From Garage to Growth: What to Expect When Working with a Logistics Provider

Congratulations on taking the next step in growing your e-commerce business! As you transition from your garage/ storage space, partnering with a logistics provider becomes crucial for efficient and seamless operations. However, understanding what to expect when working with a logistics provider and adjusting your outlook accordingly can help ensure a successful collaboration. In this article, we’ll explore expectations, the significance of Service Level Agreements (SLAs), the value of collaboration, the need to let go of control in order to scale, and optimizing inbound receiving processes.

When partnering with a logistics provider, one of the most critical aspects to comprehend is the Service Level Agreement (SLA). An SLA outlines agreed-upon performance metrics, such as order fulfillment speed, on-time delivery rates, and customer service response times. When a logistics provider provides clear SLAs that they commit to meeting, this signals that they back their service and are fully accountable for any mistakes that may happen. SLAs can be included in your contract with the provider, or even be displayed on the provider’s website or proprietary system which displays whether they are meeting their SLAs in real time. Familiarize yourself with the SLA and ensure it aligns with your business goals and customer expectations. This clarity will help set realistic expectations and hold both parties accountable.

Successful collaboration between e-commerce retailers and logistics providers is key to achieving streamlined operations. Your logistics provider should be viewed as an extension of your team, working together to fulfill orders efficiently. Here are a few ways you can collaborate with your logistics provider:

The planning process

Involve your logistics provider in the planning process, especially when launching new products, running sales campaigns, or entering peak seasons. Their input and expertise can help determine the most efficient fulfillment strategies, such as inventory positioning, order batching, and warehouse layout optimization.

Information sharing

Regularly sharing information about inventory levels, sales forecasts, and promotions helps to ensure that your provider has the necessary insights to plan and execute fulfillment operations smoothly.

Integrating your systems

By integrating your systems and sharing relevant data with your logistics provider, you’ll have real-time visibility into inventory levels, order statuses, and shipping updates. By aligning your systems, you can optimize order processing, reduce errors, and enhance customer experience through accurate tracking information.

Performance metrics and reporting

When you establish clear performance metrics through SLAs, you’re ensuring alignment and accountability. You should work with a provider that can regularly provide data on order accuracy, on-time delivery rates, and customer satisfaction. Analyze these metrics together to identify areas for improvement and make data-driven decisions.

Continuous improvement

Regularly evaluating the partnership and discussing potential areas of optimization helps to strengthen your relationship and gear your business towards success. By focusing on continuous improvement, you can collaborate with your logistics provider to identify process bottlenecks, implement automation where possible, and explore new technologies or practices that can enhance efficiency.

Feedback and problem resolution

By providing constructive feedback to your logistics provider and encouraging them to share feedback with you as well, you’ll be able to address any issues or challenges promptly and work together to find solutions. A transparent and collaborative approach to problem-solving strengthens the partnership and helps build trust.

As your business scales, certain personal touches, like custom written notes for each package or complicated packaging may become impractical. While this change might initially seem disheartening, consider the opportunities that scalability brings. By entrusting certain aspects to your logistics provider, you gain the ability to focus on other ways to add your personal touches such as by harnessing strategic growth initiatives, expanding your product line, or investing in improving customer experiences.

It’s natural for retailers to be apprehensive about giving up control when working with a logistics provider. However, it’s essential to recognize that logistics providers are experts in their field and can offer valuable insights and efficiencies that help your business thrive. By entrusting logistics operations to professionals, you can focus on core business activities, marketing, and building customer relationships.

Efficient inbound receiving processes play a vital role in minimizing delays and ensuring accurate inventory management. By working closely with your logistics provider to establish clear guidelines for packaging, labeling, and documentation of inbound orders, you’ll create agreed-upon protocols that will enhance efficiency, reduce errors, and accelerate the overall supply chain.

When expanding your business globally, importing and exporting can introduce new complexities. Logistics providers with international expertise can guide you through the intricate processes, ensuring compliance with customs regulations, managing documentation, and optimizing shipping routes. Leverage their knowledge and experience to navigate these challenges seamlessly.

As you make the leap from your small scale operations to working with a logistics provider, understanding what to expect and adjusting your expectations is crucial. By comprehending SLAs, embracing collaboration, letting go and trusting in the expertise of logistics providers, you can position your e-commerce business for growth and success. Remember, a strong partnership with a reliable logistics provider is the foundation for a successful and thriving brand.

Want to chat to a logistics partner who can help optimize your supply chain and costs, why not get in touch with Borderless360 today? Contact us.