{"id":1545,"date":"2022-07-01T06:00:00","date_gmt":"2022-07-01T06:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/integrated-logistics\/"},"modified":"2025-07-15T21:57:19","modified_gmt":"2025-07-15T21:57:19","slug":"integrated-logistics","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/integrated-logistics\/","title":{"rendered":"How to Improve Your Ecommerce Supply Chain Through Integrated Logistics"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is integrated logistics?<\/a><\/p>\n\n\n\n

How does integrated logistics work within the supply chain?<\/a><\/p>\n\n\n\n

How an integrated supply chain meets customer demands<\/a><\/p>\n\n\n\n

Integrated logistics for online stores: Pros and cons explained<\/a><\/p>\n\n\n\n

Getting started with integrated logistics: What you need to know<\/a><\/p>\n\n\n\n

ShipBob\u2019s integrated solution in 4 steps<\/a><\/p>\n\n\n\n

Integrated logistics FAQs<\/a><\/p>\n<\/div>\n\n\n\n

Just like a company with an integrated marketing strategy can link different activities to understand how all efforts help attract and convert customers, an integrated logistics model can also streamline processes and information. <\/p>\n\n\n\n

Understanding logistics is the most critical part in establishing an agile ecommerce supply chain<\/a>, but this can’t be done in silos. <\/p>\n\n\n\n

Proper logistics management<\/a> helps you navigate and monitor inventory flow throughout the supply chain<\/a>, from orders processed to last-mile delivery<\/a>.<\/p>\n\n\n\n

Ecommerce business owners are always looking for ways to optimise their ecommerce logistics<\/a> to compete and better serve customers, and it’s not uncommon to implement what’s known as an “integrated logistics” model.<\/p>\n\n\n\n

What exactly is integrated logistics? <\/p>\n\n\n\n

Let\u2019s take a closer look at what integrated logistics is, how it works, and how you can benefit from it.<\/p>\n\n\n\n

What is integrated logistics?<\/h2>\n\n\n\n

Integrated logistics refers to a supply chain organisation method in which all parts of the supply chain, including departments, resources, and technology, are interconnected to operate together and improve efficiency. <\/p>\n\n\n\n

How does integrated logistics work within the supply chain?<\/h2>\n\n\n\n

Integrated logistics works by establishing an efficient flow in operations, from product procurement<\/a> to shipping. Here is an overview of the primary stages of the supply chain and how they work together within an integrated logistics model.<\/p>\n\n\n\n

Procurement<\/h3>\n\n\n\n

In integrated logistics, procurement logistics<\/a> is optimised with accurate planning and real-time inventory<\/a> management. <\/p>\n\n\n\n

This involves investing in technology and resources to enhance visibility into the procurement process to improve production forecasting<\/a>. This can be done with inventory management software<\/a> and\/or partnering with an omnichannel fulfilment<\/a> provider. <\/p>\n\n\n\n

Raw materials<\/a> and finished goods are procured based on forecasted demand and expected production lead times<\/a>, so inventory is always available and supply chain operations<\/a> aren\u2019t disrupted in case of unexpected events, like a manufacturing closure or raw material shortage.<\/p>\n\n\n\n

Understanding and calculating estimated lead times can help improve your\u00a0inventory replenishment<\/a>\u00a0process and prevent stockouts<\/a>.<\/p>\n\n\n\n

Distribution<\/h3>\n\n\n\n

Once inventory is procured, it\u2019s strategically distributed between different retail partners or distribution centres<\/a> based on historical sales performance and consumer demand.<\/p>\n\n\n\n

Distribution logistics<\/a> is carried out efficiently, so that sales operations can continue smoothly without disruptions.\u00a0<\/p>\n\n\n\n

Again, visibility is key here, which includes having having access to real-time data. <\/p>\n\n\n\n

Understanding the locations in which certain products are in high demand can help in deciding how much of each SKU<\/a> to store in each location.<\/p>\n\n\n\n

Fulfilment<\/h3>\n\n\n\n

With the right technology, once orders are placed, they are automatically processed and sent to the most optimal facility in which inventory is stored. This could be a rented warehouse or a fulfilment centre<\/a> closest to the order’s destination.<\/p>\n\n\n\n

From there, the fulfilment logistics<\/a> process is automated, so orders can get out the door faster and get fulfilled efficiently. <\/p>\n\n\n\n

Automated fulfilment<\/a> involves picking and packing orders and getting them ready for fulfilment. Smart warehousing<\/a> technology is used to speed up the fulfilment process while maintaining order accuracy<\/a>. <\/p>\n\n\n\n

For example, a warehouse management system<\/a> can be connected to wearable devices or inventory scanners<\/a>, so order pickers can instantly find where an item is stored and check the details to ensure the picked inventory matches the order.  <\/p>\n\n\n\n

Shipping <\/strong><\/h3>\n\n\n\n

Shipping logistics<\/a> can be streamlined with auto-generated shipping labels<\/a>, and the best courier is chosen based on the selected shipping option (subject to rates and destination). This allows orders to get shipped faster for faster deliveries. <\/p>\n\n\n\n

Additionally, the business and the customer also get full visibility into order status with order tracking<\/a>, as it travels to arrive at its final destination.<\/p>\n\n\n\n

How an integrated supply chain meets customer demands<\/h2>\n\n\n\n

With many consumers expecting to receive their orders quickly, an integrated supply chain<\/a> is crucial to meet these expectations.<\/p>\n\n\n\n

When your processes, partners, vendors, and technology work together to provide visibility and accurate data, it enables you to meet customer demands more efficiently. <\/p>\n\n\n\n

For example, inventory visibility<\/a> will help you replenish stock<\/a> on time so you don\u2019t experience stockouts.<\/p>\n\n\n\n

Real-time visibility is also crucial when dealing with multichannel logistics<\/a>, because sales from multiple channels typically use the same pool of inventory<\/a>, making the need for accurate stock level to be properly tracked and available so you don’t over-sell on any one channel.<\/p>\n\n\n\n

Over time, you can use collective inventory and order data to improve demand forecasting<\/a>, whether it’s deciding on the best locations to store inventory or stocking up for a possible surge in demand.<\/p>\n\n\n\n

This might all seem costly and time-consuming, but there are many DTC logistics<\/a> resources available for businesses of all sizes.<\/p>\n\n\n\n

One of the most common options is partnering with a 3PL<\/a> like ShipBob, which offers the technology, resources, and distribution network needed to build an integrated logistics model.<\/p>\n\n\n\n

Instead of having to manage everything yourself (or lease one, let alone multiple warehouses), you can outsource fulfilment<\/a> and leave it up to the experts. <\/p>\n\n\n\n

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\u201cShipBob has given us increased visibility thanks to the dashboard that allows us to easily manage stock and orders. That wasn\u2019t possible for us before. Our relationship with ShipBob has been a game-changer for Quadrant, and it\u2019s made my life so much easier.\u201d <\/p>\nWill Kerr, Apparel Lead at Quadrant<\/a><\/cite><\/blockquote>\n\n\n\n

Integrated logistics for online stores: Pros and cons explained<\/h2>\n\n\n\n

There are many ways to transform your current logistics operations<\/a> into an integrated logistics model. To help you get started, here are some pros and cons. <\/p>\n\n\n\n

Pro: Lower costs<\/h3>\n\n\n\n

When you have better visibility and coordination within the supply chain, it can significantly bring down the cost of logistics<\/a>. <\/p>\n\n\n\n

You\u2019ll be able to identify inefficiencies and unnecessary steps that are increasing your logistics costs and look for ways to optimise them for better cost-efficiency.<\/p>\n\n\n\n

Pro: Greater flexibility and efficiency<\/h3>\n\n\n\n

The increase in supply chain agility<\/a> is a key benefit of integrating a logistics network. End-to-end supply chain visibility allows for increased collaboration between different teams, which further improves logistics efficiency<\/a>. <\/p>\n\n\n\n

This also provides you with the flexibility to quickly adapt in case of any unexpected disruptions, which is especially common with international logistics<\/a>.<\/p>\n\n\n\n

Con: ROI can take some time<\/h3>\n\n\n\n

While integrated logistics comes with a multitude of benefits for your business, it takes some time to show results. Not all processes and departments will integrate easily at the start, so you\u2019ll need to wait a while for the impact to show. <\/p>\n\n\n\n

It can be a large, upfront investment, which will take time to recuperate. But if you take the time to invest upfront, you’ll save a lot of headaches and challenges down the road. <\/p>\n\n\n\n

Getting started with integrated logistics: What you need to know<\/h2>\n\n\n\n

The process of implementing integrated logistics requires strategic thinking and transparency across teams. Here’s what you need to know to get started. <\/p>\n\n\n\n

Start with logistics planning<\/h3>\n\n\n\n

Integrated logistics will need lots of logistics planning<\/a> with the goal to create a lean and cost-effective supply chain. <\/p>\n\n\n\n

Logistics planning requires you to think through short- and long-term business goals and then to come up with a game plan on how you will achieve those goals to generate profit. <\/p>\n\n\n\n

Look at all the different functions involved in your logistics model to identify how to improve communication and efficiencies through technology, partnerships, and resources. Taking this time to plan will help set you up to establish a resilient supply chain<\/a>.<\/p>\n\n\n\n

Streamline your logistics network<\/h3>\n\n\n\n

Operating a successful ecommerce business requires an integrated logistics network that can deliver quickly and cost-effectively. <\/p>\n\n\n\n

The best place to start is to look at your existing logistics network<\/a> and try to identify where you can streamline it for better collaboration. <\/p>\n\n\n\n