Why is Logistics Management so important?

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Importance of managing logistics

Remember when only local stores and restaurants offered ‘home delivery’? For everything else you had to visit the store itself. But today, millions are using e-commerce stores to buy their day-to-day products. Ever since ecommerce adopted the concept of ‘home delivery,’ it has grown at a phenomenal rate. All this became possible due to one major factor – Logistics Management.

Do you know how big ecommerce is?
The estimation of the Global eCommerce sales was $5.8 trillion in 2023. It may
surpass $8 trillion by 2027 (Source).  

Logistics management has been bridging the gap between the dealers and
customers.

So, what is Logistics Management?

Logistics management involves organizing, executing, and overseeing the movement and storage of products. Besides goods, it includes services and information, too.

Logistics management involves several activities:

  • Sourcing
  • Planning
  • Tracking
  • Warehousing
  • Transportation
  • Inventory Control
  • Customer Service

Users ordering the product is only the first step. After the order placement, there are several steps. These include packaging, handling, shipping, and finally, ecommerce delivery of the product.

A problem can arise during any of these steps.

Efficient logistics management is vital to tackle these problems.

Let’s have a look at some common ecommerce delivery issues that businesses face.

Five most common ecommerce delivery issues

1. Wrong product delivered

A customer is always happy when the product they order exceeds their expectations. Now imagine if the customer gets a different product altogether!

It often happens that customers receive the wrong product during an ecommerce delivery. Wrong products break the customer’s trust. It may create a negative impression in their mind.

2. Delayed Delivery

Many businesses send orders in bulk to reduce logistics costs. This may lead to delayed deliveries. Also, improper shipping and handling can cause a delay in delivery.

Customers expect their product within 5-7 business days. Due to the delays, customers may lose trust and switch to other sellers.

3. Increasing Return Rates

With increased misdeliveries and delayed deliveries come increased return rates. Ecommerce sellers have to bear the extra expense of picking up a returned product. Excess returns can result in huge losses and a negative reputation with buyers.

4. Negative Reviews

What is the first thing customers check when they get interested in a product? Yes, you’re right – The Reviews.  Good reviews are the best marketing tool for any brand.

Customers may or may not trust the sellers, but they trust other customers. Especially their reviews. Which makes it important to have positive reviews.

So, is there a way out?

Of course, there is. Logistics Management is the answer to all the above problems and more!

Logistics management minimizes the above problems with advanced technologies like automation and AI. Both these trends are modernizing logistics management and helping ecommerce businesses grow.

Logistics Management Done Right – iThink Logistics

iThink Logistics solves ecommerce delivery problems and assists you with efficient logistics management. We use AI-driven technology to streamline the logistics of ecommerce businesses.

Here’s how iThink Logistics can help you:

  • Reduced Misdeliveries

Now, stay assured that your customers will get the right product. iThink Logistics has an automated shipping process. We confirm the product and its specifications before it is out for delivery. We do this with the help of dedicated virtual calling software.

  • Minimized Non-Deliveries and Returns

iThink Logistics has a dedicated NDR team to resolve all the non-delivery issues. The NDR concept is very popular and results in reduced non-delivery rates.

  • Improved Customer Satisfaction

Ecommerce businesses can track orders in real-time with the help of automation. Offering customer support and updating the customers becomes a piece of cake with the help of AI.

Conclusion

When it comes to ecommerce, a good reputation is dependent on positive customer reviews. Successful ecommerce delivery guarantees customer satisfaction and encourages customers to write positive reviews.

Logistics management is at the core of successful ecommerce delivery and customer satisfaction. But,  managing logistics while focusing on manufacturing and marketing is not easy.

The solution? Let a dedicated logistics provider handle it for you! Outsource it to someone who knows the in and out of what is logistics management. Partner with iThink Logistics for efficient and smooth logistics management. Sign up and start shipping today!

Get your preferred courier partner to deliver your product with iThink Logistics.