How do I use supply chain & operations for ecommerce?

Expert answer · sourced from 8 podcast episodes

Short answer

Treat your supply chain as a core part of your brand, not just a cost center. Your operations are how you deliver on the promises your marketing makes, and getting it right is a huge competitive advantage that builds trust and repeat business.

TL;DR

Your supply chain isn't just a cost center, it is a core part of your brand's customer experience. Excellent E-Commerce Supply Chain Management is how you actually deliver on the promises your marketing team makes. As Francesco Borghi emphasized on The eCom Ops Podcast, a smooth and reliable logistics process builds brand reputation and can be a competitive advantage. When a customer receives their order quickly and correctly, it builds trust. When it’s late, wrong, or damaged, that trust is broken, no matter how good your product is.

The other side is profitability. Your operations have a massive impact on your margins, mostly through inventory management. As Andrew from Ecommerce Playbook put it, right now “everybody has too much stuff,” and that excess inventory costs a fortune in storage and eats away at profits through markdowns. At the same time, as Aaron Alpeter discusses on The eCom Ops Podcast, you have to avoid stockouts on your key products, which kill sales momentum and send customers to your competitors. This balancing act is central to running a sustainable ecommerce business.

Your first step should be to map every single touchpoint in your fulfillment process. I mean literally draw it out, from the moment a customer clicks 'buy' to the package landing on their doorstep and even the returns process. This will immediately show you where the bottlenecks, complexities, and hidden costs are in your current system.

Cited episodes (8)

  1. The eCom Ops Podcast — Understanding The Supply Chain For eCom with Aaron Alpeter of Izba Consulting cover art

    Understanding The Supply Chain For eCom with Aaron Alpeter of Izba Consulting

    #1 · The eCom Ops Podcast · with Aaron Alpeter

    Provides a foundational overview of the components of an ecommerce supply chain.

  2. Ecommerce Playbook — Everybody Has Too Much Stuff cover art

    Everybody Has Too Much Stuff

    #2 · Ecommerce Playbook · Andrew

    Explains the profitability risks of having either too much or too little inventory.

  3. eCommerce MasterPlan — Top 10 Holiday Season Setbacks and How to Avoid Them cover art
  4. The EcomCrew Ecommerce Podcast — E427: The Top 10 EcomCrew Podcast Episodes of 2021 cover art
  5. The Jason & Scot Show — EP032 - VF Corporation, Greg Pulsifer VP, Digital Development cover art
  6. The eCom Ops Podcast — Automating the eCommerce Shipping Process with Francesco Borghi, Founder and CEO at ShippyPro cover art
  7. The eCom Ops Podcast — Distribution Automation Volume with Julian Samarjiev and Marin Gerov of DULO cover art
  8. The eCom Ops Podcast — [Greatest Hits] The Importance of a Logistic Process for eCom Business with Francesco Borghi, CEO at ShippyPro cover art

    [Greatest Hits] The Importance of a Logistic Process for eCom Business with Francesco Borghi, CEO at ShippyPro

    #8 · The eCom Ops Podcast · with Francesco Borghi

    Connects the quality of your logistics process directly to your brand's reputation and success.

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