supply chain in E-Commerce

Learn the Best 10 Strategies of Supply Chain in E-Commerce

An examination of your Supply Chain and corporate fulfilment center is the first step in determining your strategies. A warehouse operations audit or assessment should be included in this assessment to evaluate if your warehouse operation is as efficient as feasible. Consider both quantitative and qualitative aspects of warehouse processes, systems, and operations.

Assess your center’s processes and costs first, then respond to the following questions:

  • How can you save money on labor in your warehouse when it comes to receiving and filling orders?
  • How can you send to the consumer in the shortest period of time and for the least amount of money?
  • How can you enhance inventory control to avoid warehouse back orders, as well as instances when goods are temporarily unavailable and shrinkage?
  • How can you expand the storage capacity of your current space?

Regardless of your distribution center or warehouse size, or the industries you serve, these questions address common issues.

Strategies for Supply Chain in E-Commerce

Each company’s Supply Chain and issues are unique, there is no such thing as a one-size-fits-all strategy.

Here are ten primary techniques we’re advising multichannel E-Commerce businesses, wholesalers, and distributors on. Only a thorough evaluation and alignment with your company’s objectives can make it the right plan for you.

1. Improve the Efficiency of the Inbound Supply Chain

Getting inbound products and materials on time and as ordered is a big undertaking in many firms, regardless of whether they’re an Omnichannel shop or a pure-play E-Commerce business. Your goal should be to accept the product and move it through the system so it may be put aside or cross-docked to fill orders.

  • Examine the current state of affairs and the costs associated with revising non-compliant receipts at the fulfilment centre and the back office.
  • Determine which vendors are responsible for the majority of the delays and costs.
  • Through EDI, tighter computer systems between vendors and your firm can be implemented.
  • Implement compliance programs for vendors.
  • Determine whether inbound and fulfilment operations, such as ticketing and final inspection, maybe done more cost-effectively and quickly upstream in the supply chain.
  • Determine how congestion at the receiving port and in the truck yard may be lessened or eliminated.

2. Reduce Shipping Costs and Delivery Times

In terms of delivery times, your customers want you to compete with the big names. Respond to their needs by delivering their orders faster and at a cheaper cost.

Examine the operation of a multi-distribution facility. Make sure to factor in the costs of extra buildings, staffing, and administration when planning the operation.

3. Expand the Present Warehouse's Capacity

Changing centres isn’t always the best solution. You will suffer capacity challenges, decreased productivity, and storage limitations if your distribution centre is not properly laid up and designed, regardless of its physical footage. Your organization can put off a transfer to a new site by addressing certain basic principles.

Address the 28 essential principles that should be considered while designing a warehouse layout and increasing productivity.

4. Improve the Correctness of Paperwork and Reduce the Time it Takes to Handle it

Implementing bar code technology is one of the cornerstone technologies for warehouse systems and automation. Within the warehouse’s four walls, barcodes allow you to trace the “what, who, and when” of all actions. Making barcode scanning one of your first initiatives will pay off now and in the future.

In areas including receiving, put away, replenishment, picking, packing, shipping/manifesting, returns, cycle counts, value-add operations, and labor tracking, barcode technology can help.

5. Improve Your Labor Management

The majority of fulfilment centers and warehouses rely on expensive physical labor. If you can’t get a good return on investment through automation, a significant strategic goal for your fulfilment center should be to manage labor more effectively.

Consider how labor adjustments can reduce the cost per product, line, order, and shipped carton.

6. Increase the Number of Orders Picked Each Day

One of the most critical functions in the warehouse is order picking. A successful customer experience hinges on order accuracy and fast order fulfilment. Picking and packing are typically the two areas where businesses may save the most money on labour costs.

Voice picking, pick-to-light (and put-to-light), selecting modules, and robotics automation may provide a return on investment for many applications in bigger distribution facilities. They must, however, be tailored to your facility, goods, and material handling procedures.

7. Make Better Use of Existing Warehouse Space

When you include the overall fulfilment costs of personnel, occupancy, and storage and material handling equipment, warehouses are expensive to run. Warehouse space accounts for 15 to 20% of the cost of each order.

The expansion of a warehouse’s capacity should not be limited to changes in space usage and stock placement.

Conduct a space utilization analysis and come up with ideas that consider warehouse layout, product flow, labour efficiency, storage and material handling alternatives, safety, throughput, and warehousing system functions.

8. Lower the Cost of Outbound Shipment

Every client’s business has a continuous initiative like this. Outbound shipping prices are higher than all other fulfilment costs combined. Due to a lack of alternatives, it will continue to rise.

  • Take a look at your shipping information.
  • Is there any room for improved rate negotiation?
  • Do you browse around for the best deals?
  • Is it possible to save money by implementing a company-wide shipping system?

9. Use of Third-Party Logistics as Opposed to In-House Fulfilment

Is it still necessary for your organization to own and operate its own fulfilment centre? Is it possible to get faster delivery from a third-party logistics (3PL) provider by using numerous distribution centres? Although this method isn’t appropriate for every business, many large corporations find 3PL to be a cost-effective option.

10. Pick a New Information System and Put it in Place

Whether it’s an ERP, an OMS, or a WMS, many businesses should have this strategic goal. New systems are required by many businesses as a basis for more advanced technology and automation.

However, keep in mind that, according to research and our own experience, around half of the larger installations (those costing more than $1 million) are not completed on time or under budget. Because of the expenses and execution methods, these projects might put businesses at risk.

Avoid poor project management, which is at the foundation of large-scale system implementation issues.

Make sure to use these 10 strategies for your Supply Chain in E-Commerce and reap the best results.

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