Supply Chain Management for E-Commerce

November 25, 2021

Business efficiency at all operational levels is critical for the success of e-commerce. Supply chain management is an essential component of e-commerce. Supply chain management in e-commerce focuses on the procurement of raw material, manufacturing, and distribution of the right product at the right time. It includes managing supply and demand, warehousing, 
Inventory tracking, order entry, order management, distribution, and delivery to the customer.
Here are supply chain strategies in E-commerce:

Make the inbound Supply Chain more efficient

Regardless of whether you’re an Omni channel retailer or an e-commerce business, getting inbound products and materials on time and as ordered is a major initiative for many companies.  Your objective should be to receive the product so that it can flow through to put away or be cross-docked to fill orders.  

Increase capacity of existing warehouse
Moving to a new space is not always the answer. Without the proper layout and design of your distribution center, no matter the square footage, you will face capacity issues, decreased productivity, and storage inadequacies. By addressing some basic principles, your company can delay a move to a new facility. 

Use of third party logistics versus internal fulfillment
Should your company continue to maintain and operate its own fulfillment facility? Can you achieve faster delivery with multiple distribution centers from a third-party logistics (3PL) provider? This strategy isn’t for every company, but many large companies make cost-effective use of 3PL. 

Select and implement a new information system whether it’s an ERP, OMS, or WMS, this strategic objective is one that many companies should have. Many companies need new systems as a foundation for more advanced technologies and automation. 

Use current warehouse space more efficiently
Warehouses are expensive for companies to operate considering the total fulfillment costs of labor, occupancy, and storage and material handling assets. Perform a space use study and determine solutions that take into account the warehouse layout, product flow, labor efficiency, storage and material handling options, safety, throughput, and warehousing system functions.

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