In a developed economy like India, evolution of e-commerce logistics represents the latest big changes in logistics and physical distribution networks, which have evolved substantially over the past 45 years or so.
Let’s take a look at the Evolution of e-commerce Logistics.
What is logistics?
Logistics is referred to a supply chain management that allows various e-commerce business in shipping their products to their targeted destination
For example, think of the process like this. So, if you are a seller who makes homemade jewelry and sells them in your area. One day you decide to expand your horizons and sell your products in other cities, states and even countries as well. In order to make it possible, you contact a few logistics companies. Once you do that, these e-commerce logistics companies in India will outreach their services towards you and will help you to deliver your product to your customers in different places.
These delivery logistics will plan, execute and control the movement of your product through a confined shipping system. Once you tie up with a logistics partner, you will be able to deliver your goods hassle free.
Evolution of E-commerce logistics
Over the years, the module of e-commerce business has evolved. Not only did it affect the economy but also allowed various logistics industry to grow. These distribution networks have evolved massively in the last 40 years. Let’s take a look at this evolution in excruciating detail.
There is a broad evolution in various phrases that are explained through different timelines.
1. Back in the year 1970, different retail stores were replaced and direct deliveries were carried out by the suppliers and the wholesalers.
1. In 1980, different retailers decided to streamline their store delivery through distribution centers that would be controlled by them.
1. Later in the year 1990, these retailers started shipping nonfood products and the foundation of global sourcing took place. This allowed different retailers to set up their own import and delivery centers and exchange goods in a streamlined way.
1. After that, from the 2000s, as the concept of e-commerce started kicking in, these retailers started developing their e-fulfillment distribution network to keep up with people’s demand, all across the world.
Since then, these logistics are blooming at an equal pace as that of e-commerce and they are not slowing down. The sales and purchase ratio has increased massively and these e-commerce logistics are serving just the right purpose to make the whole concept possible.
Supply chain changed to e-logistics
Then: Supply chain worked in bulk. The products used to enter the warehouse in bulk and shipped out of the store in bulk. It was mainly useful for the wholesalers who sold products in a big amount.
Now: As the e-commerce flourished, various e-commerce logistics hub were set up. Here products started moving out in bulk as well as in the single piece. They invented a streamlined strategy to deliver products in a different part of the country through a recorded system. This is how different e-commerce started growing through the ages.
Evolution of e-commerce logistics setup in developed markets
The e-commerce growth has been extensively witnessed in the world of fashion, electrical goods, decorative items, and even in the food sector.
This wave has made it possible for various shipping partners in India to create a managed distribution center for different demands and has also divided the logistics functions. So as per the latest scenario, there are four different types of logistics.
Mega Fulfillment centers in e-commerce logistics
Different mega fulfillment centers in e-commerce logistics are stocked with different goods and the delivery boy picks from it at an item level. These logistics are actually huge warehouses that work on an area more than 500000 sq ft. They work 24*7 to allow delivery guys to pick up products any time they
Latest trends in e-commerce logistics has developed with Evolution of E-commerce Logistics
The technological advancements are not only building up a driving force for the entire logistics and e-commerce sector but also are transforming the way of a better living. These interconnected supply chains are letting businesses to build their online presence and outreach their products to different parts of the world. By collaborating different fields like transport, storage, and management, these logistics are providing service across the globe. There are a lot of latest trends are coming in into this sector and some of the top tech trends are given down below.
The digitization of the supply chain
Combining all the latest technologies, these logistics gave birth to the digitization and redesigned their logistics practices. This process has paced up their work process and allowed them to hold their position in this highly competitive business environment. The whole concept has not only improved the speed and dynamics but has also brought resiliency in the operations of these supply chain.
Through this method, these logistics companies not only witnessed the performance graph and but also increased their market revenue. The field is vast and there are a lot of transformative solutions available.
The digitization is helping them monitor their inventory, manage their warehouse stocks and also make detailed plans about the transport routes so that they don’t have to spend on extra dead mileage.
Using sAAs for managing supply chains
E-Commerce success depends on logistics. Therefore different companies are using up the software-as-a-service model to manage their supply chain operations.
The process has gained popularity as the functionality of cloud computing came into the market. This technology allows different logistics business to stave off high fixing cost and helps in easy maintenance with timely upgrades and also looks after the infrastructure-related expenditures.
Betterment of supply chain visibility
The better visibility and a correct supply chain analysis can help a business to grow significantly and forecast its growth for the future as well. Keeping the supply chain transparent and clear can be used to optimize the resources present in the inventory and can ease out their storage and transport process.
An unclear idea about the logistics resources that affect the overall functioning and create confusion during shipment and delivery. Thus an efficient supply chain handling is extremely crucial.
An improved GPS has been a big evolution of E-commerce logistics
One of the latest tech trends in logistics is the use of improved GPS. this helps in determining the real-location of the shipped product. Not only does it helps the customer, but also helps the organization to stay updated on the detailed information of the product.
Organizations can now easily track their delivery trucks and get the necessities done during any sort of trouble. This reduces fuel utilization and helps the truck reach its desired destination in a much faster way.
E-logistics using social media platforms
Content Marketing or E-mail Marketing strategies are not enough, Social media can impact your business in more ways than you realize.
Different social media platforms are now helping a lot of e-commerce and logistics to find a suitable way to coordinate with the customers. This is also useful when it comes to sharing business news, giving out information and working on customer feedback as early as possible.
Understanding third-party logistics (3pl)
The third-party logistics, often abbreviated as 3PL is a form of supply chain management that helps in outsourcing a company’s distribution, warehousing, and other fulfillment services. They specialize in carrying out various integrated operations and work on the market’s supply and demand. They also help in product transportation and even caters to storage and inventory management.
Over time, as the business of e-commerce flourished, there were a lot of logistics services that came to action. The 1st party logistics (1pl), the second party logistics (2pl), etc. These logistics were called to action to trade products to different countries as well. But a lot of management issues and other logistics constraints led to a downfall of these logistics. But as time progressed different businesses started re-evaluating with working strategies and gave birth to the third party logistics. These third-party logistics became way more polished and eased out a lot of previously present issues
How 3rd party Logistics Stands Out?
A 3rd party logistics provides outsourced logistics and transportation services to its customers. Their supply chain management includes several functions like inventory and storage management, packing and picking goods, shipping, distribution and many more. This type of logistics are not only highly advanced and one of the most dependable forms of logistics but also has its major advantages are discussed below.
Their services are flexible and scalable
One of the major ways in which these 3rd parties stand out is by providing a scalable mode of transportation. There is no place that these 3PLs can’t reach. They set up their inventory according to the location of different businesses and makes the product exchange between the buyer and seller much easier. Other than this, they help to outreach your business to new territories and allow you to grow every day.
It improves and optimizes your supply chain
Different 3rd party logistics, mostly like CG logistics help in improving and optimizing the supply chain to ease out the work of different e-commerce businesses. They leverage high-quality virtual calling systems, to pull back the e-commerce economy from the pit and provide a seamless service. These 3rd party logistics also offers tools that will ensure cost-effective functionality.
Conclusion
So the changes have been massive and the results have been great. Therefore the leap from a simple courier service to an enormous supply chain management has been one hell of a journey.
Hope we have covered the major points. Let us know in the comment section about how e-commerce logistics sector have affected your business.
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