5 Essential Logistics Tools for Ecommerce
This article was updated in 07/08/2019
For an eCommerce to succeed, there are several aspects that need to be well consolidated in the business, and logistics is one of them. In fact, logistics can be a great driver for the growth of an online store, or a great barrier to the basic operations of the business.
Thus, for eCommerce to work the best possible way, there are different types of logistic tools that can be used that are of great to help when controlling and managing the business.
Precisely for that reason, today we wanted to take up this article from our blog, in which we mentioned 5 types of logistics software that are very useful for an eCommerce, and update it including examples of the different tools related to them.
That way we keep ourselves and our clients always on track of this important topic.
5 Essential Logistics Tools for Ecommerce
Order Management System (OMS)
OMS is a tool, platform or software that organizes the sales that are made in your online store so that you can manage and control your products to get them to reach the customers who bought them. It is a very convenient tool if your company deals with physical products, because being able to track and monitor the management of your orders can save you a lot of headaches.
Likewise, this type of software allows you to control the entire ecosystem around your orders. From the moment that your customer places products in the virtual shopping cart, you can track the different phases of the purchase, also going through the processing and to the notifications of order’s delivery. Everything will be reinforced in a single system.
The main advantages of this system include real-time monitoring of the order status, simplification of bureaucratic processes and control over the product cycle as well as any changes that may appear.
Here are 5 of these best rated tools on the market:
- Zoho Inventory
If you want to investigate more, you can check this link right here with a very complete list on Order Management System with data, ratings and reviews.
Inventory Management System (IMS)
When an eCommerce reaches a certain turnover, it becomes more complicated to manage the stock in an effective way – and that is where an Inventory Management System can be of great help.
But what is an IMS? It is a software system to track the company’s inventory, orders, sales and deliveries, so that the management of stored products and/or finished ones can be monitored, so they are ready to be sent to final consumers. It is mainly used to control the stock of products, so it includes certain basic actions in this area such as the necessary stock monitoring, ordering of items and storage management.
Many times companies only store information related to the stock in Excel, because it is easily accessible. However, as the business grows, this solution is no longer effective. Moreover, this practice does not allow data analysis or visualization of possible sales peaks easily.
In this way, with an IMS, you can better analyse the data of your products and make decisions that you consider appropriate with that information. Besides, among other things, this type of software is able to order products automatically which can save you some extra time.
Here are the 5 best rated inventory tools on the market:
If you are interested in reading more about each of them more specifically, you will find more details here.
Transportation Management System (TMS)
This type of systems is considered a subset in the logistics management of the supply chain and deals with the planning, execution and optimization in the physical transfer of the products from the online store to the final consumer.
And because one of the main factors to which consumers give more value is the delivery of orders in an expected time frame, having a good transport system for your products is essential.
Whether you own your own fleet to transport your products or if you contract this service, make sure you get always a quality TMS. Why? This is one of the most important parts of the delivery process, where the customer can visualize, control and rate your business. The experience they have in the delivery of your products will be the way they value a large part of your eCommerce and their satisfaction towards you.
Furthermore, transportation has a great weight in the logistics costs of a store, by getting a good TMS it is possible to analyse what are the main expenses associated with this part of the logistics, as well as to evaluate which may be the greatest inefficiencies of this process. In that sense, it is possible to cut costs while maintaining (or improving) the quality of logistics services.
Here is a list of the 5 best rated transport management tools in the market:
- Cloud Logistics
If you want to know more information and ratings not only about the software we mentioned but many more, click here.
Order processing is one of the steps where an online store can save more time – and shipping labels is one of the great reasons for this.
By manually copying customer addresses, in addition to wasting time and energy, there is also room for error. This might translate not only in failures in the label but also errors in the deliveries. And about 37% of online customers who have a bad delivery experience blame it the online store, and usually do not return for another purchase.
This means that, in addition to spending resources and time dealing with this process manually, you can also lose clients. The good thing is that this problem has an easy solution.
Currently there are different software that allow you to automate this stage of the process with a single click and they can be installed directly on your online store’s platform. This is the case with our own software, for example. Find out how you can gain back between 4% and 8% of your time by automating this process.
Below, there are 5 labelling software tools that you can find in the market:
- Maestro Label Designer
If you want to find other software that allow you to manage label printing optimally, you can find more here.
Enterprise Resource Planning (ERP)
Although there are several mechanisms very beneficial for an online business, ERP software can be one of the most important ones. This type of tool manages in an integrated way the main processes of a business, usually in real time, through a software.
While an OMS system effectively focuses on orders, an Enterprise Resource Planning integrates a large part of the functions mentioned above, with a very interesting main feature: sharing of a single database. In this way, any member of the company can keep up to date with all the available information, and also with the most recent updates since this system also includes the synchronization of all the data.
This allows online stores to deal dynamically with any problems which can appear, quickly and efficiently. Also, it opens the door to possible improvements in the different eCommerce’s processes, for example, from the supply chain, to customer service, as well as shipping and delivery. You will have all the necessary information in your hands as everything is integrated into the same system, reducing the risk of error as much as possible.
Here you will find a list of the 5 most relevant ERP tools in the market:
- Abas ERP
- SAP Business One
- Aqxolt ERP Mark 7
If you want more information about each of them, click here
Conclusion: What is the best logistics tool for my online store?
Well, even if it seems as a non-response, it depends. It will depend a lot on your business model as well as your budget.
For example, if your eCommerce is now taking off and has limited resources, we imagine that your priority is not to have a transport management mechanism or an ERP.
On the other hand, if your online store operates on a dropshipping regime, or if you use a fulfillment centre, an OMS will not be an interesting logistics solution for you.
Therefore, you need to analyse the greatest needs and gaps that your store presents at the logistics level and evaluate what could be the tool that can best help to solve this situation within your business and possibilities.
And you know, if you need help, count on us. Send us a message here.