Logistics & Shipping
The In-and-outs of the Logistics Shipping Process

The logistics of a shipping process are long and can often be very confusing. However, when is an essential part of a supply chain and the success of a business. A seamless and streamlined shipping process can elevate a company's supply chain management and help set them apart from the rest if they are educated on the ins and outs of each process. 

What is included in the shipping process?

The transportation of goods from a company to the consumer is called shipping. It is a value chain that, without the correct structure and management system, can be detrimental to the success of a business. Shipping represents an overall process of many individual steps in which both internal and external interfaces are involved. 

Shipping is an overall term for individual steps that happen in the supply chain to reach the goal of shipment to a customer.
Shipping is an overall term for individual steps that happen in the supply chain to reach the goal of shipment to a customer.

Shipping variable

The type of shipping method used in each process is dependent on variables such as: 

  • Delivery Time 

  • Shipping Costs 

  • Mode Of Shipment 

  • Domestic Or International shipping 

Shipping methods

Concerning this, the rise of the most common shipping methods used in both the e-commerce and corporate sectors are as follows: 

  • Same Day Delivery 

  • International Shipping 

  • Express Shipping 

  • Next Day Delivery 

>> Supply chain strategies that business owners need to know

Shipping process state

In the world of e-commerce shipment, there are 3 stages that encompass the entire process. These stages are receiving, processing, and fulfilling and are responsible for the impact on how quickly and accurately an order is prepared in the supply chain for a customer and sent to its end destination. 

  • Stage 1: Order receiving​​

Once a company receives an order on their e-commerce store, they will then have to ensure they have enough inventory to cover the order process. This is done through working closely with the manufacturer the company has used in order to purchase and receive inventory at a warehouse, or sending products to a fulfillment center if they are working with a 3PL. 

Implementing an order management system when receiving customer orders can easily streamline them and help track all business inventory from one place in your supply chain. 

  • Stage 2: Order processing

Processing an order relates to the processing and verifying of order data to ensure it is accurate and that the related items are stocked. This process is mainly done by using automation, which helps to speed the steps up drastically. From this point onward, customers can be notified in real-time of their order status and that their products are being processed. 

  • Stage 3: Order fullfilment

After the order has been processed, order fulfillment then begins. This step involves picking the items for orders and preparing them to be shipped out. When completing this, there are many orders filling options that can be chosen for e-commerce companies, these can range from self-fulfillment, drop shipping, or outsourcing. 

Outsourcing is the most popular method as using a 3PL enables the entire e-commerce fulfillment process to be taken care of. This can range from anything from warehousing, picking, packing, and of course the shipping process. A 3PL can also be cheaper in the long run due to the costs related to fulfillment itself and inventory management. 

3PL enable cost reductions as well as helping with your entire fulfilment process.
3PL enables cost reductions as well as helps with your entire fulfillment process.

Shipping process - Who's involved?

When a 3PL is involved in the shipping process there are more people involved as they act as the middle man, this differs from the usual process of shipping orders straight to consumers in the supply chain. 

  • The Shipper 

An individual or company is the shippers that take the order and prepare it for shipping as cargo. This could be either the freight forwarders involved or the individual brand itself.

  • The carrier 

Once an order has shipped, it is the carrier's job to ensure it is delivered safely to the customer. Once the order is with the carrier order tracking can be used in real-time to notify the customer of their order process, as well as give them an estimated delivery time. 

  • 3PL

3PLs offer both inbound and outbound logistics services and are responsible for taking care of the shipping process from a fulfillment center if used, and act as a supply chain management in some regards. 3PLs also have close connections to shipping carriers, making negotiation of rates much easier, this not only reduces costs for the company but also for the customer too. 

Once the order is shipped, 3PLs can control the entire process of managing all orders in real-time from one single point such as a single dashboard. In relation to this, they can keep customers in the loop about the status and delivery estimation of their parcel. 

Shipping process - Who's involved?
Shipping cargo oversea

To conclude, the shipping process is a long and complicated chain but with the right services and logistics providers involved can be made much easier. 

VICO logistics is here to take the weight of supply chain management off your shoulders with a tailored logistics experience. Contact VICO today and let us know how we can help. 

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