Benefits of Logistics Management Software for eCommerce

Overview

One of the most difficult challenges of running an online store is handling logistics. Without the proper tools and knowledge, it’s very easy to mismanage and incur delivery delays. Here’s when logistics management helps ecommerce businesses. 

Instead of burdening your team with various tasks, you can leverage logistics management software to digitize multiple tasks. So how exactly do these platforms work? And what shipping processes can brands digitize? 

That’s exactly what we’re going to cover in this article. Read on to learn what logistics management is and its benefits for your business. 

What is Logistics Management Software?

At its core, logistics management software allows you to access key information, from every warehouse to last-mile delivery, making your supply chain efficient. With the right data readily available, you can view the status of each order and track your stock. It is a key proponent in inventory management and warehouse management.  

Further, you can also use these platforms to assign specific deliveries to multiple carriers, optimize routes, integrate with third-party software, and track your shipping metrics. The goal of any order management system is to streamline logistics operations across your entire supply chain operations. This includes performance tracking for third party logistics providers, inventory tracking, accurate demand forecasting, and automating manual processes in your logistics systems.

7 Benefits of Logistics Management Software for eCommerce

Below, we’ll dive deeper into the various benefits of logistics management software for online stores. The right logistics management process can make your delivery process smoother and maximise operational efficiency - a must-have for ecommerce businesses trying to ensure customer satisfaction. However, keep in mind that each platform is different and may provide more/less advantages than the ones we’ve listed. 

1. Automation 

The biggest advantage of using logistics management software is its ability to automate multiple processes, such as label printing and carrier allocation. This helps you reduce manual effort and save time spent on repetitive tasks. Many systems use artificial intelligence to make informed decisions for smooth operations.

In fact, you can even reduce errors by setting up pre-set rules for assigning orders to carriers. Further, you also gain the ability to expedite order processing and generate AWB labels automatically instead of typing in your customers’ details every time. A good logistics software can be the key to a competitive edge in the fast-moving ecommerce industry.

2. Real-time inventory control 

Knowing where your inventory currently is and how much you’ve left is crucial for any online store. Without real-time inventory information, your team can forecast demand trends and make strategic preorders to avoid stockouts at the last moment.  

This is also helpful for showing website visitors if a certain product is in stock or not. For instance, if you run an apparel shop and a specific t-shirt is not available, you won’t have to manually check with the warehousing team to display its unavailability in your store. Demand planning tools can further help you ensure you manage inventory levels effectively.

3. Freight control 

A major aspect of starting an ecommerce company is procurement. Adding to the point above, brand owners must ensure that they regularly order raw materials at the right time to ensure adequate stock as per demand. This typically is done in larger shipments called freights. 

Normally, you’d have to take updates from the supplier directly. However, logistics management software lets you manage logistics operations via inbound freights control and digitally handle tedious processes like customs documentation, reducing the likelihood of human error.

4. Route optimization 

This isn’t strictly necessary since reputed carriers tend to choose efficient routes to save fuel costs. However, if you manage internal delivery agents, route optimization can help you ensure drivers take the best paths and reach their destinations quickly. This is a surefire way to see improved customer satisfaction.  

Efficient routes also ensure your vehicle doesn't require maintenance very frequently and keeps overtime wages at a minimum, helping you spend more on other things like growing your company. Fleet management plays a huge role in cost reduction for any ecommerce logistics system, as does timely deliveries.

5. Integrations 

Integrations play a big part in how efficient any software is. Instead of going back and forth between different platforms, they let you share data easily. Logistics management software often provides integrations with various ERPs, marketplaces, and carriers. You can also integrate with warehouse management systems, transportation management systems, and even customer relationship management systems.

A wide range of integration capabilities allows you to import orders from your current sales channels, keep track of all carrier data, and monitor your shipping records—all under one roof. Having consolidated data also helps you expedite analytical reporting, which we’ll cover in more detail below. Again, these go a long way in avoiding human error in business operations and connecting with logistics companies.

6. Analytics 

Modern-day logistics relies heavily on analytics. You can’t make important changes to supply chain processes unless you know where things need attention. With logistics management systems, you can obtain real-time accurate data on shipping trends, inventory counts, carrier performance, etc. 

These statistics help you compare data within different timeframes and identify any shortcomings. Once you know where inefficiencies lie, you can take appropriate measures quickly.

7. Live tracking 

The average modern customer wants to know where their parcel is in real time. While normally you can extract tracking information from your carrier’s website and send it to customers manually, it’s not efficient when your order volume increases.

Logistics management systems enable you to set up tracking pages for each order which automatically fetches tracking data from couriers and displays it to customers. Some may also provide notification features, enabling you to send milestone-based updates to customers across multiple communication channels, such as WhatsApp, email, or SMS.  

ClickPost—The Logistics Intelligence Software Revolutionizing Shipping for Leading Ecommerce Brands

Integrating logistics management software with your system offers all or the majority of the benefits above is the one you should aim for. ClickPost—a logistics intelligence platform provides you with the best shipping and supply chain solutions. 

From automatically delegating orders to obtaining live carrier performance, you can easily control various logistics processes. Here are some of ClickPost’s biggest strengths: 

Overall recommendation

Overall, logistics management solution is a must for any entrepreneur running an online store. Its benefits allow ecommerce brands to take charge of their shipping processes and automate time-consuming tasks. 

From inventory control to data analytics tools, the right logistics management software provides multiple benefits that help you make your supply chain management more efficient, fulfill orders on time, and enhance customer satisfaction. If you’re considering buying one, try out ClickPost and see why 450+ global brands trust it.