all its sales channels are synchronized with all the processes of its Supply Chain, offering not only a unique purchasing experience, but also granting the customer the responsibility of controlling and managing the How you purchase a product or service.

What are logistics nodes?


Logistics nodes are the important physical sites where the product is stored and distributed in its different production phases, be it distribution centers, urban hubs or, more widely and internationally, ports and airports.

What is a trade warehouse?


The warehouse is a facility that, together with the storage, handling, human resources and management equipment, allows us to regulate the differences between the incoming flows of merchandise (those received from suppliers, manufacturing centers, etc.)

Storing (keeping things in a warehouse, if possible in an orderly manner, to dispose of them when needed or convenient) is one of the two key functions of logistics. There are warehouses designed and managed as such. There are also (in a very common way) places that become a warehouse because it is the place where what was not known where to locate at a certain moment was deposited.


In general, a warehouse is not the main place of a factory or a trade. Many consider that it exists because there is no other choice, and for this reason it hides and squeezes in, occupying the available space in the best possible way, while they leave it until finally they tell it to move a little further because there it will have space and it will be better.

Warehouses are all the same, and all different. They must be different depending on the available area (and therefore its cost, and the cost of the neighboring buildings) and the height that the council allows you to build, and the availability of labor (and its cost). ), and the seasonality of demand and production...


The main problem with a store is its name. Except in the case that it serves to store in the long term, the function of the warehouse is not to store but to move what is stored.


A warehouse system (a warehouse for short) is a combination of processes and hardware that is included between two stages of a supply chain because it is capable of improving the chain's performance in terms of time and/or cost.

TYPES OF WAREHOUSES
It could be said that there are as many types of warehouses as there are warehouse facilities.


Because each type of warehouse is not only different depending on the type and quantity of product to be stored (and the load unit used), but also on the clients (number, type, frequency and size of orders) that it serves and suppliers (number and distance) that supply it, and even the workers that give it life.


There are warehouses that are in the open air, warehouses with a roof and warehouses with walls, and even with a roof and walls.

Cargo handling or handling covers all merchandise handling operations in warehouses, platforms and transport terminals, for the handling of merchandise, in addition to manual work which is necessary at certain times, various machinery that speeds up and It facilitates the tasks both in loading/unloading, as well as in storage and internal movements.

The handling and storage of merchandise is carried out by means of a series of equipment that allows minimizing handling and storage times, and contributes to efficiency.


Among them we can distinguish:

  1. Manual lift and pull stacker.
  2. Self-propelled stacker.
  3. Mixed stacker.

In logistics, handling is the phase during which goods or loads are moved in a logistics space, distribution center, factory or any other type of facility. This process can be manual, semi-automatic or automatic, depending on the handling equipment available.

Main security measures in warehouses


Have fire extinguishers marked and easily accessible. The warehouse aisles must allow the fluid circulation of the goods, ensuring a minimum width for handling and transporting the products within the warehouse.

The objective of sustainable logistics is to modify certain activities in the supply chain processes to make them ecologically respectful, that is, to maintain a perfect balance between environmental preservation and the economic growth of companies.

This consists of implementing an infrastructure where merchandise movements are expedited, executing them more quickly. Green storage is achieved with simple actions, from the use of sustainable construction materials and solar panels to the maximum use of natural light.

Saving money


The practice of ecological logistics implies the use of recyclable materials, optimization of the use of resources, better planning of distribution routes and digitization of processes. All these long-term measures translate into saving time and money for the company.

In the document, the national sustainable development strategy was defined as a coordinated, participatory and iterative process of reflections and actions to achieve economic, environmental and social objectives in a balanced and inclusive manner.

We can define it as a strategy in the field of logistics, which includes the recycling of waste generated by production or consumption activities. It is responsible for the recovery and recycling of containers, packaging and hazardous waste; and the process of returning excess inventory, customer returns and obsolete products.

Reverse logistics is a necessary condition and an opportunity to increase the quantity and quality of recycled materials.


Among the benefits that can be achieved, we find:


  • Environmental care
  • Reduction in costs
  • Reduction in the consumption of resources
  • Better relationship between customer and supplier.

Reverse return logistics: consists of returning the product from the end customer to the center of origin. This may be caused by customer dissatisfaction, wrong delivery, defective product, among other reasons.

Accuracy, efficiency and communication


It is mainly based on focusing the strategy on the client. It is understanding their needs and expectations, and always addressing their needs.


How to control the customer experience?

  • Determine business objectives
  • Be clear who the final consumers are
  • Improvement-

Strategies to generate a good experience


  1. Create a customer-friendly website that is eye-catching and easy to navigate. Products must be categorized to perform a quick and easy search. It is also very important that it adapts to mobile devices.
  2. Create a customer-friendly website that is eye-catching and easy to navigate. Products must be categorized to perform a quick and easy search. It is also very important that it adapts to mobile devices.
  3. Have fast payment options and purchase history as it is a very effective way to ensure that the purchase has actually been completed. If the checkout process is too complicated, most people will get discouraged and abandon the items in the shopping cart.

Crowdsourcers, couriers, transporters (walkers) 3P'LS, collaborative transport and sustainable vehicles.


Drones, robots and autonomous vehicles:
Autonomous cars and drones not only dispense with drivers, but make delivery possible 24 hours a day and solve much of this logistics. It is estimated that, in the next ten years, 80% of deliveries will be made by autonomous vehicles.

Collaborative transport:


It is based on the fact that, based on a correct alignment and structuring of collaborative processes, it is possible to achieve an increase in the productivity of logistics assets, particularly in freight transport vehicles, of the use of vehicular mobilization capacity.


There are 2 models:


  1. Load compensation: this strategy seeks to minimize the number of empty trips that return to the origin due to lack of identification of load generators. The following figure summarizes the objective and its benefits: Buy without compensation and Compensated Load.


  2. Cargo consolidation: this collaborative model seeks to maximize the use of vehicle capacity in the freight transport process, through the combination of different load generators in the same vehicle. The following diagram also presents us with a summary of the purpose of the practice and its benefits: Unbound Cargo and Consolidated Cargo.

Impact of identification standards


Both online businesses and buyers benefit from the application of traceability systems in an e-commerce.


Online store owners can find out how their distribution system works and if there are problems that they can solve to improve their efficiency.

The buyer will avoid feeling uncertainty about the arrival of his purchase and will improve his confidence in the company and future acquisitions.

These traceability systems are made up of:


  • Merchandise identification: with a standard language shared by all those involved in the distribution process. Some of the most common are the barcode or the SSCC.
  • Systems for capturing and recording data: they serve as a bridge between the online and the physical world. That is, they are data capture devices that obtain and record the information to retransmit it to software.
  • Data processing software: integrates data, processes it and shares it among all those involved.

The blockchain is a very important technology for sales in electronic commerce, for which it promises greater security in payment.


Technology that eliminates intermediaries, decentralizing all management, the records are linked and encrypted, thus protecting and ensuring the privacy of transactions.

New technologies are impacting international trade in various ways, lowering all kinds of costs, such as transport and logistics by monitoring and optimizing the use of vehicles, containers and routes; information costs.