E-commerce businesses are an innovative way of doing your business at an international level, without need of physical presence. Prior to the concept of Ecommerce businesses, it was almost impossible for small businesses to go global. Earlier, only large companies or multinational businesses has the ability to do businesses globally. E-commerce businesses has provided this opportunity to even small business to go global, without investing in physical infrastructure. Although Ecommerce has provided a lot of opportunities to the businesses, but still there are lot of challenges for Ecommerce businesses. These challenges are mostly related to the supply chain process.
If a small Ecommerce business is able to overcome the supply chain problems, it can succeed with growth easily. Although supply chain solutions are there but still many of Ecommerce businesses are unable to properly assess the respective supply chain problems. A major supply chain problem that Ecommerce businesses need to concentrate is the supply chain visibility. Supply chain visibility is one of the most important aspect of supply chain management. Inventory management is closely related to the overall supply chain visibility. Supply chain visibility always helps a business in increasing its efficiency level.
Ecommerce businesses without proper supply chain visibility is an example of car driver who is sleeping while driving.so as it will result in accident. Same is the case of Ecommerce businesses without supply chain visibility, they would result in bottle neck and supply chain disruptions. In our todays blog we will discuss in detail the issues revolving around the supply chain visibility of Ecommerce businesses. How supply chain visibility is affecting the overall performance level of the Ecommerce businesses. Benefits of the supply chain visibility to the Ecommerce businesses. What challenges and opportunities the supply chain visibility hold for the Ecommerce businesses. And in the last we will discuss the solution to improving the supply chain visibility of Ecommerce businesses particularly.
Supply Chain Visibility:
Supply chain visibility is the capability of Ecommerce business to track the overall supply chain process along with its operations. SCV provides a complete visibility to the Ecommerce businesses along the raw material sourcing process. This supply chain visibility will track the complete supply chain process till finished product is delivered to the end consumer. SCV has the ability to increase the overall supply chain management process. Supply chain visibility will help the ecommerce business in improving the business efficiency.
Benefits of Supply Chain Visibility SCV:
SCV is very crucial for businesses especially the Ecommerce businesses. The supply chain visibility will have multiple benefits for the overall supply chain management of the company. Some of the key benefits of supply chain visibility to the Ecommerce businesses are as follows:
Inventory Management:
SCV, provides the Ecommerce businesses the ability to improve their inventory management. By providing the track and trace system it helps in the Ecommerce business in improving the warehouse management as well as inventory management. By improving the inventory management, the Ecommerce businesses can better manage their capital investments.
Visibility of Real time data
SCV provides the ability to the Ecommerce businesses to have better real time data available. Better availability of data will enable the commerce businesses in making better decision regarding the overall supply chain process. This will in return improve the inventory management for the Ecommerce businesses. With real time data and tracing system in the supply chain process the business will always know the exact location of their product. The product can be better traced from the raw material level till the delivery of product to the end consumer. During the transit the businesses can know about the exact arrival of their products at shipping destinations. Inventory management through supply chain visibility will help the Ecommerce businesses in better planning.
Better Efficiency level
The supply chain visibility will improve the company efficiency level. The company with better supply chain visibility will always in a position to see the bottle neck, and disruptions in supply chain process. This ability to identify problems, will help the Ecommerce businesses in improving the operation efficiency. Supply chain visibility gives Ecommerce businesses ability to see when, where the product is passing through the supply chain process.
Cost minimization:
SCV helps the Ecommerce businesses in minimizing their operation cost, by improving the supply chain efficiency. SCV minimizes the time involved in doing the supply chain process. This is done by eliminating any bottleneck or disruption in the supply chain process. SCV provides solutions to the supply chain problems, enabling them to minimize their cost of doing business. SCV also help the Ecommerce businesses minimize their cost by improving their inventory management.
Challenges faced by Ecommerce businesses in improving Supply chain visibility:
Scv is an excellent opportunity for the Ecommerce businesses to improve the growth and maintain sustainability of their businesses. But there are some limitation and challenges faced by the Ecommerce businesses who try to implement scv in their businesses. If Ecommerce businesses have prior knowledge to these challenges they would be in a better position to handle them. The success of an Ecommerce business will depend on their ability to overcome these supply chain problems.
Investment in Supply chain software & technology
Ecommerce businesses need to invest in better supply chain software and technology, rather than using the outdated technology. Obsolete tools and technology in supply chain processes will hinder the way for proper scv. To improve the supply chain process, the Ecommerce business needs to invest in better and latest supply chain technology. The use of latest technology and software will always help the company in identifying the bottle neck and disruption in supply chain processes.
Disruption in supply chain
Uncertainties in the supply chain process, is always a big challenge for the Ecommerce businesses interested in sustaining scv. The Covid-19 pandemic has resulted in lot of disruption along the supply chain processes. These uncertainties in the form of lockdown by different countries. The lockdowns create the supply chain problems of port congestions, container shortages and result is delay in shipments. The worst part is the congestion and disruptions created by the lockdowns are unpredictable. These disruption creates are serious supply chain problem in the process of low supply chain visibility.
Global businesses
One of the important aspect of Ecommerce businesses is they are usually on global scale. due to the siloed process in global operation there are lot of communication issues faced by the Ecommerce businesses. Being global make it difficult for the companies to maintain a proper supply chain visibility due to siloed operations. Some departments that are operating remotely makes it difficult to sustain a proper scv without the use of latest technology.
Collection & communication
Some Ecommerce businesses face the supply chain problem of collecting the real time data, due to use of obsolete technology. The inefficiency in collecting the data results in low scv and communication within the businesses.
Some options to improve SCV:
SCV is an integral part of overall supply chain process. And most of the Ecommerce businesses always try to implement best supply chain visibility method, but still there are ways to improve scv. Some options for improving the supply chain visibility are as follows:
Use of latest Technology:
SCV is at its best level, if latest technology and software are used. The use of latest software improves the planning and analytical aspect of supply chain process. By using the latest technology, the company can improve its inventory management and shipping processes.
Warehouse automation:
It replaces the manual work and obsolete technology, thus improving the efficiency level of the warehouse management. Warehouse automation will improve the supply chain visibility of the Ecommerce businesses.
CONCLUSION:
SCV is very helpful for the Ecommerce businesses in improving their efficiency level as well as the inventory management. During the pandemic covid-19 it is difficult to maintain proper scv, due to disruption and lockdown. But by the use of latest software and technology the scv can be improved and sustained even in siloed processes. Ecommerce businesses interested in growth and sustainability should focus on scv.
