B2B Logistics Explained: Your Complete Guide to Making the Right Provider Choice

Business shipping costs you about 10-15% of total revenue. That's a good margin, and if you don't pick the right logistics provider, you can easily cut out your profits too.

Furthermore, when shipping to other businesses, you require a different set of services compared to those for individual customers. Here, your customer is another business. So, B2B logistics is all about moving goods between two companies.

Most of the goods are in bulk and need a steady delivery schedule. This is because B2B logistics often delivers goods to warehouses, factories, and multiple hubs. Choosing the wrong B2B logistics partner not only slows down overall business operations but also costs time (which again costs money).

But how to choose the right partner? Let's dig into B2B logistics and help you find the best logistics partner.

What Is B2B Logistics?

B2B (Business-to-Business) logistics focuses on moving goods and services between businesses. It includes services such as planning, organizing, and managing the transportation of products from one business to another.

Workflow in B2B logistics:

• Large freight transportation between businesses
• Warehouse storage and management
• Inventory control systems
• Order processing and fulfillment
• Supply chain coordination and synchronization.

Key characteristics of B2B Logistics Business

• Deals in bigger volumes: For example, a manufacturer might send thousands of products to different retailers in one go.
• Long-term partnership: Many companies stick with the same logistics partner for months or even years.
• Deals with all sorts of Industries: From delivering raw materials to manufacturing, retail, healthcare, etc.
• Storage and Delivery time: A slight delay can choke the businesses' operational flow. So, they need commitment from logistic providers that their products will stay safe and reach their destination on time.
• Tech Integration: Modern B2B logistics uses software to track shipments at every stage and sync the updates with their partners.

Key Components of B2B Logistics

The effectiveness of a B2B logistics is shaped by its seamless operations, and here is the full list:

Why Is B2B Logistics Important For Businesses?

B2B logistics can be a determining factor in how fast a company can grow by efficiently moving goods without the usual headaches.

The above is a general statement, but here is the list that states why B2B logistics is important and considered the backbone of businesses.

1. Cost savings: If you get your B2B logistics right, you will be rewarded with:

• Lower shipping expenses
• Better inventory management
• Reduced storage costs, and
• Fewer delivery delays.

2. Supply Chain Overview: B2B logistics gives you a bird's-eye view of your supply chain. With a proper integrated system, you can see the current status of your products and how long it takes to get delivered.

3. Analytics Report: You can make smarter calls based on previous performance, such as:

• Which shipping methods to use?
• How much inventory do you need to keep?
• Where to store products?
• When to reorder supplies?

4. Boost Customer Satisfaction: With well-optimized B2B logistic services, there is a minimal chance of delays, and also, products arrive in good shape. This overall increases customer satisfaction.

5. Scaling and Flexibility: As your business grows or during peak seasons, you'll need a better way to handle more orders and shipments, and a B2B logistics provider takes all the headache for you.

6. Stay Ahead of Competition: Strong logistics systems, faster delivery, and better service are the key to winning customers and beating competition.

How B2B Logistics Works: Step-by-Step Process

Here is the step-by-step guide on how B2B logistics works:

Step 1: Order Planning. It starts when a business orders materials from another business. Details that are added here are quantities, delivery dates, and any special requests.

Step 2: Inventory Management. Based on the requirement, the supplier re-checks their inventory for available stock.

Step 3: Order Processing. It includes picking items from storage shelves, packing them safely, adding commercial shipping labels, and generating an online tracking code.

Step 4: Transportation Selection. Based on delivery time and distance, the best mode of transport is chosen, followed by the best routes of transportation.

Step 5: Shipment Tracking. Both businesses and logistics providers can track their shipments using a unique tracking code or using a logistics dashboard.

Step 6: Delivery. Once the goods reach the final destination, there are two main things to address: (a) properly unload the goods with precautions, and (b) check for missing or damaged items.

Step 7: Documentation and Confirmation. Both businesses are notified with delivery confirmation along with any quality certificates or handover documents.

Types Of B2B Logistics Services Providers

B2B businesses in India have a few main choices when it comes to logistics providers. Here is the full list with what to look for:

How To Choose The Right B2B Logistics Company

Finding the best and right B2B logistics company for your business is not a simple job. You have to think through a few key pointers before making a choice, which are listed below:

1. Evaluate Your Specific Needs: Start by defining your requirements in terms of sizes and volumetric weight of shipment, where you want to send.

2. Check the Coverage Area: Some companies are stronger in certain regions, so don't stick with someone who can't deliver different business from other regions. So, always make sure you check their coverage area (you must choose a provider that offers Pan-India reach).

3. Transparent Shipping Cost: Get an initial quote with every possible charge (including GST and taxes) so that you can compare it with other providers.

4. Technology Integration: A good logistics company in India should offer you a modern tracking system with an easily accessible tracking dashboard via app or website. This will keep everyone in the loop.

5. Test Reliability: Don't just go all-in with the first meet. First try their services with a small shipment and based on the performance, make future decisions.

6. Customer service: Always choose a B2B logistic provider that gives support over the phone, email, or even quick chat (via dashboard or chatting app like WhatsApp). If they provide a dedicated account manager, then it will be a good deal.

General FAQs

Question - What is B2B logistics, and how does it work?

Answer - B2B logistics deals with moving goods between businesses. It includes services such as planning, picking, managing inventory, and transporting them to their final destination.

Question - What is the difference between B2B logistics and B2C logistics?

Answer - B2B logistics moves goods in large, bulk quantities that are shipped less frequently but are larger quantities to another business. While in B2C, goods are shipped directly to customers by a business and are usually smaller and more frequent.

Question - Which is the best B2B logistics company in India?

Answer - AAJ Swift stands out as the best B2B logistics company serving for 18+ years. It offers India's first PTL service with more than 95% on-time delivery guarantee. Moreover, they have a solid network with Pan-India reach, covering 28K+ pincodes with real-time tracking and competitive pricing.