5 Key Issues for Effective Logistics

Today I noticed our first compliment on HelloPeter.com (click to view).

Which brings me to one of the most important things if you're contemplating an online business, and that is to ensure you have an effective Logistics Strategy to ensure customer satisfaction. The world is a very small place and if your logistics, delivery and service are excellent this goes a long way to ensuring a favourable perception of your product and branding in the market place. Since I have been wanting to have an online business (maybe several in time), I have been quietly testing the market to see which companies that I order from deliver the kind of excellent service I expect and demand when ordering online. Two of my favourites are Kalahari.com and YuppieChef. Having done that, I researched which company THEY used to handle all their couriers. And one name stood out far above the rest. So I am in negotiations to sign the contract imminently, with preferential rates. It just so happens that over the past month, this local and international courier organisation is running a strategy to favour new startups in e-commerce/online businesses!

There are 5 Key Issues you need to consider for Effective Logistics:

1. Movement of Product. You need to have an effective system in place to ensure rapid delivery of the product to the client whether it be in the case of Beautiful Bracelets, to the individual who orders one Beautiful Bracelet for a 21st Birthday gift to be delivered the next day in another city or to a Gift Shop.
2. Movement of Information. It is important to use "online tracking" so that you know where the product is at all times. And to maintain customer contact if there are any problems.
3. Time/service. Orders must be filled completely, quickly and accurately.
4. Cost. This is a key issue when measuring logistics effectiveness. The highest price does not necessarily mean the best service, nor does the lowest cost necessarily meet your needs. In this business, Beautiful Bracelets, I approached the Company that I felt was delivering the best service and fortunately they are driving to secure e-commerce service which means they have also given a quote for a preferential rate and a phenomenally low price for this service! And that is for both local and international courier charges.
5. Integration: between yourself and your suppliers, your customers and retailers, as well as good internal liaison and integration. Partnership and competitiveness are enhanced by good integration, and meeting your suppliers and clients face-to-face is important to enhance good partnerships and alliances.

Each of the above points is essential to ensure the success of your logistics, its value-add to your business and your competitiveness in the market place.