Benefits of Effective Supply Chain Management

 

Supply Chain Management (SCM) is the process of handling the flow of inventory, products, and orders between locations, service providers, and customers, including sourcing raw materials, managing logistics, and handling returns.

Supply Chain Management (SCM) is becoming increasingly crucial as it ensures lower logistics costs, improved risk mitigation, and higher efficiency.

Benefits of effective supply chain management

1.      Lower logistics costs Supply Chain Management helps ecommerce brands predict demand for their products. Based on these predictions, ecommerce brands can manage and store inventory, thereby saving costs by only maintaining adequate inventory.

For instance, Eshopbox can help ecommerce brands ensure lower logistics costs by providing them with historical data and accurate information, which they can use to predict demand for their products and manage inventory accordingly.

2.      Faster delivery With time, the expectations of ecommerce customers have changed- they want what they have ordered and precisely how they have ordered to be delivered as soon as possible. Therefore, it has become essential for ecommerce brands to fulfil customer expectations of fast delivery. Moreover, the customers of an ecommerce brand are located all over the country, unlike a brick-and-mortar store with customers usually nearby residents.

For instance, Eshopbox helps ecommerce brands ensure fast delivery as it has multiple state-of-the-art fulfilment centres spread across the country. Ecommerce brands can split their inventory across these centres to ensure fast shipping and delivery. The closer a good is to a customer, the lesser the distance it travels and the quicker it can be delivered.

3.      Improved risk management Supply Chain Management helps ecommerce brands identify problem areas such as unideal inventory placement—storing inventory in a fulfilment centre much farther away from where most of the orders are placed.

Supply Chain Management also helps ecommerce brands deal with shipping exception scenarios such as an order being delayed or a shipment being lost in transit.

For example, Eshopbox can help ensure improved risk mitigation using Supply Chain Management by providing ecommerce brands with data on where their inventory is currently placed as well as recommendations on where it should ideally be placed to ensure faster delivery at lower costs. Eshopbox has a robust system to deal with shipping exception scenarios. For example, ecommerce brands can see the status of their orders. If lost, they can contact the courier partner inquiring about the same and send their customers a replacement or refund.

1.      Greater customer satisfaction Customer satisfaction can be increased by providing a custom unboxing experience, using proper packaging material like bubble wrap to prevent in-transit damage, giving proactive notifications, and ensuring a smooth returns process.

For instance, a fulfilment company like Eshopbox helps ecommerce brands improve customer satisfaction with a great customer experience by giving them the independence to create a custom unboxing experience for their customers.

Eshopbox distributes inventory across multiple fulfilment centres across the country and provides quick shipping. Eshopbox sends proactive notifications to customers about the status of their orders. With Eshopbox’s robust returns management system, ecommerce brands can make reverse logistics a smooth process for themselves and their customers. At the same time, Eshopbox helps ecommerce brands capture lost revenue by restocking or refurbishing returned products.

2.      Better order visibility Supply Chain Management provides improved order tracking that has multiple benefits like keeping track of lost/delayed shipments, providing customers with their order’s status, and providing an estimated delivery time, increasing the chances of a successful first delivery attempt.

For instance, Eshopbox ensures better order tacking by providing both ecommerce brands and customers with the status of orders and sending proactive shipping notifications to customers.

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