Digital revolution can be observed from the popularity of eCommerce websites. In order to cater to the tech-savvy audience and more retailers, today we are taking a digital route to woo their consumers (both existing and potential).
Now in order to thrive in this exceedingly competitive sphere, the major players in the e-commerce sector have adopted agile and lean manufacturing.
Now let’s delve into discussing how the eCommerce sector benefits from the lean and agile manufacturing methods.
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How does lean manufacturing work?
Consumers making online purchases are extremely conscious about the price that they will be paying. They often compare the prices for the similar products. On an average, the consumers of online e-commerce sites generally look into at least three of them before deciding to buy any product. This particularly true in case of the essential commodities. If an e-commerce site chooses to put a competitive price offer, it will have to maintain an incredible efficiency in its systems.
The consumers buying from the e-commerce sites also look for the faster delivery system. So e-commerce sites need to adopt a faster logistics system so that deliveries can be made faster. Now lean management can be extremely beneficial in this case, considering the process helps in lessening the turnaround time.
Three stages for integrating the lean manufacturing in e-commerce
Lean manufacturing consists of three primary factors, the ability to meet (the complete) demands, delivering the products within the estimated time and date, maintaining the stocks at lowest possible cost.
If the e-commerce websites wish to nurture the satisfied customers, they must focus on providing delivering the products, without any defect or damage. However, in the process of distribution, it’s highly likely that some issues might crop up, particularly when (manual) handling processes are involved.
Lean manufacturing emphasizes the quick detection of something unusual in the process. For instance, any issues can be resolved when e-commerce sites adopt a system that allows them to check whether the products ordered are damaged or not. So that way the consumers will receive their orders in the proper condition.
Lean manufacturing can also assist in averting the buffering of products through the integration of dynamic order processing with the help of applications. The orders can be dispatched and delivered faster by educating and training the employees.
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Lean principles in action
The advantages of adopting lean manufacturing have been acknowledged by prominent e-commerce portals. The classic example would be Amazon. Founder Jeff Bezos has always put emphasis on a customer-focused approach that’s inspired by lean principles.
If an e-commerce business wishes to achieve success, it cannot solely depend on marketing and sales activities alone. An e-commerce business that presents a thorough and precise business model, with special attention to supply chain management and the proven methodologies, will be able to take its operations to an optimum level and elevate its possibilities of success.
How does agile manufacturing work?
The rise of e-commerce has had an indelible impact on how businesses thrive in the complex economic structure. This has led the businesses to encounter new challenges and transformations in the way they carry out the supply chain processes. While the consumers used to purchase from wholesale distributors, they are now more inclined to purchase from the manufacturer directly. This is where the agile manufacturing system steps in. From building the e-commerce website to adopting it into their existing technologies, agility is a vital factor in this new-age supply-chain element.
E-commerce has opened up a myriad of opportunities but has also raised the bar in terms of the customers’ expectation and also increased competition. Customers today expect nothing less than increasing levels of flexibility, choice, and speed when they avail the services. Now let’s focus on some insights on the benefits of implementing the agile manufacturing system.
The advantages of agile manufacturing
Agility influences every aspect of your business in a multitude of ways. On the one hand, it allows you to tap into new markets overseas, on the other, it enables you to cut the costs for serving existing customers, increase the efficiency, boost your cash flow and present more cost-effective ways to deliver the products. Not only the e-commerce industry, but every sector has to keep up with the ever-evolving customer needs and expectations.
Integrating the agile method of manufacturing in e-commerce
To adopt the agile manufacturing within the e-commerce business, companies must present integrated operations and advanced technology to utilize the multiple knowledgeable resources, present the services-products, propel the manufacturing operations and provide the customers with complete value. Now let’s discuss a few factors that determine the successful implementation of this method of manufacturing.
- You need to check if you have the accurate information to target your supply chain and promote sales and market share objectives
- You need to monitor if your organization knows its customers’ behavior and whether the customers are ready to pay for its products
- Your organization must know how to operate in the digital environment, and if it does then make sure you derive the business intelligence (BI) from big data to make more focused decisions based on a manufacturing strategy
- See to it that your e-commerce organization encourages and allows collaboration and information sharing for effective decision making.
With a transparent and responsive supply chain, you’ll be able to offer a better customer experience. That’s basically the whole point of the agile method of manufacturing.
Author Bio: Marceline Joseph is an online educator, programmer and homework helper associated with TopHomeworkHelper.com. Besides being associated with the education and teaching industry, Marceline is a passionate stamp collector and chess player.