Tips for optimizing the management of a warehouse – News Entrepreneurs – Businesses

Tips for optimizing the management of a warehouse – News Entrepreneurs – Businesses

There is probably no company that does not need a logistics solution for goods.

Some of them figure it out on their own and rely on trial and error until they find the optimal solution, while others consult logistics companies to immediately find the best solution to meet their needs.

Choose your partners responsibly

optimize warehouse management

Many entrepreneurs, especially start-ups, don’t think that if they shift the logistical burden to reliable partners, the whole business process will run much smoother.

In addition, the most suitable solution like the one at will be found at any time.

The criteria for choosing a logistics company can vary. It depends on the needs and the market in which the company operates. Before making a choice, the most important thing is to answer the question of what competitive advantage and what added value the partner should bring to your business. And above all, how well she knows the specifics of the client and the market conditions.

In e-commerce, whether B2B or B2C, it is not only important to transport the product to the customer, but also to understand how a certain transport solution can improve the customer experience. The customer experience can be improved through smoother and simpler delivery, geographic market expansion, and automation of order and exchange management. In general, sellers sometimes spend more time with customers advising them on their business, talking about the specifics of their work, than dealing with the transport service itself.

Of course, generic criteria are also important, such as the range of services offered by the logistics partner (slow or fast, cheaper or more expensive, additional services), the quality of services (what are the quality indicators set by the company) and reputation.

A narrow approach to responsibility

In general, logistics is seen too narrowly and is seen as a primitive way of delivering a product from point A to point B. However, logistics is not just transportation. It is often wrongly underestimated in terms of additional aspects and costs, such as: inventory management, storage, packaging, order picking costs. Sometimes we blindly choose one method of delivery, without thinking about the other possibilities. It is also undermined by the belief that the entrepreneur knows better than anyone what his client needs. And in general, this is limited to a cheap product.

Experts find that entrepreneurs often forget to consider the impact of logistics across the entire business cycle. For example, they do not realize that during the Christmas period, by opting for faster delivery, it is possible to ensure a longer sale and to be delivered before the holidays. This is often the case. Indeed, it is before the holidays that most impulse purchases take place. It is important for the customer to receive the goods quickly, regardless of the shipping costs.

Save wisely

Savings in logistics are highly dependent on the products traded. In the case of low value goods, the local market tends to save on all possible costs and choose the cheapest shipping option. If the market is further away, there’s the speed aspect, where it’s not worth saving money either. However, if the goods have a high value, savings should be considered.

The expectations of such a buyer are high, not only in terms of the quality of the goods themselves, but also in terms of the receipt of the goods. Some merchants send unique expensive handmade jewelry by the cheapest delivery method. While there is no tracking, no guarantee of exact delivery, the package travels for a week or more and the recipient has to pick it up somewhere on their own. And this is a very serious mistake. Even if the product is of good quality, a negative experience can damage a merchant’s reputation and negatively impact sales.

Caution is advised in foreign markets

If your e-commerce business has already outgrown the local market, it is advisable to assess your logistics partner’s delivery network. So you don’t have to look for additional partners in a foreign country later. Another important aspect is door-to-door delivery.

Combining different suppliers into a single chain, consolidating transport to the distribution center can lead to significant savings. But it’s also complicated in terms of risk management, information flow and work organization.

It is also advisable to choose suppliers who can offer both faster delivery, with more alternatives. It is worth looking at what the logistics company can offer: delivery to post offices, service points, the possibility of leaving parcels with a neighbor, etc.