March 8, 2023 | Supply Chain

An eCommerce business refers to the buying and selling of goods or services over the Internet. Supply chain for eCommerce is the network of people/technologies that execute this transaction successfully. The entire network is responsible for ensuring the customers get what they want on time. Supply chain management in ecommerce consists of producers, suppliers, transportation companies, warehouses and distributors. E-commerce supply chain solutions network functions in a logical sequence. At every stage of the ecommerce supply chain solutions, there is an independent team working. An error in one section of the supply chain has ripple effects through the entire chain. As your business grows, an effective supply chain management in ecommerce is essential to ensure the business can thrive.

Supply chain management in eCommerce refers to managing and overseeing all parts of the supply chain. There are three main ways a B2B supply chain for ecommerce can benefit a business. These are inventory visibility and stock availability, enhancement of customer experience, and improvement of profitability.

Inventory Visibility and Stock Availability

An effective eCommerce Supply chain solution can help streamline tasks related to stock monitoring or ensure availability of resources before the “out of stock” point. It can also “connect” customers to the inventory, allowing for transparency and the ability to know if or when the requested product will be available. This can empower customers and build trust, an attribute critical for any business, especially B2B eCommerce.

Customer Experience

Speaking of customer empowerment and trust, a good SCM system can do wonders for customers’ experience through the eCommerce platform and help a company’s reputation tremendously. Happy customers tend to leave great reviews. They can build a company’s reputation, helping towards customer loyalty and securing new customers. In an era where most potential customers are checking reviews before purchasing a product or a service, investing in a refined eCommerce SCM system that can help customer satisfaction is a no-brainer.

Profitability Improvement

Some business sectors, such as manufacturing and distribution, do not allow for big profitability margins due to the market’s saturation. A good SCM system can help Identify problematic areas within the business’s operations that can cause additional costs, delays, or mistakes, all of the aforementioned affecting profitability. Solving these problems through an SCM system that offers better SCM interactions, cost-efficient operations, and optimized inventory availability can increase profitability and help a business jump ahead of the competition.

SCM is extremely relevant to the sectors of manufacturing and distribution, affecting both in various ways. An efficient SCM system can make or break a company with business activities related to product manufacturing or distribution. An effective B2B supply chain for eCommerce that embraces the latest technological advancements towards seamless, time-effective, and cost-effective operations within a company or several companies can tremendously benefit the manufacturing and distribution sectors.

This has led to a surge of competitiveness among eCommerce businesses. For long term success, businesses not only require a user-friendly eCommerce platform but a well-connected supply chain as well.

eCommerce supply chain solutions do not operate in silos. For them, proper supply chain connectivity during the entire process, from procuring to delivering, is necessary to generate more leads, build relationships, and grow sales.

In today’s world, anyone within a few clicks can buy almost everything from a manufacturer in India and have it delivered anywhere in the world. The growth of eCommerce has brought a lot of new opportunities and challenges to the traditional business models.

Business efficiency has become critical at all operational levels. Furthermore, the demands and expectations of the customers have evolved.

As per survey,(survey by Investp) 56% online consumers between the age of 18-34 years expect to have same-day delivery. And, 80% of the online shoppers expect same-day shipping. It is the movement of goods that needs to happen in a correct and timely manner. But, speed and efficiency cost money. And, at the same time, it’s important that you strike a balance between being highly efficient and reducing costs, thereby the need for supply chain management arises.

The following are the major advantages of supply chain management for eCommerce:

  • Visibility across the entire network – Supply chain management brings transparency in the network and helps oversee the status of all the activities happening across supply, production, warehousing, and distribution. This ensures a more comprehensive tracking and management of all processes from procuring to shipping of finished goods to the end consumer.
  • Enhanced Customer Relationships – Effective supply chain management ensures on-time deliveries, which makes a direct impact on strengthening customer relationships. Furthermore, SCM aids the brands to keep an eye on customer requirements. It makes sure that the business is attuned to the changes in the demands of the products and services. An eCommerce integrated supply chain helps businesses get feedback and requirements about their products directly from the consumers.
  • Cost reduction – One of the principal reasons due to which the customers invest their time and money in eCommerce is reduced costs. eCommerce based SCM can significantly reduce costs in the supply, production, and distribution processes, which, in turn, leads to higher profits.
  • Minimized Delivery Delays – Delayed shipment from vendors, holdups during production, and logistic errors in distribution channels massively impact brand reputation in the market. Minimizing delivery delays can prevent losing out on business and streamline your image and relationships with the customer.
  • Scaling omnichannel practices – A well-structured supply chain management in eCommerce facilitates omnichannel engagement that ultimately leads to increased customer engagement on all major platforms.

eCommerce businesses in an omnichannel environment pretty much conclude the new shopping touchpoints of the majority of consumers today. It is incredibly crucial for brands to consider customer convenience and expectations first. And, it starts from the very first step of the supply chain. An adequately managed eCommerce supply chain assists brands with an omnichannel scaling of their businesses and expands their selling horizons with content customers spread across channels.

POSTED ON March 8, 2023