Logistics is, without a doubt, one of the great challenges for all those who have their own business. Whether you are an entrepreneur, an SME or a large-scale brand, finding the best system for shipping your products requires understanding and incorporating the logistics concept of distribution.
It is a term that could be translated as the action of planning several specific activities so that the shipment of the products is carried out in the best possible way, in an optimized way, reducing costs and speeding up times.
These tasks range from creating inventory with available stock based on demand to providing a reverse logistics system in the event of returns.
Distribution logistics add intangible value to brands, which can define the user’s shopping experience. For this reason, it becomes necessary to start with stock planning and recognize if there are sufficient quantities to meet demand.
Organized shelves will make the search for a product easier and you can even speed up times by packing those that have a higher turnover. The task of processing a package is the first that suffers when the sales volume begins to grow and you do not realize that it is time to .
How distribution logistics works in SMEs
The logistics process can be divided into a virtual store. For entrepreneurs, the best is the office from the post office. It is the most traditional system, where the seller packs your package and takes it to the chosen post office.
SMEs that acquire a greater volume of shipments make use of the collection system. In this instance, several packages are put together on the same day and a logistics company is asked to stop by the premises or warehouse to pick them up. They are in charge of sending them to the address chosen by the final consumer.
With this practice, a certain professionalization of the logistics process is acquired in the hands of specialists who dedicate all their knowledge to this task.
Undoubtedly, the marketing strategy must be in line with the decision of which logistics operators to choose to send the packages.
Transport companies usually have areas where they arrive in less time or at a lower cost. Knowing them and using those strengths in favor will become a differentiator for online stores.
And, finally, the big brands opt for the : they send their stock, or part of it, to a warehouse so that a company takes care of the entire logistics process.
Practical example of distribution logistics
An example of how distribution logistics is applied to the growth of an SME, we see reflected in this case. A vehicle auto parts factory with premises in CABA decides, after several years of selling in a traditional way, to open its online store. , upload your products, and start with the first sales.
At the beginning, the seller closed the premises and went to the post office to dispatch the sales. When the volume began to grow, they opted for the collection service: a delivery company, with motorcycles and utility vehicles, would pick up the packages once or twice a week and take them to their destination. Sometimes it was the address of the final consumer and other times the branch of a mail company to send to the interior of the country.
Finally, when the demand for some of their products grew exponentially, they divided their stock: a part remained in their store and they continued to send it with a collection; the other was sent to a fulfillment warehouse so that the logistics process of those clients becomes even more optimized.
They invested in distribution logistics and achieved better delivery times, more satisfied customers and, therefore, more sales.
How to choose a company that offers distribution logistics services
Before choosing which logistics providers to make shipments with, it is necessary to define the areas of influence that the business you want to start will have. Planning the logistics to deliver only in AMBA will not be the same as wanting to reach the interior of the country.
In the same way that brands specialize in a certain product, mail companies also have their “strong” areas where they arrive in less time and at a better price than others. Understanding which ones are best suited to your business is a fundamental point.
The daily dealings with different mail companies can be cumbersome and difficult to coordinate between so many shipments and recipients. Such platforms solve this point, integrating with Tiendanube and having all logistics providers in one place. This optimization of logistics and allows customer loyalty.
By using a platform that groups the entire logistics process in one place, not only costs are reduced, but delivery times are speeded up. In addition, you can offer the reverse logistics service and provide one more solution to the customer in case of returns.
Analytics and reverse logistics: everything that happens after a shipment
The are a reality and the distribution logistics process contemplates them. Whether due to a wrong purchase, product failure or mishandling of the package, a customer may want to return what was received.
The logistics sector has a great challenge at this point, because coordinating all the efforts so that a package reaches the client is a daily task that they are used to. But doing it the other way around implies organization.
Having a logistics provider that provides reverse logistics solutions is a differentiating point against the competition and will allow you to save money and time.
Without going any further, in the face of a claim of this type, the best thing you can do as a seller is to solve the problem for the customer. Then, it is up to attend what can be improved so that returns are as few as possible.
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Distribution logistics completes its cycle with the analytical information that is produced and that you can use for your benefit.
Every logistics process generates multiple information such as:
- areas of the country with the highest request for shipments,
- cities that are reached with the best time range,
- cheaper or faster logistics providers and
- up to the degree of incidents of each one.
This is information that contributes to the continuous improvement of the logistics process and will result in the reduction of errors and the possibility of offering a better service every day.
We hope that these tips will allow you to better organize the logistics of your business. And if you have a Tiendanube, get to know all the ones you can integrate into your online store.
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