Do I Need a Logistics Account Manager for My E-commerce Company?

When it comes to having your own business, the questions about what you need are endless.

As an e-commerce company, you know that you need to be able to efficiently manage your freight and fulfillment logistics in a way that leaves you plenty of time to grow your business. 

The tough thing is that there are so many software, services, and companies that exist to help you do just that: How can you know which one you actually need?

After all, different companies of different sizes and order volumes have vastly different needs. A company with three employees that ships 50 orders per month will have very different logistics requirements compared to a brand with 20 employees that ships 500 orders a month.

The title for the person who manages logistics for a brand varies depending on who you ask, but most in the logistics world refer to this person as a logistics account manager, or a logistics manager.

Read About CBIP’s Global 4PL Logistics Services

Who needs a logistics account manager?

That logistics account manager could be one person who coordinates with your supply chain, or it could be a team of people who keep everything running smoothly. Either way, you need to do some reflection to figure out whether your brand needs a logistics manager.

If your brand is small…

The standards for what a small business is change depending on who you talk to, but the typical size range that defines a small e-commerce brand can be anywhere from 1 to 50 employees. 

As a very small business, you might not need to hire a logistics manager yet. Typically, the advice we give people is that when you start doing over 100 orders per month, you need a logistics manager or dedicated logistics team. 

However, this really depends on you. If you aren’t able to handle logistics on your own, even if your order volume is small, you may still benefit from hiring a logistics manager. 

If your brand is medium-sized…

Generally, your company is considered medium-sized if you employ between 50 and 250 people, and have revenue between 10 million and 1 billion.

If you are medium-sized, you will definitely need to hire a logistics account manager. Depending on your needs, you may even be better off hiring a team of people to manage your logistics — particularly if you ship a lot internationally, or if you have various warehouses and fulfillment centers to manage. 

You can hire an in-house team, or outsource to a provider like a 4PL, depending on your preference. 

If your brand is large…

If you have grown your brand to the point that you are considered a large company, the chances are strong that you have already worked with a logistics manager or dedicated logistics team to get your brand to where it is. 

Without a doubt, a large brand will need a dedicated, experienced team of logistics managers to manage and facilitate everything going on in your supply chain. This can be done with an in-house team or an outsourced logistics provider.

Related: Does Your Business Need a Freight Forwarder? A quick Guide.

What does a logistics account manager do?

A logistics manager manages the flow of inbound and outbound goods.

That definition is intentionally vague because the logistics account manager's job umbrella encompasses so much. In short, they pretty much are responsible for everything related to logistics.

That includes the following.

Negotiating contracts with carriers

One of the most expensive parts of running an e-commerce business is shipping. 

It’s also an important marketing ploy that makes a big impact on your sales; if you price shipping too low, you may attract more customers, but wind up footing too much of the shipping bill yourself. If you price too high, shoppers will balk at their final checkout prices and you’ll make less sales.

Freight and parcel carriers are quite firm with their rates, but there are some ways to lower your shipping costs if you know how to negotiate. However, negotiating better rates with your carrier typically requires you to provide them with a lot of data about your shipping volumes in the past year. 

Another part of getting better shipping rates is shopping around and finding out which carrier is right for you. Negotiating with carriers and analyzing providers for the best rates takes time and expertise, which is why it’s a job best left to your logistics account manager.

Acting as a liaison between your brand and your supply chain providers

As an e-commerce brand, you need to work with many different providers to get your goods from point A to point B. 

Communicating with all the warehouses, carriers, trucking companies, and other providers will become complex quickly. That’s what the logistics manager is there for; they are responsible for coordinating with each provider so that you don’t have to.

Completing cost analysis

A logistics account manager can act as a consultant for everything logistics-related. For instance, say that you have branded packaging that you’ve been using since you created your brand. 

You love the way the package looks, but with shipping costs going up, you need to figure out how to cut spending somewhere. Your logistics manager can come in and look at your boxing process, and provide you with ideas for:

1. More cost-efficient materials and names for distributors that you can buy them from
2. A more efficient packaging process with fewer steps to save time
3. Advice on which carriers to ship with depending on your product type

Looking after day-to-day logistics & solving problems on the ground

If something goes wrong in your supply chain, you don’t want to be the only one responsible for putting out fires. Your logistics account manager is responsible for getting things back on track, so you can focus on other aspects of the business.

Looking for a logistics manager with international experience? Look into CBIP

If you want a logistics manager who has the time to pay personal attention to your brand, yet also has an international network of providers you can choose from, look to CBIP.

At CBIP, we really deliver on the best of both worlds. As a 4PL, we don’t own any of the logistics operations we work with (the warehouses, trucks, etc). Instead, we work with all of these independent providers, and we connect them to you through our in-house platform, Bundle.

Why did we choose to do this? Simply because it gives you, our client the e-commerce brand, the most flexibility possible to grow your business into any country and switch providers freely while allowing us the time and resources to consult with you on how to improve your logistics operations.

If you are interested in learning more about CBIP, call us today for a free logistics consultation.