Online shopping has transformed the way consumers buy goods and products and has caught up with not just the millennial of today but with almost all age groups. There are a number of companies that exist today doing online business and generally, it’s been perceived that the procedure of supply chain management is not a tough job. You place an order and they will send the product to your doorstep the very next day! When a person places an order online, he expects the product to be shipped that very day. But they forget one thing; lots of layers are present in this business. If one of the core layers doesn’t operate at its optimum then the whole chain doesn’t deliver properly.
This has become a very competitive industry and the success solely depends on how fast you can reach the product to your end consumer. Hence many times it’s a do or die situation for the supply chain companies as their operational performance reflects highly on the E-commerce business being carried out.
There are certain areas which play a key role in ensuring success in the supply chain industry.
Have a good communication web within the business partners:
The first and foremost important point is communication and that goes for any business. Proper communication can solve big problems. The company needs to build a good communication web within the company itself. Each and every employee should know what they need to do and how they need it to be done! All the procedures should be explained properly to them. The company should build good communication with the supplier. Sometimes products come from suppliers of the company’s own supplier! It is important that the company personnel keep a close relationship with the supplier. The follow-ups should be done every hour to make sure that the product reaches its inventory on time. The company also needs to keep good communication with the client. Hence its imperative to say that the sales guy must keep in touch with the client itself and notify him about the progress. Visibility is the utmost in the supply chain process and customers would prefer tracking the shipment movements.
Timely shipping is needed:
What is of utmost importance is that the customers should receive the timely delivery of the goods or cargo and that contributes largely to the credibility of the logistics provider. It is always possible that delivery can get delayed due to many adverse reasons and conditions. But such adversaries have to be well anticipated and necessary operational planning have to be implemented so that timely delivery is ensured.
Quality data flow is needed:
Data is very important in case of supply chain business. If you have a single product left in the inventory and that got sold, it should be shown on the system then and there. If the update takes hours, the next customer gets confused. He wishes for the product without knowing that it already got sold! So the supply chain data flow should be done properly and should be left to those people that can handle such works successfully. Having experienced people in your company will help you handle such challenging situations when needed. Having a fully functional CRM or an integrated logistics ERP solution is one of the key elements that contribute to the success of a supply chain operation.
Proper segmentation should be done:
Segmentation is needed. When you are selling the same product in different markets, the strategy should be different. Categorization is needed. Products should be categorized in different segments and once it is done, the job will be easier. These are the most important and tested processes that can make your supply chain business successful.
It is very difficult to manage a supply chain operation as they have to operate despite that fact that of constant change in the industry and deliverance. The biggest challenge for any logistics company is to establish a team of supply chain professionals who can navigate the changing environment and scenario. It not only that along with it the team has to equip themselves with the required tools and processes so they can execute strategies yet keeping the costs well under control.