Step by Step points of Logistics Providers

Tags: logistic

 Those e-commerce providers who can afford and wish to invest in vertical integration have either started to acquire innovative and technology-enabled logistics providers or developed an in-house delivery and logistics network in an attempt to ensure reliable and timely delivery services to their clients.

Whether you have a local online presence supported by 'bricks-and-mortar' premises or whether you are a cross-border e-commerce provider, who relies on the importation of products into the Middle East, the outsourcing of logistics services to a reliable, efficient and timely service provider remains a popular choice.

The majority of logistics providers can be categorized as:

first mile:freight forwarders and shipping companies to ensure that imports are managed (e.g. customs and clearance are facilitated) and delivered to your warehouse based on agreed terms;

third-party logistics providers (3PL): the coordination of people, products, and facilities - use companies other than the purchaser and the e-commerce provider to complete an online transaction; and

last mile: couriers and delivery houses which ensure the customer orders are picked up from the retail store stockroom or warehouse and delivered to the end purchaser.

The 'drop shipment' business (i.e. where the retailer does not keep goods in stock but instead transfers its customers' orders and shipment details to a manufacturer/retailer/wholesaler, who then ships the goods directly to the customer) is also becoming more popular and there is no longer a requirement for an e-commerce business to hold inventory in the UAE, the sale can take place without physically having the goods in the sharjah to pakistan cargo. The products may be stored in local hubs (for example a warehouse in a free-zone facility) or in the country of manufacture and when the sale occurs, the item is shipped from the hub directly to the customer.

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