In the initial days of the evaluation, eCommerce was considered a channel for sales and purchases. But now, the expectation of the customer from eCommerce has changed to a significant extent.
Hence, optimizing an eCommerce supply chain has become a vital part of the business. The rise and expansion of the Internet have brought billions of sellers and buyers together. In addition, the number of online sellers has increased on platforms like Flipkart and Amazon, increasing the fierceness of the competition. Therefore, using the best eCommerce fulfillment is the key to success.
According to the survey done by Investp in 2021, around 56% of the customers browsing online within the age group of 18 to 34 years prefer the same-day delivery of their goods. The survey also mentioned that around 80% of online customers prefer same-day shipping tracking status of their online orders. Deliver AAJ with our eCommerce Services.
The survey concluded that supply chain operations management plays a crucial role in the success of the eCommerce logistics company. Customers need their orders in a timely and accurate way with real-time order tracking. Although, the perfect things come with a price.
With this article, we aim to illustrate how to formulate a well-balanced supply chain strategy.
What Leads to an Effective eCommerce Supply Chain Strategy?
Ensuring Availability of Stock
The eCommerce market has become so transparent with the growing popularity of the online marketplace. Now, customers can know about the product’s availability in stock with a single click. They can even track the product’s position and expected arrival time with the help of their mobile phone as the feature to track goods transport is also integrated with their phones. Availability of the stock is one of the most crucial factors that directly impact sales growth.
Warehouse & Supplier Diversification
When planning to expand your business across several states and nations, having a central distribution point is not an excellent strategy for your business. Consider what would happen if that primary hub experienced any bottlenecks. It can increase dependency and risk for your company. You can always have several suppliers and warehouses spread out across the nation. So, if one of your providers cannot meet the requirements, you may always switch to the other one. One such instance may be seen in the case of Nykaa, a well-known online cosmetics retailer. The business has worked with numerous cosmetic companies and emerged as a selling point for outstanding suppliers. You can spread the risk and guarantee customer retention with such a diversification strategy.
Simplification of the Process through Accurate Documentation
Documentation has long been associated with inefficiencies and delays. However, it can benefit the organization with the correct combination of technology. Automation using barcode technology helps track information like what, when, and who in a warehouse setting. Barcode usage is necessary for effective eCommerce supply chain management.
Barcode technology can be used for various tasks such as packing, picking, removing, receiving shipping, returns cycle, counting, labor management, etc. Documentation is required for several eCommerce fulfillment centers and warehouses, and manual documentation is not only time- and money-consuming. All online organizations should use automation for eCommerce supply-chain management as a strategic goal.
Reduction in the Shipping Cost through Management Systems
Without a strategy for cost-cutting, no list of tactics is comprehensive. Automation may enable you to save a lot of money, giving your company a buffer to increase warehouse capacity. Additionally, you can provide customers with shipping discounts on orders that meet a specific order value. Adding an order management system that would build coordination between physical sites and online eCommerce platforms is one method to save costs. Not only would it decrease do-overs, but it may also increase customer satisfaction. The best eCommerce fulfillment service has been one of the best ways to reduce the cost of shipping.
Customer Support
The customer service portion of the chain is yet another critical part of the e-commerce supply chain. One of the most important investments an e-commerce company can make is a customer care operation that puts the consumer’s needs first. Doing this right can help you stand out from the crowd and create profitable, long-lasting connections with your clients.
You may use technology in various ways to improve client experiences and create higher levels of customer satisfaction. Customers, for instance, adore choice, convenience, and the ability to avoid delivery costs. With intelligent rule-based systems, you may offer various delivery options based on the interests of your consumers and leverage free shipping to encourage more significant sales.
Building a Smart Warehouse
In smart warehousing, the various warehouse components used in operations are automated. Smart warehousing is just like smart homes with various interconnected and automated technologies. These technologies increase the warehouse’s efficiency and productivity, reduce manpower needs, and reduce the possibility of human error. You would be able to track products in real-time, increase automation and goods transport, and optimize manual tasks, which is not possible through the traditional way. Automated warehousing can improve the scalability of your business.
Conclusion
Any effective eCommerce Supply Chain strategy should include a well-planned supply chain and warehousing strategy. A well-planned supply chain strategy can significantly lower operational costs while raising customer satisfaction through a wholly integrated and customized customer experience.
AAJ Enterprises is one of the best eCommerce fulfillment companies, specializing in everything related to eCommerce. They have more than 10 years of expertise assisting clients with implementing and optimizing their digital strategy. Our team of professionals always assists you whether you want to discuss or develop your e-commerce supply chain or create a customized client journey. They will collaborate closely with you to advance your supply chain management and go through any or all of the areas.
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