A Guide to Logistics Planning; What is it? Why Is It Important?

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Breathtaking design for home living.

A guide to logistics planning; what is it and why is it important?

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Breathtaking design for home living.

The 3PL that delivers on time, every time

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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

Logistics Planning; an introduction…

Beautifully crafted leather products.

A logistics plan is one of the most important plan you need to make when it comes to operating your eCommerce business. Logistics planning can take time but it is crucial.

When it comes to logistics planning, you need to look at your supply chain as a whole, from end to end.

Having a good, solid plan in place will help you minimise risks and unforeseen issues, while also helping you to keep costs in check and still having the ability to offer good value products and shipping to your customers. Overall, a good logistics plan will help you boost growth and get ahead of competition.

Homeware; Exploring the growing market…

Logistics Planning; An introduction

A logistics plan is one of the most important plan you need to make when it comes to operating your eCommerce business. Logistics planning can take time but it is crucial.

When it comes to logistics planning, you need to look at your supply chain as a whole, from end to end.

Having a good, solid plan in place will help you minimise risks and unforeseen issues, while also helping you to keep costs in check and still having the ability to offer good value products and shipping to your customers. Overall, a good logistics plan will help you boost growth and get ahead of competition.

Homeware; Exploring the growing market…

What is logistics planning?

Logistics planning is the process whereby you obtain and gather the relevant supply chain information to then help you construct a plan that allows you to secure a constant availability of goods, while still ensuring your orders reach your customers as quickly as possible.

Every logistics plan is of course different, but should rely on the following factors;

  • Sourcing (procurement)
  • Suppliers
  • Transportation
  • Handling
  • Resource Management
  • Packaging
  • Inventory Management
  • Fulfilment
  • Reverse Logistics ( Returns Management)

Creating your logistics plan is no easy task, especially if you are already managing everything in-house either by yourself or with a small team, which is why its sometimes a good idea to hire a logistics manager or outsource your operations to a 3PL. We will discuss the different options later.

Homeware; Exploring the growing market…

Why is logistics planning important?

A logistics plan will help you create short, medium, and long term strategies that help to ensure your business stays in overall good health, while also maintaining a high level of customer satisfaction.

With a poor logistics plan in place, it can be hard to determine the overall success of the business long term, and you will find yourself running into more issues than usual which can be costly. Not only this, but it can lead to a low customer satisfaction level which ultimately affects your business overall too – no customers = no business!

Homeware; Exploring the growing market…

Things to consider when developing your logistics plan

There are some things you need to consider when creating your logistics plan, which we will explore below…

What is logistics planning?

Logistics planning is the process whereby you obtain and gather the relevant supply chain information to then help you construct a plan that allows you to secure a constant availability of goods, while still ensuring your orders reach your customers as quickly as possible.

Every logistics plan is of course different, but should rely on the following factors;

  • Sourcing (procurement)
  • Suppliers
  • Transportation
  • Handling
  • Resource Management
  • Packaging
  • Inventory Management
  • Fulfilment
  • Reverse Logistics ( Returns Management)

Creating your logistics plan is no easy task, especially if you are already managing everything in-house either by yourself or with a small team, which is why its sometimes a good idea to hire a logistics manager or outsource your operations to a 3PL. We will discuss the different options later.

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.

Why is logistics planning important?

Beautifully crafted leather products.

A logistics plan will help you create short, medium, and long term strategies that help to ensure your business stays in overall good health, while also maintaining a high level of customer satisfaction.

With a poor logistics plan in place, it can be hard to determine the overall success of the business long term, and you will find yourself running into more issues than usual which can be costly. Not only this, but it can lead to a low customer satisfaction level which ultimately affects your business overall too – no customers = no business!

Things to consider while developing your logistics plan…

There are some things you need to consider when creating your logistics plan, which we will explore below…

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.

Procurement

Procurement entails the process of obtaining goods and services from suppliers. Many eCommerce businesses have a procurement manager that deals with assessing the needs of the company, and then work towards finding suitable solution.

It’s all good having great products, but you need to ensure your entire supply chain is good too. Any suppliers/manufacturers need to be reliable and trustworthy to minimise potential risks and issues. Similarly, your carriers, couriers fulfilment partner, and the technology you use need to be reliable and trustworthy too.

Transportation

Regardless of what you are shipping, a solid courier and carrier network is required to ensure your goods reach their end destination in a safe, timely manner. You will need to explore both your first and last mile delivery, and may need to consider using different partners depending on whether or not you are shipping domestically or internationally.

Generally speaking, it is more cost effective to utilise a number of different couriers depending on your product sizes and their end destination.

Handling

During the handling process, your products and orders will go through many different environmental conditions, and are handled by many different people along the way. So, without proper handling, you may find that your goods turn up damaged or sometimes even missing.

With that being said, the handling process is out of your control. You do however have control over the partners you choose to manage the handling process which is why choosing good, reliable, and trustworthy partners is crucial. However you do also need to ensure that your items are packaged properly to minimise the risk of damage.

Resource Management

There are many different types of ‘resources’ to consider when it comes to running a business, such as your; financial resources, technological resources, production resources, human resources, human resources, etc.

The amount of resource management you require is dependent on the size and scale of your business and operations, as the business grows you may find that your resource management becomes more complex which is why it is sometimes a good idea to hire someone to manage your resources effectively.

Inventory Management

Inventory management can be complex. but it is crucial that you perfect and prioritise your strategy. Having a good understanding of your stock will help to minimise stockouts and waste, as well as helping you avid excess storage costs.

Packaging

You want to ensure your customers receive their orders safely, without damage, but you also want to ensure that they have a good unboxing experience as it contributes to your overall customer satisfaction level. So when it comes to your logistics planning, ensuring your packaging covers both factors, while also remaining cost effective.

Fulfilment Strategy

Another crucial component of your logistics planning is of course, your fulfilment strategy. The process begins from the second an order is placed by a customer, and ends once they have successfully received their order. However there are a lot of components that make up the entire process, such as order processing, picking, packing, and shipping. On top of this you also have inventory management and returns management.

When you first start your business, you may find it easier and more cost effective to run things ‘in-house’ but as your business grows it becomes more cost effective and easier to outsource with a fulfilment company.

Reverse Logistics

Reverse logistics refers to the process of customers returning their orders to you, which unfortunately is inevitable at times. A returned order does not mean you have permanently lost a customer though, but how you handle the process will determine whether or not they will return again. A good, easy process increases your chances of having a repeat customer, but of course a poor process can lead to you losing a customer completely. Your logistics plan should therefore clearly outline how the process works, how it can remain cost effective, and the T&Cs involved in what you accept as a return.

Procurement

Procurement entails the process of obtaining goods and services from suppliers. Many eCommerce businesses have a procurement manager that deals with assessing the needs of the company, and then work towards finding suitable solution.

It’s all good having great products, but you need to ensure your entire supply chain is good too. Any suppliers/manufacturers need to be reliable and trustworthy to minimise potential risks and issues. Similarly, your carriers, couriers fulfilment partner, and the technology you use need to be reliable and trustworthy too.

Transportation

Regardless of what you are shipping, a solid courier and carrier network is required to ensure your goods reach their end destination in a safe, timely manner. You will need to explore both your first and last mile delivery, and may need to consider using different partners depending on whether or not you are shipping domestically or internationally.

Generally speaking, it is more cost effective to utilise a number of different couriers depending on your product sizes and their end destination.

Handling

During the handling process, your products and orders will go through many different environmental conditions, and are handled by many different people along the way. So, without proper handling, you may find that your goods turn up damaged or sometimes even missing.

With that being said, the handling process is out of your control. You do however have control over the partners you choose to manage the handling process which is why choosing good, reliable, and trustworthy partners is crucial. However you do also need to ensure that your items are packaged properly to minimise the risk of damage.

Resource Management

There are many different types of ‘resources’ to consider when it comes to running a business, such as your; financial resources, technological resources, production resources, human resources, human resources, etc.

The amount of resource management you require is dependent on the size and scale of your business and operations, as the business grows you may find that your resource management becomes more complex which is why it is sometimes a good idea to hire someone to manage your resources effectively.

Inventory Management

Inventory management can be complex. but it is crucial that you perfect and prioritise your strategy. Having a good understanding of your stock will help to minimise stockouts and waste, as well as helping you avid excess storage costs.

Packaging

You want to ensure your customers receive their orders safely, without damage, but you also want to ensure that they have a good unboxing experience as it contributes to your overall customer satisfaction level. So when it comes to your logistics planning, ensuring your packaging covers both factors, while also remaining cost effective.

Fulfilment Strategy

Another crucial component of your logistics planning is of course, your fulfilment strategy. The process begins from the second an order is placed by a customer, and ends once they have successfully received their order. However there are a lot of components that make up the entire process, such as order processing, picking, packing, and shipping. On top of this you also have inventory management and returns management.

When you first start your business, you may find it easier and more cost effective to run things ‘in-house’ but as your business grows it becomes more cost effective and easier to outsource with a fulfilment company.

Reverse Logistics

Reverse logistics refers to the process of customers returning their orders to you, which unfortunately is inevitable at times. A returned order does not mean you have permanently lost a customer though, but how you handle the process will determine whether or not they will return again. A good, easy process increases your chances of having a repeat customer, but of course a poor process can lead to you losing a customer completely. Your logistics plan should therefore clearly outline how the process works, how it can remain cost effective, and the T&Cs involved in what you accept as a return.

Let TSP handle your logistics and fulfilment…

Beautifully crafted leather products.

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…

Homeware; Exploring the growing market…

Let TSP handle your logistics and fulfilment strategy…

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.

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