Supply chain in eCommerce

What is Supply Chain?

The logistical procedures that make up the e-commerce supply chain include the purchasing of raw materials, production of finished products, warehousing, fulfillment, inventory management, and last-mile delivery. A typical e-commerce supply chain also manages inventory tracking, supply and demand, and varied distribution schedules. E-commerce supply chain management’s main objective is to make sure that every order is filled with high-quality goods and consistent product selections.

Why do we need a good supply chain strategy?

  • In order to guarantee stock availability (service levels) and avoid stockouts
  • To quickly and cheaply deliver goods.
  • To promote favorable client feedback and protect the company’s reputation
  • To achieve cost-savings that enable profitability
  • Possibility for businesses to increase their profit margins, which is crucial for those with extensive global operations.
  • Controlling production procedures can raise product quality, lower the possibility of product recalls and legal action, and contribute to the development of a strong consumer brand.

Stages of eCommerce Supply Chain?

Supply and Demand

In the area of e-commerce, supply and demand is a well-known topic since it significantly affects how retailers set product pricing and how quickly they can satisfy client orders. There is a mysterious point of equilibrium where supply and demand are equal. Due to the fact that this equilibrium point is rarely attained and is instead continually shifting, it falls to the e-commerce supply chain to adjust to these changes.


The central location for all aspects of receiving, storing, and distributing goods is a warehousing facility. Your warehousing operations are responsible for everything from product identification to dispatching for transportation.

Inventory Tracking

Inventory tracking is a technique for keeping track of your stock levels across the whole supply chain, so you can quickly satisfy customer demand, avoid overselling, and get rid of excess stock.

Order Entry

Order entry is the process of entering a sales order internally after an order slip has been recorded into your order processing system. Retailers can schedule the tasks required to complete this sales order, such as acquiring raw materials, producing, storing, picking, shipping, and billing, with this sales order in hand.

Delivery and Distribution

Delivery and distribution are concerned with getting the product from the manufacturer or supplier to the retail location; hence distribution management is the covering word for activities in the supply chain, including packing and warehousing.


Having an easy returns process is important to customers who want convenience and choice, but at the same time, it’s imperative to the efficient running of your internal operations.

Supply Chain Strategies?

Use multiple fulfillment centre

Multiple fulfillment centre will allow you to store some or all of your products nearer to your customers, which reduces shipping costs and delivery speeds.

Make the inbound Supply Chain more efficient

Getting incoming goods and supplies as ordered and on schedule is a key undertaking for many businesses. Receiving the item should be your main goal so that it can move through to be stored or cross-docked to fulfill orders.

Lower shipping cost and delivery time

One of the best ways to meet customers’ expectations is by lowering your shipping costs and subsequent delivery windows.

Increase the capacity of the existing warehouse

Regardless of its size, your distribution centre’s layout and design must be optimal if you want to avoid capacity problems, lower productivity, and storage shortages.

Manage labor more effectively

The majority of fulfillment centres and warehouses rely on expensive physical labor. A key strategic objective for your fulfillment centre should be managing workers more efficiently if adding automation cannot yield a satisfactory return on investment.

Increase the number of picked orders per day

One of the most crucial tasks in the warehouse is order picking. The secret to a positive customer experience is accurate order processing and prompt order fulfillment. The two areas where businesses may typically save the most on labor costs are picking and packing.

Reduce outbound shipping costs

Every client’s business has an ongoing project like this. Outbound shipping expenses are higher than the total of all other fulfillment expenses. Because there aren’t many alternatives, the price will keep rising.

Ensure accurate and fast paperwork

The goal of every e-commerce company should be to satisfy customers more generally and fulfill customer needs.

Automated barcode technology

With the use of this laser-based technology, barcodes on merchandise can be read as data and information. This can then be processed quickly and precisely by computers, eliminating the need for a middleman and lessening the possibility of human error.

Connect with the right logistics partner

If third-party logistics (3PL) companies have more capacity than your own resources, you should look into partnering with them.

Invest in technical solutions

Spending on enterprise software applications lowers labor costs and processing times. Therefore, e-commerce companies should automate where they can, especially in back-office systems like administrative and accounting tasks.

Establish client-first customer support

You must have an excellent customer service strategy that responds to their issues as quickly as feasible.

Improve the efficiency of the e-commerce supply chain with automation 

The ZapInventory inventory management system has a number of automation to boost business intelligence, increase productivity, and save expenses. You may quickly increase the effectiveness of your supply chain processes by automating order management rather than relying on clumsy manual procedures. The numerous automation in ZapInventory keep tabs on your order status, keep count in your warehouse, and gather real-time inventory data. 

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