Altius Technologies - ISA Atlanta 2020

Top Supply Chain Strategies for an eCommerce Businesses

eCommerce businesses are growing; however, to sustain for a long time a business must adopt some effective supply chain strategies. An efficient supply chain means faster product delivery, faster return policies, better movement of goods from warehouse to the end customer.

Strategy can be defined as fulfilling organization’s long-term goals in alignment with the business objectives and how you plan to achieve them.

Supply chain strategies can be defined by answering some questions like:

  • How to reduce labor costs in warehouse while fulfilling orders?
  • How can you offer the fastest delivery in lease time and cost?
  • How to improve inventory control to eliminate back orders?
  • How to increase warehouse capacity for storage?

Here are some top supply chain strategies that any eCommerce business can follow in order to grow.

Make the Inbound Supply Chain More Efficient

Getting the inbound materials and products on time is a major concern for many businesses. Recognize and avoid any collaboration with the vendors that cause delays. Implement vendor compliance programs and inspect all the inbound supply chain activities such as ticketing from time to time.

Lower Shipping Cost and Delivery Time

Customers shall always demand faster delivery. Be responsive to customer expectations and focus on fulfilling orders faster and at lesser cost. Also, take into account additional costs like additional facilities, staffing, and management.

Increase the Capacity of Warehouse

Moving to a new warehouse every time is not a solution for increasing the storage capacity. If you do not have a proper warehouse design and layout, then you may eventually face storage issues, reduced productivity, and storage inadequacies. By addressing these issues, moving to a new warehouse can be delayed.

Proper Paperwork and Processing Time

Barcode technology helps you track the activities like “What”, “Who”, and “When” happening in the warehouses. Implementing barcode technology helps to keep proper records and maintain a good processing time.

Manage Labor Force Effectively

Managing labor costs can save you a lot of money. If you opt for automation techniques, then you can manage labor effectively. Consider how changes in labor can lower cost per unit, line, order, or shipment, and then decide accordingly. 

Use Warehouse Space Efficiently

Maintaining a warehouse space can be a costly affair, since it involves costs like labor, occupancy, rental, storage, and material handling costs. Warehouse costs can be 15% to 20% of the cost per order. Understand the layout of the warehouse, product flow, storage options, safety, throughput, and other aspects, so that you can take complete advantage of the available warehouse space.

Select a New Information Systems

Enterprise Resource Planning (ERP), Product Information Management (PIM), Order Management System (OMS), etc., must be used by eCommerce business.

Companies need new systems as a basis for more advanced technologies and automation. These systems may be risky but can assure betterment of the business.

These are some of the supply chain strategies that an online business can follow in order to grow and sustain.

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