Sustainable e-commerce logistics
Part 1: Logistics digitalization and sustainability
Consumers’ shopping patterns are shifting from in-store purchases to online shopping, and so are the supply chains. To transport goods sustainably, the e-commerce industry needs to plan its shipments and logistics better.
Lifestyle and consumption patterns have changed dramatically recently. Goods formerly consumed outside of the household, in restaurants, or offices are to a larger extent ordered in smaller batches and consumed for household purposes. Purchases made in-store are now made online, in direct contact with the brand.
This shift to e-commerce shopping has had many positive effects. Brands have been able to cut costs in their supply chain by talking directly to their end consumers (D2C). And consumers are becoming more conscious of prices, quality, and sourcing conditions. On the other hand, the shift to e-commerce has significantly increased emissions from transportation. The higher demands for services like door-to-door delivery, same-day delivery, and free returns have also meant more inefficient routing.
Through the digitalization of logistics management, e-commerce companies can however use IoT (internet of things) and data to get control over their transportations and achieve cost-efficient and sustainable logistics operations.
Planning and optimizing the currier’s route to the end customer is becoming a crucial part of modern and sustainable e-commerce operations. This has meant a rising need for order routing. Order routing is an automated process to optimize the transportation of each order through a set of rules.
A proven strategy for many successful e-commerce brands has been to optimize their logistics management early on. A part of this includes shipping orders from the closest warehouse facility as possible. This is achieved by storing goods in a network of hubs and then sending each order within the local area to save both time and emissions.
Through the Prime Penguin Plattform, any sized e-commerce business can leverage the benefits of multiple warehouses. We have existing integrations and partnerships with warehouses globally, to make adding additional logistics providers easy and cost-efficient. Through the platform, each order can be optimized to your specific requirements and customized rules down to the SKU level.
We have helped our clients significantly lower costs and emissions from transportation as well as delivery time to consumers and make their overall e-commerce logistics more sustainable.
By choosing a robust technological solution early on e-shops will achieve higher margins as they scale. Being economical with your resources and having a lean supply chain is the key to saving costs as well as saving the environment.
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