{"id":13894,"date":"2023-06-16T16:01:02","date_gmt":"2023-06-16T16:01:02","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/ecommerce-logistics\/logistics-operations\/"},"modified":"2026-04-21T15:42:25","modified_gmt":"2026-04-21T15:42:25","slug":"logistics-operations","status":"publish","type":"page","link":"https:\/\/www.shipbob.com\/au\/ecommerce-logistics\/logistics-operations\/","title":{"rendered":"Logistics Operations"},"content":{"rendered":"\n

Logistics Operations Guide<\/h1>\n

An ecommerce logistics operation is the backbone of an ecommerce business and it plays a vital role in driving sales and preparing for future growth. The strength of your operations impacts the ability to meet customer demand. This makes it very important to implement an ecommerce logistics strategy with the right processes, technology, and logistics infrastructure in place to ensure you\u2019re able to deliver a quality product to your customers. <\/p>\n\n\n\n

In this article, you will learn how to improve your logistics operations by finding ways to optimise your retail supply chain<\/a>. <\/p>\n\n\n\n

So, what do you want to learn?<\/h4>\n\n\n\n

What are logistics operations?<\/a>
Why are logistics operations so important for e-commerce?<\/a>
4 key processes in logistics operations<\/a>
4 logistics operations that optimise your supply chain management<\/a>
How ShipBob has streamlined logistics operations for Prymal<\/a>
Conclusion<\/a>
Logistics operations FAQs<\/a><\/p>\n<\/div>

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What are logistics operations?<\/h2>\n\n\n\n

Logistics operations is an essential part of the supply chain and refers to the process of moving finished goods, starting from the manufacturer and moving to the end user. The entire inbound and outbound logistics<\/a> process consists of managing ecommerce inventory<\/a>, and fulfilling and shipping orders. Inventory management, warehousing, and order fulfilment all play a key role in optimising ecommerce logistics<\/a>. While larger companies may have dedicated logistics directors<\/a> to manage logistics operations, smaller business owners typically handle it themselves.   <\/p>\n\n\n\n

Why are logistics operations so important for ecommerce?<\/h2>\n\n\n\n

Depending on the systems and processes you have in place, your ecommerce supply chain<\/a> can make or break your business. Since ecommerce logistics has many moving parts, inventory management<\/a> becomes a challenge without proper ways to track ecommerce inventory<\/a> throughout the process. You can end up with too much product, which can lead to deadstock<\/a> and high carrying costs<\/a>, or have too little, which can cause stockouts<\/a> and shipping delays. <\/p>\n\n\n\n

Without streamlined logistics operations, you will end up with several loose ends that impact both your profit margins and customer satisfaction. Therefore, having a cost-effective, streamlined logistics operations process in place will help to keep logistics costs<\/a> down, reduce risk and human error, and keep your customers happy. <\/p>\n\n\n\n

Logistics operations: 4 key processes<\/h2>\n\n\n\n

Logistics operations are made up of a series of processes that work together to optimise the supply chain<\/a>, from delivering goods from the manufacturer to the seller, all the way to last-mile delivery<\/a>. <\/p>\n\n\n\n

1. Suppliers and manufacturers<\/h3>\n\n\n\n

Obtaining raw materials is the first part of supply chain management<\/a>, which is taken care of by the manufacturer or supplier. A dependable manufacturer is responsible for tracking the work-in-process inventory<\/a> phase (i.e., the movement of raw materials being processed into finished goods) to make sure you get a high-quality, sellable product on time and at the most affordable price.<\/p>\n\n\n\n

Choosing the right supplier is important; manufacturers that are inconsistent in delivering a quality product and\/or shipping inventory to the seller can slow down operations from the very start.<\/p>\n\n\n\n

2. Distributed fulfilment centres<\/h3>\n\n\n\n

Fulfilment centres<\/a> are warehouses that hold inventory close to the end customer, so each order is picked, packed, and shipped as soon as it\u2019s placed to ensure the fastest delivery possible. Many direct-to-consumer (DTC) brands<\/a> depend on a third-party logistics<\/a> (3PL) company that performs ecommerce fulfilment<\/a> services. That way, they don\u2019t have to worry about fulfilling and shipping orders themselves.<\/p>\n\n\n\n

Another key benefit of partnering with a 3PL is the ability to distribute inventory<\/a> across logistics centres<\/a>. For instance, ShipBob is a retail fulfilment<\/a> company that offers a robust international fulfilment<\/a> centre network that allows merchants to split inventory<\/a> across locations to be closer to their customers. This reduces shipping costs<\/a> and speeds up delivery.<\/p>\n\n\n\n

3. Warehousing<\/h3>\n\n\n\n

Warehousing<\/a> is a key stage in the logistics operations process that involves storing and managing physical goods before they are sold. There are several key parts to warehouse management<\/a>, including the safety and security of stored goods, inventory control<\/a> processes that help to optimise inventory storage<\/a>, and much more.<\/p>\n\n\n\n

These crucial operational warehouse management systems help to track where items are located, when they arrived, and how long they have been there.<\/p>\n\n\n\n

4. Shipping<\/h3>\n\n\n\n

Orders that are shipped to customers accurately and quickly speaks to how well you run your logistics operations. Although the execution of shipping orders to their final destination is ultimately up to the courier, you can choose which shipping methods to offer your customers (e.g., standard via ground, expedited shipping<\/a> via air, etc) and to which locations (domestic vs. international shipping<\/a>).<\/p>\n\n\n\n

You also have the option to ship orders in-house, most often which involves standing in line at the post office. Otherwise, you can outsource fulfilment<\/a> to a company that has access to discounted shipping rates from major couriers and can take care of the shipping process (and all other logistics operations) for you.<\/p>\n\n\n\n

4 logistics operations that optimise your supply chain management<\/h2>\n\n\n\n

There are several ways to improve logistics operations, and you don\u2019t have to go at it alone. Many ecommerce businesses rely on a logistics service provider<\/a> like ShipBob to help optimise their supply chain, from inventory management to shipping orders. <\/p>\n\n\n\n

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