Significance of Supply Chain Management in eCommerce Industry
eCommerce industry works on customer experience and supply chain plays a crucial role here.
Supply chain management is managing aspects like raw material procurement, manufacturing, and distribution of the final product, all at the right time. Supply chain is essential to manage the supply and demand ratio, order tracking, and delivery to the customer.
Ecommerce is not just about selling your products or services through an online website. It is also about customer experience, product experience, secure payment process, and supply chain.
Needless to say, an efficient supply chain process will eventually enhance your product sales and ROI. Let us look at the different components of supply chain used in eCommerce and their significance.
Inventory Management – Unlike the traditional setups, e-stores often do not have any warehouses. Inventory management is generally outsourced to wholesalers. Hence, this reduces the risk of holding up inventory. So, when a customer places an online order at an e-store, the store purchases the product from a third party and then delivers it to the customer.
Logistics – Most of the e-stores today offer a policy of return or replace. This is highly favorable among the customers. To ensure that this facility is offered without any hindrance to the business, the supply chain managers reverse plan the movement of goods from the endpoint to the point of origin. This is called reverse logistics and is an integral part of the supply chain.
Order Management – Customer experience is essential to enable customer retention. Hence, your e-store must be well integrated with the right type of Product Information Management (PIM) software. This will allow customers to check for their desired product availability.
To check out the latest PIM solutions offered by Altius Technologies, click here.
Delivery – As mentioned earlier, eCommerce works on customer satisfaction. If the customer is not satisfied with the service of your e-store, they will immediately shift to another e-store for their next purchase. To prevent that from happening, one must have a prompt delivery service ensuring that the customer gets his or her desired product at the right time.
Supply chain is all about proper coordination of inventory, logistics, order management and delivery. The dispatch of the right quantity of material, to the right person, at the right time is essential.
Efficient supply chain management in eCommerce helps to reduce costs and efforts required for inventory management.
Here are some more benefits of supply chain management in eCommerce:
- Supply chain in eCommerce eliminates the need for distributors, retailers, and physical outlets. This reduces costs significantly.
- Location is no constraint, since material can be moved across globally.
- Customers can track their material online.
- Faster delivery reduces the time suppliers need to fulfil the orders.
Fulfill your eCommerce needs with the help of specialized B2B solutions offered by Altius Technologies. Our online solutions are customizable based on your business requirements and can easily be integrated digitally for smooth functioning.
If you wish to experience our products and services, book an appointment with us.
You can also meet our experts at the upcoming ISA Atlanta 2020 on 20th to 22nd April.