[FR] E-commerce logistics outsourcing: how do you go about it?

When you start an e-commerce business, you want to manage everything from A to Z. Creating or sourcing goods, managing the website, tracking customer reviews – right down to logistics. But outsourcing e-commerce logistics can offer significant benefits for anyone looking to grow their business.

Find out more about these benefits and the keys to success for outsourcing your logistics in this article.

5 benefits of logistics outsourcing for your e-commerce business

Outsourcing some or all of your logistics operations to an external service provider offers real benefits. Whether you decide to outsource your stock management, order preparation or your entire logistics department, the benefits will depend on your business.

Using a logistics service provider can enable you to :

• Better control of your logistics quality. As your service provider specialises in logistics services, he can give you better control over flows, ensuring on-time deliveries and the implementation of quality processes in terms of order preparation and transport.
• Reduce your logistics costs. Outsourced service providers often have access to lower prices thanks to negotiated bulk rates (particularly in terms of carriers, who make up the bulk of your logistics budget).
• Focus on your core business. With less need to worry about your logistics and transport operations, you can focus on developing your business. Ideal for e-tailers who are just starting up!
• Copingwith seasonal peaks, or peaks in activity linked to a logistics transition phase – for example, when you change warehouses.
• Implementing your business in a third country where you do not have a physical presence – particularly in strategic areas with a reputation for being difficult to access, such as China or Russia.

To find out more, read our article on the advantages and disadvantages of outsourcing your logistics.

The keys to successful e-commerce logistics outsourcing

Want to launch your e-commerce logistics outsourcing project? Here are five keys to the success of your project.

Define your needs precisely

The first step is to understand exactly what your needs are in terms of logistics services.

Analyse your needs in terms of :

• Warehousing and stocks: how many units need to be stored, and does this number vary over the year?
• Packaging: what types of packaging are needed for your products (pallets, crates, postal packaging, etc.)? Do you need it to be customised?
• Goods transport: what delivery methods do you want to offer your customers?
• Location: where do you want to store your goods? And ship them?
• After-sales service: do you need your service provider to handle order returns themselves? Or would you do it in-house?

This detailed analysis of your needs will enable you to draw up an exhaustive set of specifications.

Compare the different possible service providers

Send your specifications, along with a detailed description of your e-commerce business and your requirements, to the various service providers you have identified. Then compare the offers they make.

Every detail of the contracts you are offered should be carefully examined. In particular, look at :

• The location of your service provider’s warehouses
• The delivery times they commit to
• The packaging used
• The traceability systems in place to track shipments
• The logistics technologies used by your service provider – in particular any integration with your current information system, such as your e-commerce CRM, WMS or ERP.

You should also compare the different outsourced logistics platforms, based on the opinions or recommendations of the companies you are considering. The aim? Make sure that the one you choose is reliable.

Compare the costs of insourcing versus outsourcing

While e-commerce logistics outsourcing offers considerable advantages, it is not without its drawbacks either. You lose control of your supply chain, and you need to establish strong links with your service provider to see the project through. In short, if you’re going to embark on this project, it has to make real sense to you!

So weigh up the pros and cons. Once you have an idea of the price of your e-commerce logistics outsourcing project, check that the costs generated by such a project do not exceed those you would have to bear by bringing your logistics in-house.

Take into account the costs of storage, materials, insurance, delivery and labour that you would have to bear if you brought your business in-house.

And to delve deeper into the subject, take the time to read our article “3PL logistics: should you outsource your supply chain management?

Analyse the packaging management offered by your service provider

If you choose to outsource your e-commerce logistics, you need to keep a close eye on one element in particular: packaging. This is the first point of physical contact between your e-commerce business and your customers, so it needs to be customer experience-oriented, and able to create a real “wow” effect when your goods are delivered.

So take the time to ask your service provider about the packaging method used. Is it eco-responsible? Can it be personalised, if necessary? If not, you can always negotiate to use your own packaging materials.

Establish a lasting relationship of trust with your supplier

You now have all the keys to outsourcing your e-commerce logistics. All that remains now is to establish a lasting relationship with your service provider.

To do this:

• Plan the transition between your current logistics process and the outsourcing of your e-commerce logistics
• Work together on your company’s various projects as it grows: changes to branding, internationalisation, implementation of performance metrics, etc.
• Constantly monitor the flexibility and responsiveness of your e-logistics provider

And make sure that logistics outsourcing always goes hand in hand with customer experience and profitability!