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5 Best Logistics Tips for E-commerce Business Owners

Tips for E-commerce Logistics

5 Best Logistics Tips for E-commerce Business Owners | Image Source: Pexels

No matter what kind of business you have, logistics are the same. The critical elements can be modified to suit the requirements of each firm, but they remain fundamentally the same. The word logistique comes from the French and refers to organizing and executing undertakings. Therefore, logistics in e-commerce is the process of effectively planning, carrying out, and controlling all the processes related to an organization, from shipping and handling to the storage of goods inside and outside of organizations, in order to ensure that delivery deadlines and their quality are held in high regard.

Despite being a critical element of any enterprise, logistics acquires a special significance in the electronic commercial world. This is due to the need to balance the physical and digital informational flows that are essential to the industry. In effect, this entails simultaneously managing physical goods, internet payments, and social network comments. In this manner, while the practice of applying logistics varies, the goal stays the same. The logistical principles must be modified for the virtual firm.

For instance, it is crucial to preserve the security of online operations at all times, which calls for training information technology specialists, as well as collaboration between vendors, carriers, logistics managers, and emailers themselves. Consequently, the security component is handled differently in the sector, even if it is present in logistics related to physical retail, which highlights the distinctiveness of the logistics application in both types of business.

It is futile to run a web-based firm without spending enough time and effort on logistics and organizational concerns. The process of fulfilling orders and delivering products is the most problematic aspect of virtual business, must be taken care of in order to maximize profits, avoid losses, and obtain a satisfactory financial return. This is particularly true when there are significant promotions, which leads to an increase in the volume and intensity of purchases.

The four phases of selling in E-commerce

According to us, there are four stages of selling a product in a virtual store:

  1. Order preparation: the customer locates and recognizes the goods, takes in the knowledge he needs to make a decision about the purchase, and then authorizes payment for the item, sending the order to the website.
  2. Order processing: phase two is when the website and organizations that facilitate online payments (such credit card processors and virtual security providers) examine the order and determine whether to validate it or not.
  3. Order confirmation: The merchandise is reserved and ready for transport once payment has been allowed and confirmed. In this stage, the delivery time is started to be tracked.
  4. Delivery: Delivery completes the virtual business’s logistical cycle.

5 Best E-Commerce Logistics Tips

Following these stages, here are five e-commerce logistics tips to help online business owners:

Closer alignment between the physical and virtual cycles

The physical cycle must be used in conjunction with the virtual cycle to match its speed and usefulness. Building a successful plan for order processing, order execution, and order delivery is crucial for this. It’s essential that we deliver the product on schedule. In this aspect, effective preparation is vital.

Have a logistics platform management interface

Whether or not your ecommerce website outsources its logistics, having a system of this kind will make your work easier and be advantageous to the customer. The customer may monitor the progress of his order, and the business owner has more precise and efficient control on his goods inventory.

Invest in order return management

Allowing customers to return items is a good approach to keep them as customers and make their shopping experience more convenient. To do this, however, it is vital to keep a mechanism in place for adding the product back to the stock, pay close attention to quality control, and discard any products that are not fit for use.

Pay close attention to your customer relationship

Information management plays a big part in logistical problems in online enterprises. It is essential to pay close attention to the administration and return of this interactivity in order to manage orders efficiently as well as consumer feedback. E-commerce is a logistics success when items are delivered on time, with quality, and when this policy is combined with efficient and prompt customer service.


This recommendation is optional; if the business owner chooses to do so and is able to do so financially, he or she may hire a professional company to handle the logistical aspects of their company. Although effective internet firms owe a lot of their success to excellent logistics, the cost can occasionally be higher, but the rewards may well be worthwhile.

If you need any kind of logistical support, don’t hesitate to get in touch with us.

7 Best Tips for Inventory Management To Avoid Losses

Tips for Inventory Management

7 Best Tips for Inventory Management To Avoid Losses | Image source: AR Racking

Inventory management is likely the most crucial success component if you sell products through an online store. Actually, it’s extremely easy to do that. Imagine launching a successful marketing campaign and seeing sales orders pour in, only to discover that the product is actually out of stock. As a result of only investing in an expensive marketing strategy, you immediately miss the point. The fact that customers have to wait longer than expected for a product that is not in stock will also make them dissatisfied.

In a nutshell, a situation to avoid. Your stock flows must be managed as effectively as possible. After that, you confirm that there is enough stock on hand. However, stock management offers much more than just the quantity of a certain commodity in stock. We’ll offer you some pointers for managing your stock in this article.

Read also: How to Manage a Warehouse: The 10-Step Guide to Logistics Management

What is Inventory Management?

Before we offer you any advice, let’s define stock management for ourselves. Controlling the movement of items within your business is inventory management. As a result, you maintain accurate records of the products that enter and exit your warehouse or storage facility. You should make every effort to keep storage expenses as low as possible because it costs money to store goods. How? For instance, by keeping the goods on hand for a brief length of time. Long-standing inventory in your warehouse does not make money!

However, you must keep adequate inventory on hand to meet demand. Finding a healthy balance is an art. Thankfully, it’s not a wet finger job, but with efficient inventory management, you can optimize the product flows coming in and going out. In the end, this will result in increased sales, happier consumers, and profit maximization. You also develop committed and repeat consumers in addition to satisfied ones! Seven suggestions that can improve your inventory management are provided below.

1. Track stock

Of course, the first thing to consider is whether or not the stock is being monitored. It is crucial that you map your stock and gather enough information. You may use the variety of valuable information in this data as a business owner. So, using this information as a basis, you can come to wise and informed conclusions. There are various methods for tracking inventory. We briefly mention them here.

  • Using a manual pen and paper
  • Using Excel or a similar software on a PC
  • With a WMS system that continuously monitors the stock

Your needs will determine which method you prefer. We generally recommend using a WMS system because it is precise and may generate numerous intriguing statistics on its own. A WMS system costs little money, but it can save a lot of time and cut down on errors to an absolute minimum.

2. Use one stock management system or WMS system

The first tip actually brings us seamlessly to the second tip. We absolutely recommend that you use a stock management system. Such a system will help you with stock management. You can control the flow of goods perfectly and have them move through the warehouse in a certain flow. Thanks to a WMS system, you can process orders more efficiently. For example, you can process orders in bulk while the system indicates the most logical picking route through the warehouse based on the created warehouse locations.

Yet too often we see entrepreneurs using multiple ways to manage stock. Collecting data from different sources is very time-consuming and increases the risk of errors. So you have to opt for one centralized system.

3. Create insight into the stock data

When an online store first opens, it frequently has a small selection of items, but that number quickly grows. It’s critical to properly organize data so that you can maintain an overview of the whole spectrum. If you don’t do this, there’s a good possibility that you’ll gradually lose the overview and end up choosing the wrong course of action.

You need to use items like Stock Keeping Units (SKU), stock costs, lot numbers, expiration dates, warehouse locations, supplier information, and courier information to acquire insight into the stock data.

We also remark that using a WMS system and maintaining a well-organized stock go hand in hand. You can process all of the stock information in a WMS system if you use one.

inventory management tips for companies

7 Best Tips for Inventory Management To Avoid Losses | Image source: Adobe Stock


4. Avoid stock loss

Many companies begin with the notion that a product they buy will actually be sold. You may frequently turn around from a long journey if you start with this idea. Inventory loss is inevitable. The trick is to keep stock losses to a minimum because they can drastically lower profitability.

Damage, theft, lost storage, expiration dates, and administrative mistakes are just a few of the many factors that can lead to inventory loss. Administrative mistakes account for 15% of stock losses, according to research. Some issues, like theft, are out of your hands entirely, but you do have complete control over management. A stock management system can help here as well! But another choice is to outsource the logistics. A fulfillment partner is highly skilled at controlling a huge inventory. A fulfillment partner can reduce inventory loss from damage, improper storage, theft (better security), and administrative mistakes to a level that you will never be able to reach.

Feel free to contact us to take care of your logistics!

5. The turnover rate

Selling items that are not in stock makes no sense logically. However, a lot of online retailers are able to run out of their best-selling items. This not only results in lost sales opportunities but may also discourage customers from visiting the store again. A situation  ought to be avoided at all costs! How do you stay out of this dilemma? by figuring out your products’ turnover rate. These calculations allow you to more accurately predict when you should place your order and how long it will be until the stock runs out. Always consider the supplier’s delivery schedule.

6. Get started with obsolete inventory

Of course, some things sell more slowly than others. These goods frequently find themselves in a neglected spot. Also avoid doing this, because it keeps you from buying new inventory and drives up warehouse costs, obsolete inventory can lower earnings. You may avoid these mistakes and eventually enhance profitability by effectively managing inventories. Additionally, as the market gets overrun with innovations, the value of outmoded inventories is falling.

The turnover rate is not the appropriate measure in this situation. Although sales are high, you can still have a poor turnover rate. Because, for instance, there is a lot of stock. We need to identify the inactive supply in this instance. A report with the idle stock is promptly displayed by an inventory management system. Once the inactive supply has been identified, it must be cut off. Conducting focused marketing initiatives will help you achieve this.

7. Map out all costs

Managing your inventory involves more than just keeping track of the goods you sell. You must budget all costs if you want to have a profitable internet store. So factor in expenses for things like storage (warehouse), shipment boxes, packing supplies, and mailing labels.

The profit margin can be calculated using these expenses. A crucial task that every entrepreneur should do!

4 Main Types of Transportation in Logistics

Types of transportation in logistics

Types of Transportation in Logistics | Image Source: Google Images

You will be able to plan long, medium, or short distance routes and the preparation of delivery routes by choosing the best possible combination of means of transport after studying the Transport and Logistics Training Cycle. You will also be able to carry out import and export operations of goods with the highest level of accuracy.

Additionally, it informs you of the logistical options the market provides in compliance with the laws now in effect as well as the goals set by the management of the organization within the parameters of quality, safety, and environmental respect.

Types of Transportation in Logistics:

1. Maritime transport

People or goods are moved from one geographic location to another by maritime transit. It is carried out at sea, i.e., aboard a boat, ship, etc.

People are now more frequently traveling by sea via short voyages or cruises as a result of the rise in commercial aviation. Large ships are mostly utilized to deliver products through international waterways in this respect.

For its dependability and adaptability, maritime transportation is unparalleled. In order to accomplish this, the industry has a vast number of ships with various features that are tailored to the requirements and the type of cargo being transported (oil tankers, bulk carriers, container ships, roll-on-off, etc.).

Main characteristics of maritime transport

  • Substantial storage capacity for bulk or container loads (a container ship can carry up to 165,000 deadweight tons)
  • The best method for transporting heavy material between two geographically remote locations is by sea.
  • Due to the improvements in highways, combining maritime travel with other forms of land transportation is very prevalent.
  • Since there are ships of all sizes that can accommodate various types of cargo, they represent a flexible and adaptable form of transportation.

2. Ground transportation

One of the most common methods for moving items in the logistics industry is via land transport. It is the most popular for short travels inside the same region or nation, yet it can also be utilized as a form of international transportation.

This method of transportation is made feasible by the enormous road network that has grown through time and allows commodities to quickly go to the opposite end of a country.

Main features

  • It is always done by road.
  • You can transport goods or people.
  • Promote door-to-door delivery service.
  • Allows the transport of patients in emergencies.
  • Allows you to transport dangerous materials or products
  • The costs are cheaper than air transport.

Furthermore, it enables you to deliver any kind of product because there are numerous ways to carry the goods. For instance, perishable items can be sent using vehicles that are designed to keep them fresh for a specific amount of time. However, compared to cheaper train transportation, this option may be more expensive.

3. Air transportation

As a result of the technological advancements made throughout the 20th century, it is the most recent kind of transportation. The fundamental distinction between this mode of transportation and others is the lack of physical impediments; all that is required for takeoff and landing are flat surfaces of land. The ability to move things quickly is its most crucial characteristic, and because of this ability to move things quickly, the usage of cargo planes for moving goods has grown in recent years.

Aeronautical technology is also making enormous progress in logistics-related tasks since it equips airplanes with engines that are more fuel-efficient.

Advantages of air freight transport

  • There are no physical obstructions, making it able to go uninterrupted.
  • It is the fastest form of transportation there is, which is crucial in terms of logistics.
  • Simple access: The many forms of air transportation may move cargo that other land- or sea-based transportation methods cannot.
  • Due to the speed of transportation, it is ideal for transporting expensive or perishable commodities over great distances.

4. Rail transport

The various rail modes are flourishing as a result of public concern over pollution and climate change. It is perhaps the least polluting medium overall from an ecological standpoint.

It is possible that the transportation is best planned in terms of the routes and set schedules. Compared to other forms of transportation, like ships or airplanes, for instance, its service is consistent and reliable.

Advantages of rail transport

  • Large volumes can be transported due to the size of the vehicles utilized to convey the goods.
  • In comparison to other modes, rail transportation is inexpensive.
  • Furthermore, we must take into account the fact that its high capacity enables the transport of huge volumes, thereby minimizing the number of trips.
  • Different types of items can be transported via rail freight. As a result, it is quite flexible.
  • Compared to other forms of transportation, it has a lower rate of accidents and pollutants.
  • Traffic and traffic congestion issues are avoided by using rail transportation.

What is Internal Logistics: Importance, Elements and Examples

What is Internal Logistics

What is Internal Logistics: Importance, Elements and Examples | Image Source: Google Images

If you are wondering what internal logistics is and what role it plays in guaranteeing the supply chain in any company, in this article we will tell you everything you need to know about it.

What is internal logistics?

To answer what internal logistics is, it is necessary to first understand what logistics is in general. We talk about logistics to refer to the set of processes and operations that allow the development of the flow of materials and products throughout the supply chain. For its part, to talk about what internal logistics is is to refer to the part of logistics that takes place within the company itself. In contrast, we speak of external logistics when logistics processes and flows take place outside the company itself.

Both internal logistics and external logistics are two basic logistics concepts and fundamental in the supply chain as a whole. In this way, both are key elements for a company to have comprehensive logistics that fully supports operational processes.

Read also: Outbound Logistics: What Is It and What Is Its Importance?

Importance of internal logistics

Now that we know what internal logistics is, it is worth asking why it is important and how it influences the production process as a whole.

The importance of internal logistics is that it allows the supply of materials and products to all operational units within the production chain of the same company. In other words, the importance of internal logistics lies in the fact that it is what allows the entire production process to function in an orderly and coordinated manner, guaranteeing the internal supply chain and that each of the production phases is carried out avoiding shortages. or bottlenecks in the process.

Elements of internal logistics

There are different elements of internal logistics that can vary within a production chain according to their own characteristics. However, in most cases, we can talk about at least 5 types of internal logistics elements that will always be present in any example:

Technical data: it is the information that must be processed in order to know and manage the internal logistics process.
Personnel: is the set of workers who act to carry out internal processes. For example, the operations manager.
Facilities: it is the space and machinery that allows internal logistics processes to be carried out. This includes, for example, everything related to warehouse and logistics.
Training: includes all the training of personnel that trains them to carry out their work efficiently.
Computer resources: it is the set of software that allows the management of technical data. That is, logistics information systems.

Internal logistics activities

Internal logistics activities are varied and, according to each production process and company, they can vary and adapt to specific conditions. However, there are 3 internal logistics activities that will always be present in any case:

Warehouse management: refers to everything related to storage logistics.
Coordination of information flows: it is one of the essential activities, and is usually carried out by the logistics coordinator.
Internal transport of materials and products: the internal transport of materials and products is what allows all the elements of the production chain to work efficiently and in coordination with each other, and constitutes one of the main objectives of logistics.

Examples of internal and external logistics

You can find various examples of internal and external logistics that help to understand the functions of each of them and their differences:

Example of internal logistics

One of the easiest examples of internal logistics to understand is the need to transport materials from one place to another within the production space. For example, the transport that is carried out of the materials throughout the transformation process that allows them to be manufactured for their subsequent sale.

On the other hand, once products have been manufactured, they need to be stored until they are shipped and distributed to buyers. This storage process is also one of the best examples of internal logistics that all companies dedicated to the production of consumer goods must carry out.

Example of external logistics

When it comes to talking about examples of external logistics, we can find them both before and after the materials are transformed at the production site. For example, the supply of raw materials for a factory is an external logistics task. However, when raw materials have been transformed and turned into manufactured products and leave the factory to be distributed and sold, we are also facing one of the main examples of external logistics.

These examples of internal and external logistics are common to most companies, since they are particularly general and necessary in any production chain and subsequent supply to consumers.

Outbound Logistics: What Is It and What Is Its Importance?

All about outbound logistics

Outbound Logistics: What Is It and What Is Its Importance? | Image Source: Google Images

In the supply chain, the outbound logistics phase, also known as distribution logistics, is when the product is delivered to the location where the client wants it. This accomplishment is the outcome of a strategy that benefits the consumer as well as the processing and shipping of the goods. Distribution channels are connected to outbound logistics. Specifically, the frameworks developed to facilitate the sale of the goods and their delivery to the final customer. This phrase is also used to refer to the so-called “last mile logistics,” though. It is the final step in the distribution process and is given more and more weight in the logistics plan of the company.

Read also : Inbound Logistics: Everything You Need to Know

Outbound logistics functions


The phase of supply chain management known as outbound logistics is in charge of getting the goods to its customer. In actuality, this destination could be the final consumer, a different corporation, or a business. It’s crucial to remember that logistics don’t just apply to transportation. Outbound logistics also covers additional tasks even though transportation is a crucial component. A mong these:

  • Choose the packaging’s type and size. As part of supply logistics, the business receives goods from vendors. On the other hand, at the distribution stage, the company turns into a supplier to its clients. One of the specifications in this field is that the goods must reach the customer in good shape. Determine the vehicles used to convey the goods. One must first take into account the unique characteristics of the merchandise. On the other hand, vehicles’ types, speeds, adaptability, and sizes.
  • Distribution areas. The distribution area, a key component of outbound logistics, affects costs in many ways.

Although outbound logistics covers a wide range of other topics, the aforementioned three roles are interconnected. Additionally, all of the other participants in the chain will take into account the decisions the organization makes in this regard.

Outbound logistics challenges

a logistics truck

Outbound Logistics: What Is It and What Is Its Importance? | Image Source:

The major goals of distribution in the logistics industry are to ensure maximum customer satisfaction while maintaining dependability and flexibility of delivery with optimal profitability.

When put that way, it sounds easy. But reaching these goals requires dealing with a number of difficulties:

  • Plan the transportation modes and routes between the production and the demand or delivery sites.
  • Flexible storage is a must. Demand and supply frequently do not match up in time.
  • Sync up the quantities being provided and received. The business must come up with a way to serve diverse clients in partial quantities.
  • Ensure that whole assortments may be delivered to certain recipients. The delivery of specific items from the various manufacturing points to one or more clients must be ensured by outbound logistics.

Source of:

Distribution logistics, also known as output logistics, is a method for organizing, carrying out, and managing the flow of commodities over a period of time and space.

For this, it is vital to ensure communication and information exchange between suppliers and customers, as well as to have detailed information flows.

In essence, a system for the exchange of goods and information between various companies is the foundation of outbound logistics. Designing a logistical channel from supplier to client that operates profitably and achieves predetermined goals is thus a significant problem.

Distribution logistics models

Let’s talk for a brief while about the many models that are used to create an outbound logistics system.

Decentralized: The industrial sector’s most popular. It is based on distribution facilities or warehouses located closer to final consumers.
Centralized: It enables distribution route planning and lowers costs compared to the prior paradigm.
Cross docking: It involves a quick movement of goods from the supplier to the customer rather than any product storage.
Consolidation platform: A strategic cooperation for the distribution of goods from several suppliers.

Are you looking for outbound logistics solutions for your business? The experts of logistics in Canada have more proposals.

Was this knowledge useful? Send us your feedback in the comments!

6 Benefits of Using an External Warehouse

External Warehouse

6 Benefits of Using an External Warehouse | Image Source: Flickr

One of the best options for businesses trying to streamline storage and logistics to offer consumers speedier service is an external warehouse. These areas have grown with the growth of electronic commerce and the emergence of more businesses that need to increase their storage capacity.

The external warehouses are in charge of managing and controlling the stock in addition to receiving and shipping orders and storing the goods, saving businesses from having to invest in their own warehouses. Its primary benefits are as follows:


Benefits of an External Warehouse

1. Cost optimization

Owning your own warehouse requires a significant financial and time commitment.

By avoiding the need to invest in these areas, warehouse outsourcing transforms what would be fixed expenditures into variable costs that may be adjusted based on the level of business. The same may be said for time spent looking for a warehouse, recruiting specialist staff, exploring technology, modifying facilities, etc.

2. More technology

An external warehouse that oversees the products of multiple clients has more money to invest in cutting-edge automations and technology than a small, in-house warehouse. The WMS software (Warehouse Management System), merchandise identification systems (by barcode or by radio frequency), shipping order traceability systems, alert systems, and interaction with other systems, such as the customer’s ERP, are some of the fundamental components of the warehouse.

A customized dashboard can also be set up by an external warehouse so that the client can track the selected metrics and/or provide ad hoc reports. As a result, the client continues to be aware of the warehouse operations.

3. Management experience

Many businesses who are just getting started are able to benefit from this experience thanks to the assistance of an outside warehouse. By doing this, they avoid having to deal with the common mistakes made by individuals who are new to the field and begin from a favorable position.

4. Strategic location

External warehouses are placed in strategic locations to speed up transportation. To speed up the process, they are typically situated in regions with good road links and near proximity to major cities.

5. Security and error prevention

An external warehouse is equipped to handle the requirements of many different types of goods and has the knowledge and experience to identify potential pitfalls and mistakes in advance. Additionally, they use surveillance tools to guarantee the integrity and security of the shipment.

6. Added value

Utilizing an outside warehouse service that adds value to your business, such as solidarity value, is an option.


Why You Should Hire Us for Your External Warehouse Needs?

External Warehousing

6 Benefits of Using an External Warehouse | Image Source: Flickr

You can manage your inventory with the utmost flexibility using the logistics service of 3PL Links. This service offers personalized attention, a thorough approach, and consulting, supply, storage, order preparation, industrial handling, transportation, distribution (possibly with a sustainable and inclusive last mile), reverse logistics, and customer service.

Ask for more details, and we’ll explain what we can do for your business. We are backed by our more than 25 years of expertise dealing with prestigious organizations like Toronto Steel Buyers & Associates, Food and Beverage Ontario, Toronto Transportation Club, etc.

Visit contact us.

Inbound Logistics: Everything You Need to Know

A board saying logistics

Everything You Need to Know About Inbound Logistics | Source: Picpedia

The tasks associated with the delivery of raw materials are handled by inbound logistics or supply logistics to guarantee their availability throughout the production process. Given that it is a subject that every businessperson should be knowledgeable about, it is a crucial logistics function in the supply chain. We will address the following topics in this article:

  • Inbound logistics definition and significance.
  • Duties of inbound logistics.
  • Identifying traits of effective incoming logistics.
  • Components of the inbound logistics.
  • Advantages of correctly applying this form of logistics.
  • Strategies for efficient inbound logistics that you can use in your business.

We also remind you that you can leave us your questions or contributions concerning the entry procedures in the comments area if this information is helpful to you and other entrepreneurs who require it.

What exactly are inbound logistics?

Supply logistics, which encompasses all tasks involved in receiving goods, is in charge of making sure that raw materials are affordable and readily available in accordance with the company’s production needs.

Inbound logistics functions

Supply logistics’ primary functions are:

Relationship with suppliers: To establish the terms of raw material deliveries, suppliers are bargained with in a way that benefits both parties.

Stock planning: Stock planning is the process of choosing the right amount of inventory to keep on hand given production demands and consumer demand. It also involves deciding when to place a new order to maintain product traceability.

Inventory control: Managing storage procedures to reduce time, resources, and expenditures.

Importance of inbound logistics

The supply logistics of a company is important because:

  • It handles the products’ receipt in an appropriate manner.
  • The forecasting of demand is also improved.
  • Additionally, it makes it easier to choose a model from the inventory.
  • Allows for performance analysis.
  • Manage the supply flow effectively.
  • The traceability system is also defined.
  • Lastly, communicate information instantly.

Elements of inbound logistics

These are the fundamental elements of supply logistics:

Supplier: Companies in charge of supplying raw materials are known as suppliers.
Warehouses: Areas used to store sufficient quantities of goods.
Transport: They are in charge of moving the goods from the warehouse to the relevant stage of the production process.

Inbound logistics characteristics

Here are the aspects that characterize supply logistics:

  • Pick vendors who provide better supply conditions, better raw material quality, and more affordable costs.
  • Makes sure delivery deadlines are met.
  • Adequately handles warehouse control and inventory management to maximize the use of resources.
  • Takes into account the demands and wants of both the company’s primary market and its area of production.

Inbound Logistics Benefits

Efficient supply logistics provides three main benefits to companies:

  • Processes are carried out according to schedule, thanks to the timely availability of raw materials.
  • Cost savings through supplier negotiations.
  • The company’s productivity and profitability will rise as a result of good supply chain operation collaboration.

Inbound Logistics Strategies

Inbound Logistics Management

Everything You Need to Know About Inbound Logistics | Source: Picpedia

We present some of the most effective strategies to improve the performance of supply logistics in companies:

  • Vertical integration: In this situation, a backward vertical integration method would be used. This technique entails purchasing the primary raw material source in order to have more control over supply.
  • Outsourcing: Delegating the duties of incoming logistics to a professional outside the firm is known as outsourcing.

Examples of Inbound Logistics Strategies

The Spanish clothing retailer Zara is one of the organizations that best demonstrates the backward vertical integration strategy. Zara was in charge of purchasing from its primary fabric supplier in order to have better supply control and to improve the performance of the manufacturing.

How to achieve adequate inbound logistics?

Here are some tips to improve your company’s supply logistics:

  • The first step is to improve connections with suppliers.
  • The second step is to evaluate market demands in order to develop logistical strategies.
  • Structure and organize the warehouse’s spaces after that.
  • Then it defines a stock area for items with a greater turnover rate.
  • It’s crucial that you make sure the goods are stored at the warehouse for the least amount of time feasible.
  • Finally, put controls in place to prevent mistakes.

Now, we can conclude that:

  • Conducting operations connected to the supply of raw materials constitutes inbound logistics.
  • The major duties of supply logistics include relationship with suppliers, stock planning, and inventory monitoring.
  • Selective, effective, efficient, and analytical skills are necessary for excellent incoming logistics.
  • In order to implement inbound logistics, suppliers, warehouses, and transportation are essential components.

It’s time to put everything you’ve learned in this article into practice to enhance your company’s inbound logistics and make it easier for production goals to be met, which will boost output and profitability.

Understanding Supply Chain Management

supply chain management chart

Understanding Supply Chain Management | Image Source: Google Images

Supply chain management: a competitive advantage

The entire planning and production process, from product development to management software, is referred to as the supply chain and is part of the delivery of a good or service to a third party.

Two streams of supply

We can consider that there are two different flows that make up the supply: physical and administrative (informational).

For the sending and receiving of data, orders, invoices, etc., the administrative flow is required.

The physical flow is the technique of getting the requested item to the recipient by truck, train, boat, etc.

The supply complies with all external restrictions. The first rule is to deliver the goods in accordance with the requester’s preference at the appropriate time, price, and cost.

Read also : How to Manage a Warehouse: The 10-Step Guide to Logistics Management

A competitive advantage

The main objective of better supply chain management is therefore to aim for competitive advantage by optimizing the various processes at work.

What does a standard supply chain look like?

By improving the numerous processes at work, improved supply chain management aims to provide a competitive edge.

Customers, suppliers, and the company are all included in a basic supply chain. For illustration:

  1. Manufacturer of raw materials
  2. Industrial manufacturer
  3. Distributor
  4. Retailer
  5. Customer

It is only possible to improve performance and raise customer satisfaction through the effective management of the many links in this chain.

Two major supply management challenges

Demand and Supply

Understanding Supply Chain Management | Image Source: Google Images

The Amazon Effect

Companies are under pressure as a result of the expansion of e-commerce because customers who want their products delivered on time and around the world must have faster delivery times.

The “Amazon” effect makes all products instantly available to everybody, anywhere in the world.

Companies are improving their supply chains and increasing stock rotations to make sure they have the correct amount of stock at the right time and in the right location in the world, avoiding stock shortages and surpluses in the process. To lower expenses and boost cash flow.

These requirements pressure businesses to consider a supply chain that is adaptable, resilient, and above all, ideal at meeting changing consumer demands.

Towards a responsible supply chain

The supply chain is a significant economic market that has grown in tandem with our society’s globalization and the expansion of trade flows.

Large corporations’ strategy are now centered on social, societal, and environmental challenges, and their supply chains are typically connected to their corporate social responsibility (CSR) efforts.

Organizational practices include selecting partners and suppliers, lowering energy costs and greenhouse gas emissions, adhering to legal requirements and upholding ethical standards.

The challenges of supply chain management for leaders

The three primary difficulties for COOs and supply chain directors in 2022 are as follows, following Roland Berger’s study “The Strategic Challenges of Operations in 2022”:

  1. Demand Instability
  2. Supply disruption risks
  3. Risks of price increases brought on by rising demand and capacity constraints

Therefore, the market and demand uncertainty is a big source of stress for operational managers. In order to address these issues, supply chains must be more digitalized and their resilience must be strengthened.

Benefits of Outsourcing Logistics Services | Advantages of 3PL Services

Outsourcing Logistics

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What is logistics outsourcing?

Utilizing one or more logistics service providers to handle all of your logistics needs, from inventory management through order preparation and delivery, is known as outsourcing logistics.

This directly and broadly translates to the organization having more warehouses and fewer personnel, which a fortiori means that your transport and logistics plan will be optimized.


Transferring one or more business operations to a qualified outside service provider is known as outsourcing. Due to this outsourcing, the business is able to concentrate on its core business.

Feel free to contact us for any of your logistical requirements.

How to effectively outsource your logistics?

Should you or shouldn’t you outsource your logistics work? Create a road map before responding to this occasionally difficult inquiry. Because it’s better to outsource effectively if you’re considering doing so!

Define the goals and circumstances of any possible outsourcing to help you select the best choice for your company. The following is a list of crucial considerations:

  • Compare the costs of internalizing versus outsourcing logistics: the constant and accounting costs as well as the less quantifiable costs, such as what you might gain or lose in terms of job quality, for instance;
  • Take into account the price of closing your warehouse and the cost of your business’s transitional period.
  • Do not be afraid to compare estimates from other service providers and benchmark them;
  • In order for your outsourcing to be successful, you must build a genuine, long-lasting relationship of trust with your logistics provider. The goal is not just to solve your logistical problems;
  • You will also need to collaborate on your company’s internal projects, such as developing financial reports or opening up to global logistics.

The benefits of outsourcing out your logistical operations

a female logistics worker

Benefits of Outsourcing Logistics Services | Advantages of 3PL Services | Image Source: GettyImages

There are a lot of advantages to outsourcing. This enables the company to exclusively concentrate on its main business by giving control of its logistics to an expert who will unquestionably be more effective.

Lowering risks for both your employees and your company

By outsourcing your logistics, you may remove a lot of restrictions while lowering possible risk for both your staff and your business:

  • It’s no longer your responsibility to maintain or replace equipment used in the supply chain;
  • Managing driving hours and adhering to regulations;
  • Accounting management;
  • The hiring, training, and replacement of workers when necessary;
  • Administration of the workforce (payroll, hiring, firing, sick leave, etc.);
  • The workforce can be adjusted to your seasonality and activity peaks without incurring additional costs for human resources (recruitment, training, taxes, etc.).

Focus on your business

A business must prioritize its product and commercial development as well as its marketing plan. However, logistical issues frequently take over, necessitating such rapid reaction that businesses have less time to build their core businesses.

The benefits of outsourcing logistics are therefore numerous:

  • This enables the business to concentrate on its primary business;
  • The organization gains access to a logistics specialist through its external service provider, who can assist it in enhancing specific aspects of its supply chain, such as order processing or deliveries.
  • Because of its own partners and negotiated pricing, your service provider may be able to reduce logistical expenses by up to 10% as a result;
  • It gives you more flexibility in regard to your sales (connected to the season or your growth) because your service provider can adjust to your increased activity more readily than you can;
  • A third-party service provider can help you expand your company globally if it is already well-established in the nation where you intend to expand.

Entrusting your logistics to a logistics services expert could be a smart move if your company lacks agility and logistical issues are affecting your main business. On the other side, you will have better control over internal flows if logistics is at the center of your operation.

The 3 key points to remember:

3PL Service Provider

Benefits of Outsourcing Logistics Services | Advantages of 3PL Services

  • Because there are several logistical issues in a company’s daily operations, outsourcing logistics enables you to concentrate on your main business. Utilizing a professional service provider frees you from a substantial number of administrative and technological restrictions.
  • But if you have the proper technical and human resources, internal logistics also allow you to better regulate flows and costs.
  • This issue needs to be taken into account, be the focus of specifications, and be the topic of an exact comparison of the costs associated with outsourcing vs insourcing.

Reverse Logistics Solutions by 3PL Links

Reverse Logistics Solutions by 3PL Links

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Dealing with customer feedback is most businesses’ least favorite task. Today’s supply chain managers are primarily concerned with streamlining the movement of goods from suppliers to customers. Reverse logistics is in the same predicament as the product inflow into warehouses 20 years ago, when businesses were more concerned with the product outflow. Contrary to what its name might imply, reverse logistics really operates in the exact opposite manner by handling numerous consumer returns and, unless a better option exists, may even send them back to suppliers.

All businesses are concerned about reverse logistics, regardless of where they are in the supply chain. The first thing that comes to mind is the high number of returns that retailers have to deal with, particularly during certain times of the year, like just after the holiday season, but it goes beyond that. Since returns have an impact all the way down the supply chain, this is really just the tip of the iceberg.

You are welcome to get in touch with 3PL Links at any time for all of your logistics needs.

Some of our reverse logistics solutions to better manage your returns

The fundamental steps of a returns management process are the same regardless of the company. These are the main points:

Analyze the current situation:

What are the causes of return to your business? What is your current return policy? What process do you have in place to deal with them? What volume do you deal with annually? How do your customers rate your performance? How do you position yourself in relation to your competitors? Here are some questions that should allow you to establish your priorities in terms of managing returns.

Define your returns management strategy:

Analyze how effective returns management could help you lower expenses, enhance customer service, and even boost revenue. At this point, it is appropriate to assess some unique ideas, such as the option of either selling a product that no longer meets our quality standards on a secondary market rather than destroying it, or even disassembling the return into spare parts that can be used to make new products or sold as replacement parts. Once your goals have been established, you can create your returns policy in accordance with them.

Designing the Future Returns Management Process:

It is significant to remember that the returns management process starts long before the goods is returned. From the very beginning of the product development process, refunds should be taken into account.

Decide between outsourcing returns management or not:

Outsourcing this management will, of course, allow you to concentrate on your core competencies and avoid incurring the costs of acquiring this knowledge, or even profit from the cost reductions offered by the subcontractor’s knowledge. But one thing is certain: like every outsourcing choice, it ultimately comes down to evaluating the advantages and disadvantages and economically quantifying each.

Continuously reassess and improve the process:

Although this phase is present in every process but is frequently skipped, leaders are nonetheless responsible for it. As said so eloquently by the CEO of a major online art retailer: “Our strategy is to process returns promptly, while striving to keep them to a minimum.” The success of this business is most definitely not unrelated to this mindset.

Implementing best practices

Reverse Logistics Solutions by 3PL Links

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There are some standard procedures that should be followed while creating a new returns management process. First, depending on the nature of the goods and the purchasing/distribution network, it is frequently suitable to allow returns through a specialized center or call center. This allows for the very first diagnostic and helps to prevent illegal returns, such as those where the consumer has not completely grasped how the product works or where the return is prohibited by the company’s return policies because of the date of purchase or for any other reason.

As soon as the returns are received, you must make sure to follow them through every step of the processing procedure and in accordance with the kind of returns. It may be useful to centralize their processing if the volume processed is high. This is particularly true when vendors need a certain quantity of products before they’ll accept a return. A return request can be sent to the supplier, pick-up instructions for returns can be issued at the warehouse, and labels and other delivery documentation can be printed once the minimum volume of products held in a common area is reached.

From challenging issue to tactical advantage

All firms face numerous issues related to returns, but what better way to begin realizing the need for management improvement than by assessing what it costs you in terms of returns? Then, consider how you could take advantage of your input to boost sales or enhance customer experience. This is a question that some businesses have posed to themselves and have found satisfactory answers. Who knows, maybe you’ll be able to use this challenging issue as a tactical advantage as well.

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