A well-managed supply chain is an essential part of any e-commerce business. Proper supply chain tips management ensures optimal product delivery so that customers can get their product on their doorstep with no delay.
It doesn’t matter if you are an online retailer or dropshipping ; reliable supply chain management ensures customer satisfaction.
Here are key tips to help you optimize your supply chain for a successful ecommerce business.
Use centralized management software:
The delivery optimization process requires all aspects of your business to work together.
There are many advanced supply chain management software available that can help you achieve this goal. This technology connects various departments of the business so that everyone can collaborate more efficiently.
Management software enables various departments to access relevant data securely.
For example, your logistics partner can quickly determine which products need to be picked up, packaged, and shipped today, automatically update inventory, giving a positive transformation in sales.
Multi-distribution centre:
This strategy can work in your favour, if your company supplies many products and services or has a high volume of selling products,
Multi distribution allows you to keep some (if not all) of your products close to your customers. This significantly reduces delivery speed and shipping costs which is ideal when you have customers in different locations.
If you own a business that sells women’s clothing, for example, these options would greatly optimize your efforts across the country. Likewise, if you want to penetrate the international market, the same strategy will help you improve delivery speeds.
Find a reliable supplier:
When choosing how to sell products’ price is not the only factor to consider. It is crucial to find a reliable supplier which allows you to deliver the highest quality products on time.
Do in-depth research and identify a supplier with an excellent reputation. They should be known to deliver only the best products and who can easily handle returns.
It is also best to strengthen your communication with your suppliers eliminating the possibility of jumble and fulfils customer demands.
You need to consider this more , if you have multiple suppliers. This is because you need to establish high-quality communication with each of these providers.
Reduce delivery time and cost:
According to CNBC, Amazon can ship up to 72% of the US population in one day.
This can put you under a lot of pressure, especially if you are just starting an eCommerce business or a small business.
Well, most of your customers expect you to compete with Amazon on delivery timeframes. So you have to react quickly to get your order out faster and with lower shipping costs.
Multi-centre distribution centres will help the most . However, you will have to consider the costs of setting up additional facilities and amenities, as well as hiring staff and management.
Find opportunities for improvement:
Establishing stable supply chain management doesn’t mean you can become complacent . You still have to continue to monitor and evaluate.
Always look for opportunities to improve and innovate help increase market speed and provide the highest quality customer service.
In the constantly changing world of business, you need to stay on your toes . So never stop looking for ways to improve!
Invest in your employees’ training:
Any supply chain manager will tell you that operating an effective supply chain management system can be tough and n ew problems have to be solved every day, especially in regards to expensive, perishable, or fragile items.
Therefore, employee development should not only focus on formal training. You should incorporate on-the-job training, coaching, mentoring, and even job rotation to help employees understand how the system operates.
Inventory management:
As your ecommerce business grows, so will your inventory.
However, you don’t want your inventory to grow so fast that you have a hard time keeping up. You also don’t want to stop growing to the point where you don’t always have stock.
Overstocking can cause losses, while understocking affects customer satisfaction and both scenarios can harm your business.
Effective inventory management is essential for an efficient supply chain tips.
Utilizing Automatic barcode technology:
This laser-based technology converts the product barcodes into readable data and information. The computer can then process this quickly and accurately, reducing the average person’s needs and chance of human error.
Here are some reasons your ecommerce business should invest in automated barcode technology:
- The new digital barcode scanner can boost the percentage of reading accuracy due to their barcode reading camera. The technology is so advanced it can even read barcodes that have printing errors or are interrupted.
- Your advanced scanner not only improves accuracy, but it can also increase speed. As the product moves on the conveyor belt, this scanner captures the barcode at high speed, eliminating manual entry. This relieves employees of other tasks, reduces personnel requirements and lowers costs.
- This technology collects data about your processes, sending it to a computer for further analysis. This means customers can track items, managers can monitor and resolve recurring issues, and data can be collected to provide insights for the future.
The takeaway:
An optimized supply chain is a basic requirement for making any eCommerce business successful. This can reduce operational costs and, at the same time, enhance customer satisfaction. This is a win-win situation for both eCommerce businesses as well as customers.
Let’s briefly summarize how you can do this:
- Depending on the sales’ nature, consider using multiple distribution centres to reduce shipping costs and increase delivery speed.
- Automatic barcode technology can lower the risk of human error and significantly increase productivity in business operations.
- Warehouse infrastructure is highly valuable, so it is crucial to strategize how to optimize the capacity for the future.
- The resources, connections and experience of a 3PL company can greatly improve your supply chain. With over 90% of 3PL users and 97% of 3PL providers reporting successful and positive results, it isn’t a surprise that the 3PL market is worth over $1 trillion, according to Global Market Insights.
- Small business software will not only make your business more efficient but also increase employee engagement.
- Customer satisfaction is critical, but it is equally important to pay attention to criticisms to help improve your supply chain tips in the future.
To gain an edge in the digitally-driven market, optimizing your supply chain is vital. Here at Katalyst, we help achieve growth through their supply chains and logistics. Contact the experts at Katalyst today if you have any questions or want to learn more about what we have to offer your business!
