Know Supply Chain Management and Its Benefits in E-Commerce Business
In a company, Supply Chain Management is needed as an effort to meet consumer needs. The e-commerce business is no exception. For companies that are just starting out and large companies require different Supply Chain Management. Check out the explanation about Supply Chain Management, along with its benefits for e-commerce business.
Definition of Supply Chain Management
Supply Chain Management is a series of important activities in a business that is carried out starting from planning, controlling, to distributing products to consumers.
Supply Chain Management has the main goal, namely aligning consumer demand with the supply of goods available. Here is another goal of Supply Chain Management for e-commerce business.
- Winning market competition by providing quality products or services,
- Maximizing business processes to meet consumer needs, and
- Generate bigger profits.
Supply chain management for e-commerce business
Not only conventional companies that need Supply Chain Management in running a business, e-commerce companies also need it to ensure safe products reach consumers' hands.
The following is the Supply Chain Management process for an e-commerce business:
1. Transaction
The first process that is carried out is when consumers make transactions on the specified e-commerce site.
This is the opposite of the process in conventional companies in e-commerce companies when consumer transactions are in the first order.
Products sold on e-commerce sites can be seen directly, starting from product descriptions and stock availability, so that consumers can directly order the products they need.
2. Payment
Products that have been ordered by consumers require a payment settlement before the goods are finally delivered. Then after the payment is successfully made, the stock of the ordered product will be reduced according to the amount that came out at that time.
3. Product Collection from Warehouse
Orders that have been successfully made and payment has been completed, then the next process is taking the product from the inventory warehouse. In this process, officers can check the completeness of the product before it is sent to consumers.
4. Shipping
The last process carried out is product delivery. When placing an order on e-commerce, the delivery process is carried out by a third party. At this stage, the logistics company or shipping expedition that has worked with the company.
Benefits of Supply Chain Management for E-Commerce Business
Supply Chain Management has the main benefits, namely:
- provide satisfaction to consumers,
- increase profits,
- reduce unnecessary costs, up to
- maintain professional relationship between related companies.
The following is an explanation of the benefits of Supply Chain Management for e-commerce businesses:
1. Consumer Satisfaction
Providing and increasing customer satisfaction is the main thing in Supply Chain Management.
Good managerial will increase consumers' desire to make repeat purchases of products offered by a business.
2. Increase Profit
Customer satisfaction that has been fulfilled, has an impact on increasing profits. This happens because more and more consumers like and buy the products you offer. For this reason, increasing profits will be easier to obtain.
3. Reduce Costs
Supply Chain Management has a big influence in reducing unnecessary costs, so that your company can be more efficient, and the available costs can be allocated for other important purposes.
4. Maintaining Relationships
Cooperation between companies related to your business can increase the success in selling a product. Therefore, maintain a professional relationship between your business and related companies, so that cooperation remains well established.
5. The company is growing
Not only increasing customer satisfaction, implementing Supply Chain Management can also make the company grow. This happens because your business is more easily recognized and trusted by consumers.
Supply chain management is very important and needed by business owners to achieve the goals set by the company. The strategy implemented in Supply Chain Management is to improve service quality and establish good relations with suppliers of raw materials.
In general, supply chain management can simplify everything, including the unexpected. With effective supply chain management, a manager can also diagnose problems or disruptions for the movement of goods easily so that business progress is more focused