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Supply chain management for ecommerce brands: 7 best strategies
Order fulfilment

Supply chain management for ecommerce brands: 7 best strategies

Yukta Anand
January 29, 2023
7
mins read

Ecommerce is growing at a fast pace and providing sellers with an opportunity to scale their businesses and maximise their reach to customers. In order to take full advantage of this opportunity, ecommerce brands must tackle challenges like handling the supply chain.

Most ecommerce brands struggle with managing the supply chain as it involves several stakeholders like manufacturers who provide inventory and courier partners who deliver shipments making it cumbersome.

However, despite the difficulties, having a streamlined supply chain is important, or it can lead to delays in order delivery, low order accuracy, dissatisfied customers, and even missed sales opportunities.

Thus, it would not be an exaggeration to say that the supply chain is a critical aspect of ecommerce. But how can ecommerce brands streamline it for the maximum benefits? From using an Inventory Management System (IMS) to partnering with a logistics service provider, there are multiple things you can do to streamline your supply chain. Let’s unravel the possible strategies together.

In this blog, you will learn what supply chain management for ecommerce brands is, its benefits and how to streamline supply chain management for ecommerce brands.

What is an ecommerce supply chain?

An ecommerce supply chain refers to the network of suppliers, manufacturers, sellers, activities, and resources involved in producing and delivering a product, from sourcing of raw materials to delivery to the end customer.

It encompasses all stages of production, including procurement, manufacturing, distribution, and logistics. The goal of a supply chain is to ensure that products are delivered to customers in a timely and cost-effective manner.

The modern ecommerce supply chain
The modern ecommerce supply chain

What is supply chain management?

Supply Chain Management (SCM) refers to overseeing the various processes involved in the supply chain, including sourcing inventory, shipping orders, last-mile delivery and returns management.

Supply Chain Management helps ecommerce brands deliver quality products timely and accurately to customers while maintaining cost-effectiveness.

What are the benefits of supply chain management for ecommerce brands?

Efficient supply chain management is the cornerstone of an ecommerce brand’s growth as it helps them build a loyal customer base and keep costs in check.

Customers today expect orders to be delivered within a few hours, and they want to be able to track their orders at all times. Research shows that 25% of customers will abandon shopping carts or cancel orders if a seller does not provide same-day delivery.

So, how can ecommerce sellers cater to these requirements to stay competitive with ecommerce giants like Amazon? It is possible through Supply Chain Management.

Efficient Supply Chain Management helps ecommerce brands deliver orders to their customers in the least amount of time while ensuring a memorable customer experience. The benefits of supply chain management also include the following:

  1. Better inventory management
  2. Faster shipping
  3. Greater efficiency and fewer logistics challenges
  4. Lower operational costs
  5. Higher customer satisfaction

How to master supply chain management as an ecommerce brand?

Let’s unravel the possible strategies to streamline the supply chain together:

1. Leverage multiple ecommerce warehouses

Customers consider same-day delivery, next-day delivery and express delivery the norm now. It is important for ecommerce brands to deliver orders in the shortest amount of time, and one way to do so is by splitting inventory across multiple ecommerce warehouses. It helps you store inventory closer to customers and reduce transit time.

You can decentralise inventory by leveraging the already established fulfilment network of a 3PL (Third-party logistics) provider like Eshopbox. Moreover, Eshopbox gives ideal inventory placement suggestions according to consumer demand.

2. Use an Inventory Management System

An Inventory Management System (IMS) is a combination of hardware and software technology that simplifies tracking inventory across the supply chain. It provides timely replenishment reminders to prevent Out-of-Stock situations, which can lead to missed sales opportunities. Moreover, an IMS can help you avoid overstocking, which increases holding costs and operational expenses.

3. Speed up order processing

The faster an order is shipped, the faster it can be delivered. Ecommerce brands need to ramp up order processing for a better Customer Experience (CX). Some ways to speed up order processing capabilities are:

4. Utilise expedited courier services

To ensure same-day and next-day delivery, ecommerce brands need express delivery options. However, expedited courier services can get expensive. The solution— you can partner with 3PLs like Eshopbox and take advantage of their bulk delivery discounts to reduce shipping expenses.

5. Ramp up shipping capabilities

Ecommerce brands can ensure seamless order fulfilment by creating an effective shipping strategy. This can be done in the following ways:

  • You can partner with multiple courier partners to get the best possible shipping rates
  • You can split inventory across multiple ecommerce warehouses
  • Ecommerce brands can also partner with 3PLs like Eshopbox and use their established shipping network

6. Optimise delivery routes

To improve delivery speed, you can optimise routes by choosing the quickest and most cost-effective ones. This can be achieved by automatically sending orders from the closest fulfilment centre. Moreover, you can partner with courier companies that optimise delivery routes.

7. Invest in customer experience

Delighting customers is becoming increasingly important to stand out in the highly competitive ecommerce industry. Delivering an unforgettable customer experience through custom packaging, fast delivery, order accuracy, and order tracking can help you boost customer loyalty and repeat purchases.

Ace supply chain management with Eshopbox

Eshopbox is a tech-enabled fulfilment provider that can help you manage the fast-moving ecommerce supply chain. Here’s how Eshopbox can help you:

Inventory allocation suggestions by Eshopbox
Inventory allocation suggestions by Eshopbox

Custom packaging of Brillare
Custom packaging of Brillare

Summing up

Supply chain management for ecommerce brands can be time-consuming and error-prone but is important, or it may lead to disappointed customers and missed sales. Therefore, it is essential to focus on detailed tasks and take steps to streamline the supply chain. Tech-enabled fulfilment providers like Eshopbox can save you the trouble of handling this cumbersome task with expertise.

Connect with our fulfilment expert today.

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