This Is How SCM Works For Online Businesses

When it comes to online supply chains just like their regular counterparts, comfort and customer satisfaction are highly influential factors when it comes to the logistics process; as well as prices, the right services and the entire route from the moment the order is created, all the way to when the product is delivered. These procedures are so delicate, that if they are not handled correctly from the beginning and proper functioning is not assured, not only will client satisfaction be at jeopardy, but also the image of the company, the product and the costs of doing business will become unsustainable.  

In order to ensure proper functioning right from the beginning, every online company must face the challenge of improving their business model everyday and dealing with the hurdles every new company must endure when it comes to packaging their products and optimizing their sales. When it comes to online sales, companies have the task of being able to get on board with innovative sales models and logistics solutions that will ensure their products are delivered safely and their online sales numbers are successful.

Direct Sales

From the very beginning when online businesses began to take off, companies focused on the sales and distribution of raw materials appeared and began selling directly to those interested in furthering their own online businesses. It is important to note that direct sales are very important, especially when it comes to online businesses because the ability to deal with customers straightforwardly is what sets online businesses apart from other types of commerce: the fact that this can be done virtually and from the customer’s location without having to go to a store. The less involvement with third parties when it comes to relating to the customer, the better your company will be when it comes to direct sales. Customers are becoming more and more demanding everyday and that is why companies must know their clients and be able to anticipate and meet their needs by offering ways they can save money, find what they want and choose online businesses over other alternatives.

Successful online businesses

When we talk about the effectiveness of small companies, we have to be clear and accept that a good process is spearheaded by four main factors in the supply chain: customer’s trust, company logistics, the quality and price of the products, and finally and most importantly the client experience. Small retailers are not only selling their products within their cities and local regions but also researching and analyzing the needs of foreign customers and further expanding their businesses to that type of consumers.  This process greatly benefits companies that start out small but gradually start growing thanks to e-commerce and the advantages that it has brought to sales processes and the relationship between the manufacturers and foreign customers.

Small online retailers must consider some basic steps that will help enhance the natural and sensible way of doing business and the costs of managing their brand so their online presence is visible to prospective clients looking for products on the Internet. One of the main things is to invest in human resources in charge of overseeing the proper functioning of their supply chain and with the necessary knowledge in order to position the brand to be competitive with other companies. Shipping costs must be relative to the costs to make the product; meeting deadlines is fundamental as well, so it is important to always work on making those times as short as possible and to properly time shipments so as to use resources the most efficient possible way. A constant evaluation of contracts made with suppliers is also very important in order to manage your supply chain and to ensure their logistics is always being optimized to give you their best service for your investment.

Image courtesy of Robbert Noordzij at


Marketing plans and the use of proper platforms that meets the demands of the markets is an absolute priority. Planning the process of the supply chain is very important is online sales because there are so many moving parts and they are more often than not, out of your control. Inventory management is also crucial because orders may pick up or slow down at a moments notice, and in the event that a supplier is not able to meet the demand, contingencies must be set in place to answer this type of eventualities. Orders must always be met no matter what, and that is why it is so important to have a plan B in case something goes wrong. Having a logistics company that can manage all of your solutions is a great way to keep everything under one roof and avoid problems that may arise from combining suppliers and having to halt operations because one piece of the process is failing.

For more great articles about logistics, supply chain management and efficient solutions for enhanced production; visit David Kiger’s Blog today.

* Featured Image Courtesy of Intel Free Press at

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