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The Benefits of an eCommerce Supply Chain Solution

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Discovering the Benefits of an eCommerce Solution

A successful eCommerce model requires business efficiency at each operational level. Therefore, supply chain management is one of the most important components of an eCommerce solution.

The supply chain integration of an eCommerce solution includes:

  • obtaining raw material
  • utilizing it during the manufacturing process
  • Distribution of the correct product at the appropriate time

To sum up, it helps manage supply and demand, distribution inventory tracking, warehousing, order management, order entry, and delivery to the end-user.

eCommerce is not only limited to creating a platform to sell products online. It involves suitable infrastructure, product configuration, logistics, safe payment gateway, as well as supply chain management solutions. An efficient integration supply chain can speed up various processes to fulfill the customers’ expectations.

Important Components of Supply Chain Management in eCommerce

Why You Need an ERP Manufacturing System

Avoid Excess Inventory

eCommerce businesses grow rapidly because of which they quickly reach their inventory management limit. With this growth, the supplier base and product portfolio also increase rapidly. As a result, many eCommerce businesses drastically increase their inventory to meet their customers’ demands. However, it is always a mistake. Excess inventory often results in obsolete stock. In other words, it leads to dead capital, which causes increased costs.

Reverse Logistics

eCommerce businesses have an integrated supply chain management structure that involves reverse logistics. Reverse logistics refers to the planning/execution of the distribution of goods from the consumption point to the origin. Almost every eCommerce business provides a refund/exchange facility.

Service level and Product Availability

The success of your eCommerce Supply Chain largely depends on customer experience and satisfaction. Consumers will immediately go to another store if they are not able to purchase the product they need at the time. Moreover, a slow delivery process significantly increases the possibility of losing customers. It may even negatively impact the business’s reputation.

From purchase to supplier management and warehouse to logistics, all processes must be optimized and well-coordinated. Even if a single part of the supply chain is dysfunctional, the whole supply chain integration will fail. This will result in revenue loss.

Customer Reviews

Customer experiences and reviews significantly impact an eCommerce business’s reputation. A company’s reputation is an essential factor that affects its growth. Search engines provide price comparison to online shoppers. The ranking of products is also based on their reviews. It is necessary to deliver the right products at the correct time to ensure good reviews.

Platforms like eBay and Amazon utilize internal key figures to determine the credibility of their distributors. They have supply chain KPI (key performance indicator) targets. If this KPI is under the specified minimum values, then they impose penalties. These might include account suspension.

Inventory Management

An essential component of an eCommerce supply chain is inventory. In the conventional inventory model, companies use their own storehouses to sell products directly to buyers. However, these days most eCommerce businesses do not have their own warehouses. They outsource their warehouses from a larger organization. It allows companies to lessen the risk that comes with keeping your own inventory.

Many businesses are also employing the drop-shipping inventory model. In this, the store does not have the products being sold on their website. After a customer makes a purchase, the store buys the product from another party and ships it to them.

Doing everything right, at the right time is crucial

Advantages of Supply Chain Management in E-commerce

eCommerce involves the selling and purchasing of goods online. It includes properly moving the goods between the two parties. So dispatching the right products in the right quantity at the right time to the right customer is crucial. Therefore, you need an effective supply chain to streamline all the processes.

A secure, uninterrupted, and quick supply chain integration is an important aspect of an effective eCommerce model. An efficient eCommerce supply chain can improve cash utilization and reduce costs. When a consumer buys something from an eCommerce platform, they want it delivered to them as soon as possible. Therefore, customers prefer platforms with a fast supply chain. For that, you need an efficient eCommerce Supply Chain Solution. It offers the following advantages:

Reduced Costs

Supply chain management in eCommerce omits the different stages of retailers, outlets, and distribution. Thereby, it reduces the overall price of products. The decreased costs appeal to customers as compared to the price of products being sold in physical stores.

Trade Globally

Supply Chain Management makes global trade possible for eCommerce businesses. An efficient supply chain integration will allow you to import raw materials from any country and export the finished product anywhere easily.

Improved Customer Satisfaction

Customer experience is an essential aspect of a successful eCommerce business. A well-designed supply chain integration will allow you to efficiently track various processes. These include keeping up with the customers’ demand, the time required by the suppliers to fulfill the delivery, ordering goods from the suppliers to replenish inventories, etc.

How Clarity can Help

Clarity Manufacturing eCommerce Experts

A well-designed supply chain is an important building block of an eCommerce business. It reduces demand-response time and decreases production costs. SMC also makes it easier to increase your offering to customers as your organization grows.

To conclude, implementing an eCommerce supply chain solution cohesively with your current sales model has a lot of benefits. These advantages can be observed in the form of improved sales, better relationships between the buyer and seller, and production efficiency.

Avail the Benefits of an eCommerce Supply Chain Solutions with Clarity If you have any more questions related to this topic, we encourage you to reach out to our experienced team. Our team will be happy to provide a technical response to any questions that you may have regarding eCommerce Supply Chain Solutions. The Clarity team has an amiable and knowledgeable sales and business development staff. They can also provide a complimentary analysis. We certainly look forward to answering your questions and talking with you about your upcoming eCommerce Supply Chain project.

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