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The Role of Supply-Chain Management in e-Commerce

Are you a business owner in the e-commerce industry? Then you already know how quickly technology is evolving, making it more important than ever before to understand the nuances of supply chain management. If you want your online store to remain competitive and profitable, there are certain pieces of knowledge that have become essential for success. In this blog post, we’ll dive into the role of supply chain management for e-commerce businesses and the various components that go into creating a streamlined system for e-commerce fulfillment and inventory management.

What Is Supply Chain Management?

Supply chain management is a crucial process that ensures the smooth delivery of goods and services from suppliers to customers. Essentially, it refers to the management of the entire chain of activities involved in the production and delivery of products or services. Effective supply chain management is crucial in ensuring that businesses can meet customer demand in a timely and cost-effective manner while also improving profitability.

The Benefits of Supply Chain Management in E-Commerce

A well-maintained supply chain helps with cost reduction by identifying supply chain inefficiencies that can be improved upon and it can enhance the customer experience by optimizing shipping times and ensuring timely delivery of orders.

An effective supply chain in e-commerce also improves inventory management, ensuring that the right products are in the right place at the right time. In today’s fast-paced and competitive e-commerce environment, investing in quality supply chain management is essential for long-term growth and staying ahead of the competition.

The Different Stages of the Supply Chain in E-Commerce

The are various stages involved in an effective supply chain, including:

Sourcing Raw Materials

The first stage of the supply chain in e-commerce is sourcing raw materials. This involves finding and purchasing the necessary components for a product, such as fabrics, plastics, metals, or electronics. Companies must ensure that they are sourcing materials from reliable suppliers in order to ensure quality and cost-effectiveness.

Manufacturing Products

Once the raw materials have been sourced, they must then be manufactured into finished products. This involves cutting and shaping the raw materials into components that can be assembled into the final product. The manufacturing process often requires specialized equipment and skilled labor in order to ensure quality control and efficiency.

Inventory Management and Procurement

Inventory management is an essential part of e-commerce supply chain management. Companies must track their inventory levels at all times in order to ensure that they have enough stock to meet customer demand while avoiding costly overstocking or understocking issues. Additionally, companies must also procure new inventory when needed in order to keep up with customer demand.

Warehousing and Storage

Warehouses provide secure storage for products while ensuring that they are readily accessible when needed for order fulfillment or distribution purposes. Companies may also choose to outsource warehousing services if they do not have the capacity to manage it themselves.

Order Fulfillment and Processing

Order fulfillment and processing is another key component of an e-commerce business’s supply chain as it is responsible for ensuring orders are received by customers quickly and accurately. This includes verifying orders against customer records, packaging products according to customer preferences, preparing shipping labels, and arranging for delivery.

Distribution and Logistics

Distribution refers to the transportation of goods from warehouses or other storage facilities to customers’ doorsteps or other designated locations (such as stores). Logistics refers to the planning and execution of transportation activities in order to optimize costs while ensuring timely delivery of goods with minimal errors or delays along the way.

How to Optimize Your Supply Chain for E-Commerce

Below are some tips for optimizing your supply chain for e-commerce fulfillment.

Choose the Right Suppliers and Manufacturers

Choosing the right suppliers and manufacturers is essential for optimizing your supply chain for e-commerce. The quality of the products you offer will determine the success of your business, so it’s important to select reliable suppliers who can provide consistent, high-quality goods. When selecting a supplier or manufacturer, make sure to research their reputation and track record, read customer reviews, and get references from other businesses they’ve worked with.

Invest in Efficient Warehousing and Inventory Management Systems

Having an efficient warehousing and 3 in place is key for optimizing your supply chain for e-commerce. This system should include up-to-date software that tracks stock levels, order processing times, shipping costs, and more. Additionally, having a well-organized warehouse with clearly labeled shelves and bins will help ensure that orders are processed quickly and accurately.

Use a Reliable Fulfillment Partner

Using a reliable fulfillment partner is another important step in optimizing your supply chain for e-commerce. Your e-commerce fulfillment partner should have experience working with similar businesses as yours, be able to handle large volumes of orders quickly and accurately, provide competitive shipping rates, and offer excellent customer service.

Develop a Robust Returns Processing System

Returns can be an issue when it comes to e-commerce businesses, so it’s important to develop a robust returns processing system that ensures customers receive their refunds quickly and efficiently. This system should include clear return policies that are easy for customers to understand as well as processes for tracking returned items back to the warehouse or supplier in order to avoid losses due to theft or damage.

The Future of Supply Chain Management in E-Commerce

The future of supply chain management in e-commerce is an exciting one, as advances in automation and robotics take center stage. These powerful tools will help retailers streamline their operations and improve efficiency, ultimately leading to faster delivery times and happier customers.

But it’s not just about speed—sustainability is becoming an increasingly important concern in the realm of e-commerce. Retailers are looking for ways to reduce their carbon footprint and minimize waste, all while delivering quality products to their customers.

And speaking of customers, they’re more important than ever before. With the increasing focus on customer experience, retailers are looking for ways to personalize every interaction and deliver the kind of seamless service that consumers have come to expect.

Related: Benefits of Sustainable E-Commerce Fulfillment Practices

Choose APS Fulfillment, Inc. for Effective Supply Chain Management

APS Fulfillment, Inc. is an industry leader in supply chain management, providing effective and innovative solutions to organizations of all sizes. From inventory management to shipping and delivery, we offer a wealth of services that are designed to streamline operations and improve efficiency.

By choosing APS, you can focus on core competencies while leaving the logistics to the experts. Book a consultation by calling (954) 582-7450 or email [email protected].

Also Read: How to Prepare for the Peak Season Fulfillment Rush

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What Is Landed Cost and How Does It Affect E-Commerce Businesses?

As an e-commerce business, staying ahead of the competition and maximizing profits is always a top priority. But have you ever thought about how much further your business could go if you truly understood the costs associated with serving customers? It starts with understanding landed cost. In this blog post we’ll uncover what landed cost is, how it impacts your business operations, and explore ways to apply this knowledge to make informed decisions about optimizing your products.

What Is Landed Cost?

Landed cost is a concept used in business and accounting to help organizations accurately estimate how much a certain product will cost when it is physically brought from the factory to the buyer’s warehouse. It considers all associated costs, such as transportation fees, customs duties, insurance premiums, currency conversion costs, and more.

By understanding the true landed cost of an item, companies can then factor it into their pricing models for the product in order to gain a profitable margin.

How Do You Calculate Landed Costs?

Calculating landed costs for goods involves more than just knowing the outright price. There are many other hidden costs associated with entering the market and supplying the goods in question.

Landed Cost = Product Cost + Logistics + Customs + Operational + Risk

  • Product costs include the cost of goods sold (COGS)
  • Logistics costs are all associated shipping and handling costs
  • Customs and duties include tariffs imposed by foreign countries on imports
  • Operational costs are any applicable user fees or tariffs associated with port operations
  • Risk protection or insurance covers any liabilities associated with transportation delays or damage in transit.

While calculating landed costs can be a complex process due to currency conversions, taxes and other methods of payment, understanding these five main components of landed cost is essential for businesses working in international markets.

Ways to Reduce Landed Costs

Reducing landed cost is a critical aspect of achieving success in business. It involves evaluating all aspects of the supply chain to identify opportunities for reduction. Below are some ways to reduce landed costs.

Reduce Manufacturing Costs

One of the most effective ways to reduce landed costs is to reduce the cost of manufacturing. This can be achieved by looking into different processes and techniques that increase efficiency and minimize waste. Adjusting production schedules, decreasing lead times, and bargaining for better supplier prices are just a few examples of how reducing manufacturing costs can significantly lower landed cost.

Look for Duty-free Imports

Duty-free imports can be difficult to find, but they can save you a great deal in terms of import costs, including taxes and tariffs. A good way to get started is to research any applicable trade agreements between your country and the countries from which you’re importing products. You can also look into different duty-free providers who may be able to source items for you that are already duty-free or not subject to heavy fees.

Reduce Fulfillment Costs

Fulfillment costs have long been a source of stress for businesses. One way to lower fulfillment costs is by optimizing delivery scheduling and reducing cycle time between order and delivery. Additionally, organizations can save money through improved inventory management and greater visibility into supply chain performance.

Reduce Shipping Costs

Reducing shipping costs is a great way to reduce landed cost. This can be done through several methods such as finding the most cost effective carrier, negotiating lower rates with existing carrier, consolidating shipments into larger loads, and choosing the appropriate packaging size. Taking the time to find the best alternative can make a big difference in cutting costs, so that more of your budget is available for other investments.

Improve Your Landed Costs with APS Fulfillment, Inc.

At APS Fulfillment, Inc., we offer full-service e-commerce fulfillment out of Miami that includes state-of-the-art warehouse management software (WMS), and we make inventory management and goods tracking easy. We’ll also support your business and automate the warehousing, prepping, shipping, picking, and packing of your orders!

Get in touch with us and one of our consultants will tailor a fulfillment plan designed to grow your business. Book a consultation by calling (954) 582-7450 or email [email protected].

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What Is Demand Management in the Supply Chain?

Demand management is an important part of any successful supply chain. It can be thought of as a way to anticipate and manage customer demand for the products or services you provide. By understanding how customers are likely to demand your products, you can make sure that your production, inventory, and distribution processes are running efficiently and meeting the needs of customers in a timely manner. In this article, we explore the various aspects of demand management and how it can benefit the supply chain.

What Is Demand Management?

Demand management enables supply chains to accurately predict customer demand, which can then be used to optimize operations and avoid costly overstocking. By combining demand management forecasts with other analytics, such as inventory levels and sales data, companies can successfully manage their inventory and production processes for maximum efficiency.

Additionally, demand planning predictions can help companies reduce risks by understanding when to speed up or slow down production based on changing market trends. Ultimately, effective demand management ensures that customers receive what they need when they need it while keeping businesses ahead of the competition.

4 Key Aspects of Demand Management

There are four key aspects of demand management. All together, these four aspects form the backbone of a successful demand management system that helps companies achieve strategic goals efficiently at minimal cost.

  • Forecasting: Forecasting entails anticipating future customer demands through understanding patterns across different timescales.
  • Supply Planning: Supply planning includes tracking current inventory levels and managing the supply chain in order to ensure requested goods and services are available as needed.
  • Demand Analysis: Demand analysis digs deeper into understanding customer behaviors and preferences so companies can better meet their needs as they evolve over time.
  • Sales and Operations Planning: This combines both forecasting and supply planning while factoring in external constraints such as regulations or competition.

Objectives of Demand Management

Effective demand management helps organizations to reach their customer service and financial goals in more ways than one. Below are some of the main objectives of demand management:

  • Improves Product Forecast Accuracy: By placing a focus on quantitative and qualitative data analysis, businesses are able to improve product forecasts with greater accuracy, allowing them to purchase necessary products in an optimal way and reducing costs associated with carrying excessive amounts of stock.
  • Improves Customer Experiences: Labor demands can be managed through an improved understanding of customer preferences to ensure the right skillset and number of staff are available on-site at any given time. Better customer service can be achieved by accommodating their needs for various products or services.
  • Creates Efficient Cash Flow Management: By anticipating future trends the company will benefit from forecasting cash flow accurately resulting in greater financial stability.

Get in Touch with APS for Your E-Commerce Fulfillment Needs

Leave your customers satisfied and boost margins with APS Fulfillment, Inc. as your 3PL provider. APS offers full-service e-commerce fulfillment out of Miami that includes state-of-the-art warehouse management software (WMS). Get in touch with us and one of our consultants will tailor a fulfillment plan designed to grow your business. Book a consultation by calling (954) 582-7450 or email [email protected].

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CGMP Warehousing: Things You Should Know

CGMP Warehousing

iStock.com/dusanpetkovic

If you run an organization that sells food, cosmetics, supplements, drugs, or other medical products, CGMP standards and regulations matter. Especially in cases where you use outsourced providers to store and distribute your products, you will need to ensure these standards are met all across your supply chain. But what does CGMP stand for? Why do organizations need to meet these standards? If you need warehousing and fulfillment solutions in Miami, Florida, how can you be sure they are properly certified for CGMP? Here’s what you need to know about CGMP warehousing and the answers to questions like these. The following information will help you choose the right third-party logistics partner to provide you with safe solutions for your consumers.

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The Benefits of Outsourcing Your E-Commerce Fulfillment

APS Fulfillment_image_300415If you have your own retail or fulfillment business, you likely have a lot of pride, and rightfully so—it’s your business and you want the best reputation and highest profits. With that in mind, you likely want to oversee every job yourself, believe this will allow you more control over its operations.

The downside of this way of thinking is that you might find that, despite your best efforts, there are too many tasks, and a decrease in efficiency as a result. No matter how hard you think you can work to manage all of your e-commerce jobs, you likely won’t be able to handle them all.

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An Ultimate Guide to E-Commerce Shipping, Handling, and Fulfillment

ecommerce shipping and fulfillmentThe client orders and pays online, after which you send the product to them. Easy, right?

The truth is that e-commerce shipping fulfillment is a bit more of a complex endeavor than that. Rather, modern e-commerce shipping is about creating a well-maintained experience for clients to receive their products while you profit.

Many people claim to have e-commerce fulfillment down to a science, but you may not be there yet. If you’re unsure about how to execute e-commerce shipping properly, here are the things you need to pay attention to:

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How Adapting Faster Order Fulfillment Methods Benefits Your E-Commerce

faster order fulfillmentWith Amazon and other e-commerce business constantly expanding, there are new challenges for fulfillment companies to meet. One of those is the need for faster order fulfillment. Here is some information about how to perform your services quicker without sacrificing quality:

1.  It’s Complicated, But Beneficial

Performing same-day delivery and fulfilling orders quickly can appear complicated, but they’re certainly not impossible. Doing so may mean having to implement new warehousing technology or make a greater effort to record information. Regardless, investing in the right tech can enable a business to reap the benefits of the demand for fast order delivery.

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5 Fulfillment Lessons from the Apple Watch’s Marketing

Direct Marketing SolutionsIf you’ve been keeping up with business and technology news, you’ve likely heard of the Apple Watch, a wristwatch that has all the functions of an iPhone.

Recently, it was also announced that the Apple Watch is introducing its first ad platform courtesy of software company TapSense. This is a new step in m-commerce and is going to have a big impact, even for fulfillment companies.

There are some important things to take from the Apple Watch and its marketing which fulfillment companies can apply to their own marketing in 2015.

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Understanding the Fulfillment-Digital Currency Relationship

e-fulfillment servicesEven with the amount of digital media available today, it’s hard to fathom that we now have digital currency systems too. For fulfillment companies, digital transactions mean new opportunities, but also new challenges. Adapting to digital currency systems might take some getting used to, but may be necessary, as it will likely grow into a viable commercial medium–that is, if it isn’t already.

E-Money

Before, money was regulated and handled only by banks and the government. But now, with digital currency, the reach has expanded.

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5 Easy Visual Fulfillment Marketing Techniques

Direct MarketingAt the end of 2014, the digital marketing experts predicted that visual media will become even more of a prominent marketing tool. This is good news for fulfillment companies as, contrary to popular belief, fulfillment marketing is easy to do.

Here are five techniques to better use visual media marketing in fulfillment:

1. Use Slideshows

A picture is worth a thousand words, which is why quality images of your product line are often enough to generate sales. You can download free, high-quality programs that allow you to upload images of your products and create slideshows that showcase these items. And for the best photos, you might want to consult your supply chain or wholesale companies for the highest quality photos they have.

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