E-commerce Logistics Process

The e-commerce logistics process involves following steps

  • Mega e-fulfillment centers where the merchandise is stocked and picked at item level. These facilities, which are either operated by the retailer or a logistics service provider, are typically 500,000 sq ft to one million sq ft in size, or even larger. They often operate 24/7.
  • Parcel hubs/sortation centers which sort orders by zip or post code so that they can be delivered to the relevant parcel delivery center for final delivery to the customer’s home or designated collection point.
  • Parcel delivery centers which handle the ‘last mile’ delivery to the customer

All above, requires seamlessly integrated technology where shopping carts connect via API, web xml or some other connection to a transportation management system so shoppers are getting the exact price quote of shipping.

Following are to be accomplished along with the shopping cart for better logistics management:

  • Ability to organize and track shipment no matter what mode
  • Online order status and documentation
  • Online dispatch documentation and invoice, such as a bill of lading and freight invoice
  • Auto reminder for payments
  • Seamless interface with existing SCM or ERP system
  • Online alerts for critical information via text or mobile
  • Information systems reports on past data analysis, delivery history, etc.
E-commerce Logistics Models
Inventory-led model

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