CASE STUDY

Supplier Chain Risk Management Helps a Prominent Ecommerce Logistics Provider Improve the Business Efficiency by 13%

Feb 28, 2018

Overview of the Logistics Industry

Over the last couple of years, logistics has become an integral component of ecommerce businesses as it plays a pivotal role in planning, controlling, and maintaining the flow of products from the source to the final destination. The growing popularity of cross-border ecommerce logistics and the relentless growth of the ecommerce industry will contribute to the growth of the logistics sector. Moreover, with the rise in trading activities, businesses are finding new ways to optimize their logistics process and gain better visibility into the supply chain activities.

Some of the factors that may curtail the growth of ecommerce logistics space include:

  • Maintaining transparency: With the growing demand for authenticity and reliability in the product offerings, leading organizations are facing challenges when it comes to maintaining transparency in the supply chain activities. Moreover, organizations should also ensure better visibility to keep track of the movement of goods from the source to the destination. The alternating preferences of the consumers towards convenience and agility are compelling businesses to maintain transparency in their product offerings.
  • Increasing efficiency: The presence of numerous competitors has brought in a considerable number of choices for the consumers. Therefore, to retain customer loyalty, it becomes essential for businesses in the ecommerce logistics space to curtail the time taken to deliver the products while maintaining the quality of the products offered.

To counter these challenges and identify the potential risks in the supply chain, organizations are opting for a supply chain risk management solution. Supply chain risk management helps businesses to identify, monitor, detect, and mitigate threats to maintain supply chain continuity and profitability.request free proposal

The Business Challenge and Our Journey

The client, a renowned ecommerce logistics provider, wanted to identify disruptions in the supply chain activities in terms of cost volatility, material shortages, supplier financial issues, and failures. With the help of industry best practices, the client wanted to collect, analyze, and manage supplier information efficiently. The primary objective of the client was to gain relative insights into the potential financial issues and automate the detection process to prevent any supply chain disruptions.

To identify challenges in the supply chain activities, the procurement experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the ecommerce logistics space. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

The supply chain risk management solution offered by SpendEdge assisted the ecommerce logistics client to understand the typical risks associated with the suppliers and its impact on the business performance. Moreover, the client was able to identify the mitigation strategies to curtail such risks. The supply chain risk assessment solution also helped the ecommerce logistics client to gain an accurate understanding of the current supply chain and accordingly restructure their financial resources to improve their business efficiency.

Fundamental questions answered in this supply chain risk management solution include:

Sp- supplier chain risk management


The Results

SpendEdge engagement offered deep-dive insights into the compliance and regulatory issues in the ecommerce logistics space. The client was able to profile the macro and micro-economic risks and further reduce the potential risks associated with the supply chain.

To know more about our supplier chain risk management solutions

request free proposal


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