How to Optimize eCommerce Supply Chain Management

Supply chain management By Browntape

Earlier, eCommerce was just a simple online medium of sales and purchases. However, today, the customer expectations from eCommerce have changed to a major extent. Optimization of eCommerce supply chains has become crucial. The internet has brought together billions of buyers and millions of sellers together in an interconnected web. There is a saturation of sellers on online platforms like Amazon and competition is fierce. Hence, excellence in fulfilment is key. 

In a survey performed by Investp, 2021, 56% of consumers surfing online within the age range of 18 years to 34 years would prefer same-day delivery. Besides, the survey also highlighted that 80% of online customers would like to have the same-day shipping status of their orders.  So, today, the aspect that plays a major role in the success of eCommerce businesses is the supply chain. Goods must move in an accurate and timely way. But,  everything perfect comes with a price. So, today’s article is all about creating a balance between cost and efficiency through eCommerce supply chain management.

What is Supply Chain Management in eCommerce?

eCommerce supply chain management is all about streamlining information, funds, and resources to gain optimum results. A flow is required to be managed among several entities and at varying levels in the eCommerce supply chain. This management begins from the entry of raw materials and ends after the order of finished goods is delivered to the end-user.

Several entities of the supply chain are producers, suppliers, vendors, logistics, warehouses,  distribution centres, fulfilment companies, and transportation services apart from the end buyer. All the entities have control over a certain aspect of the supply chain. Their roles determine the capability or incapability to match customer expectations.

Importance of eCommerce Supply Chain Management

The eCommerce market has experienced a paradigm shift. For example, with a 20% reduction in shipping cost, Amazon has an upper hand in the eCommerce market. It has allowed the eCommerce giant to have an edge over multichannel retailers.  Indian supply chains experienced extensive volatility in 2020 with the advent and rise of a pandemic. The demand for online goods skyrocketed but eCommerce businesses weren’t ready for such a major shift in demand. 

That is when the entire industry stepped up and adapted itself to the situation. Despite lockdowns, the new & improved supply chains catered to customers across the country. This created a learning ground for the second wave too. So it is evident that eCommerce supply chain management is of utmost significance. 

The key components of supply chain management are- availing raw materials, their manufacturing, and further transportation and delivery of the appropriate product under stipulated timeframe. Supply chain management would take care of establishing consensus within the demand and supply of products while tracking the status at the warehouse. 

Some critical aspects of eCommerce supply chain management incorporate order entry and management along with tracking of each stage until the delivery to the customer.

Supply chain Management pic 1

Strategies to Manage eCommerce Supply Chain

eCommerce supply chain management is perfectly critical for your customer’s experience. Contrary to the case of brick and mortar retailers, online sellers have one chance to establish a memorable experience with their customers. If the first delivery has certain issues, there are high chances that you will lose out on customer retention.

Here are some quick and smart strategies to manage your eCommerce supply chain. 

1. Supplier & Warehouse Diversification

A central point of distribution is never a good idea when you have your business in different regions and cities. Imagine what would happen if any bottleneck is created at that central hub. It will intensify your business’s dependency and risk. You can always have multiple suppliers & warehouses across the country. So, in case, one of your suppliers becomes incapable to fulfill the required demands, you could always switch to the other one. 

One such example has been observed in the case of Nykaa, the famous online cosmetic brand. The company has collaborated with several other cosmetic brands and has become a selling point for remarkable suppliers. Such a diversification approach will enable you to distribute risk and ensure customer retention.

2. Usage of eCommerce Supply Chain Software

Functioning in an eCommerce dependent world is incomplete without the use of multi-functional eCommerce management software. Browntape is one such example.  The market has a range of eCommerce supply chain management tools that you can embrace in your business. These tools enable adequate tracking along with the management of inventory.  One can manage purchases, suppliers and process orders. They can do a lot more as per your business’s customization needs. 

There are specialised inventory management tools to ensure the smooth functioning of your B2B & B2C processes and operations. Technological tools like big data and data analytics are used in eCommerce supply chain management to accelerate the level of efficiency. There are some ERP systems to integrate several marketplaces & channels, for better optimization. So, you can enjoy hassle-free order processing and positive customer feedback. 

3. Accurate Documentation. Simplified Processing.

Documentation has always been connected with delays and inefficiencies. However, if done with the right set of technologies, can be extremely useful for the business. The automation through barcode technology, tracking elements like who, what, and when in the warehouse environment; helps.  The use of barcodes is essential for high performing eCommerce supply chain management.

Barcode technology is feasible in domains including packing, picking, receiving, removing, shipping, cycle counts, returns, labour management, and other functions as well. Several fulfilment hubs and  warehouses need documentation. Such technology makes it easier. Manual documentation is not just time-consuming but costly also. Using automation for eCommerce supply-chain management should be a strategic goal for all the online businesses out there.

4. Cost Reduction & Shipping

No list of strategies is complete without a plan for cost reduction. As automation will help you save a lot of money, your business gets buffer funds to enhance the capacity of the warehouse. Moreover, you can also offer clients shipping deals for orders worth a minimum order value. One way for cost reduction is through adding an order management system that would establish coordination between physical locations and online eCommerce platforms. It will not just reduce do-overs but achieve higher customer satisfaction as well.

Supply chain management pics 2 browntape

Benefits of eCommerce Supply Chain Management

eCommerce supply chain management has several advantages. Here are just a few of them:

1. A Vigilant Eye over all the Operations

Along with proper execution of supply chain management, you will be able to build transparency within the network and get quick access to the records and status of different functions. You will get highly comprehensive management and tracking to ensure seamless delivery and experience to the customers.

2. Lower Cost

A critical reason behind customers buying on eCommerce platforms are the deep discounts. eCommerce is a domain with extensive potential for cost reduction. So, supply chain management could lead to the discovery of areas where money could be saved. As eCommerce supply chain management supports automation, it can reduce costs in areas including supply, distribution, and production to further yield higher profits.

3. Lower Delays in the Delivery

Your customers won’t like it if you deliver their orders late. So, it would be nice to have an efficient management system that eliminates errors in the logistics process and further streamlines the distribution channel. This way, everything will work in the best way possible. 

4. Smooth CRM

Customer relationships are of utmost importance. A well-devised eCommerce supply chain management strategy would enable you to deliver satisfactory experiences for your customers. Integration of your CRM with your supply chain systems will help smoothen this process.  


The take-away from this blog is that business supply chains have a lot of scope for improvement. Just work on the right strategies for your supply chain management process and you will hold a memorable place in your customer’s shopping experiences!

Supply chain management Supply chain management Supply chain management Supply chain management Supply chain management Supply chain management Supply chain management Supply chain management Supply chain management Supply

Leave a Reply

Your email address will not be published. Required fields are marked *

Chat With Us