My shipping cost is growing day by day,
I can’t deliver my products on time,
I want to make my e-commerce supply chain more efficient,
How to increase e-commerce business profit?
If you’re looking solution for these issues, then you land in the right place. Everyone wants to increase their e-commerce business profit, but some can make that happen.
Do you know why?
Because they have an efficient supply chain,
So, how to make my supply chain efficient?
You can do it by applying proven supply chain strategies. Here in this guide, I am going to share my proven supply chain strategy. So, let’s see what they are;
7 Proven Supply Chain Strategies for eCommerce Businesses
1. Reduce shipping cost and delivery time
When it comes to e-commerce business, shipping is a crucial process. It can make or break your business reputation. To become successful in commerce, you must ensure a great shipping process because everyone wants to get delivery experience like Amazon. But for providing delivery in a short time, your cost will increase. Here are a few things you can implement for reducing delivery time and cost;
- Use reputable shipping services. As shipping companies like FedEx will rarely miss the delivery date.
- Use flat rate shipping; reputed shipping companies provide flat rate shipping by zones, distance, etc. It can reduce your shipping cost by a big margin.
- Claim shipping refund; as different shipping companies refund if they failed to deliver on time. The rate is around 2% to 10%. You can claim the refunds. Therefore your shipping cost will decrease.
2. Improve the capacity of your existing warehouse
warehouseplays an important role in your e-commerce business success. What if your current warehouse Is not good enough? Will you adopt another one? This is not the solution. It doesn’t matter how big your storehouse is? If you can’t optimize it properly, then you will lose storing capacity and worker productivity. That’s why you should improve your existing warehouse. It will reduce your cost and increase productivity a lot. Let’s take a look at some tips for improving existing warehouse;
- Ensure perfect layout for the warehouse
- Make sure the use of automatic tracking
- Train your staff properly
3. Improve processing time
Processing time is another crucial thing you should take care of. Processing time can affect your e-commerce business in many ways. Delivery time is directly connected with processing time. If you have a perfect processing mechanism, then your delivery time will reduce a lot. Efficient processing also means higher productivity. Improved processing mechanism will increase your e-commerce business productivity as a whole. Here are a few tips you can follow for improving processing time;
- Organize your inventory properly
- Make sure that you have enough stock of packaging materials
- Ensure damaged product free inventory
4. Manage your workforce effectively
Do you use automation in your warehouse and ecommerce fulfillment centers? Most of the ecommerce business owners use labor in their fulfillment centers, and it’s costlier. If you can’t maximize your labor productivity, it will have a negative impact on your e-commerce business. To get the most out of your labors, you need to manage them properly. Here is some advice on managing your workforce effectively;
- Educate your workers sufficiently
- Let them use the latest technology
- Make sure your workers are using effective tools
5. Boost orders picking and packing per day
As you already know that customer experience is the key to success for every business. If you failed in this issue, your business would ultimately fail. Here order picking and packing come into play. If you can’t pick and pack your desired number of products per day, it will lead to a delivery delay. Therefore, it will lead to customer dissatisfaction. Moreover, increasing order picking and packing will reduce the cost of the supply chain a lot.
For boosting picking and packing, you can try severally proven tips such as;
Product slotting is most responsible for warehouse productivity. So, make sure the proper product slotting in the warehouse.
Choose a picking method that guaranty your maximum results.
Invest in advanced technology, such as voice picking.
6. Decreasing of outbound shipping cost
Outbound shipping cost is a headache for every e-commerce business owners. You will be astonished to know that the outbound shipping cost exceeds the total fulfillment cost. It has become a serious issue for everyone. Decreasing the outbound cost is a challenge for everyone. But you don’t have any other option if you want to make your e-commerce supply chain effective.
Always look into your shipping data and check what you can improve.
You can also reduce the outbound shipping cost by fixing address errors. Address error leads to shipment error. Therefore your shipping cost increase to double. So, improve address error as much as possible.
7. Improve inbound supply chain
How can your supply chain become super-efficient without an effective inbound supply mechanism? For having an effective supply chain, you must ensure a perfect inbound supply system. Your inbound supply system should ensure sending the receiving product to the fulfillment center quickly after its arrival.
8. Internal fulfillment vs. third-party logistics
Should you use your own fulfillment center or third-party logistics? It is up to you. There are big companies that are using multiple third-party logistics centers in multiple places. This way, they are saving a lot of money. You should make your own analysis and find out which one is best for you.
Why is the supply chain so crucial for your e-commerce business?
The supply chain is the lifeblood of any e-commerce business. Stock availability is the precondition for the timely delivery. And the supply chain ensures stock availability. Thus supply chain has an indirect impact on your product delivery.
An ineffective supply chain will cause late delivery; therefore, your customers will become unsatisfied with your services. So, if you want to get positive customer feedback, make sure that your supply chain is efficient.
It doesn’t matter what the size of your business is. Your business must need an efficient supply chain to get successful. You should try to improve your supply chain regularly, as it is not a one-time job. It needs regular improvement. If you follow the above strategy, you will be able to make your e-commerce business supply chain more efficient.