Why supply chain management is important for ecommerce sellers

 

Supply Chain Management (SCM) is handling the flow of inventory, products and orders between businesses and locations, including sourcing raw materials, managing inventory, logistics, and end-to-end order fulfilment.

Supply Chain Management (SCM) is essential for ecommerce sellers as it helps ecommerce sellers cut costs, increase customer satisfaction, and ensure faster delivery of products.

Importance of efficient Supply Chain Management (SCM) for ecommerce sellers

Lower logistics and fulfilment costs

Supply Chain Management (SCM) helps ecommerce brands forecast the demand for goods using historical and real-time data. Ecommerce sellers can use these predictions to prepare for any influx or dip in orders and save costs on maintaining and storing inventory.

Faster delivery

An ecommerce brand’s customers are located all across the country, in contrast to a brick-and-mortar store whose customers live nearby. Moreover, ecommerce brands need to meet customer expectations of fast delivery; they can do this with efficient supply chain management by splitting their inventory into multiple fulfilment centres across the country so that orders need to travel a shorter distance and can be delivered faster.

Better risk management

Supply Chain Management helps ecommerce sellers identify problem areas such as unideal inventory placement, i.e., inventory stored in a fulfilment centre much farther away from the area where most orders are placed. With Supply Chain Management, ecommerce brands can identify ideal inventory placement and distribute it across multiple fulfilment centres.

Supply Chain Management also prepares ecommerce sellers for shipping exception scenarios such as an order being lost in transit by focusing on shipping automation, i.e., integrating technology with shipping to streamline the process. For instance, with Supply Chain Management, ecommerce brands can track shipments. If lost, they can send a replacement or refund to their customers.

Higher customer satisfaction

Customer satisfaction is a vital goal for any ecommerce brand. An efficient Supply Chain Management helps increase customer satisfaction by ensuring that the right products are delivered to the right customer at the right time.

Supply Chain Management also covers reverse logistics, ensuring a better returns experience for customers and ecommerce brands.

Better order tracking

An efficient Supply Chain Management gives ecommerce brands and customers complete visibility of their orders by providing ecommerce sellers with data to track customer shipments and customers with proactive notifications about the status of their orders.

Better order tracking enables ecommerce sellers to reap more benefits, like giving a positive impression, keeping the customer updated about any delivery delays, and providing an estimated delivery day, which increases the chances of a successful first delivery attempt.

Efficient Supply Chain Management with Eshopbox

●        Eshopbox provides ecommerce sellers with historical data on their sales, which they can use to forecast demand and manage inventory accordingly.

●        With a fulfilment company like Eshopbox, ecommerce brands can split their inventory into multiple fulfilment centres across the country to ensure fast shipping and delivery with high order accuracy.

●        Eshopbox’s actionable dashboard enables ecommerce brands to plan their ideal inventory placement and split their inventory into multiple fulfilment centres across India without any manual effort or calculation.

●        Eshopbox has a robust system for managing shipping exception scenarios such as a lost shipment, delayed shipment or damaged shipment. For example, suppose there is a delay in delivery. In that case, ecommerce sellers are proactively informed by the courier partners about the same.

●        With Eshopbox’s robust returns management system, ecommerce brands can make the process of returns smooth for their customers and themselves.

●        Eshopbox’s dashboard provides ecommerce brands and customers with complete visibility of their orders and delivery status.

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