‍Keeping your inventory closer to your customers by distributing it across multiple fulfillment centers is known as inventory splitting. In order to ensure fast order delivery, you must reduce shipping costs and transit times. A marketplace's ranking algorithm also takes into account the speed of order delivery when ranking higher in search results.

Distribution logistics refers to the process of moving products from a manufacturer or supplier to the warehouse where the fulfillment process occurs. Then, last-mile deliveries are prepared for online orders. To ensure delivery of orders on time and at the most affordable price, ecommerce brands work with various courier companies during the distribution phase.

Tips for improving your distribution logistics‍

1. Leverage software

‍You can improve how you manage your distribution logistics by implementing the right supply chain technology stack. Tracking inventory, packing, shipping, and delivering orders in real-time are all included. In order to implement the right software, you should ensure that it seamlessly integrates with your existing software, shopping carts, marketplaces, and inventory, warehouse, and fulfilment processes.‍

2. Forecast demand

‍Making informed distribution decisions requires accurate demand forecasts. To replenish inventory on time, you need tools and metrics to predict demand strategically. You can maintain appropriate inventory levels using past sales data, as well as details of upcoming events, with intelligent inventory forecasting. Keeping your customers satisfied will help you minimise shrinkage and lower storage costs.