Globalisation has completely revolutionized the market economy and has changed the way companies try to gain a slice of the market share. More so, in the retail space. To succeed in this cut-throat economy, businesses have to increasingly lean on strong and efficient supply chains.
Hence the need for all online stores to have a well-oiled supply chain management system, to be successful. No wonder that these business players gear up to face the challenges of ever evolving customer needs and market volatility, by continuously reinventing themselves. Most of this reinvention is happening in the supply chain space. Some of the supply chain concerns of online stores ought to be the following.
Optimizing the supply chain
A product is unavailable either because it is in transit or because of its unavailability in the warehouse, which impacts business. When this happens, the consumer may quickly move to another retailer, thereby denting sales.
With great diversity in the market that demands competitive pricing, there is an urgent need to optimize the supply chains. This helps counter new players across different segments from making an easy entry and grabbing a piece of the market share. This will help existent businesses to position themselves and create a niche space in the sector.
A low inventory can affect delivery, while an excess can affect cash flow. It is very important to tread the fine line and maintain optimal inventory, to be responsive to demands of the market and keep profits up. Rightsizing the inventory goes a long way in terms of earning revenues for the retailer. A systematic and a disciplined process and accurate market assumptions are necessary for sustaining a functional inventory. Analytics long a long way in ensuring an optimal inventory at all times.
Each step in inventory management requires a thorough understanding of the supply chain system that suits the business. It is very important to find suppliers who are reliable and consistent.
Analytics can help you identify the bottlenecks at each step of the whole inventory journey so that the right steps can be taken to optimize the journey.
Failing customer service
Failure to deliver on time and lack of information are only going to hamper a retailer’s reputation in a marketplace with several players. Online stores must streamline supply chains in order to fast track product delivery using the latest tools and technologies available.
Rising supply chain costs
With markets on shaky grounds and the burgeoning demand for quality goods at competitive prices, rising costs of raw material and labor, profits seem to be slipping. Unless there is a sustained effort to continually evolve and innovate, stores cannot see their profits soaring.
Ensuring quality and a fast delivery mechanism positions the business better than its competitors. Retailers continue to own responsibility for delivery. They need to continue to monitor from the time an order has been placed until the time it has been delivered.
Financial Analytics can give you the insights on the ration of the costs from supply chain Vs other factors.
Leverage the brick and mortar stores
An innovative approach to online retail supply chain involves leveraging a network of brick and mortar stores. Once a customer places an order he/she can make necessary arrangements to pick up the product in a physical store close to the consumer’s location. This hastens the process of product delivery.
Technology and analytics
Online retailers need to invest heavily in IT systems and the right partners to be better informed on product trends and customer tastes, to deliver services efficiently and effectively and couple it with constant innovation and rethink of the supply chain strategy.
A successful supply chain management plays a pivotal role in any business. More so, in the present e- retailing model. For a retail online business to succeed, one must have a supply chain management that is linked to fine-tuned analytics, to develop and source products in real time and service the ever-changing demands of the consumer.
To ensure success, retailers must align organizational objectives, evaluate business processes, and streamline order and inventory management along with the right technologies to deliver consumers the required goods.