Logistics aggregators are a critical component of the eCommerce industry’s success. As the global industrial maps continue to evolve, logistics partners are becoming increasingly important. When we consider this notion, there is not much of a distinction between logistic aggregators and third-party logistics businesses. Let us take a look at some of the most important characteristics of a logistics aggregator.
What is a Logistics Aggregator and How Does it Work?
Logistics aggregators are simply businesses integrated with many carrier agents with whom an eCommerce company may establish a shipping partnership. They provide a standardised and simplified platform for tracking shipping orders and communicating with a diverse network of courier companies. One of the most difficult challenges encountered by eCommerce businesses, particularly during periods of rapid growth, is handling high orders while also integrating swiftly with various courier partners. Whenever orders increase dramatically, which is generally between 1000 and 2000 orders every day, logistics aggregators can help an eCommerce seller overcome such challenges.
Why Hire a Logistic Aggregator For Your eCommerce Store?
Starting an eCommerce business is one thing, and getting your products and services to your potential customers is something that takes a lot of effort and resources. You can locate your target consumer base in a specific geographic location, but making your products reach them safely is not something that anyone can deal with!
Without specific technical knowledge and skills, one cannot manage the intricacies of shipping and logistics in the vast supply chain network. So what’s the solution then?
The majority of businesses in the global market prefer to outsource their shipping and logistics operations to third-party logistics services that monitor, handle, and manage the entire shipping, warehousing, and fulfilment process on behalf of a company. They have trained and expert professionals who know the industry inside out to competitively fulfil the needs of contemporary businesses.
But most of the time, different businesses require different solutions to meet their needs and sometimes, one courier partner can not fulfil all of it at the same time. This is exactly where the logistics aggregators become crucial for your business. They bring together multiple couriers’ services on a single platform and bring about the convenience of getting all the shipping solutions in one place.
Hence, no more courier pattern hopping!
What Questions to Ask Before Hiring a Third-Party Logistics Provider?
Finding a reliable courier partner for your business is certainly not a piece of cake and a lot of research and analysis goes into it. Among so many crucial players driving the market, picking a few and filtering out the best for your business demands a thorough comparison.
The most crucial step while hiring a third-party logistics provider is to ask as many questions as you can. Here is the list of a few crucial questions which you need to ask initially before making a decision:
- What sets you apart from your competitors in the industry?
The first and foremost thing you need to ask from your logistics partner of interest is what makes them different from others. Although most businesses are addressing the challenges in the shipping and logistics industry in their own way, the one you choose must have something unique to serve. Also, the experience they have in the field is equally important.
- What strategies do you have in place to tackle the peak demand seasons?
Every year, the logistics industry goes through the period of peak demand season or festive season, when most businesses have the fear of failing to meet the surge in demand and count upon their logistics partners for order fulfilment. And without a foolproof plan, it would result in absolute chaos!
Since peak demand seasons are the best times to boost your profit margins, you need to ask your logistics partner about how they handle peak seasons and ensure the seamless flow of goods with a strategic approach.
- How do you ensure the uninterrupted flow of goods throughout the supply chains?
Ask them about their distribution model. The efficiency of order fulfilment and timely shipping entirely relies on the robustness of the distribution model. To understand the process inside out, know the details about the technology and human resources they leverage to conduct their supply chain operations.
- How well do you integrate new-age technology to optimise the operations?
Technology is the king in today’s digital era. Businesses that are rapidly adopting new-age technology are already leading from the front. Ask your logistics partner about the degree of automation which goes into their operations. The more they are familiar with technology, the better it will be for your business.
- Ask about their previous clients and carefully study the feedback and reviews from their existing customers, be they a business or individuals.
Running through the clientele of your chosen logistics service provider would help you understand their standing in the market. Also, utilise all the feedback and reviews available from their previous clients to measure the quality of their services.
Conclusion
With each passing year, logistics aggregators are becoming more and more relevant. Since NimbusPost is a logistics aggregator, it is expanding rapidly and is quickly becoming a necessary component of growth. If you own an eCommerce business, you should consider using it by signing up for free. They will not only assist your company in meeting its delivery deadlines, but they will also assist you in building client loyalty.
With ongoing technological advancement, your firm will also need to enable faster deliveries effectively. So, shipping aggregators like NimbusPost can aid in optimising your logistics operations, leading to the expansion and development of your company.
