Logistics Technology: The Secret to eCommerce Growth?

Jordan Packer

Jordan PackerOperations Manager of Effective Logistics

Thursday, May 21, 2020

eCommerce is growing at an unprecedented rate. But how does logistics technology play a role in the growth of ecommerce?

Article 4 Minutes

The internet has brought significant changes in the way people do business, and with the growing number of logistics companies using new and effective ways of getting products to the buyers, transporting goods has become seamless. This paved the way for the rapid growth of ecommerce. 

Understanding ecommerce and logistics

Electronic commerce refers to buying and selling through the internet. Almost all kinds of products can be purchased online at any time. Once you complete a transaction, your purchases will be delivered within a few hours or days, depending on your location.

People prefer shopping online because of the convenience it offers. They can window shop, choose what to buy, pay online, and expect to receive their parcels on the estimated date of arrival. Keeping the end users satisfied is the primary aim of internet marketers. Enhancing delivery services may require adopting the latest logistics technology for the best results.

Online shops keep their stock in warehouses run by a third party who engages in the logistics business. These storage buildings are strategically located in several countries or regions around the world.

Once an online purchase is made, the nearest depot to the customer’s place of residence is identified. The product shall be pulled out from this place so that travel time and shipping costs are reduced to the benefit of the customers.

Logistics modern technology and the benefit

An excellently planned distribution procedure must be adopted to ensure that goods reach clients in the fastest and most efficient way through the latest technology.

Robotics and automation

The adoption of robotics and automation can compress work in warehouses. With the use of robots and automated forklifts, it can halve the time it takes to pack items. As depots have shelves that reach the ceilings, it’d be impossible for humans to extract products from the highest levels. By using the appropriate technology, more work can be done with fewer people to pay, allowing you to make significant savings. The packing cost is greatly reduced, which can translate to reduced shipping fees.

The application of innovative analytics can help maintain safety and computer security. Many companies have been hacked by cybercriminals, several of which can result in pandemonium. Extended work hours to meet the rising demand can result in more accidents involving delivery transportation. To prevent this, stringent safety measures must be observed. By using the latest analytics technology, you’ll be able to monitor whether employees are following safety and cybersecurity protocols.

Enhanced transportation management systems

Enhanced Transportation Management Systems (TMS) make it easier to locate and communicate with vehicles while transporting goods. Confusion regarding schedules, loads, payments, and carrier management can be avoided. Delays caused by heavy traffic, road accidents can be preempted, and everyone can be directed to safer and clearer routes.

Artificial intelligence

AI can be used to forecast:

  • Highly in-demand products
  • An ideal location for storage facilities
  • The safest and quickest routes to reach a specific destination at a time specified in the order form

Allowing AI to deal with inventory, accounting, and other back-office jobs can increase productivity, avoid costly errors, and cut costs.

Mobile apps

The use of mobile apps can increase efficiency in accomplishing tasks that used to be time-consuming and confusing. It also gives workers the ability to share data wherever they are and resolve issues through group apps. By adopting this technology, mobile apps can make it easier and faster to do:

  • An inventory
  • Track shipments
  • Manage a fleet
  • Track orders
  • Provide accessible customer service

Logistics technology and ecommerce growth

The use of new ways to devise and implement plans for a seamless distribution strategy has boosted the growth of ecommerce. Doing business online would never prosper without the means to move the purchased products from the point of origin to the end user.

In ecommerce, consumers always ask the following questions:

  • Can I receive my item faster?
  • Is the shipping cost minimal?
  • Can I return an item if I’m not satisfied?

The answer to all these questions depends on your logistics provider.

The biggest contribution of logistics technology to ecommerce growth is the development of cost-effective solutions so that online companies can experience enhanced sales and activity for its continuous growth.

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Jordan Packer

Operations Manager of Effective Logistics

Jordan Packer is the Operations Manager of Effective Logistics in Australia. He specializes in freight forwarding, warehousing, goods transportation, and logistics (including third-party logistics).

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