Supply Chain is an important process for any organization which enables efficient movement of raw materials and finished products from the manufacturer to retailer, distributor, finally reaching the end customer. A strong supply chain can reduce costs and increase customer satisfaction.
For an eCommerce setup, the supply chain process includes sourcing, storage, fulfillment, distribution, IT and transportation. Supply chain most often takes care of three aspects of any product – Price, Quality, and Lead Times. It depends on the organization whether they want a well-priced product, high quality product, or a product that reaches the fastest to the market. The main objective of supply chain is to have the right products in the right quantities at the right moment and at minimal cost.
Here are some of the benefits of an efficient supply chain management:
· Reduction of costs across the supply chain and more efficient management of working capital
· Efficient management of raw materials, work-in-process, and finished good inventory
· Increased efficiency between supply chain partners and their transactions
· Enhanced customer value
In this blog, we will look at the ways in which you can streamline your eCommerce supply chain in order to help it function more efficiently.
1. Dock to Dock Processes and Systems
Avoid stock delays by increasing throughput and product order cycle time. One can improve the process by getting some work done by the manufacturers, in order to reduce delays and expenses. It is best to have vendor compliance policies, transportation routing guide, and product specifications barcoding in place to ensure that there is minimal mismanagement. This way supply chain delays can easily be avoided.
2. Optimize Inventory Management
Inventory management is an important part of supply chain. Having the right items in stock at the right time can be challenging. The solution to overcome this challenge is to be efficient in planning, purchasing, and managing inventory. Another tip is to have clear communication with the vendors on the purchase order delivery dates.
3. Reduce Shipping Costs
eCommerce companies are finding ways to shorten their delivery time which will result in reduced shipping costs. Shipping costs can be reduced significantly if one takes care of the inventory management. Having the right stock and shipping it at the right time helps in faster delivery. This way, customers can expect low-cost shipping charges or even free shipping charges at times.
Streamlining supply chain is very important for any eCommerce business as it enables better customer service. This also proves to be of financial advantage to the organization, since it reduces freight costs, and optimizes the entire process for better functioning. Companies must assess and streamline their supply chain process regularly in order to avoid any fulfillment delays and unnecessary expenses.