How Ecommerce Has Impacted The Logistics Industry

We are living in the connected age where cell phones and tablets have become the hub of how people not only communicate, but make purchasing decisions. According to recent research, Ecommerce in South Africa is expected to reach R46-billion by 2017. The convenience and user-friendliness of online shopping is having a significant impact on all types of business and there is an urgent need to stay ahead of the trend.

Logistics is already a vital part of any retailer’s business plan but its importance will continue to grow as the use of Ecommerce for transactions increases. Now more than ever an efficient supply chain is needed that gives a high level of service across all channels. Companies face strategic decisions such as physical locations of warehousing and whether to fulfill Ecommerce orders from separate facilities, in-store, from existing warehouses or a combination of the three. Finding the right distribution centre that is close to all the major cities can be a difficult task because of limited supply and increasing demand. For this reason, many retailers decide to partner with 3PL companies that can supply the necessary distribution and fulfillment services.

Managing the entire delivery process has also become a more challenging task as warehouses or fulfillment centers no longer only deliver to stores but are increasingly having to ship directly to the customer or to a neutral site such as a lockbox location.
In this fastmoving logistics landscape effective IT solutions are vital:

Transportation management systems

Transportation management software (TMS) assists with arranging and executing deliveries across the supply chain. These systems give informed route planning, freight consolidation and improved visibility to ensure on-time deliveries. The entire delivery process is monitored giving real-time alerts of potential problems.

Warehouse management systems

Warehouse management systems (WMS) are designed to improve efficiency by using centralised management tracking of inventory levels and stock locations. Managers are provided with all the tools they need to analyse stock and easily plan for movement of inventory or replenishment.

Effective TMS and WMS systems are critical to keep up with demand in this changing digital era. Contact Dovetail for the customised solution for your logistics needs. View Our Range Of Transport Software Solutions Now.