The COVID-19 pandemic has inevitably given rise to a booming global e-commerce market that offers abundant business opportunities. In 2021, international retail e-commerce sales significantly amounted to an estimated US$4.9 trillion. According to the Global E-commerce Sales Worldwide study by Statista, this figure is expected to grow within the next few years by at least 50%, up to US$7.4 trillion by 2025 — India does not fall behind when accounted for independently, either. In a similar report by the Statista Research Department, India’s e-commerce market value of approximately US$84 billion in 2021 demonstrates a high potential for growth and opportunity.
However, with growing customer expectations and stiff competition internationally, business logistics management plays a pivotal role for companies looking to leverage the e-commerce boom for increased revenue and profit, and is an aspect that must be intentionally integrated into the core of supply chains. By understanding the critical nature of corporate logistics and learning how to deliver frictionless order fulfilment, businesses can better meet customers’ needs and secure a competitive edge over others in the industry.
Here are five reasons why every company needs to implement good business logistics management if they want to succeed:
Executing smooth deliveries without delay or hassle helps companies ensure their products and services arrive punctually. This prevents potential consumer dissatisfaction and helps build brand reputation in terms of business reliability. It can also help companies stimulate cash flow liquidity, especially if funds are only charged upon receipt. This, in turn, allows for healthier financials to optimise operational efficiency. It can also help companies stimulate liquidity processes if fees are held in escrow or charged upon receipt, allowing for more effective conversions of customer equity which feeds up cash flow for healthier financials.
Although business logistics management can be complex, companies have the option of working with third-party shipping companies to effectively and consistently meet the needs of their customers. By working with a team of experienced specialists, businesses can rest assured all tasks relating to safe and prompt shipping, storage of goods, and delivery of products are professionally handled — at no expense of delivery time whatsoever.
There is significant demand today for fast yet easy accessibility to goods. Efficient business logistics management can help companies fulfil this without compromising on the quality of their products or quantity of sales. However, corporate logistics does more than merely meet a need; it also helps improve the shopping experience for customers.
Furthermore, with the opportunity to establish more touchpoints with consumers, you can leverage feedback platforms and the likes to tune in to customer opinions and address any distribution or logistics-related concerns. In turn, your company can make the necessary amendments to your processes and address customers' issues in new and improved ways. In the long run, this empowers businesses to efficiently develop their operations around a customer-centric model that constantly enhances not just the shopping experience, but overall customer satisfaction and loyalty.
Apart from ensuring timely delivery of your goods and satisfying customers, having an integrated approach to business logistics management can help your company optimise operations. By strategically directing inventory, delivery routes, and all else entailed by corporate logistics, businesses can allocate just the right amount and type of resources to carry out their tasks and save on expenses while maximising profits.
Practising proactive business logistics management can also help your employees better identify products that are low in stock and place supply orders before stocks run out. This way, your company puts itself in a better position to leverage high-demand periods for increased sales revenues.
While having sufficient stocks and timely re-orders can greatly benefit your business, well-planned logistics management can also help your company remove unnecessary costs. By accounting for every step of your shipment journey, you can identify areas that are underperforming or unnecessary for your business. You may then choose to remove them from your operations or make alterations such that operation processes can be standardised and streamlined accordingly. In doing so, businesses can reduce expenses and channel the funds into other departments where greater return on investments are possible.
To further reduce business expenses, work with a third-party shipping company to select the best shipping and delivery routes that make financial sense. Consider your shipping needs, whether you require international or regional shipping and normal or express shipping. With these considerations in mind, align your business accordingly with the logistics company to ensure your products reach your customers through the most cost-friendly, safest and fastest method available.
Working with a corporate logistics company to stay competitive in the global e-commerce market is a method of logistics management many businesses leverage today. Not only does doing so guarantee smooth delivery of your products, but it also helps provide exceptional experiences for your customers and the opportunity to further streamline your company’s operations for optimal performance and returns.
As the world’s leading logistics provider, DHL Express helps businesses offer efficient and timely delivery of products and services to customers internationally. With a wide network span of more than 220 countries, you can rest assured that your logistics needs are best met with DHL Express. Open a business account with DHL Express today.