How to Manage Logistics and Supply Chains on Shopify?

Logistics and supply chains play an important role in ensuring eCommerce success. For Shopify merchants, efficient logistics management ensures that customers receive their orders promptly and reliably, improving customer satisfaction and increasing retention. 

In Singapore, merchants have access to various delivery partners, Shopify's built-in logistics tools, and government grants like the Productivity Solutions Grant (PSG), which can help optimize operations.

Our today’s blog offers detailed insights and step-by-step strategies to help you streamline their supply chains, integrate reliable tools, use PSG grant, and ensure seamless logistics management.

The Right Delivery Partners in Singapore

Your delivery partner is a vital part of your logistics network. Choosing the right partner ensures reliable delivery, reduces complaints, and builds customer trust. You have many delivery options, such as SingPost, Ninja Van, and Qxpress, which offer local and international shipping services. Evaluating your delivery partner carefully helps create a smooth logistics process, even during peak seasons.

What Should You Look for in a Delivery Partner?

Choosing the right delivery partner is important for ensuring timely and reliable shipments. A dependable partner helps maintain customer satisfaction, reduces delivery issues, and supports business growth. Here are key factors to consider when selecting the best delivery partner for your Shopify store.

1. Delivery Speed Options

Ensure your partner offers multiple delivery options, including express, same-day, and next-day services, to meet customer expectations.

2. Real-Time Order Tracking

Use partners that provide live tracking links to customers, minimizing inquiries and keeping customers informed about their order status.

3. Pricing Flexibility

Choose delivery partners with competitive rates for bulk shipping. Look for volume discounts to manage delivery costs effectively.

4. Customer Support and Issue Resolution

Select partners with a dedicated support team to handle delivery-related issues promptly and ensure smooth operations.

5. Insurance for Shipments

Insure high-value orders to protect against damage or loss during transit, reducing financial risks for your business. Use the EasyShip app to integrate with multiple delivery services and compare real-time shipping rates directly in your Shopify store.

Also Read :- Key Factors To Drive E-Commerce Growth in Singapore

Shopify Shipping to Simplify Deliveries

Shopify Shipping offers integrated shipping services, making it easier for you to manage deliveries directly from the Shopify dashboard. The platform provides access to discounted rates with local and international carriers, simplifying logistics for small businesses and allowing them to offer competitive shipping options.

Benefits of Using Shopify Shipping

Shopify Shipping simplifies your logistics by integrating carriers directly into your store. It offers discounted rates, automated tracking, and easy label printing, helping you save time and reduce costs. Let’s explore the key benefits Shopify Shipping provides for smooth and efficient order fulfillment:

1. Access to Discounted Rates

Shopify partners with major carriers to offer lower shipping rates, helping you save on delivery costs.

2. Print Labels in Bulk

Generate and print shipping labels for multiple orders simultaneously, reducing manual work and processing time.

3. Automated Tracking Updates

Shopify Shipping automatically sends tracking links to customers, ensuring they stay updated throughout the delivery journey.

4. Offer Transparent Shipping Costs

Display real-time shipping fees at checkout to prevent cart abandonment caused by unexpected costs.

5. International Shipping Support

Provide cross-border shipping options with competitive rates to expand your market globally. Use Shopify’s free shipping promotions strategically. Offering free delivery above a certain order value encourages larger purchases and increases your average order value (AOV).

Inventory Management for Operations

Managing inventory effectively is important to avoid stockouts and ensure smooth order fulfillment. Poor inventory management can result in customer dissatisfaction or excess stock that increases storage costs. Shopify provides built-in tools to track stock levels and ensure you’re prepared for high-demand periods.

Tips for Efficient Inventory Management

Effective inventory management ensures you always have the right products available without overstocking or running out. It minimizes operational costs, prevents stockouts, and improves customer satisfaction. Here are practical tips to help you optimize inventory management for your Shopify store.

1. Set Low-Stock Alerts

Use Shopify’s alert system to notify you when inventory reaches a specific threshold, ensuring timely restocks.

2. Synchronize Inventory Across Locations

Sync stock across all warehouses and sales channels to avoid overselling products.

3. Forecast Demand for Peak Seasons

Analyze past sales trends to forecast demand during busy periods, such as BFCM, to prevent stockouts.

4. Implement the FIFO Method

Use the First-In-First-Out system to sell older stock first, reducing the risk of outdated or expired inventory.

5. Manage Pre-Orders 

Allow pre-orders on your Shopify store to gauge demand and plan inventory accordingly without overstocking. Hire a web developer in Singapore to create a custom Shopify dashboard for real-time inventory tracking and reporting.

Also Read :- Social Platforms Role in Singapore's Ecommerce Landscape

PSG Grant For Logistics and Digital Growth

The Productivity Solutions Grant (PSG) is a government initiative that helps small and medium enterprises (SMEs) in Singapore adopt digital solutions. You can use this grant to fund software, automation tools, and other eCommerce technologies.

1. Understand Grant Eligibility

Review eligibility criteria on the PSG website to see if your business qualifies.

2. Prepare Your Application

Gather all necessary documents, such as financial records and business licenses, for submission.

3. Select Approved Vendors

Choose pre-approved vendors or solutions eligible for PSG support, including Shopify automation tools and shipping apps.

4. Claim Your Grant

Submit your claim with receipts and invoices to receive up to 50% funding on eligible solutions.

Bonus Tip: Consider applying for PSG grant SEO to fund marketing efforts that improve your logistics communication.

Automate Order Fulfillment with Shopify Apps

Automation reduces manual work and speeds up order processing. Shopify offers several apps that automate order fulfillment, making operations more efficient and error-free.

1. Order Printer Pro

Quickly print invoices, shipping labels, and receipts for all orders.

2. Fulfillment by Amazon (FBA)

Use Amazon’s logistics network to store, pack, and ship your products.

3. Oberlo for Dropshipping

Automate product sourcing and order processing for a seamless dropshipping experience.

4. Zapiet – Store Pickup and Delivery

Manage local pickup and delivery options with automated scheduling tools.

Pro Tip: Automated fulfillment reduces errors, especially during peak seasons, improving customer satisfaction.

Real-Time Tracking to Build Trust

Customers expect transparency throughout the order process. Real-time tracking keeps them informed and reduces the likelihood of support inquiries, improving trust and satisfaction.

1. Install AfterShip App

Use the AfterShip app to send automatic tracking updates at every delivery stage.

2. Notify Customers at Key Points

Inform customers when their orders are shipped, out for delivery, and delivered to manage their expectations.

3. Integrate with Multiple Carriers

Offer tracking from different carriers to cover all shipping regions.

4. Handle Delays Proactively

Inform customers in case of delivery delays and offer solutions to manage their expectations.

Offering tracking builds confidence and reduces the chances of negative reviews, helping you retain customers.

Centralized Operations with a Custom Dashboard

Handling logistics from multiple suppliers and carriers can be challenging. A centralized dashboard streamlines operations, allowing you to track orders, inventory, and returns in one place.

1. Track Inventory in Real-Time

Monitor stock levels across all warehouses to avoid overselling.

2. Manage Returns and Refunds 

Track customer returns and issue refunds promptly to maintain a good reputation.

3. Monitor Supplier Performance

Evaluate suppliers and carriers to ensure timely deliveries and high-quality service.

4. Generate Custom Reports

Create reports to analyze shipping costs, stock turnover, and delivery timelines for continuous improvement.

Expert Help: Hire a web developer Singapore to build a dashboard personalized to your store’s specific needs.

Also Read :- How are Singaporean SMEs benefiting from PSG?

Reduce Costs with Bundling and Local Warehousing

Shipping costs can affect your profitability. By bundling products and using local warehouses, you can reduce delivery costs and improve operational efficiency.

1. Create Product Bundles with Discounts

Encourage customers to buy more by offering bundled products at reduced prices.

2. Store Products in Local Warehouses

Shorten delivery times by storing inventory closer to customers.

3. Negotiate Bulk Shipping Rates

Bundle multiple orders to qualify for discounted shipping rates.

Conclusion

Efficient logistics and supply chain management on Shopify help merchants provide a seamless shopping experience, increase customer satisfaction, and grow their business. By integrating reliable delivery partners, automating order fulfillment, and using PSG grant, you can reduce costs and improve performance. Use these strategies to streamline your logistics and build a thriving eCommerce business.