E-commerce logistics models have led to demand for different set of logistics functions
- Fulfillment centers where the merchandise is stocked and picked at item level. These facilities, which are operated by Dynamic Logistics are typically 40,000 sq ft to one lakh sq ft in size, They operate 24/7.
- Parcel hubs/sortation centers which sort ordersso that they can be delivered to the relevant parcel delivery center for final delivery to the customer’s home or designated collection point.
- Parcel delivery centers which handle the ‘last mile’ delivery to the customer
- Seamlessly integrated technology where shopping carts connect via API, web xml or some other connection to a transportation management system so shoppers are getting the exact price quote of shipping of larger items
The system has following functions
- Ability to organize and track shipment
- Online order status and documentation
- Online dispatch documentation and invoice, such as a bill of lading and freight invoice
- Seamless interface with existing SCM or ERP system
- Online alerts for critical information via text or mobile
- Information systems reports on past data analysis, delivery history, etc.
These types of e-commerce logistics systems, based on the above considerations, ensure the following benefits to shippers, customers, and 3PL service providers:
- Improved communication
- Transparency into the supply chain
- Improved customer satisfaction
- Cost reduction
- Improvement in efficiency
- On-time delivery