May 25, 2023
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Logistics and Supply Chain Management in Ecommerce

Systems for shipping and managing orders are the beating heart of any successful e-commerce business. These systems ensure that products reach customers on time and in excellent condition. They ensure that customers feel satisfied and happy.

The importance of LSCM cannot be overstated. They impact every aspect of the early post-purchase experience. This is from the moment a customer places an order to the time it arrives at their doorstep.

Unlocking the Power of Logistics and Supply Chain Management for Seamless Customer Experience in Ecommerce

But what is logistics and supply chain management? Logistics covers the process of planning, implementing, and controlling the flow of products. It covers the point of origin to the point of consumption. Supply chain management focuses on the coordination and management of all the activities involved in the production and delivery of goods and services.

In this article, we’ll delve deeper into the world of LSCM and how it can drive customer satisfaction in e-commerce.

We’ll also provide practical tips on how you can optimize your LSCM systems for maximum customer satisfaction and experience. So, join us on this journey through the exciting world of e-commerce logistics!

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What is integrated logistics?

Integrated logistics is the process of aligning supply chain activities to optimize performance and minimize costs. It involves coordinating different aspects of the logistics process, such as transportation, warehousing, and inventory management. The goal is to get them to work together in a seamless manner.

By integrating these processes, companies can achieve the following:

  • greater efficiency
  • reduces errors
  • improves customer satisfaction.

Integrated logistics are often facilitated through the use of logistics software. It automates and streamlines the various elements of the logistics process.

This approach has become increasingly popular as companies look to improve their supply chain performance and stay competitive in an ever-changing marketplace.

What is FN logistics?

FN Logistics is a family-owned logistics company based in Southern California. The company focuses on optimizing supply chain management and ensuring efficient transportation of goods. Their aim is to provide exceptional service and innovative solutions to their clients. With a focus on employee satisfaction, FN Logistics is one of the fastest growing logistics companies in the United States.

What is inbound logistics?

Inbound logistics is the process of managing and coordinating the movement of raw materials, components, and products from suppliers to a manufacturing or assembly plant or distribution center. It involves the coordination of transportation modes, such as trucking or rail, as well as the coordination of warehouses and storage facilities to manage inventory and ensure timely delivery.

Effective inbound logistics are critical to the success of a manufacturing or retail operation, as it ensures that raw materials and products are available when needed for production or sale. The goal of inbound logistics is to do the following:

  • Manage the logistics process in an efficient and cost-effective manner
  • Improve supply chain performance
  • Lower costs

What is a logistics center?

A logistics center, also known as a distribution center, is a facility that is used for the storage, consolidation, and distribution of goods. These large warehouses often feature advanced technologies for inventory management, tracking products, and processing orders. Businesses use logistics centers to reduce the cost of transportation and expedite deliveries to customers.

They serve as a centralized hub for goods to be collected and routed to their final destinations, such as retail stores, manufacturing plants, or directly to customers. A logistics center typically manages inbound and outbound logistics operations, as well as value-added services, such as packaging, labeling, and customizing products.

What is outbound logistics?

Outbound logistics is the process of managing and coordinating the movement of finished products from a manufacturing or assembly plant or distribution center to the end consumer or retail store. It involves activities such as warehousing, picking, packing, transportation, and delivery.

The primary goal of outbound logistics is to facilitate the timely and efficient delivery of products to customers while minimizing transportation and storage costs. Effective outbound logistics are crucial for customer satisfaction, as it ensures that products are delivered in a timely and efficient manner, leading to improved customer loyalty and retention.

What term is used to describe the outsourcing of logistics?

The term used to describe the outsourcing of logistics is “third-party logistics” (3PL). 3PL companies provide logistics services such as transportation, warehousing, and order management and fulfillment to businesses that lack the expertise or resources to manage these operations in-house.

By outsourcing these logistics functions, companies can often benefit from cost savings, more efficient operations, and improved supply chain performance, allowing them to focus on their core competencies. 3PL providers can also offer customized solutions to meet the specific needs of each client, such as transportation management, inventory management, and value-added services.

What is global synergy logistics?

Global Synergy Logistics, Inc. is a freight transportation arrangement business based in Jamaica, New York. The company specializes in providing comprehensive logistics solutions for businesses across the United States and around the world. They offer a wide range of services, including the following:

  • air and ocean freight forwarding
  • customs clearance
  • warehousing and distribution
  • trucking and intermodal services
  • cargo insurance
  • tracking and tracing of shipments
  • document preparation

What is EDI in logistics?

EDI stands for Electronic Data Interchange, which is a digital communication technology used for exchanging business documents between companies. In logistics, EDI helps to automate the exchange of transactional information between supply chain partners, such as purchase orders, invoices, shipment notices, and inventory updates.

This technology enables companies to exchange information in a standard format using a secure electronic connection. It improves accuracy, speed, and efficiency in logistics operations. EDI can help businesses reduce processing time, minimize errors, and increase transparency in their supply chains. It has become an essential part of logistics management, especially for large and complex supply chains where accurate and timely information is critical for success.

What is warehouse logistics?

Warehouse logistics is the process of managing and optimizing the flow of goods within a warehouse or distribution center. It involves a range of activities, including these:

  1. Receiving
  2. Storage
  3. Picking
  4. Packing
  5. Shipping products

Warehouse logistics aims to ensure that products are efficiently handled with minimal errors and delays, allowing for faster processing and delivery to customers.

This includes managing inventory levels, optimizing warehouse layout and space utilization, and using advanced technologies such as warehouse management systems (WMS) and automation to streamline processes and improve efficiency. Effective warehouse logistics is critical for businesses to maintain a competitive edge in managing the costs of warehousing and distribution while meeting the ever-increasing demands of customers.

What is a carrier in logistics?

In logistics, a carrier is a company or an individual that transports goods from one location to another. Carriers can operate in various modes of transportation, including trucks, ships, airplanes, and trains. They may be small businesses or large corporations, and they may specialize in transporting specific types of cargo, such as hazardous materials or refrigerated goods.

Carriers are essential to the logistics industry since they are responsible for physically moving goods from point A to point B. They often work closely with shippers and third-party logistics (3PL) providers to ensure timely and efficient transportation of goods to their intended destination.

What is first mile in logistics?

The “first mile” in logistics refers to the initial stage of the supply chain process, where goods are transported from their point of origin, such as a supplier or manufacturer, to the transportation hub where they will be shipped to their destination. This process includes various activities, such as scheduling pickups, consolidating shipments, completing necessary paperwork, and preparing the products for shipping.

It is a critical stage in the supply chain process since any delays or errors in this stage can lead to delays in the delivery of products to customers. Therefore, it is essential to have a reliable and efficient first-mile logistics process in place to ensure smooth and effective operations throughout the entire supply chain.

What is RFP in logistics?

In logistics, RFP stands for “Request for Proposal.” It is a solicitation document that businesses use to invite logistics service providers to bid for their business and submit proposals for transportation, storage, and other logistics-related services. The RFP typically includes detailed information about the company’s logistics needs, such as shipment volumes, transportation modes, routes, and delivery schedules.

The document may also outline the qualifications that potential logistics service providers must meet and the evaluation criteria that will be used to select the winning bidder. Logistics companies responding to an RFP typically provide detailed information about their capabilities, pricing structure, and service offerings. The RFP process provides companies with an opportunity to evaluate competing logistics service providers and select the one that best meets their needs.

Understanding logistics for ecommerce

The global logistics market for ecommerce is worth over $315 billion. That market continues to grow because businesses are finding value in premium LSCM.

To learn how to leverage this industry in your business, you need to know how modern ecommerce logistics works.

Key components of ecommerce logistics


Warehousing plays a vital role in e-commerce logistics, as it’s the place where products are stored and prepared for shipping. Efficient warehousing practices can ensure timely and accurate delivery of products.

Inventory management

Keeping track of inventory levels and ensuring that products are in stock is crucial. It can help prevent stockouts, reduce the cost of holding inventory, and improve efficiency.


Transportation is the backbone of e-commerce logistics. It is responsible for the movement of goods from one location to another. Choosing the right transportation method can ensure quick and cheap delivery.

Order processing

Order processing involves several processes:

  1. Receiving and verifying orders
  2. Picking products from the warehouse
  3. Preparing them for shipping

Streamlining these processes can help reduce errors and improve efficiency.

Real-time tracking and visibility

Real-time tracking and visibility of shipments can help improve customer satisfaction. It also  reduces the risk of lost or delayed shipments. We recommend that you use a tool like Trackmage for the best results. More on that later in this article.

Benefits of optimizing ecommerce logistics

  1. Faster and more accurate delivery
  2. Improved inventory management
  3. Greater efficiency and productivity
  4. Enhanced customer experience
  5. Competitive advantage
  6. Reduced shipping logistics and handling costs
  7. Increased scalability
  8. Improved supply chain visibility
  9. Lower risk of order errors and returns
  10. More sustainable operations

Lean Supply Chain and Logistics Management for eCommerce

Lean management is a philosophy of continuous improvement in business practices to reduce waste, increase efficiency, and improve overall quality.

For eCommerce owners, implementing lean principles can benefit their operations by reducing costs. It can also do the following:

  • Improve productivity
  • Increase customer satisfaction
  • Shorten delivery times
  • Enhance quality control

Logistics services for ecommerce

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Here are some common logistics services for ecommerce:

Warehousing and storage:

This involves storing inventory in a warehouse and managing the flow of goods in and out of the facility.

Order processing and fulfillment:

This includes the following:

  • receiving and processing customer orders
  • picking and packing products
  • shipping them to customers

Transportation and delivery:

This involves the movement of products from the warehouse to the customer. It involves using various transportation modes, such as air, sea, or land.

Inventory management:

This involves tracking inventory levels and forecasting demand. It mainly ensures that products are in stock when customers need them.

Returns management:

Effective returns management in eCommerce involves organization of the return process for customers. Tasks here include issuing refunds or exchanges and managing the return of products to the warehouse.

Customs clearance:

For businesses that ship internationally, customs clearance is an important logistics service. It involves complying with customs regulations and getting products through checkpoints.

Last-mile delivery:

This involves the final leg of delivery, from the transportation hub to the customer’s doorstep.

Differences between logistics services for ecommerce and traditional logistics

Ecommerce LogisticsTraditional Logistics
WarehouseFulfillment centerDistribution center
Order processingAutomatedManual
TransportationSmall packageBulk
DeliveryHome deliveryRetail store pickup
Inventory managementReal-time trackingPeriodic physical counts
Returns managementCustomer-friendlyComplicated
Customs clearanceMore complexLess complex
Last-mile deliveryCriticalLess critical

How to choose the right logistics service

  1. Identify your specific logistics needs and requirements. They can be transportation, storage, order processing, and return management.
  1. Research logistics service providers and compare their offerings, capabilities, and pricing.
  1. Evaluate the provider’s experience and reputation in the industry. You should check their track record of on-time delivery, accuracy, and customer service.
  1. Consider their geographic coverage and whether they can deliver to ýour customers’ locations.
  1. Look for flexibility and scalability, as your business needs may change over time.
  1. Check if the provider uses technology and automation to improve efficiency and accuracy.
  1. Review the provider’s security and risk management practices. This is a must if you are dealing with high-value or sensitive products.
  1. Assess the provider’s sustainability practices. They should have a commitment to minimizing their environmental impact.
  1. Read the provider’s contract carefully and ensure that it meets your requirements.

Global logistics for ecommerce

The global LSCM space isn’t perfect. It has its perks and drawbacks.

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  • Increased market reach and access to a larger customer base
  • Opportunities for cost savings through economies of scale and global sourcing


  • Complex regulatory environment, including customs clearance, taxes, and tariffs
  • Transportation problems, such as long lead times, language barriers, and cultural differences

Understand the regulatory requirements and customs procedures for the operating countries. Work with experienced providers who understand international shipping.

Plan ahead and allow for extra time in your supply chain to account for potential delays or disruptions. Use technology tools such as GPS tracking to monitor shipments and manage inventory.

Invest in quality packaging materials and design. This helps with products that are fragile or sensitive to environmental factors such as temperature.

Develop strong relationships with your logistics providers. Establish clear service level agreements and performance metrics.

Keep your customers informed about the status of their orders. You should provide tracking information and estimated delivery times. Use customer feedback to improve your logistics processes and address any issues.

Logistics management and solutions

Logistics solutions are software or systems for efficient management throughout the supply chain. These solutions can include the following:

  • Transportation management systems
  • Warehouse management systems
  • Inventory optimization tools

Supply chain and logistics management made easy

Logistics and supply chain management are closely related and often used interchangeably. However, they are not the same thing. Logistics refers to the processes involved from the point of product origin to the point of consumption.

Supply chain management, on the other hand, encompasses a broader range of activities. It includes sourcing, procurement, production, and distribution, as well as logistics.

Logistics is about getting things from where they start to where they’re going. The supply chain has more things in it, like sourcing, making, and selling products. Logistics is just a part of that. It focuses specifically on the movement and storage of goods and services.

Effective supply chain management requires collaboration from everyone. This includes suppliers, manufacturers, distributors, retailers, and logistics providers.

Impact of Technology on Logistics and Supply Chain Management

Technological advancements have impacted logistics and supply chain management in several ways, including:

  • Robotics and Automation:

These technologies have enabled logistics companies to automate repetitive tasks and improve efficiency, accuracy, and speed in operations. Examples include automated picking systems, autonomous vehicles, and robotic conveyor systems.

  • Artificial Intelligence and Machine Learning:

These technologies have allowed logistics companies to analyze vast amounts of data to identify patterns and make predictions. This has led to better demand forecasting, supply chain planning, and inventory optimization.

  • Big Data Analytics:

Logistics companies now have access to vast amounts of data from various sources, including sensors, RFID tags, and GPS tracking devices, among others. Big data analytics can be used to optimize transportation routes, identify bottlenecks, and improve warehouse operations.

  • Real-Time Tracking:

Advances in technology have made it possible to track shipments in real-time as they move through the supply chain. This allows for better visibility and control over shipments, reducing the risk of lost or delayed goods.

  • Improved Communication:

Technology has improved communication within supply chain networks, enabling better collaboration and coordination. This has enabled increased efficiency in logistics operations, reducing lead times and costs.

As a result of these technological advancements, logistics companies are better equipped to meet the increasing demands and expectations of customers. This has led to improved customer satisfaction and increased competitiveness.

Innovation in Logistics and Supply Chain Management

Innovation is crucial for logistics and supply chain management to keep up with the ever-changing demands of businesses and consumers. Some of the latest innovations in the field include:

  1. Blockchain Technology:

This technology allows for secure and transparent record-keeping and tracking of supply chain activities. Through blockchain, logistics companies can verify product authenticity, track shipments, and improve supply chain transparency.

  1. Drones and Autonomous Vehicles:

These technologies have the potential to revolutionize logistics and supply chain management by providing fast and efficient delivery of goods. By using drones and autonomous vehicles, logistics companies can reduce shipping costs, improve delivery times, and increase efficiency.

  1. Augmented Reality (AR) and Virtual Reality (VR):

AR and VR technologies enable logistics providers to improve warehouse management, training, and safety. They can be used to train warehouse staff, optimize warehouse layouts, and provide remote technical support.

  1. Internet of Things (IoT):

The IoT allows logistics companies to track the condition and location of goods in real-time. Smart sensors enable real-time monitoring of temperature, humidity, and other critical factors, enabling proactive maintenance and reducing waste.

  1. 3D Printing:

Additive manufacturing or 3D printing allows businesses to produce their products closer to their customers, reducing shipping costs and lead times. This innovation is beneficial for businesses that have a wide distribution network.

The above innovations are changing the face of logistics and supply chain management, leading to more efficient and sustainable logistics operations. By adopting these technologies, logistics companies can stay competitive and meet the changing needs of their customers.

Importance of logistic customer service

Customer service is critical for any business, and ecommerce logistics is no exception. In fact, logistics customer service plays a vital role in ensuring a smooth and seamless customer experience

Here are some key reasons why logistics customer service is essential for ecommerce:

Timely and accurate delivery:

Customers expect their orders to arrive on time and in good condition. They expect proactive updates, real-time tracking, and responsive customer service.

Order transparency:

Customers want to know the status of their orders and expect transparency throughout the delivery process. Being transparent will build trust and confidence.

Efficient return management:

Returns are an integral part of ecommerce, and customers expect hassle-free returns and exchanges. Give them a clear and easy-to-use return process. This may include pre-printed shipping labels and reverse logistics services.

Proactive problem-solving:

Logistics customer service teams must be equipped to handle any issues that arise. These issues include lost shipments, damaged items, or incorrect orders.

Trackmage: How it can help

TrackMage is a shipment-tracking platform for e-commerce sellers that provides a branded post-purchase experience for customers. It allows customers to do the following:

  • Track their packages
  • Browse other products the brand offers
  • Leave reviews
  • Contact customer support

This will create a seamless customer experience throughout the whole journey. Unlike courier and logistics companies, TrackMage provides a fully branded page.

This page holds all the information about the package, the store, and the new products that customers can buy while they’re waiting.

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Trackmage supports around a thousand couriers and allows customers to track all their packages on one single page. TrackMage helps e-commerce stores increase sales by providing opportunities to upsell and cross-sell.

It integrates with Shopify and Woocommerce to provide seamless order management and carrier analytics.

Hence, you can streamline the entire order fulfillment process. This  ranges from receiving and processing orders to shipping and delivery.

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With Trackmage, store owners can easily do the following:

  • Track inventory levels
  • Manage multiple sales channels
  • Automate shipping and tracking notifications
  • Collect and post 5-star reviews on social media

This all-in-one solution can help you save time and reduce errors. You will also get improved customer satisfaction and increased revenue.


Logistics can make or break an ecommerce business. It’s essential to have a reliable and efficient system in place. It will ensure smooth order fulfillment and customer satisfaction. The modern ecommerce business owner must streamline their logistics operation to compete.

That’s where Trackmage comes in. With its powerful features and integrations, Trackmage can help Shopify store owners and eCommerce businesses improve their logistics and fulfillment processes. To learn more about how Trackmage can benefit your business, visit our website and explore solutions.

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