Entrepreneur Resources Your source for small business information
The e-commerce landscape is brimming with opportunities amid the pandemic. Not surprisingly, the industry witnessed a massive boom in 2021, and things seem to get even better ahead. But you have to be ready to face the daunting competition in the domain. Excellent products give you a good start, but eventually, everything boils down to great services. It is vital to strengthen your value chain to ensure that buyers are happy enough with your services. It boosts retention and allows you to secure a competitive advantage for your business. Here are the proven strategies you can implement to strengthen your e-commerce value chain.
Review the current processes
Value chain refers to the processes involved in performing your service. In the e-commerce space, this entails sourcing products and delivering them to the buyer’s doorstep. If you want to enhance the entire chain, start with a review of the current processes to gain insight into their efficacies and shortcomings. A value chain analysis gives you the best start. It provides a greater understanding of the system so that you can implement the right steps.
Prioritize inbound supply chain
Whether you operate only the e-commerce model or run an omnichannel business, you must focus on the inbound supply chain. Getting inbound products on time can enable you to deliver orders within expected timelines. Assess the current bottlenecks and work around with viable solutions. They could happen at the fulfillment center and back office, so keep an eye on both. Determine the vendors causing delays and eliminate them from your system.
Lower delivery time and shipping costs
Your customers expect more than just great products because almost every seller has them on offer. They want you to cut down delivery time frames and lower shipping costs as well. When it comes to e-commerce value chain management, you cannot overlook these aspects. Collaborating with a reliable material handling partner is the best way to win on both these fronts. You can leave the operations to these experts and focus on your core business as they provide intelligent solutions.
Increase paperwork accuracy
Another area you need to cover for strengthening the value chain for your e-commerce business is the accuracy of paperwork. The materials and products you handle every day are huge in numbers. You cannot go slack with records and paperwork if you want complete control over the supply chain. The best way to address the concern is by using automation technology in areas like receiving, replenishment, picking, packing, shipping, returns, and labor tracking.
Increase existing warehouse capacity
Maximizing value chain efficiency is all about the way you use the capacity of the existing warehouse. Moving to a new center could be an option, but it can cost a fortune. It makes sense to reassess the design and layout of the existing distribution center and rework them for optimal usage. The strategy can help you address capacity issues and deal with storage inadequacies. Consider moving to a new facility only when you are financially ready. These tried and tested strategies can go a long way in enhancing the value chain of your e-commerce company. The sooner you implement them, the better are your chances of leaving the competitors behind.
