E-Commerce and Supply Chain Management are synchronous with each other in order to run an online retail business. E-commerce refers to selling products online, products that are of interest to the user, which means, your target user wants to buy your product to solve their pain point. Therefore, you sell your products online so they can reach millions of customers who are ready to buy them.
The process is as simple as it is complex in terms of operations. As a retailer, you will need a robust supply chain infrastructure to ensure that your customer-buying cycle does not break in any way. This makes it all the more crucial for supply chain processes to work in tandem with an online business.
In this blog, we’ll list out five challenges online retailers face through the supply chain funnel, and explore the Master Tips to overcome them.
5 Master Tips To Make Sure Your Supply Chain Does Not Reach A Breaking Point
India is known for its large number of internet users, which amounts to 50 Crore. Out of this, 10 Crore internet users take part in online transactions. By 2032, the Indian retail market size is expected to be USD 2 Trillion, which makes it all the more interesting for businesses.
So, let’s look at how to make sure that this figure rises in the years ahead.
Challenge #1 – Are You Experiencing Infrastructural Inadequacies?
Master Tip #1 – Get Your Warehouse Act Together Through Space-Streamlining
Re-structure your warehouse space with the goal of enhancing order fulfillment. Also, make sure that your inventory list is accurately maintained, especially when you have several SKUs or Stock-Keeping Units. Train your warehouse staff to properly manage the products, including picking, packing, and shipping them. Any damage to products can cost you your money and brand reputation.
Challenge #2 – Unable To Optimise Operations In The Supply Chain?
Master Tip #2 – Leverage On Automation And Predictive Analysis
By using automation tools and the art of predictive analysis, you can perk up the supply chain from a highly resilient perspective. Use the right software that considers daily sales, existing stocks, and other key metrics to replenish products. Ensure not to overstock as your price point to maintain stocked-up products can increase. Secondly, the value of the prolonged stocks will diminish over time. Therefore, real-time data can eliminate any bottlenecks in the supply chain.
Challenge #3 – Are Fluctuating Demands Confusing Your Sales Team?
Master Tip #3 – Put On Your Strategic Thinking Hats
Develop a strategy that includes a streamlined system for tracking and monitoring inventory. You must make sure that you align your inventory list with the market demands. Also, look for the loopholes that block your inventory system and plug them in to keep the flow running smoothly. This will help simplify your supply chain flow.
Challenge #4 – Are You Struggling With Delivery And Return Processes?
Master Tip #4 – Digitalise Your Operations
Make sure to collaborate with the right tech-driven logistic partners who are well-versed in optimizing operations. They should be able to bring their expertise to the table and help you skip the process of finding solutions to supply chain challenges. They should also be able to properly manage the supply chain processes from delivery to returning products, scale efficiency, and facilitate seamless communication, data sharing, and coordination throughout the supply chain.
Challenge #5 – Are Customers Turning Back On Their Buying Decisions?
Master Tip #5 – Run A Thorough KYC Check
This is an indirect solution to correct any further loopholes in your supply chain system. Knowing your customer’s preferences and dislikes can help you further streamline your supply chain operations as you will be able to tweak the customer funnel and checkpoints. Customers were and are always going to be unpredictable, that’s what makes the journey exciting. You just want to make sure that you don’t get too overwhelmed by it, and the best way to do this is by knowing your customers.
Really get to know their preferences, motivations, needs, and pain points by:
1. Continuously monitoring their feedback, sentiments, and behavior.
2. Use surveys, interviews, focus groups, web analytics, and social media listening.
3. Employ AI-driven insights like from Customer Relationship Management (CRM) systems.
4. Monitor trends in your industry and how people are reacting to them.
After you get to know your customer really well, be open to their flexible nature, and in doing so, adjust your marketing campaign accordingly.
These five master tips will help you improve any supply chain challenges that you may experience as an online retailer.