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April 1, 2023

How e-Commerce Influences Supply Chain Management

How e-Commerce Influences Supply Chain Management

by Tom K / Friday, 26 May 2017 / Published in Blog

More and more customers are turning to the Internet to find and purchase the items they need. Shopping online is convenient, often cost-effective, and less time-consuming as purchases can be made with a click of a button. The trend has even turned Cyber Monday into a more active shopping holiday than the in-person/in-store Black Friday. E-commerce and supply chain management can work hand in hand to help your business benefit from this increasingly popular customer shopping experience. Here are two ways e-commerce fulfillment services can help you.

Helps Cost Reduction

E-commerce in the fulfillment process allows transportation companies to exchange documents electronically. It also enables shippers, freight forwarders, and trucking firms to streamline their document handling without huge monetary and time investments. E-commerce helps companies reduce overall costs, improve data accuracy, streamline supply chain services, accelerate business cycles, and enhance customer service.

Impacts Demand Patterns

Technology, globalization, and e-commerce are becoming more intertwined, and businesses are taking this opportunity to increase their connectivity and boost their speed of conducting sales transactions. Thanks to the advancements in technology, businesses can instantly communicate with customers by providing for their needs and understanding their shopping patterns.

How e-Commerce Is Changing Logistics

More Room for Logistics

Due to the e-commerce-related increase of SKUs, buffer stock, returned items, and individual picking, packing, and shipping, e-commerce logistics demand more space. As your business grows through your digital marketing campaign, you can benefit from working with a third-party logistics (3PL) and pick-and-pack warehouse services. By outsourcing the bulk of your warehousing responsibilities, the job can get done right in a location with adequate space at an overall lower cost; plus, you will be able to directly focus on your marketing and sales.

Changed Relationships between Retailers and Service Providers

In the past, businesses had more power over their customers; however, the digital revolution and the rise of e-commerce have shifted the balance of this relationship. Today’s consumers have more power to direct and affect the way retailers and businesses operate to meet their needs and wants. E-commerce that incorporates same-day delivery is one option that has becoming almost necessary for some businesses in order to satisfy the customer.

Traditional Roles Have Changed

The traditional roles of stores, distribution centres, and transportation providers have changed dramatically as a result of e-commerce. Retail stores also operate as product fulfillment centres where online orders are picked, packed, and shipped to customers, often within the same day.

Get Logistics and Warehouse Management Support at LSS

If you’re looking for e-commerce fulfillment services and 3PL services in Toronto, Lean Supply Solutions can help you. We arise to the challenge of meeting our clients’ needs and aid them in getting the most out of their operations. Our third-party logistics, packaging, and supply chain management services can streamline your processes for better success. By striving to ensure that the right products are provided to the right customers at the right time, Lean Supply Solutions is able to offer consistent, accurate, and quality results. Our services also include supply chain management in Vancouver and pick-and-pack fulfillment services in the USA (specifically in San Bernardino, California). To learn more about outsourcing to our 3PL distribution team or to ask any questions, contact us at 905-482-2590.

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