The ever-increasing role of logistics in the retail sector is currently said to be at its peak and shows great promise for further refinement down the road. In the current scenario, the contribution that a logistics company makes in the supply chain has to do with the modernization of its operations. A typical case would be that of Amazon. This mammoth company headquartered in Washington, USA grew right from its roots. Its mammoth size and outstanding accomplishments can be dedicated mainly to its customer services.
Amazon, being the almighty retailer that it is, can owe its success to the fast and free shipping facility that attracts most of its customers. When an individual goes on to any shopping site, they will always look for the fastest delivery mode without having to pay extra charges for the same. The feature of efficient and fast delivery could only be a success due to the excellent logistics services. Amazon is said to have spent billions on facilitating these services. They also took a lot of time and effort to reach where they are today with respect to fulfillment centers. Not many retailers can keep up with this level of efficiency in their logistics services.
An up-to-date website will invariably give greater opportunities for customers to choose and reach the vendors of their choice. This shows how technology places a key role even a logistics company. The phrase “the first impression is the best impression” stands true for any company. This will ensure loyalty among the customers towards the logistics companies. Also, any damage or delay in goods which were either supplied or warehoused with a logistics company will cease to attract the existing as well as potential clients of the company.
The survival and success of any e-commerce retailer will largely depend on their supply chain as well as their logistics services. A very important part of logistics is warehousing. A widely distributed, brick and mortar warehouse network is essential for a positive outcome in any supply chain network. Warehouses are set up as a result of plans made primarily for the unforeseen circumstances in the future. They can either be given on rent or lease, both of which will instill a huge fixed cost on the parent company or on the 3pl service provider. These costs cannot be ignored especially when customers demand quick delivery of goods. This is one of the problems in retail supply chains that need to be addressed. Whether or not warehouse spaces are used, the occupant will compulsorily have to give its rent/lease payment. A very noticeable problem in the structure of a logistics department is that on one hand, we say that warehouses are static in the sense that its capacity, as well as costs, remains the same throughout with very little scope for change whereas, on the other hand, we say that businesses are dynamic in nature. This is with effect to the fact that businesses may go through phases of prosperity or through hardships.
The need of the hour: 1. An abundance of warehouse locations 2. Advanced technology to keep a track of all goods involved 3. Efficient and effective management, preferably through a 3pl company 4. Complete stretchability with respect to the capacity of warehouses as per demand.