What is a Logistic Channel in E-commerce?
Logistic Channel is regarded as a network that comprises the participants of the supply chain occupied in several activities like receiving, warehousing, transportation, etc. A proficient logistic channel is capable of maintaining customers as it assists companies in experiencing smooth and timely delivery to their customers.
Significance of Logistics Channel in E-commerce
A logistics channel helps in maximizing production rate and increases customer and supplier satisfaction. It also contributes in the following ways to e-commerce businesses:
- An upgradation of customer service level can be achieved through a swift flow of goods.
- An efficient logistics channel is capable of increasing sales by increasing the production rate.
- Retention of customers can be observed through timely and hassle-free delivery of goods.
Prerequisites for Logistics Channel
Some of the prerequisites for the logistics channel are :
- All the participants taking part in the network should work in synergy to develop a rapid flow of goods.
- Choosing the optimal means of transportation for timely delivery
- The service standards of the channel members should coordinate with the logistics program designed by the manufacturers.
- Order cycle time should be monitored to avoid stagnancy in the movement of the goods.
Use Case With Logistics Channel
Suppose a company takes bulk orders that are to be delivered in a short period of time. To fulfill orders, companies can set up an efficient logistics channel. They can partner with suppliers to help them meet their order’s demand at the least cost. The order status can be viewed by the customers, which in turn offers transparency in customer service.