How to Design an effective eCommerce Supply Chain

How to Design an effective eCommerce Supply Chain

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.

inventory barcode scanning

Read: The benefits of barcode inventory management


#5 Implement order and inventory management solutions

Order management and inventory systems can positively transform the way you do business. These solutions help reduce costly inventory errors and improve overall efficiency by streamlining fulfillment workflows and automating mundane tasks. You can make well-informed decisions with valuable insights into your inventory and supply chain performance. In addition to unifying your operations in one place, integrated software like AccelGrid also assists with inventory tracking, reordering levels, and optimizing your supply chain. 

#6 Get better at forecasting

Ordering the right products at the right time is critical for eCommerce businesses. Too much inventory can cause capital to be tied up unnecessarily, while not enough inventory to meet demand can result in lost business. The solution to both these problems lies in accurately forecasting inventory demand. Demand forecasting solutions use machine learning and statistical methods to analyze your sales history and provide recommendations on safety stock and reorder quantities, effectively improving your inventory performance. 


Improve eCommerce supply chain management with AccelGrid 

AccelGrid is an all-in-one business software designed specifically for distributors and eCommerce brands. With powerful automation and real-time analytics, AccelGrid gives you the tools you need to manage everything from inventory to supply chain and much more. Start a free 14-day trial today or contact us for a demo.

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