Key Steps to a More Agile Ecommerce Supply Chain

According to RBC Capital Markets, Amazon is now capable of providing same-day and one-day delivery to 72 percent of the total US population. The retail business model, as everyone knew it, had taken a beating, resulting in an all-time high number of bankruptcies and store closings.

Fremont, CA: An agile e-commerce supply chain, by definition, is a product delivery system that prioritizes speed, cost savings, efficiency, and responsiveness and versatility to consumer demands. The aim of supply chain management (SCM) is to improve a company's long-term efficiency.

According to RBC Capital Markets, Amazon is now capable of providing same-day and one-day delivery to 72 percent of the total US population. The retail business model as we knew it has taken a beating, resulting in an all-time high number of bankruptcies and store closings.

Looking for Process and System Efficiency

There are many ways to improve the efficiency of SCM, minimize costs, and deliver higher quality of service to customers. A typical e-commerce supply chain consists of sourcing, inbound and outbound transportation, IT services, and numerous four-wall functions. Here are four main methods for reducing costs in the supply chain.

Making Distribution More Convenient and Flexible

The customer is in charge and can access inventory at the stores closest to them. BOPIS, ship from a shop, and FC are all options. It is important to communicate availability and delivery timeframes from each venue.

In the case of Walmart, 100 percent of its store range is available for in-store delivery, including fresh items, which are packaged and delivered to your car at no additional cost.

Streamlining the Inbound Supply Chain

The goal is to be able to accept a high percentage of purchase order receipts without needing any rework and to have the vendor sign on to one's enforcement program. For inbound shipments, a number of our clients use freight consolidators, resulting in substantially lower freight costs in their ecommerce supply chain.

Many businesses have evolved from catalog to e-commerce to multichannel businesses that market to Walmart, Target, Walgreens, and other big-box retailers. These changes in supply chain and distribution necessitate changes in vendor compliance, packaging for direct-to-consumer vs. store show, and all of the IT systems required by EDI-based protocols. However, they contribute to increased revenue.

See also: Top Agile Consulting/Services Companies