Online shopping has now become seamless but we’re not aware of the complex mechanisms behind it that have made it this easy. One of the major mechanisms that make it easy is an ecommerce supply chain. It encompasses the life cycle of a single order right from the start to the end.
This mechanism is also constantly developing and improving to make online shopping more convenient. After all, the delivery experience is a big part of the online shopping experience. Thus, the supply chain has to function seamlessly in order to deliver maximum customer satisfaction. Let’s delve deep into this complex mechanism and find out how it works.
The Meaning of Ecommerce Supply Chain Management
Ecommerce supply chain management basically refers to procuring, producing, and distributing goods for sale. It may seem simple, but on closer examination, you will learn that this supply chain’s functions consist of a lot of activities that must be completed for it to be successful. In simpler terms, it means that you must be in control of your goods right from the start, i.e., when they’re raw materials. After that, you have to monitor the production of your goods and their transfer to warehouses.
It is important to track your whole inventory that will be spread over various storage locations. Similarly, you must make sure that your stock is sufficient to fulfill the demand of the consumers. It is also essential to ensure that the right shipping tools are being used for getting the orders delivered to the customers in a timely manner. Also, supply chain management allows you to track orders on the way, resolve any issues during this time and eliminate any obstacles that you may face during delivery while keeping the consumers updated about their orders.
The Function of Ecommerce Supply Chain Management
Now that we’ve made you aware of what ecommerce supply chain management is, it is time to take a look at the functions. When you look from the outside, you will think of it as a tangled web that covers manufacturing and shipping. But, when you get to understand it completely from the inside, it will help you to enhance your business serviceability as a whole. The role of ecommerce supply chain management is:
Ensuring Availability of Stock
The first responsibility of an ecommerce enterprise is sourcing products that are needed by the consumer. In simpler terms, you will have to purchase the products from manufacturers or assign the job of producing them. The end goal for this is having a consistent flow of stock that is readily available to ship when the customer wants it.
Maintaining a Shipping Strategy
The message of ‘your order is shipped’ sounds pretty simple and sweet, right? But it is not as easy as it sounds. In order to ensure that the process of delivering goods to customers is smooth and seamless, it is important to plan ahead. The shipping strategy must consist of information that concerns the supply chain.
Setting Delivery Targets
To put it simply, ecommerce businesses promise the customers and then work to fulfill them. Targets help you fulfill those promises. When you set delivery targets, you have to consider the number of orders completed, pin codes serviced and how accurate the delivery information is that you provide to customers.
Adapting to Market Trends
In today’s age of ever-changing technology, it is efficient for an ecommerce business to evolve constantly. Supply chain management enables you to keep up with the latest trends and developments that your competitors use. Similarly, it also lets you stay updated with the latest demands in the market. Thus, you can stay a step ahead of the rest with a flexible supply chain.
Maximizing Order Fulfillment
As discussed, the first step is procuring the output. Thus, it leaves us with the final step of getting rid of as much output as we can. So, you must try to do away with the maximum output that the customers are willing to buy. The main goal is to ensure that every single order is completed within the promised, specific timeline.
Benefits of Ecommerce Supply Chain Management
As online shopping is becoming more prevalent day-by-day, the competition between the ecommerce businesses is also increasing. As more and more people are getting internet access, it is helping the ecommerce sites gain more traction and customers. In order to make an ecommerce supply chain management effective, it is important to connect with consumers and convert leads. Let’s take a look at the benefits of it:
- Transparency: You get clear visibility from ecommerce supply chain management as it helps the users monitor the status of their order from production to delivery. Thus, they get to track and manage the orders comprehensively.
- Improved CRM: As supply chain management ensures timely delivery, it results in customer satisfaction. Thus, an ecommerce integrated supply chain will allow businesses to get feedback from the customers directly and meet their requirements.
- Minimise delays: One of the major things that makes online shopping so popular is fast delivery. If there is a delay in delivery, it can hamper your company’s image. But, effective supply chain management prevents that by coordinating everything from start to finish.
- Reduced costs: Another reason why people favour online shopping is the reduced costs. So, ecommerce supply chain management allows you to streamline areas that cost money by doing away with several stages of distribution, retailers, etc. Thus, allowing you to make more profit.
- Omnichannel engagement: An efficient supply chain management makes omnichannel engagement possible. This results in further technological developments that increase your customer engagement.
Conclusion
All in all, ecommerce supply chain management refers to an end-to-end process that plays a great role in determining the success of your business. As your brand keeps growing, the need to procure more resources keeps increasing. Thus, it means tying up with shipping partners and third-party logistics tools. A leading supply chain management company like Pickrr can help you master this and allow you to innovate. We offer simplified and easy shipping for all types of ecommerce businesses. Enjoy smooth and seamless ecommerce shipping at the best price with us and deliver your shipments in the shortest time.
