Anyone can now buy anything from an Indian manufacturer and have it shipped anywhere in the globe in just a few clicks. The rise of e-commerce has created new business opportunities and challenges for traditional business models.
All operational levels are now focused on maximizing business efficiency. Moreover, customer expectations and demands have changed. Today’s customers want results quickly.
A survey conducted by Investp found that 56% of online consumers aged 18-34 expect same-day shipping. Online shoppers also expect the same-day delivery. The movement of goods must be done in a timely and correct manner. Speed and efficiency are expensive. Supply chain management is needed to strike the right balance between efficiency and cost reduction.
What is the reason for this phenomenal efficiency, speed, and cost reductions? Supply Chain Management is the answer.
What is Supply Chain Management?
Supply Chain Management (SCM) is a set of activities that are required to plan, schedule, coordinate, and control the production and delivery of products to clients. SCM is an important component of e-commerce’s growth. Supply Chain Efficiency makes sure the right product gets to the right place and time. It reduces costs and improves cash usage.
This is a large and complex undertaking that ensures the success of each partner, i.e., from suppliers to manufacturers, and beyond, all parties must perform well. A supply chain that is effective is a combination of change management, risk management, and collaboration. This helps create alignment and communication among all entities.
Why is supply chain efficiency so important?
Supply Chain Management is the foundation of your business. SCM is crucial to your success. Your focus as a supply-chain manager should be to achieve the lowest cost and the fastest production cycles. You will need to oversee all activities related to the purchasing of raw materials, manufacturing, and distribution, or a combination thereof.
It is important to maintain the high quality of your products so that customers will continue to buy from you. You should also check that the organization produces enough products to satisfy your customers’ demands. You need to manage that product throughout its entire lifecycle.
The key takeaway is that it’s important to form the right type of partnership. Find reliable distributors and manufacturers – this will help you to improve your supply chain. Remember to also value your flexibility. It is important to remember that your products will be delivered directly to the customer. In the e-commerce world, customer demands are paramount. Supply chain management is the cornerstone of any business.
Learn more about the benefits of supply chain management for e-commerce.
Benefits of eCommerce Supply Chain Management
e-commerce businesses are becoming more competitive. Internet access allows customers to access e-commerce sites easily and make purchases. A powerful and efficient eCommerce SCM allows customers to connect with you and convert leads.
Transparency
SCM allows for a clear view of the network. It helps users monitor all pending activities in supply, production, and warehouses. It allows for a comprehensive management and tracking of the entire process, from order to shipment of the finished product.
The CRM Enhanced
It is impossible to ignore the benefits of CRM. SCM is a great way to ensure timely deliveries and keep customers happy. It also helps the business keep track of customer requirements. It ensures that the business remains aware of changes in the demand for products and services. Businesses can receive direct feedback and requirements about their products with the help of an integrated e-commerce supply chain.
Minimize
Delivery delays may cause relationships to be strained and business to be lost. The image of a business is negatively affected by late shipments from vendors, delays during production, and logistical errors in the distribution channels. All activities can be coordinated from top to bottom with an effective SCM.
Cost Reduction
Reduced costs are one of the main reasons why customers invest time and money into e-commerce. There are probably many areas in which businesses invest more than necessary. Some of these areas can be simplified. You should look at your supply chains to see where you can reduce costs.
An SCM based on e-commerce eliminates the need for retailers, distributors, etc. Profits will also increase!
Adoption Of Omnichannel Practices
An organized SCM allows for omnichannel customer engagement, which leads to technological advances and a more sophisticated level of customer engagement. This cycle continues.
Omnichannel and e-commerce have become new paradigms in shipping and selling, with new touchpoints available for customers. All about the customer’s convenience and expectations. This creates a different dynamic, which puts the power in the customer’s hands and results in a better CX.
The Features of an Effective Supply Chain Management
Effective SCM is defined as the ability to improve on a range of metrics. The SCM should be the result of extensive research into how supply chains behave, along with their main concerns, such as diverse markets, risk management, dynamic customer demand, and technological advances. Best in class will be based on:
Clarifying the strategy
Traceability is a goal that all SCMs strive for, whether they want to achieve accuracy on time or customer self-service tracking. A supply chain that is effective helps to clarify the strategy, which then goes hand-in-hand with reducing risk. To minimize the impact of product recalls, a clearly defined strategy is crucial.
Big Data
Big data used in a proactive manner can be used to identify inefficiencies, create solutions, and implement them. Moreover, such data can also be used to create verifiable inventory forecasts.
Customization
Customization is the process of implementing supply chain processes to give customers what they want. A newly released laptop order may require fulfillment within one day.
As the business grows, supply chains will produce a wider range of products. A good SCM will be able to adapt and customize services to meet growing demand.
Flexibility
The number of corporations has increased as the global economy is more interconnected and new markets are emerging. How can you capture more leads? Flexibility is key. SCM must be flexible to adapt to changes in the market, the political arena, and any other circumstances that could affect the business.
Bottom Line
eCommerce businesses are no strangers to challenges and emerging markets. Unique ways to do and operate businesses exist. The old is no longer good! Change is the only constant, and therefore no longer an option.
What’s more? To meet all challenges, a well-defined and integrated SCM is needed. By integrating these concepts into the product design and development process early, you can gain an advantage over your competitors throughout the lifecycle of your products.
