BLOG

Devising SCM Strategies the E-commerce Way

May 29, 2017

Do you have a really good e-commerce business plan with all the nitty-gritties chalked out to the T? But, wondering what is the key success element in your well-thought business recipe? Well think no more, we’ve got you covered! Read on to know how supply chain management can be your secret success ingredient.

E-commerce has brought in a whiff of fresh air in the traditional brick-and-mortar format of retailing, changing everything right from the way consumer packaged goods (CPG) are sold to the way consumers shop. E-commerce or Electronic Commerce can be defined as a marketplace that allows individuals or firms to conduct business over an electronic network like the internet. Operating in four market segments namely as B2B, B2C, C2C and C2B, e-commerce is one of the most cost-efficient business models that has the ability to compete with not only those who encompass in the e-commerce radar but even those who operate under the purview of the traditional market.

What makes the e-commerce business model work is that firstly, for the customer, it offers a high level of convenience and selection in terms of product assortment and shopping within the comfort of their homes at any point of the day and secondly, for the retailers, it eliminates major fixed costs associated with the brick-and-mortar model. However, just as every coin has two sides, this business model too has a few flaws and challenges that are listen herein,

  • No instant gratification for customers as once they place an order, they have to wait for the product to be delivered to the address.
  • Minimal customer service and little or no interaction with humans is a big challenge.
  • Inventory handling is a challenge to both the newcomers in the industry as well as the established players.
  • Consumers cannot touch and see a product, hence the level of trust among consumers is low, thereby hindering the online sales of many products.

These lists of risks and challenges are an accepted reality of today’s fast paced ITES scene. Consequently, in order to be successful in the e-commerce world, businesses need to adopt a leaner and efficient supply chain strategy to overcome these roadblocks. Right from production to assembly and the final delivery to the end-user, everything and every product requires a different logistics management approach. This is exactly what supply chain management is all about, making it the backbone of electronic commerce.

Devising SCM Strategies the E-commerce Way

 

When consumers make an online purchase from a particular e-commerce site, there are several factors that are taken into consideration right from the way the product is manufactured, designed, distributed, delivered and supported by the seller. There is a direct relationship between the performance of supply chain of a business and customer loyalty, as the orders are relatively small but the complexity lies in order fulfillment and delivery. The major players in the e-commerce space use the services of third parties who have the necessary experience to help bridge the gap between the customer’s expectation and the actual business performance. Other than these, businesses should focus on the platforms that are responsible for driving sales and optimize these platforms to enhance customer experience. Vendors in the electronic space have turned to a more integrated approach across all mediums, giving birth to omni-channel retailing that combines the advantages of brick and mortar stores with that of e-commerce and m-commerce to enhance value. Last but not the least, a flexible and responsive supply chain is essential to create a sustainable competitive advantage and to cater to the constantly changing demands of the market.

SpendEdge can help companies draw insights and help bridge the gaps in procurement and sourcing, thereby devising efficient supply chain strategies to build customer satisfaction and profitability.

To know more on SCM strategy, supply chain management, logistics management, and sourcing strategies

get in touch

Recent Blogs

5 Pro Tips for an Impactful Procurement Process

5 Pro Tips for an Impactful Procurement Process

What is a procurement process cycle? Over the years, procurement process cycle has received a lot of attention as organizations across the globe have changed their focus from tactical functions to strategic business units. As a driver of major purchasing decisions,...

read more

Industries

Services

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars