Though there are several steps that make up the entire supply chain, there are three major stages of logistics management that are the most important to focus on.
Here is an overview of the three major stages of logistics management.

There won’t be any ecommerce inventory to sell if you don’t source it. The first step is sourcing and finding the right suppliers and manufacturers for finished goods. Quality and reliability, production lead times, and costs are all factors to consider during the procurement process.

Finding and signing on the right suppliers requires time, the ability to negotiate terms, and ensuring that the goods are of the quality you expect.

You will also have to keep track of how long it takes to receive inventory, so can make sure you have the right amount of inventory needed at all times.

After you sign on your supplier(s), here are points of evaluation to keep in mind:

• What are their key performance indicators and metrics?
• Are they meeting service-level agreements (SLAs)?
• Is the product quality up to your standards?
• Are they improving or at least consistent over time?

Once the goods are sourced from the supplier, inventory needs to be received and stored properly.

You have the option to store inventory at home (for in-house fulfillment), in a rented warehouse, or in a 3PL’s fulfillment center(s). But no matter where you store your inventory, it needs to be stored in a way that optimizes space and works with your fulfillment workflow.

The right inventory storage system can help you save on holdings costs, speed up your picking and packing process, and make inventory management much easier, especially if you need to conduct an inventory audit.

Fulfillment logistics is arguably one of the most critical pieces of the supply chain. It involves order processing, picking and packing workflows, and shipping.

During the order fulfillment process, you have to determine how you will fulfill your orders to meet customer expectations. Not only is speed a priority but so is order accuracy. You will also have to consider shipping costs and the different ecommerce shipping options you can offer customers.

Having the retail fulfillment infrastructure and technology in place can help you better manage logistics. For instance, automatically processing orders that are placed on your online store can help verify order information, including the shipping address, before it is sent to your fulfillment team to pick, pack, and ship.

Investing in automation tools and systems can be costly, but it doesn’t mean there isn’t a solution. If your business is at a stage when you can’t keep up with your current order volume, the best option is outsource fulfillment to third-party logistics company like ShipBob.

At this point, you might be thinking that outsourcing comes with a high costs. But in truth, you can delegate ecommerce fulfillment to a logistics partner, so you can focus on tasks that directly drive revenue. Since you won’t be focused on managing logistics, you can focus more time and money on growing your business.