Exploring E-commerce Logistics: The Basics Every EC Needs to Know

Exploring the Intricacies of E-commerce Logistics Operations

• Thank you for watching the video. This is CP Co., Ltd. Today, I will be speaking on the theme of EC logistics study session. Thank you for your understanding. Today's agenda is as follows. So, without further ado, today. Let's get into the main topic.As for the logistics operations of an e-commerce business, we believe that there are two main types of logistics operations that are necessary for e-commerce operations. The first is called warehousing operations, which include warehousing, storage, and picking. Then, the process is packaging and shipping. The other process is called the shipping instruction process, and after the order is placed, it is confirmed, the shipping instructions are shipped, and a notification email is sent after completion. Finally, the order is completed. Let's dig deeper into these two processes. I would like to take a look at it. I think there are three main patterns. The first pattern is when you ship it yourself. Since you are shipping it yourself, you purchase inventory on hand and inspect it. The process up to this point, which involves keeping storage records, is all about shipping. For shipping, we put together the orders to be shipped today, actually print out the invoices, package the products, and deliver them to the buyers. We then check to see if there are any problems with the contents of the products. If it's okay, we'll send it out. The second pattern would be to outsource it to a distribution warehouse. The actual work would be done by the warehouse, so we'd like them to do the work for us. As an e-commerce business, the process is to create a product code and notify us of the arrival schedule. Receipt of the arrival schedule is a request from the warehouse staff to let us know in advance when and how many items will be delivered. This means that the shipping itself will be done on-site at the distribution warehouse, so today you will be asked to put together the orders you would like to ship and contact us via email in the specified format. This will lead to the idea. So, the third pattern is when using a tool app. In the sense that you are requesting outsourced transportation, the warehousing, work, and storage are the same as the logistics transportation outsourcing described earlier. As for shipping operations, this tool app automatically issues shipping instructions. Since it is sent, it is essentially a no-touch operation from the e-commerce operator's perspective. The only manual response such as changing or canceling an order becomes irregular. This is a very important point. Next, we will deal with shipping history work. Let's take a look at these three patterns. Order occurrence Order confirmation is to check the contents of the number of orders and products, and to confirm whether there are any changes or cancellations by inquiry. We also send monthly data. If you ship the items yourself, you will be responsible for all the orders that must be shipped on the same day, issuing invoices and packaging the items, and checking to make sure there are no problems with the contents. If all is well, we will ship the item. Once the shipping is complete, we will send a shipping notification email and actually close the order, marking it as complete. If this process is outsourced to a distribution warehouse, If you look at it, up to the confirmation of the order, it is exactly the same as when shipping by yourself. After receiving the shipping instruction, it will be shipped at the distribution warehouse. Therefore, if you are an e-commerce business, you can use the order data you want to ship today. This means that all the items are sent in a specified format. Once we have received data from the mutual site indicating that the shipment has been completed, we can send a shipping notification or complete the order based on that data. Finally, let's move on to the tool. If you look at this starting business network when using the app, order confirmation will basically be skipped.

Exploring the Intricacies of E-commerce Logistics Operations

Revolutionizing E-commerce Logistics: A Comprehensive Overview

• Shipping instructions will also be automatically sent by the app, so there will be no need to touch it. There will be no manual steps such as changing or canceling order details. The only thing that will be irregular is the response, so the tool app will handle everything else automatically, which is a very important point. I think this is a common issue among e-commerce businesses. I would like to point out that it takes a lot of man-hours just to send an order to shipping. It takes up a lot of time, so marketing measures can't be done at all. If shipping operations were to be done with all the power, it would put a strain on labor costs. It is said that repeat customer measures are very important, but this is also the same as the marketing discussion earlier, and time is pressured, so things like responding to reviews and email newsletters are put on the back burner. I think the essence of today's study session will be how to reduce man-hour costs in terms of time and money. These are services such as tools to solve the problem. To explain, next, we will look at services surrounding EC physics, so we will start by looking at the types of logistics services. The first is what is called third-party logistics, which is what you might imagine. This is the case for distribution warehouse companies. The image of the charges is shipping charges, storage charges for storage charges, and additional picking quantities. The color of the label is changed, but the image is that fixed costs and option ratios are added. Additional picking charges are If it's one item in one package, it doesn't cost more than that, but if you put two or three items in it, this fee will be incurred. If you dig deeper into the contents, the amount of storage is per tsubo unit. There is a tendency for shipping charges to be discounted depending on the number of shipments. Fixed costs tend to come from warehouse system usage fees and maintenance costs. Others include packaging materials and wrapping. Flexible handling of delivery notes, etc. This is called custom logistics, and there are times when we can provide a wide range of support, and where there are fixed responsibilities, making it easier to communicate. But one more thing. One major feature is that when looking at Saturdays, Sundays, holidays, and long vacations over the course of a year, there is a tendency for non-operation during Golden Week, the Obon period, and the year-end and New Year holidays. One of the major advantages of this is that customization. I think the fact that we can handle logistics flexibly is what makes this third-party logistics company such a big deal. Next, I think some of you may have seen the logo on the right, but it is operated by a major mall. This will be a distribution warehouse that operates as a logistics warehouse. Unlike the previous example, the image of fees is that there is no fixed cost or option ratio. If we dig a little deeper into this, the amount of storage is calculated based on the size and daily rate. The size is the size of a cube. The image is the size of the volume, and the shipping fee is also fixed, such as 60 sizes and 100 sizes. There are no fixed costs as shown on the label. A big advantage is that shipping is available 365 days a year. This means that there is no day when products are not shipped. Next, let's talk about OMSWMS. First of all, it's OMS. It's called an order management system. Here, on the right side, there is an image of the database, but what is connected to it? It's a service that centrally manages Mallia Cart, like the one shown on the left. First string management means things like importing order data all at once, and returning shipping completion data all at once to linked Mall Carts. Since it also has inventory information, it can also be used as an inventory motive. The inventory motive here means, for example, that when one product A sells on Amazon, that product does not sell on Rakuten or Shopiffa. However, this

Revolutionizing E-commerce Logistics: A Comprehensive Overview

Revolutionizing E-commerce Logistics through Order and Warehouse Management Systems

• The order management system (OMS) plays a crucial role in reducing unsold inventory by seamlessly linking processes through a basic API. Depending on the type of OMS, functionalities like downloading product information from Amazon and converting it to Rakuten Shopify streamline operations. On the other hand, the warehouse management system (WMS) acts as the central hub for storing data from physical warehouse locations. Staff at these sites utilize handheld devices to access and manage information, ensuring efficient inventory control. By using these devices, they can allocate collected data to actual inventory, facilitating smooth order fulfillment. The interconnectedness between OMS and WMS enhances the overall logistics system. Orders placed by purchasers are seamlessly imported into the OMS using APIs, which further links the data with the WMS for seamless processing. The entire process, from order placement to shipping confirmation, is automated, enabling swift order fulfillment and inventory management. In addition, advanced logistics services like cpino offer innovative solutions to streamline shipping processes, providing a glimpse into the future of e-commerce logistics.

Revolutionizing E-commerce Logistics through Order and Warehouse Management Systems

Revolutionizing E-Commerce: The Power of Collaboration in Order Management Systems

• When order data and shipping data are consolidated, a wealth of information becomes available for analysis. From tracking sales totals to studying product trends and regional preferences, this data serves as a valuable tool for businesses. It essentially acts as a robust database that can streamline inventory management across multiple online shops. One such system, Next Engine, facilitates this process by linking various e-commerce platforms. Additionally, logistics services like Logizard, LogimoPro, and Shower Global Logistics play a pivotal role in warehouse management, ensuring seamless order fulfillment. The integration of Amazon's FBA service with platforms like Rakuten and Kaze has further revolutionized the e-commerce landscape. By leveraging Amazon's vast inventory, businesses can effortlessly expand their reach and automate order processing. This collaborative approach not only optimizes shipping costs but also enhances customer satisfaction. Moreover, emerging trends like B2C e-commerce carts and outsourced logistics warehouses underscore the importance of cohesive partnerships in the digital marketplace. By entrusting logistics operations to specialized partners like CP, companies can focus on core activities like marketing and customer engagement. This symbiotic relationship paves the way for seamless cross-platform integration and bolsters sales channel expansion. While traditional order management systems offer valuable functionalities, the ability to directly link with CP unlocks a new level of efficiency and scalability. Although limited to select platforms like Amazon, Rakuten Market, Shoppy Fighter, and Yahoo! Shopping, this direct integration offers a streamlined approach to order processing and inventory management. As businesses continue to explore new avenues for growth, collaborative order management systems are proving to be a game-changer in the competitive e-commerce landscape.

Revolutionizing E-Commerce: The Power of Collaboration in Order Management Systems

Revolutionizing E-Commerce through Automation and Efficiency

• In our case, we use Next Engine. By combining the engine with Hammy Co., Ltd. Release's service, it becomes possible to create automatic processes. At our company, we receive numerous inquiries from individuals struggling to locate a physical warehouse. While this may be a prerequisite for using CP, we can aid in identifying physical shortages based on the company's product and cost profile. Let's delve into some case studies while emphasizing the importance of reducing costs and enhancing efficiency through automation. GLO Co., Ltd., a sports-related exercise products seller, has minimized shipping operational costs with automated processes, freeing up time for marketing and innovation. By amalgamating Shopify brands as a CP and utilizing Logiza Ward 0-compatible logistics warehouse, automatic inventory control is achieved. Another example is Trust & Company, a thermal underwear retailer, which significantly reduced shipping costs through automation. This performance boost is evident in handling multiple platforms like Rakuten Market, Amazon, and Yahoo! Shopping efficiently with just one staff member. Lastly, Trend Reach Co., Ltd., a car accessories parts seller, strategically allocates time to sales-linked tasks rather than operational hassles by outsourcing shipping operations to Ecotaku logistics warehouse and CPino. Efficiency and accuracy in shipping have been lauded, showcasing benefits of cost reduction and streamlined operations. Embracing automation not only ensures timely and precise order processing but also minimizes errors, ultimately enhancing customer trust and satisfaction.

Revolutionizing E-Commerce through Automation and Efficiency

Conclusion:

Mastering the fundamentals of e-commerce logistics operations is key to optimizing efficiency and customer satisfaction. By understanding the intricacies of warehousing, shipping instructions, and logistics processes, EC businesses can streamline their operations for success in the competitive market.

Q & A