Things you should know about supply chain management in e-commerce

 

When creating an on-line business, there are many elements you should take into account. From the concept to the final product and additional services to the supply flow, all are elements of what your business plan should take into account. Specialized consultancy companies provide solutions for all matters might occur, including ecommerce supply chain solutions. Therefore, whether you have a retail type of on-line brand or you are a manufacturer, the matter of the supply chain management should certainly concern you.

The supply chain for e-tailers

On-line retail stores are certainly a successful business. In that case, the supply chain is a short one: you get the products form specialized suppliers, store them in a warehouse, then you trade them to the final consumer. In order to meet customer’s expectations, you should consider subcontracting the trading services to a specialized company. They often provide warehouse and order management services, return services, customer support and next day delivery services. If you are an international retailer, you should provide cross-border trading services at convenient prices, not to mention the order tracking services. In addition, a smart and user-friendly interface will assure you that clients always are aware of the products available, their quantities, colors and sizes. In order for you to provide such information, you should have a good management strategy for your supply chain. Furthermore, if you also have a physical store, a good solution would be the click and collect (C&C) strategy. According to it, customers can easily collect their on-line order from a physical store. Many big brands have such services and they are a success.

The supply chain for manufacturers

If you are a manufacturer, your supply chain is going to be a little more complex. Your raw materials are going to come from a larger number of suppliers and third-party suppliers. The final product is going to be a part of a bigger cycle. From your warehouse is going to be distributed to wholesalers, whom are going to sell them to the end customers. A good idea of business is to sell directly your own products to the final customers, in order to meet their needs of smaller prices and to create a more personal experience for them. By creating an on-line shop, you can create a stronger brand name and image, not to mention increasing the profit. Wholesalers always require smaller prices in order to have the possibility to add late charges. They also require you to deliver the products. Those two aspects are going to increase your expenses and diminish your profit. To save money, create an on-line store and find a good trading company, in order deliver your products to the final customers. Never forget about customer support services as well as order tracking services if you deliver cross-border.

Here are a few guidelines to follow when creating a supply chain management system. If you are not sure you are going to be able to create, develop and implement such a system by yourself, our advice is to hire specialists.