top 7 mistakes transporters make with e-commerce logistics operations
TRANSCRIPT
Maybe you’ve heard about the e-commerce logistics gold rush…
And you’re excited to get on board!
We’ve compiled a list of mistakes transporters make
when trying to ridethe e-commerce logistics wave
so avoid them at all costs!
#7: Dinosaur techin the age ofthe internet
A base level of technology is requiredto compete in the current e-commerce market.
If you can’t provide visibility into yourdelivery operations, or don’t have
e-POD or signing capabilities, big players likeLazada, Zalora and XiaoMi are simply not goingto consider you as a potential service provider.
“Windows 10? No thanks, Windows XP works fine for me!”
It’s actually very costly to try and do everythingfor everybody. But in the early days,
it’s pretty hard to say no.
If you can find your logistics operations nicheearly and focus on delivering the best service toyour chosen target market, it’ll be a lot easier to
provide great value with a much smaller fleet.“All our consignees get a free coffee with their deliveries!”
#6: Trying toprovide all kinds
of logistics services
Same-day delivery seems to be all the buzz,but it may not be quite worth the effort
in every industry.
In supply chain theory, there is always a tradeoff between ‘responsiveness’ and ‘efficiency’,and markets prioritise each differently. When
carving out your niche, make sure you find onethat provides a scalable and sustainable
advantage over time.“If we cancel weekends, we can increase productivity by 40%"
#5: Promisingthe moon
Underpricing is a tactic that benefits nobody.Rather than lowering prices, build your price
into your story – what kind of reliable,quality service are you known for?
To keep your costs down, try leveraging on technology (read: a good TMS) to get
an edge over your competitors.The finish line of the race to the bottom is the bottom.
#4: Racing to thebottom
Reputation is everything in this industry – whattakes years to build can be destroyed in minutes.
One of the biggest customer-sided mistakesyou could make is not knowing the status
of your own delivery operations, and having tohear the worst from your customers. Make sure
you have in place a system that provides delivery statuses updates automatically.
“All our neighbours have moved. What’s this rumor about a meteor crashing?”
#3: Being the lastto know the worst
Every organisation has its key personnel – thatone person who seems to be able to do
everything.
As natural as it seems to build your companyaround your most valuable people, try to buildin some redundancy in the system. Give other
team members a chance to try dispatchscheduling and route planning.
If you want something done, give it to a busy person.
#2: Over-relianceon key personnel
Investing in customized, stand-alone software isby far the biggest mistake that a new transportercan make. Always remember that you are in the
logistics business – not computers – so you you should not have to concern yourself with
investing in servers and software maintenance.
However, there’s no need to re-invent the wheel.Tap on a proven service provider who has the
right software just off the shelf.“So, because all our trucks have at least 4 tyres, buying this tyre factory will save us…$1M dollars!”
#1: Trying to buildit all in-house
Being a successful e-commercetransporter is not easy.
Don’t make it harder by repeating common mistakes
