Multi-channel logistics: Challenges and services offered by logistics service providers

The boom in digitalisation has shaken up consumer buying habits. Now, there are various channels for consumers to buy, compare and even have the product of their choice delivered straight to them. From seeking advice in-store, to purchasing on e-commerce websites, not to forget payments on social media or via a mobile app, end customers now have a choice of multiple communication media for their consumption.

Faced with this diversification of contact points and purchasing pathways, companies must adapt and implement multi-channel logistics in order to optimally deliver all their customers' orders. Their aim? To stay competitive by increasing the number of distribution channels, and to reach as many prospects as possible through these various media.

The challenges of multi-channel logistics

Multi-channel logistics requires specific expertise. It requires the management of all of a brand’s distribution channels, all via a single platform. This particular expertise is based on three major touchpoints:

IT interfaces adapted for each distribution channel

The digital dimension is essential for the implementation of efficient multi-channel logistics. This applies just as much to an interface with the client ERP via API / EDI as it does to a connection to the web front offices of e-commerce websites or marketplaces.

Specific pick and pack processes tailored to each channel used (or even customer)

This is essential to ensure accurate logistics for any channel requirement, whether full pallets, retail logistics, customised orders for e-commerce, and even differentiated reverse logistics.

A flexible transport solution

Lastly, multi-channel logistics also relies on a flexible, multi-carrier transport solution that makes it possible to respond to all of a client’s distribution channels, to quickly respond to market developments by offering “plug-and-play” options, handle any distribution volume uplift in any channel during their respective peak seasons, and also to offer sustainable, eco-friendly solutions.

Lastly, implementing multi-channel logistics requires the implementing company to have a sound and strategic vision. Multi-channel logistics provides solutions to numerous challenges regarding the management, storage, preparation, and shipment of orders. The main challenges of this kind of logistics lie in being able to:

  • Manage large order volumes through different sales channels: To meet customer expectations you need to be able to process, store and deliver large volumes of orders and also ensure their traceability.
  • Send various orders to specific destinations: Depending on the sales channel used (e.g. e-commerce website, traditional physical store, marketplace) this could be to the customer’s home, to a pick-up point, in store, distribution centre, or options that are continually evolving.
  • Handle orders requiring special storage conditions: Depending on the size, weight or certain specifics relating to the temperature or hazard of the products.

Services offered by multi-channel logistics service providers

Now, the vast majority of brands have combined their offline and online business and have diversified their trading channels to boost their visibility and increase revenues. In fact, many sectors such as cosmetics, trade/industrial, and even retail are directly concerned by multi-channel logistics.