Perspective of Supply Chain Management in the E-Commerce Era

When establishing an effective SCM in e-commerce, individuals should use several strategies to make their ongoing operations more feasible. Here are some examples – 

• Examine the current supply chain

It doesn’t matter whether an individual is an experienced omnichannel or single-channel retailer; they should re-evaluate their supply chain strategies. By adopting this approach, the retailers can detect which of their vendors cause product delays or bottlenecks. This way, they can understand which areas of their supply chain have flaws. Accordingly, they can develop strategies to remove those issues. This way, the company benefits from the refined strategies of the supply chain workflows. 

• Reduce shipping costs and delivery times

One of the most significant challenges in supply chain management and e-commerce is meeting customers’ expectations without incurring additional costs. According to Amazon, customers always expect faster delivery. But that should not come at an extra cost for the company. 

So, the idea behind developing a new strategy should be to lower this cost as much as possible. Companies offer free delivery as it helps establish a good relationship with the customer, but they should ensure they are not paying for it out of their pocket. With the right SCM strategy, they can achieve that.

• Reshape the workforce management strategy 

Most of the e-commerce brands across the globe still rely on manual labor, and this expense rises as the company grows and employs more people. So, improving ROI with automation in supply chain management and e-commerce will be an excellent plan.

Besides, retailers should manage their employees strategically. The employees should be trained for productivity improvement and efficient time management. This way, they can create a better-managed and efficient workforce. As a result, it will enhance the order-filling rate and reduce the cost per order (CPO).

Moreover, retailers of brick-and-mortar stores can maximize their in-store labor by implementing this strategy and boosting inventory management. It will also increase their inventory turnover. 

• Picking up more orders simultaneously

It’s essential to pick up the orders for the order fulfillment process for successful supply chain management and e-commerce workflows. It also requires the retrieval of products from warehouses and inventory spaces. However, the order picking must be done in the right way, including all the stages from packing to post-sales procedures. 

So, if a brand can pick up multiple orders simultaneously, it will be a more time-saving approach for the brand. As a result, their shipment will be faster. Ultimately, it will streamline the customer experience. Finally, an improved customer experience will drive more revenue, both in the long term and short term. 

• Using technologies to reduce processing time

Barcode technology has become a boon for warehouse logistic operations. Barcode labels and scanners enable e-commerce stores to track who, when, and what activities are currently going. It increases accuracy and credibility in the logistic operations. Thus, barcodes reduce the time for order receiving, returning, and replacement, making it an integral part of any supply chain management and e-commerce strategy.

• Integrate advanced software solutions

Cutting-edge software solutions such as order management systems (OMS) or enterprise resource planning (ERP) can revitalize the supply chain management ​system or e-commerce. The OMS offers automation to streamline the workflows in the supply chain, optimize the operations, and provide cost-saving solutions. 

Additionally, the inventory management software (IMS) offers real-time data analysis that helps maintain accuracy in reordering processes and inventory control. 

• Partnership with third-party logistics provider

A partnership with a third-party logistics (3PL) provider becomes beneficial when the stores don’t have enough funds to manage their own fulfillment center.  The brands can connect with an extended supply chain network by adopting this strategy. It improves order fulfillment and enables accessing numerous teams of experts. This way, the brands can improve their supply chain management and e-commerce strategies and develop a growth mindset. 

• Boost customer communication

Enabling consistent communication is the key to successful supply chain management and e-commerce. This consistency should be maintained throughout the entire customer journey. It includes sending order placement, processing, order tracking, shipping, expected delivery date, out for delivery, and ‘delivered’ notifications through SMS, email, or in-app. As a result, it will reduce the contact cost of customers with significantly fewer inquiries. Ultimately, it will increase customer satisfaction.