How to Design an effective eCommerce Supply Chain

A transparent and effective eCommerce supply chain is the backbone of a successful eCommerce brand. The right supply chain strategies and decisions help you improve profitability and scale your brand to new heights. An effective supply chain ensures that products consistently arrive at your fulfillment centers on time and prevents the need to source additional materials from alternative sources.

6 ways to build an effective supply chain

Here are some great actionable tips to ramp up your operations, from lowering your shipping cost and delivery time to reorganizing your existing warehouse space and implementing advanced supply chain solutions.

#1 Review your existing eCommerce supply chain

Identifying bottlenecks and uncovering issues within your supply chain is a great starting point for designing an effective eCommerce supply chain. Analyze your sales and purchase history to identify vendors and products causing bottlenecks in your fulfillment workflow. Once you have identified what needs fixing, it becomes easier to formulate strategies that could improve your supply chain. 

#2 Lower your shipping costs

Next-day deliveries have become somewhat a norm in the world of eCommerce. Shipping costs are often a substantial component for eCommerce businesses offering free shipping. While free shipping can increase conversions and garner positive customer feedback, it can also backfire if the costs are too high and eat up your profits.

#3 Optimize your existing warehouse space

Small and medium-sized businesses often do not have the luxury to afford more extensive warehouse facilities. Optimizing your existing warehouse space to make it more functional and profitable can address a wide range of storage and inventory movement inefficiencies. If your business doesn’t have the capital or the capacity to manage a fulfillment center, consider using a third-party logistics provider (3PL). A 3PL relationship can reduce the burden of inventory management and give your business the advantage of utilizing an extensive network of fulfillment locations. 

#4 Use barcode scanners

Human errors during inventory operations can quickly derail your efforts to maintain inventory and fulfill orders accurately. Shipping the wrong products can lead to increased return rates and dissatisfied customers. Barcode technology can dramatically improve your warehouse operations by decreasing processing time for picking, receiving, and inventory adjustments while improving accuracy.