What do you do if your E-Commerce logistics system is underperforming?

Big topic, small response space: Underperforming e-comm logistics needs a clear identifier as to which part of the system is failing - Platform order drop, inventory management, fulfillment activities, hand-over, partner failures, middle mile, last mile. In short, systems failure, inventory failure, process failure, delivery failure, and pick it up from there as each has its own unique set of 5M type evaluations that will likely lead to root-cause. In many cases the weak section has a domino in both directions, upstream / downstream and a fix will give you immediate results while still requiring potentially weeks of further corrective actions. Start with the problem, how do you know and what are you able to validate. That leads you to area

Change it/Adapt it. Review the process, document and map all the necessary steps to fullfill an order, ensure that the systems update inventory on "real time", integrations need to be tight, having the proper webservices and the bandwith to support high peak seasons, reports of any discrepancy and/or the lack of information/files should be automatic. Finally make sure the humans using the system are well trained and verify that the UX/UI is complying with the operational requirements.

Imagine you have a big box of toys that you want to send to your friends all over the world. E-Commerce logistics is like planning the best way to pack, send, and make sure your friends get their toys quickly and happily. If our system isn't doing well, it's like some toys arriving late or broken. So, I would find out why the toys are late or broken, fix those problems (maybe we need better boxes or faster trucks), and always check to make sure every friend is smiling when they get their toy.

What gets measured, gets improved! Take a true partnership approach as logistics part is utmost importance to ecom businesses. Set the right/realistic KPIs like delivery days in metro cities, major cities and far fetched areas, number of attempts, TAT to close the parcel (In case of Return) etc. Communicate clearly with your partner and get agreement. Remain watchful and give heads up wherever something is going off the tangent. Take timely actions and your logistics partner performance shall come up to the mark InShaAllah!

If our e-commerce logistics system is underperforming, it's essential to address the issues promptly to minimize disruptions to our business operations and customer satisfaction. We may improve the performance of our e-commerce logistics system by : 1) Identify the Root Causes 2) Collaborate with Stakeholders 3) Review and Update Processes 4) Invest in Technology and Tools 5) Optimize Inventory Management 6) Focus on Customer Experience 7) Enhance Communication and Collaboration 8) Monitor Performance and Iterate 9) Seek External Expertise if Needed By implementing the above strategies, we can effectively improve the performance of our e-commerce logistics system & operations.

Si tenemos una empresa de logística que no cumple el SLA, que con el analisis de costo de mercado es mas alto, que tenemos alto nivel de fraudes o entregas fallidas, son las principales red flags de una empresa de logística con bajo rendimiento.

Identify issues and root causes. Collaborate with stakeholders. Implement process improvements. Provide training to staff. Monitor performance metrics. Communicate with customers. Pursue continuous improvement. Consider outsourcing logistics. Seek expert advice if needed.

E-commerce logistics is perhaps the single biggest cost centre in your PnL. Thus understanding if it’s underperforming is extremely crucial. Some of the points to look out for are 1. Am I able to utilize my resources well ? 2. Am I providing the service which is competitive in markets such as speed of delivery 3. Do I have lot of shrinkages such as fraud, returns, damages 4. Do I have a healthy unit economics 5. Do I have visibility of my inventory, movements in and out- are my items staying longer in the warehouse than anticipated Focusing on solving issues one at time depending on priority is the key

Signs of an underperforming E-Commerce logistics system include delayed deliveries, high shipping costs, inventory discrepancies, and frequent customer complaints about shipping times or product damages. These issues can significantly impact customer loyalty and your brand's reputation.

If your e-commerce logistics system is underperforming, it's crucial to address the issues promptly to minimize disruptions to your business operations and customer satisfaction. The signs include WMS issues, late dispatches, integration issues and timely updates.

To evaluate your E-Commerce logistics system, conduct a thorough audit of your entire supply chain. Assess inventory management practices, warehousing efficiency, shipping times, and costs. Also, consider the accuracy of order fulfillment and the condition of goods upon delivery.

To assess and enhance your online store's delivery and order process, follow these steps: Utilize Key Performance Indicators (KPIs): Monitor metrics such as delivery time, order accuracy, and customer satisfaction to gauge performance. Gather Customer Feedback: Listen to customers via surveys, reviews, and messages to understand their experiences and identify areas for improvement. Benchmark Against Industry Standards: Compare your metrics with industry benchmarks to evaluate your performance relative to competitors. Address Issues: Take proactive steps to resolve identified issues by adjusting processes, adopting new tools, or implementing changes to improve efficiency and customer satisfaction.

Evaluate the Current System is essential thing to start with and to get it done effectively you have to:- - Assess the existing logistics processes, including inventory management, order fulfillment, and shipping. - Identify bottlenecks, delays, or inefficiencies. - Analyze data to understand where the system is falling short..

Para evaluar el sistema logístico lo primero que debemos tener encuenta es el equipo de CX, es decir, como viene la satisfaccion del cliente con el servicio, si alli estamos OK, pasamos a los KPIs de la logística, SLA, Fraudes, OTIF, y dentro de los parametros de cada E-Commerce evaluar estos KPIs para definir si el sistema de logística es el correcto o debe ser reemplazado.

- Identificar a causa raiz do problema: Realizar uma análise minuciosa para determinar por que o sistema está apresentando baixo desempenho; - Escalabilidade da infraestrutura: Verificar se a infraestrutura do sistema pode lidar com o volume de tráfego atual e futuro; - Otimiza??o banco de dados: Consultas de banco de dados estiverem causando lentid?o, otimizá-las para reduzir o tempo de resposta; - Capacita??o da equipe: Garantir que a equipe responsável tenha o conhecimento e as habilidades necessárias.

Optimize Inventory Management: Ensure optimal stock levels by leveraging data analytics and demand forecasting to minimize stockouts and overstock situations. Utilize Technology for Warehouse Management: Implement warehouse management systems (WMS) and automation tools to improve inventory tracking, picking, packing, and shipping processes. Renegotiate Shipping Carrier Contracts: Negotiate with shipping carriers for better rates and terms based on your shipping volume and requirements. Explore Alternative Delivery Methods: Consider utilizing local delivery services, click-and-collect options, or third-party logistics (3PL) providers to offer faster and more flexible delivery options to customers.

Si nuestro sistema no cumple con los parametros minimos de servicio para el E-Commerce, lo mejor que se puede hacer es primero intentar mejorar el que se tiene para eviar posibles retrazos, perdidas de datos y monetarias. En el caso de que no se pueda mejorar, es realizar un analisis de lo que falta puntualmente y sumarlo como un must para el proximo sistema o servicio a sumar.

My previous experience proves that improving the logistics system by: Integrating Technology: Adopting or upgrading technology systems for better inventory management and order processing. Optimization of Fulfillment: Transitioning to models like FBA or using third-party logistics (3PL) providers to enhance fulfillment operations. Scalability Planning: Ensuring the logistics setup can scale up or down based on demand, which was particularly relevant for Cibo Vita during the pandemic. Customer Focus: Enhancing the customer experience through faster delivery times, accurate orders, and responsive customer service.

Atendimento! Simples assim! Um servi?o de atendimento que transmite ao usuário seguran?a vai mitigar falhas, assistindo ao cliente com todas as garantias de que ele está sendo visto, da importancia dele para a companhia, n?o obstante uma ouvidoria ativa que possa atuar conjuntamente no planejamento de todos os processos.

Improving your E-Commerce logistics system may involve several strategies, such as optimizing inventory management, leveraging technology for better warehouse management, renegotiating with shipping carriers for better rates, and exploring alternative delivery methods. Implementing an order management system can also streamline operations and enhance tracking capabilities.

Monitoring and maintaining your e-commerce logistics system involves implementing effective tracking mechanisms for real-time shipment monitoring. Regular performance assessments should be conducted to ensure timely deliveries and accurate order fulfillment. Utilize inventory management software to optimize stock levels and prevent shortages. Foster strong partnerships with shipping carriers to ensure efficient transportation. Continuously review and refine logistics processes for improved efficiency. Promptly address any issues that arise and gather customer feedback to enhance service quality. Invest in ongoing employee training to uphold operational excellence. Stay abreast of industry advancements to remain competitive in the market.

Siempre es importante el seguimiento activo de los sistemas de logistica, mantener una relacion comercial con dicho sistema y que se cumplan de ambas partes todo lo necesario para la continuidad en el tiempo. Hay muchas herramientas de seguimientos y que complementan esta relacion. En mi curso podran encontrar mucha mas info al respecto y complementaria referente a la logística de la Ultima Milla.

Monitor and maintain your E-Commerce logistics system by regularly reviewing key performance indicators (KPIs) such as delivery times, shipping costs, order accuracy, and customer satisfaction ratings. Use this data to make informed decisions and continuously refine your logistics processes.

Here’s what else to consider: staying adaptable and proactive in addressing logistics challenges is crucial. The E-Commerce landscape is constantly evolving, with customer expectations continually rising. Keep exploring innovative logistics solutions and technologies, such as AI for inventory forecasting or green shipping options, to stay competitive and meet customer demands effectively.

Foster a culture of continuous improvement within the logistics team by encouraging feedback, soliciting ideas for process enhancements, and implementing regular performance reviews.