Smart Logistics – Reach your destination faster with smart logistics

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Published on: July 6, 2021 / update from: July 6, 2021 - Author: Konrad Wolfenstein

Smart Logistics – Reach your destination faster with smart logistics – Image: Xpert.Digital & elenabsl|Shutterstock.com

Smart Logistics: Intelligent logistics solutions for small e-shops & start-ups

When it comes to maintaining efficient processes in the warehouse during growth phases, e-commerce startups quickly reach their logistical limits. The reasons for this are usually the lack of experience in handling the increased quantities and an internal warehouse management infrastructure that is only inadequately prepared for the growing requirements. This article shows that this does not have to be the case.

A rapidly increasing number of customers, a growing range of products and, as a result, a constantly increasing shipping volume: What seems like an ideal business situation for many retailers can quickly overwhelm companies. In order to continue to be well positioned in the tough competition, expensive investments (keyword free returns) are sometimes necessary, which attract financial strength and attention. In addition, the increased logistical challenges easily go unnoticed.

Anyone who does not invest in efficient structures will quickly lose touch, because functioning logistics is the guarantee for the business success of online retailers. What makes matters worse is that the logistics industry is constantly coming up with technical innovations. The use of drones in the warehouse for inventory and item management is no longer just a dream of the future. extended reality techniques such as augmented and virtual reality to efficiently control warehouse processes is also There is a risk, especially for newcomers, of getting lost. It is therefore advisable to carefully weigh up the pros and cons of investing in the technology in question beforehand and, if necessary, seek support from external consultants.

Challenges for online retailers

Operators of online shops and especially e-commerce startups face three logistical challenges to which they must find answers as quickly as possible in order to continue to be successful in business:

1. Scalability of systems

While modern web shops, and especially the innovative start-ups, are characterized by their flexibility, logistics systems are often the exact opposite: they are difficult to adapt to current developments. But especially in the growth phase, logistics processes must be able to grow flexibly. It is necessary that they are scalable both upwards and downwards and can be flexibly adapted to changes.

2. Fluctuating demand

Especially for rapidly growing start-ups, the demand that is difficult to forecast is a challenge. "When are my articles bought preferentially?" Or "Does the high demand for my products continue to be?" are crucial questions. If there is an incorrect answer, this leads to high costs and dissatisfaction with the customer. So reliable tools for the forecast of future sales quantities are required.

3. Returns management

Giving customers the opportunity to return their goods causes a lot of logistical effort and increasing costs - which increase even more if the returns are free. Especially for startups or fast-growing companies in industries with a high return rate (e.g. textiles, shoes), this quickly leads to the financial possibilities being overwhelmed.

Modern warehouse processes as a logistical answer

To ensure efficient processes, even with rapid growth, investments should be made in flexible and scalable logistics. Basically, companies have two options here:

1. Investment in warehouse technology

Inefficient shipping processes are a major danger for online retailers. Just because a small retailer stored the goods on his shelves in his own basement at the start of his business and sent them individually after receiving orders from home, he still has to do the same with 200 orders a day. As the product range increases, such storage quickly becomes confusing. This quickly leads to items being put together incorrectly, packaged inadequately and shipped far too slowly after ordering. What is annoying for customers in this case costs the online retailer money. Because customer satisfaction is a valuable asset and thanks to big players like Amazon or Zalando, buyers are used to a high level of shipping. Negative experiences therefore quickly lead to higher return rates and customers dropping out. This danger can be averted with efficient logistics processes and systems.

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2. Outsourcing

Outsourcing fulfillment to an external logistics service provider is an interesting alternative, especially for start-ups that cannot yet accurately estimate their logistics processes and handling volumes. This solution is a little more expensive than operating the area yourself, but the retailer is freed from the imponderables of in-house intralogistics management. In addition, professional handling of the fulfillment process can not only increase the quality of delivery, but also the profitability of the company. There are now a large number of fulfillment service providers who, in addition to storage and shipping, offer their customers a variety of extras such as shop management or professional photography of the items to be listed.

For a successful start in e-commerce, efficient logistics processes are the be-all and end-all. They can be achieved by consistently relying on powerful technology right from the start and not losing sight of the innovations in this area.

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That's why Xpert.Plus for smart logistics and high-bay warehouse planning : Smart Logistics with SEO, Extended Reality , IoT and Intralogistics 4.0

Xpert.Plus is a project from Xpert.Digital. We have many years of experience in supporting and advising on storage solutions and in warehouse optimization , which we bundle in a large network Xpert.Plus

Konrad Wolfenstein

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Xpert.Digital – Konrad Wolfenstein

Xpert.Digital is a hub for industry with a focus on digitalization, mechanical engineering, logistics/intralogistics and photovoltaics.

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