There’s no denying the fact that efficient order fulfillment and shipping operations, along with streamlined warehouse management are pivotal for an e-commerce startup’s continued success. As a backbone of international trade, the global logistics industry was worth over $10.41 trillion in 2022. And with the acceleration of global e-commerce expansion, customers increasingly expect affordability, reliability and delivery speed.
Meeting these demands requires strategic coordination across warehousing, packaging, route planning, carrier partnerships and more. Fortunately, there are several best practices startup founders can implement to set up their fulfillment operations for success.
Logistics Software
Mile offers an integrated logistics and commerce platform tailored for complex delivery operations. This shipping and logistics management software leverages AI and machine learning to optimize all logistics workflows — from route optimization and live tracking to payments and warehouse management.
Key Features
- Predictive dispatching and capacity planning to distribute and route orders efficiently
- Direct store delivery features to manage field retail operations
- Integrated loyalty programs to improve customer retention
- API integration with accounting, e-commerce, and other systems
As an all-in-one system designed for logistics, Mile provides a centralized platform to eliminate fragmented solutions. With deep industry expertise and rapid product evolution, they warrant further evaluation when assessing software needs.
6 Best Logistics Tips for E-Commerce Startups
With the logistics industry projected to exceed $14.08 trillion by 2028, the time is now for e-commerce startups to build resilient logistics strategies. Here are six best tips to master the e-commerce supply chain:
- Charge competitive shipping rates.
Streamlining shipping rates is vital for any business looking to thrive in a competitive market. By carefully considering weight tiers, speed options, and specific zones, you can create a shipping pricing structure that aligns with industry standards and sets the stage for success. Consider conducting a comprehensive analysis of competitors and engaging in meaningful discussions with carriers to benchmark and optimize your pricing strategy.
- Maintain efficiency in fulfillment workflows.
Efficiency in fulfillment workflows is a crucial driver for cost reduction and improved customer satisfaction. Fine-tune order workflows from the outset to lower costs associated with reverse logistics. Use standardized packaging to ensure consistency in every shipment and build a recognizable brand. You may also consider integrating advanced technologies like barcode scanners and automation bots to streamline and automate routine manual tasks, and reduce errors and enhance efficiency.
- Choose the right warehouse model.
Consider the following aspects when selecting the proper inventory warehouse and storage:
On-Demand Warehousing
It is flexible and easy to set up using pay-as-you-go variable capacity from specialist providers. But costs can add up if order volumes spike before operations are streamlined. An alternative like ReadySpaces co warehousing gives companies of all sizes flexible solutions with plenty of shared amenities and no contract after three months
3PL Logistics Partners
Consider outsourcing the process to an integrated logistics specialist to achieve complete fulfillment operations. While this option tends to be more affordable, especially at higher volumes under long-term contracts, it does come with the trade-off of relying on an external partner for your logistics needs.
Self-Managed Warehouses
Running your warehouse space allows for end-to-end customization and control as it requires upfront real estate investment and ongoing staffing expenses. Carefully weigh factors like cost structure, degree of control, scalability potential and internal vs external resourcing requirements when selecting the right warehouse and fulfillment model.
- Have multiple shipping partners.
Partnering with several leading carriers not only prevents over-reliance on a single carrier, it also ensures affordable and on-time delivery and unlocks additional benefits such as improved end-to-end visibility, and same day and weekend deliveries.
In this regard, leveraging Mile’s extensive network of over 200 integrations will connect you seamlessly with top regional and national carriers, thereby facilitating a well-rounded and efficient shipping approach.
- Reduce risks through insurance.
Mitigating logistics risks through adequate insurance coverage is a proactive step toward protecting your business. Securing errors and omissions, inventory, and cargo insurance provides comprehensive protection against unforeseen challenges. The best part is you can always tailor insurance solutions according to the specific inventory and shipments, and minimize risks effectively.
- Stay dedicated to operational improvement.
ln a dynamic business environment such as that of logistics, analyzing key business metrics affords a great opportunity to identify underperforming areas and improve operational workflows. The 2022 KX and the Centre for Economics and Business Research (CEBR) report shows that 80% of the 1200 surveyed companies experienced a combined revenue increase of $2.6 trillion and cost reduction of $321 billion by implementing real-time analytics.
Bonus Tip
At this point, it’s also important to highlight that sustainability is not a buzzword anymore — it’s a vital aspect of modern businesses. So, if you want to position your startup as a responsible and forward-thinking industry player, consider adopting sustainable practices as part of your continuous improvement plan. You must also constantly align your sustainability projects with industry standards to show your ongoing commitment to reducing your environmental footprint.