Технология Логистических Систем

Management of deliveries from an online store

Problem statement and delivery requirements

The REZINA.NET online store operates as an e-commerce outlet selling automobile tires and wheel disks. The Customer needed to ensure an effective flow of products from the supplier to the client in compliance with the “golden rule of logistics”: the correct number of goods of proper quality must be delivered to the consumer in due time at a right place with the lowest shipping costs possible.

Objectives

Cut delivery costs
Dispatching control of orders, acceptance of requests, efficient delivery planning, prompt customer notices of any delivery issues
Fetch the goods ordered by customers from suppliers on the same or following day
Prompt delivery of the goods on the day of the order or the next day after receiving the goods from the suppliers
Efficient management of orders in the Customer’s own warehouse
Provision of transport vehicles taking into account the seasonality of the business. Flexible response to higher demand
Cash services to customers
Real time monitoring of deliveries
Organization of a safe and convenient document flow and cash transfer system

Key Customer challenges

Seasonality of business: demand for tires and disks soars in off-season time, while sales decline in winter and summer. The unsteady demand for vehicles makes the internal delivery service inexpedient
The large number and diversity of suppliers and the lack of territorial consolidation of delivery zones imply longer delivery periods
Cash services to buyers require substantial financial and time costs (purchase and maintenance of cash registers and POS terminals)

Requirements for a transport company

Own vehicle fleet sufficient to cover the seasonal peaks in the flow of orders
Automated delivery management
Option to conclude an agency contract to provide cash services to customers
Availability of a warehouse to enable the pooling of orders in terms of delivery time and destination, the customer pickup and possible returns
Packaging of goods
Timely provision of reports and return documents

TLS solution

In-depth study of the online store’s business processes for further optimization
Use of a modern transport management system (TMS) to ensure efficient planning and control of deliveries
Collection and deliveries of goods in due time using own GPS equipped vehicles to control deliveries
Consolidation and packaging of goods in the warehouse
Real-time order status tracking
Cash services to customers with debit / credit card payment options under an agency contract
Easy document flow, daily transfer of the funds received from the consumers

Results

Better customer satisfaction with the high quality of service and prompt delivery, resulting in a higher sales result of the online store.
The store in a position to focus on marketing development.
Lower cost of delivery.
Faster processing of requests, shorter delivery periods
Uninterrupted deliveries in the peak season or for express orders
Lower losses of cargoes, fewer stock regrading issues and delivery errors