A significant challenge in the e-commerce industry has an effective supply chain management strategy. Small businesses and even the bigger players in e-commerce face the challenge of keeping the kind of inventory needed to achieve their desired volume of business. It is a tough process to engage in because of how vital it is to e-commerce businesses.
Much of a fulfillment center’s success depends on how effective the supply chain is managed. Therefore, it only makes sense that owners would exert effort to keep on improving it. If you are a warehouse owner looking to improve your supply chain process, here are effective supply chain management strategies for your e-commerce business.
Consider local retailers as a source.
Evaluate local retailers as a possible source of products. Some might be interested in selling their products in a different place. Both parties will benefit if you can strike a good deal. The local retailer can boost its reach of sales while you acquire the product that you need.
Invest in third-party logistics
For those who only have one warehouse, gauge the growth of your business. Can one fulfillment center continue to push you towards the goals you want to reach? Maybe it’s time to use third-party logistics (3PL). There is quality warehouse space for sale out there for your business. Using 3PL can contribute greatly to better customer service due to its cost-effectiveness and making deliveries faster.
Use your warehouse space efficiently.
The efficient use of warehouse space is also an excellent strategy for the supply chain management. Having good warehouse spacing speeds up inventory tasks such as item picking, material handling, and tracking. Determine what you can do to optimize your warehouse space to improve the handling of inventory.
Lower shipping cost and delivery time
Make efforts to meet your customer’s expectations. Deliver faster and partner it with lower costs. This will surely make your customers happy, and it will boost your PR. If you’re considering products from the US, a forwarder can help you with the US to Singapore shipping.
Implement bar code technology
Bar codes allow you to track virtually everything in the warehouse. This strategy provides immediate results and dividends in the future. This will ultimately increase accuracy and decrease processing time.
Increase order picking numbers
Order picking is one of the most important functions in the warehouse due to its effect on enhancing customer experience. Increase the number of your picked orders per day to gain significant savings on labor costs. This also focuses on effective labor management, as it also lessens workload.
Develop a network of suppliers
Who said effective supply chain management could only be achieved inside your facility? Out in the world, you can explore opportunities for the sake of effectively handling your inventory. Attend trade shows and chat with potential suppliers. Widening your network by finding companies that offer products of interest can also help you a lot.
Improve your inbound supply chain
Regardless if you’re a retailer or a pure-play e-commerce business, getting inbound products and materials on time and as ordered is a major initiative in many companies. Of course, this goes hand-in-hand with maximizing your warehouse space, increasing picking numbers, and using barcodes.
There are many options for strategies to manage your supply chain effectively. All directed towards the end goal of satisfying your customers. Keep that objective in mind as you develop a useful technique for your sourcing.