A Guide to Distribution Logistics; Defining what it is, and what the challenges are…

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Breathtaking design for home living.

A Guide to Distribution Logistics; Defining what it is, and what the challenges are…

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We’re not just another order fulfilment company. We’re the industry leader that delivers the highest quality B2B and B2C services to supercharge your business. If you’re looking to scale your business with world-class services, we’re here for you

What is distribution logistics?

What is distribution logistics?

In the eCommerce world, distribution logistics refers to the way in which goods are distributed to the end customer. However, the way in which the process is carried out can vary depending on if its B2C or B2B distribution.

For most eCommerce businesses, distribution logistics refers to the fulfilment and last mile delivery process. This includes the process of order processing, picking packing and then shipping. Most distribution logistics strategies depend on things such as carriers, 3PLs, and the technology used to carry out the entire process.

When it comes to eCommerce specifically, there are two main terms that fall under the umbrella of distribution logistics. These are; direct distribution logistics, and indirect distribution logistics.

Homeware; Exploring the growing market…

What is distribution logistics?

In the eCommerce world, distribution logistics refers to the way in which goods are distributed to the end customer. However, the way in which the process is carried out can vary depending on if its B2C or B2B distribution.

For most eCommerce businesses, distribution logistics refers to the fulfilment and last mile delivery process. This includes the process of order processing, picking packing and then shipping. Most distribution logistics strategies depend on things such as carriers, 3PLs, and the technology used to carry out the entire process.

When it comes to eCommerce specifically, there are two main terms that fall under the umbrella of distribution logistics. These are; direct distribution logistics, and indirect distribution logistics.

Homeware; Exploring the growing market…

What is direct distribution logistics?

Direct distribution logistics is a strategy whereby the business will fulfil orders internally, but still may rely on third party carriers to fulfil their orders efficiently. Another term you may come across is ‘in-house fulfilment’ which refers to the same process and definition.

When a merchant places an order with the supplier or manufacturer, they will then ship the products directly to the merchants premise. This can be a home, office, or rented warehouse space. Once the merchant receives an order from a customer (B2C) or retailer (B2B) the order (s) will be picked, packed and shipped, usually through a third party carrier.

Homeware; Exploring the growing market…

What is indirect distribution logistics?

An indirect distribution strategy involves the merchant outsourcing most, if not all of their operations to a Third Party Logistics provider, also known as a 3PL.

A 3PL will have their own storage facility, warehouse/admin team, packaging supplies/suppliers, courier partner network, and any other resource required to successfully handle the distribution process.

Many eCommerce brands opt to partner with a 3PL due to their expertise, operations, and resources. By partnering with a 3PL, they have more time to focus on other areas of the business, such as their; sales, marketing, networking, and product development.

Homeware; Exploring the growing market…

Common challenges of distribution logistics

Distribution logistics can be complex, and if you don’t have much experience in the area then you may find the entire process costly and unnerving. Lets take a look at some of the challenges associated with direct distribution logistics (in house fulfilment) …

What is direct distribution logistics?

Direct distribution logistics is a strategy whereby the business will fulfil orders internally, but still may rely on third party carriers to fulfil their orders efficiently. Another term you may come across is ‘in-house fulfilment’ which refers to the same process and definition.

When a merchant places an order with the supplier or manufacturer, they will then ship the products directly to the merchants premise. This can be a home, office, or rented warehouse space. Once the merchant receives an order from a customer (B2C) or retailer (B2B) the order (s) will be picked, packed and shipped, usually through a third party carrier.

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

What is indirect distribution logistics?

What is indirect distribution logistics?

An indirect distribution strategy involves the merchant outsourcing most, if not all of their operations to a Third Party Logistics provider, also known as a 3PL.

A 3PL will have their own storage facility, warehouse/admin team, packaging supplies/suppliers, courier partner network, and any other resource required to successfully handle the distribution process.

Many eCommerce brands opt to partner with a 3PL due to their expertise, operations, and resources. By partnering with a 3PL, they have more time to focus on other areas of the business, such as their; sales, marketing, networking, and product development.

Common challenges of distribution logistics…

Distribution logistics can be complex, and if you don’t have much experience in the area then you may find the planning, and process costly and unnerving. Lets take a look at some of the challenges associated with direct distribution logistics (in house fulfilment) …

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

Demand

Monthly demand fluctuations are common in many industries. There are seasonal fluctuations, such as Black Friday and Christmas. There can also be fluctuations due to promotional sales, where you would typically expect to see an increase in the number of orders received. Without having a proper distribution strategy in place, any sort of fluctuations can cause several challenges and risks. You could end up losing money and sales due to improper preparation, which is not something you want.

Being overprepared can leave you with excess stock that you may struggle to move, resulting in higher storage costs, or disposal fees. Being underprepared can also result in excess costs as a result of having to place a rush order for stock. Or, losing out on sales due to having inadequate levels of stock.

Rising Costs

Inflation is a pesky thing, but it cannot be avoided.

The cost of fuel, energy, labour, and materials are increasing worldwide. This of course has a knock on effect when it comes to the price of your distribution, product materials, etc.

The challenge with this is figuring out how you’re going to manage the costs, while offering value for your customers and still managing to make a decent profit.

With the uncertain economy, you need to find a cost effective way to navigate costs effectively by continually reviewing everything.

Demand

Monthly demand fluctuations are common in many industries. There are seasonal fluctuations, such as Black Friday and Christmas. There can also be fluctuations due to promotional sales, where you would typically expect to see an increase in the number of orders received. Without having a proper distribution strategy in place, any sort of fluctuations can cause several challenges and risks. You could end up losing money and sales due to improper preparation, which is not something you want.

Being overprepared can leave you with excess stock that you may struggle to move, resulting in higher storage costs, or disposal fees. Being underprepared can also result in excess costs as a result of having to place a rush order for stock. Or, losing out on sales due to having inadequate levels of stock.

Rising Costs

Inflation is a pesky thing, but it cannot be avoided.

The cost of fuel, energy, labour, and materials are increasing worldwide. This of course has a knock on effect when it comes to the price of your distribution, product materials, etc.

The challenge with this is figuring out how you’re going to manage the costs, while offering value for your customers and still managing to make a decent profit.

With the uncertain economy, you need to find a cost effective way to navigate costs effectively by continually reviewing everything.

Homeware; Exploring the growing market…

Let TSP handle your distribution logistics…

Let us handle your distribution logistics.

With over 20 years of industry experience, we are experts when it comes to B2C, B2B and Amazon fulfilment, making us your go to 3PL.

Explore our range of cost and time effective services, designed with a high level of customer satisfaction in mind.

Our Range of Fulfilment Services

Storage, Pick and pack

At TSP we handle everything, starting with the storage, picking, and packing of your products.

We serve a range of markets so we have experience storing, picking, and packing a variety of different products, so we’ve got you covered regardless of what you sell.

Outsourcing your pick and pack with us will help free up your time, while also improving the entire process due to our highly experienced team of staff.

B2B and B2C Fulfilment

Regardless of whether you just do B2C or B2B, or a mixture of both, our team have the knowledge and resources required to successfully get your orders picked, packed, and shipped to your customer or chosen retailer.

While we handle your B2B and B2C fulfilment, you can focus on putting more time and money back into other areas of your business, such as your sales, marketing, and product development.

Shipping and logistics

After we pick and pack your orders, we ship them too.

We ensure you get better deals on shipping and packaging by letting you leverage our buying power, meaning you can save money and put it back into growing your business.

We also partner with a range of couriers, ensuring the needs of your business are being met through a diverse choice in reliable couriers.

Amazon FBM, FBA, SFP…

We are your one stop solution for all Amazon seller services, including FBA, FBM and SFP. With over 20 years of industry experience you can be assured that we are fully equipped to support you..

So regardless of what Amazon service you’re using, or if its a mix of all 3, we’ve got you covered. Check out our Amazon page for more information regarding our Amazon fulfilment services.

Inventory Management

Our cloud-based inventory management system, Mintsoft is easy to navigate and provides you with real time updates so you can always make informed decisions about your stock.

Returns Management

Returns are inevitable when it comes to your eCommerce business, but managing them correctly is a critical aspect on 3PL services. Here at TSP, we will handle the entire process from start to finish, helping you to main a high level of customer satisfaction.

Carbon Neutral Fulfilment

Are you a sustainable business? Looking to become more sustainable? Working with us means you can do your bit for the planet too, since we are a certified carbon neutral 3PL company.

Kitting, Bundling, and Assembly

Do you sell custom bundles or kits? We’ve got you covered. Our team is trained in kitting and bundle building, so you can be assured your customers will receive their orders in an accurate, timely manner.

Global Fulfilment

Do you require international shipping, or are you looking to expand into global markets? We’ve got you covered with our extensive network of couriers and global warehouses.

Explore our global fulfilment solutions page to see how we can help you dominate the global market, right from the heart of Newcastle.

Customs Bonded Warehouse

Here at TSP we are one of the very few Newcastle based order fulfilment companies with a dry bonded warehouse license.

Our network of freight forwarders means you can easily utilise the power of cross-border selling, allowing you to boost sales and drive growth.

Let TSP handle your distribution logistics…

Let TSP handle your distribution logistics…

At TSP, we are an award winning 3PL company with over 20 years of industry experience, specialising in B2B and Amazon Fulfilment, as well as B2C Fulfilment.

We use industry leading technology to help you accurately track your inventory levels, allowing you to make informed decisions regarding your business. Explore our full range of services below…

80+ Global Fulfilment Centres

 

We integrate with over 150 platforms

 

18M Sq Ft of Global Warehouse Space

 

Our Range of Fulfilment Services

Storage, Pick and pack

At TSP we handle everything, starting with the storage, picking, and packing of your products.

We serve a range of markets so we have experience storing, picking, and packing a variety of different products, so we’ve got you covered regardless of what you sell.

Outsourcing your pick and pack with us will help free up your time, while also improving the entire process due to our highly experienced team of staff.

B2B and B2C Fulfilment

Regardless of whether you just do B2C or B2B, or a mixture of both, our team have the knowledge and resources required to successfully get your orders picked, packed, and shipped to your customer or chosen retailer.

While we handle your B2B and B2C fulfilment, you can focus on putting more time and money back into other areas of your business, such as your sales, marketing, and product development.

Shipping and logistics

After we pick and pack your orders, we ship them too.

We ensure you get better deals on shipping and packaging by letting you leverage our buying power, meaning you can save money and put it back into growing your business.

We also partner with a range of couriers, ensuring the needs of your business are being met through a diverse choice in reliable couriers.

Amazon FBM, FBA, SFP…

We are your one stop solution for all Amazon seller services, including FBA, FBM and SFP. With over 20 years of industry experience you can be assured that we are fully equipped to support you..

So regardless of what Amazon service you’re using, or if its a mix of all 3, we’ve got you covered. Check out our Amazon page for more information regarding our Amazon fulfilment services.

Inventory Management

Our cloud-based inventory management system, Mintsoft is easy to navigate and provides you with real time updates so you can always make informed decisions about your stock.

Returns Management

Returns are inevitable when it comes to your eCommerce business, but managing them correctly is a critical aspect on 3PL services. Here at TSP, we will handle the entire process from start to finish, helping you to main a high level of customer satisfaction.

Carbon Neutral Fulfilment

Are you a sustainable business? Looking to become more sustainable? Working with us means you can do your bit for the planet too, since we are a certified carbon neutral 3PL company.

Kitting, Bundling, and Assembly

Do you sell custom bundles or kits? We’ve got you covered. Our team is trained in kitting and bundle building, so you can be assured your customers will receive their orders in an accurate, timely manner.

Global Fulfilment

Do you require international shipping, or are you looking to expand into global markets? We’ve got you covered with our extensive network of couriers and global warehouses.

Explore our global fulfilment solutions page to see how we can help you dominate the global market, right from the heart of Newcastle.

Customs Bonded Warehouse

Here at TSP we are one of the very few Newcastle based order fulfilment companies with a dry bonded warehouse license.

Our network of freight forwarders means you can easily utilise the power of cross-border selling, allowing you to boost sales and drive growth.

Collate your product details and connect your stores / market places

Link you into our preferred courier network

Take delivery of your stock, go live!



Collate your product details and connect your stores & marketplaces.



Link you into our preferred courier network.

Take delivery of your stock, go live!

We don’t just meet the standard. We make it