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How the eCommerce Supply Chain Works - Manychat Blog

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class="TopBar_underline-ov___PJ5a"><p class="TopBar_underline-item__H_3_P" itemProp="name">WhatsApp</p></div><div class="small text_grey m_t-xxs">Connect with your Customers Instantly </div></a><a href="https://manychat.com/product/messenger-marketing" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk flex flex_fdc flex-item_shrink m_y-xl m_x-s " link="/product/messenger-marketing" label="Messenger" description="Facebook Messenger chatbot #1" icon="/blog/_next/static/media/messenger.aac6546b.svg" itemProp="url"><img class="TopBar_nav-ico__lYeT_ m_b-l" src="/blog/_next/static/media/messenger.aac6546b.svg" alt=""/><div class="TopBar_underline-ov___PJ5a"><p class="TopBar_underline-item__H_3_P" itemProp="name">Messenger</p></div><div class="small text_grey m_t-xxs">Facebook Messenger chatbot #1</div></a><a href="https://manychat.com/product/ai" target="_self" rel="" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk flex flex_fdc flex-item_shrink m_y-xl m_x-s " link="https://manychat.com/product/ai" label="Manychat AI" description="A Smarter Way to Chat Automation" icon="/blog/_next/static/media/ai.9f66e1b4.svg" itemProp="url"><img class="TopBar_nav-ico__lYeT_ m_b-l" src="/blog/_next/static/media/ai.9f66e1b4.svg" alt=""/><div class="TopBar_underline-ov___PJ5a"><p class="TopBar_underline-item__H_3_P" itemProp="name">Manychat AI</p></div><div class="small text_grey m_t-xxs">A Smarter Way to Chat Automation</div></a><a href="https://manychat.com/integrations" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk flex flex_fdc flex-item_shrink m_y-xl m_x-s " link="/integrations" label="Integrations" description="Connect to your favorite tools" icon="/blog/_next/static/media/integrations.56fc2a5f.svg" itemProp="url"><img class="TopBar_nav-ico__lYeT_ m_b-l" src="/blog/_next/static/media/integrations.56fc2a5f.svg" alt=""/><div class="TopBar_underline-ov___PJ5a"><p class="TopBar_underline-item__H_3_P" itemProp="name">Integrations</p></div><div class="small text_grey m_t-xxs">Connect to your favorite tools</div></a></div></div></div></div><div class="TopBar_nav-item__6Xz4x TopBar_underline__fakyk p_a-s underline_nav-link"><div class="TopBar_nav-name__EQjCj TopBar_underline-ov___PJ5a caps"><span class="TopBar_underline-item__H_3_P">Solutions</span></div><div class="width TopBar_nav-ov__mRXGd"><div class="flex flex_jcc TopBar_nav-move__T6k_j"><div class="flex TopBar_nav-links-list-container__J9_98"><div class="flex flex_fit p_a-xl TopBar_nav-links-list__wK2Lk"><div class="TopBar_nav-name__EQjCj caps m_b-xxxs">by Business Type</div><div class="flex flex_fit p_t-xs"><a href="https://manychat.com/creators" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="for Creators" link="/creators" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">for Creators</p></a><a href="https://manychat.com/meet-chatmarketing-for-ecommerce" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="for eCommerce" link="/meet-chatmarketing-for-ecommerce" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">for eCommerce</p></a><a href="https://manychat.com/product/for-agencies" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="for Agencies" link="/product/for-agencies" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">for Agencies</p></a></div></div><div class="flex flex_fit p_a-xl TopBar_nav-links-list__wK2Lk"><div class="swiper TopBar_swiper__FnWEP" draggable="true"><div class="swiper-wrapper"><div class="swiper-slide TopBar_slide__nnY7J"><a href="https://manychat.com/product/ai/" target="_self" rel="" itemProp="url"><div style="background-image:url(https://mccdn.me/martcdn/mc-land/constants/navigation/manychat-ai.jpg)" class="text_white p_a-m hover_trigger TopBar_solution-banner__FQlDi"><div class="TopBar_solution-banner-content__2vl2O"><h3 itemProp="name" class="gravity">Manychat AI: A Smarter Way to Chat Automation</h3><div class="flex caps m_t-xs"><div class="TopBar_underline-item__H_3_P">Learn more</div><div class="m_l-xs arrow"></div></div></div></div></a></div><div class="swiper-slide TopBar_slide__nnY7J"><a href="https://get.manychat.com/grow" rel="noopener noreferrer" itemProp="url"><div style="background-image:url(https://mccdn.me/martcdn/mc-land/constants/navigation/grow-your-followers.png)" class="text_white p_a-m hover_trigger TopBar_solution-banner__FQlDi"><div class="TopBar_solution-banner-content__2vl2O"><h3 itemProp="name" class="gravity">Grow your followers</h3><div class="flex caps m_t-xs"><div class="TopBar_underline-item__H_3_P">Learn more</div><div class="m_l-xs arrow"></div></div></div></div></a></div><div class="swiper-slide TopBar_slide__nnY7J"><a href="https://get.manychat.com/rip-link-in-bio" rel="noopener noreferrer" itemProp="url"><div style="background-image:url(https://mccdn.me/martcdn/mc-land/constants/navigation/link-in-bio.jpg)" class="text_white p_a-m hover_trigger TopBar_solution-banner__FQlDi"><div class="TopBar_solution-banner-content__2vl2O"><h3 itemProp="name" class="gravity">Link in bio’ is soooo 2016. Use DMs instead</h3><div class="flex caps m_t-xs"><div class="TopBar_underline-item__H_3_P">Learn more</div><div class="m_l-xs arrow"></div></div></div></div></a></div></div><div class="flex flex flex_c m_t-l"><div role="button" class="pointer hover_trigger b_a b_rd-xl flex flex_c SwiperPrevNext_button__DmEXd m_r-xs "><div class="arrow left">←</div></div><div role="button" class="pointer hover_trigger b_a b_rd-xl flex flex_c SwiperPrevNext_button__DmEXd"><div class="arrow">→</div></div></div></div></div></div></div></div></div><div class="TopBar_nav-item__6Xz4x TopBar_underline__fakyk p_a-s underline_nav-link"><div class="TopBar_nav-name__EQjCj TopBar_underline-ov___PJ5a caps"><span class="TopBar_underline-item__H_3_P">Agencies</span></div><div class="width TopBar_nav-ov__mRXGd"><div class="flex flex_jcc TopBar_nav-move__T6k_j"><div class="flex p_x-s TopBar_nav-links-container__ay3_5"><a href="https://manychat.com/agency/listing/" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk flex flex_fdc flex-item_shrink m_y-xl m_x-s " link="/" label="Hire an Agency" description="Get help from chat marketing experts" icon="/blog/_next/static/media/find_agency.9a9db1ea.svg" itemProp="url"><img class="TopBar_nav-ico__lYeT_ m_b-l" src="/blog/_next/static/media/find_agency.9a9db1ea.svg" alt=""/><div class="TopBar_underline-ov___PJ5a"><p class="TopBar_underline-item__H_3_P" itemProp="name">Hire an Agency</p></div><div class="small text_grey m_t-xxs">Get help from chat marketing experts</div></a><a href="https://manychat.com/affiliate/" target="_blank" rel="" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk flex flex_fdc flex-item_shrink m_y-xl m_x-s " link="https://manychat.com/affiliate/" label="Join the Affiliate Program" description="Earn up to 50% recurring commission" icon="/blog/_next/static/media/affiliate.193aa077.svg" itemProp="url"><img class="TopBar_nav-ico__lYeT_ m_b-l" src="/blog/_next/static/media/affiliate.193aa077.svg" alt=""/><div class="TopBar_underline-ov___PJ5a"><p class="TopBar_underline-item__H_3_P" itemProp="name">Join the Affiliate Program</p></div><div class="small text_grey m_t-xxs">Earn up to 50% recurring commission</div></a></div></div></div></div><div class="TopBar_nav-item__6Xz4x TopBar_underline__fakyk p_a-s underline_nav-link"><a href="https://manychat.com/pricing" class="TopBar_nav-name__EQjCj TopBar_underline-ov___PJ5a caps" link="/pricing" label="Pricing"><span class="TopBar_underline-item__H_3_P">Pricing</span></a></div><div class="TopBar_nav-item__6Xz4x TopBar_underline__fakyk p_a-s underline_nav-link"><div class="TopBar_nav-name__EQjCj TopBar_underline-ov___PJ5a caps"><span class="TopBar_underline-item__H_3_P">Resources</span></div><div class="width TopBar_nav-ov__mRXGd"><div class="flex flex_jcc TopBar_nav-move__T6k_j"><div class="flex TopBar_nav-links-list-container__J9_98"><div class="flex flex_fit p_a-xl TopBar_nav-links-list__wK2Lk"><div class="TopBar_nav-name__EQjCj caps m_b-xxxs">Learn</div><div class="flex flex_fit p_t-xs"><a href="https://manychat.com/blog/" target="_blank" rel="" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="Blog" link="https://manychat.com/blog/" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">Blog</p></a><a href="https://help.manychat.com/" target="_blank" rel="noopener noreferrer" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="Help Center" link="https://help.manychat.com/" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">Help Center</p></a><a href="https://manychat.com/resources/how-to" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="How To Guides" link="/resources/how-to" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">How To Guides</p></a><a href="https://events.manychat.com/" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="Webinars" link="/" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">Webinars</p></a><a href="https://manychat.com/resources/video-course" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="Video Course" link="/resources/video-course" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">Video Course</p></a><a href="https://manychat.com/resources/ebooks" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="eBooks" link="/resources/ebooks" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">eBooks</p></a></div></div><div class="flex flex_fit p_a-xl TopBar_nav-links-list__wK2Lk"><div class="TopBar_nav-name__EQjCj caps m_b-xxxs">Get Inspired</div><div class="flex flex_fit p_t-xs"><a href="https://manychat.com/messenger-marketing-examples" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="Chatbot Examples" link="/messenger-marketing-examples" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">Chatbot Examples</p></a><a href="https://community.manychat.com/" target="_blank" rel="noopener noreferrer" class="TopBar_nav-link__Va9Kb TopBar_underline__fakyk p_y-xs" label="Community" link="https://community.manychat.com/" itemProp="url"><p class="TopBar_underline-item__H_3_P" itemProp="name">Community</p></a></div></div></div></div></div></div></nav><div class="TopBar_top-bar-right__nGUBL flex height flex_aic"><a class="p_y-s p_x-l inline-block caps b_rd-xl pointer TopBar_signup__fjzBV button button_outlined" link="/signup" label="Get Started" href="https://app.manychat.com/signup"><span class="flex flex_jcc text_center"><span data-text="Get Started">Get Started</span></span></a><a href="https://app.manychat.com/signin" target="_blank" rel="noopener noreferrer" class="TopBar_underline__fakyk caps p_y-s m_l-m " link="/signin" label="Sign In" itemProp="url"><span class="TopBar_underline-item__H_3_P" itemProp="name">Sign 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src="/blog/_next/static/media/search.a7563e89.svg" loading="lazy"/></div></div><div class="trigger" data-first="true"></div></section><div><div class="trigger" data-first="true"><header class="m_t-xl"><div class="w w_l text_center"><h1 class="BlogArticleHeroSection_title__CWlCh">How the eCommerce Supply Chain Works</h1><div class="caps m_t-m m_b-xl BlogArticleHeroSection_author__q6w7H"><div class="m_r-s z_0 BlogArticleHeroSection_avatar__SOLx5"><img alt="Taran Soodan Avatar" loading="lazy" width="440" height="440" decoding="async" data-nimg="1" class="b_rd-xl" style="color:transparent;object-fit:cover" srcSet="/blog/_next/image/?url=https%3A%2F%2Fsecure.gravatar.com%2Favatar%2F17f8d5616a72d3482f2399039a97bf11%3Fs%3D440%26d%3Dmm%26r%3Dg&amp;w=640&amp;q=75 1x, /blog/_next/image/?url=https%3A%2F%2Fsecure.gravatar.com%2Favatar%2F17f8d5616a72d3482f2399039a97bf11%3Fs%3D440%26d%3Dmm%26r%3Dg&amp;w=1080&amp;q=75 2x" src="/blog/_next/image/?url=https%3A%2F%2Fsecure.gravatar.com%2Favatar%2F17f8d5616a72d3482f2399039a97bf11%3Fs%3D440%26d%3Dmm%26r%3Dg&amp;w=1080&amp;q=75"/></div> <!-- -->Written by<!-- --> <a class="BlogArticleHeroSection_author-name__E_exK underline_link " href="/blog/author/taran-soodan/">Taran Soodan</a></div><div class="text_bold m_b-l"><a class="underline_link " href="/blog/category/ecommerce/"><span>eCommerce</span></a><span class="text_bold"> - 7 min read</span></div><img alt="How the eCommerce Supply Chain Works" loading="lazy" width="1200" height="629" decoding="async" data-nimg="1" style="color:transparent" srcSet="/blog/_next/image/?url=https%3A%2F%2Fmanychat.com%2Fblog%2Fwp-content%2Fuploads%2F2020%2F12%2FFrame-1268.png&amp;w=1200&amp;q=100 1x, /blog/_next/image/?url=https%3A%2F%2Fmanychat.com%2Fblog%2Fwp-content%2Fuploads%2F2020%2F12%2FFrame-1268.png&amp;w=3840&amp;q=100 2x" 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Share_linkedin__bLIni" target="_blank" rel="noopener noreferrer"><span>LinkedIn</span></a></div><hr class="bg_grey m_a-0"/></div><section class="m_b-xxl w w_l flex flex_jcc trigger"><div class="flex-item_8 rich_text ClientArticleContent_article-content__FaOoE"> <p>With the <a href="https://manychat.com/blog/what-is-ecommerce/" target="_blank" rel="noreferrer noopener">eCommerce</a> industry&#x2019;s growth, moving goods from the manufacturer to the customer is no longer &#x201c;business as usual.&#x201d; Now, more than ever, customers expect lightning-fast yet inexpensive <a href="https://manychat.com/blog/how-to-automate-shipping-order-fulfillment/" target="_blank" rel="noreferrer noopener">shipping options</a>.</p> <p>Despite this new customer expectation, though, retailers are faced with the challenge of managing the increased costs that come with speedy and efficient <a href="https://manychat.com/blog/ecommerce-fulfillment/" target="_blank" rel="noreferrer noopener">order fulfillment</a>. So, how do you balance the two extremes of maintaining efficiency while reducing costs? The simple answer is supply chain management (SCM).</p> <h2 class="wp-block-heading" id="h-what-is-the-ecommerce-supply-chain">What is the eCommerce supply chain?</h2> <p>The eCommerce supply chain details the persons and processes involved in the movement of goods and raw materials from manufacturers to consumers. An efficient supply chain guarantees that the right products get to the right place, at the right time, in the right condition.</p> <h2 class="wp-block-heading" id="h-how-covid-19-changed-the-ecommerce-supply-chain">How COVID-19 changed the eCommerce supply chain</h2> <p>The global pandemic significantly impacted supply chains for business-to-business (B2B) and business-to-consumer (B2C) companies. Consumers rely heavily on online shopping for the safety and convenience it provides. In the same vein, global supply chains have struggled with huge spikes in demand for essential items (e.g., toilet paper and cleaning supplies) and a drop in sales for non-essential items.</p> <p>Although the adjustment was a significant challenge at the outset of the pandemic, manufacturers, wholesalers, retailers, and other supply chain partners found creative solutions. These days, most companies can, to a large extent, guarantee a steady supply of goods despite the complexity of delivery and shipments. Here are some of the most significant impacts the pandemic has had on eCommerce supply chains worldwide.</p> <h3 class="wp-block-heading" id="h-faster-delivery-speeds">Faster delivery speeds</h3> <p>At the height of the global lockdowns, supply chains struggled with longer delivery times fueled by surges in demand and social distancing practices. For example, warehouses couldn&#x2019;t function at peak capacity because of the stringent safety guidelines, making it almost impossible for a reduced labor force to cope with the significant workload increase.&#xa0;</p> <p>In response to these disruptions, however, more companies have automated and digitized their supply process. This ensures they can keep up with the fast delivery speeds customers have come to expect, which bodes well for the future.</p> <h3 class="wp-block-heading" id="h-real-time-alerts-for-delays-and-delivery-updates">Real-time alerts for delays and delivery updates</h3> <p>Even if the pandemic challenges lead to delayed delivery, customers want to stay up-to-date every step of the way. Managers of eCommerce businesses or third-party logistics (3PL) companies have had to develop more reliable tracking systems to provide customers real-time delivery updates and delay alerts.</p> <p>Companies involved in last-mile delivery have also invested more in their communication systems to ensure accurate transmission of the necessary information. The improved tracking and communication efficiency directly translates to a better customer experience.</p> <h3 class="wp-block-heading" id="h-more-ecommerce-businesses-partnering-with-3pls">More eCommerce businesses partnering with 3PLs</h3> <p>Another significant impact the pandemic has had on eCommerce supply chains is that self-fulfillment has become less attractive for business owners. A spike in orders and movement restrictions worldwide has made delivering products to buyers more challenging than ever, especially for small-scale business owners.</p> <p>3PLs already have robust systems that can cope with such problems, so it&#x2019;s no surprise that more eCommerce brands are willing to leverage the third-party providers&#x2019; superior capabilities to meet customer demands better.</p> <h2 class="wp-block-heading" id="h-the-benefits-of-an-optimized-ecommerce-supply-chain">The benefits of an optimized eCommerce supply chain</h2> <p>Optimization involves identifying problem areas in your eCommerce supply chain and implementing solutions to make the process more efficient. For most companies, supply chain optimization is a buzzword that&#x2019;s followed with little to no action.&#xa0;</p> <p>If you commit to action and take the right steps, your eCommerce company can reap the following benefits from an efficient supply chain:</p> <h3 class="wp-block-heading" id="h-faster-shipping-times">Faster shipping times</h3> <p>When all processes run efficiently, your customers receive their orders in record time. This sets your company up for rapid growth through word of mouth since your customers will almost always be satisfied with your services.</p> <h3 class="wp-block-heading" id="h-cost-effective-shipping-rates">Cost-effective shipping rates</h3> <p>Optimizing your supply chain at all levels helps you achieve a significant reduction in shipping costs. For example, setting up fulfillment centers in strategic locations shortens shipping routes resulting in reduced shipping time and lower costs.</p> <h3 class="wp-block-heading" id="h-fewer-or-no-stockouts">Fewer or no stockouts</h3> <p>Proper inventory management is at the heart of supply chain management. When you optimize your supply chain, you are more equipped to forecast demand, ensuring you always have the right amount of stock.</p> <h3 class="wp-block-heading" id="h-better-customer-experiences">Better customer experiences</h3> <p>If your company always stocks the right products and ships on time at a reduced rate, your customers will enjoy a peerless shopping experience. If lessons from eCommerce giants like Zappos, Alibaba, and eBay are anything to go by, a better customer experience directly results in more customers and rapid growth.</p> <h3 class="wp-block-heading" id="h-easier-returns-reverse-logistics">Easier returns (reverse logistics)</h3> <p>Returns are inevitable, but it doesn&#x2019;t necessarily spell the end of customers returning to buy from you again. However, if the <a href="https://manychat.com/blog/ecommerce-returns/" target="_blank" rel="noreferrer noopener">returns process</a> is overly complicated, customers are likely to never purchase from your brand again. With an optimized supply chain, you can make the returns process easy to prevent churning customers and increase the likelihood they&#x2019;ll come back for more.</p> <h3 class="wp-block-heading" id="h-compete-with-amazon-and-enterprise-direct-to-consumer-d2c-brands">Compete with Amazon and enterprise direct-to-consumer (D2C) brands</h3> <p><a href="https://manychat.com/blog/amazon-fulfillment-services-fba-fbm-sfp-mcf-3pls/" target="_blank" rel="noreferrer noopener">Amazon&#x2019;s fulfillment services</a> and incredibly optimized supply chain is one of the company&#x2019;s primary competitive advantages. They almost always have the best items in stock and ensure customers&#x2019; orders are fulfilled in record time. If your company can replicate these qualities, you may be on your way to carving your niche in the eCommerce market.</p> <h2 class="wp-block-heading" id="h-how-to-improve-your-ecommerce-supply-chain">How to improve your eCommerce supply chain</h2> <p>Optimizing your eCommerce supply chain is not a process that happens overnight. It involves carefully identifying weaknesses in your current supply chain strategies and creative solutions to improve them. Below are some of the top tips for supply chain optimization that virtually all eCommerce businesses can benefit from.</p> <h3 class="wp-block-heading" id="h-use-multiple-fulfillment-centers-to-save-on-shipping-costs">Use multiple fulfillment centers to save on shipping costs</h3> <p>Having fulfillment centers in strategic locations can lead to significant savings on shipping costs while ensuring speedy online order deliveries. For example, Amazon has more than 175 fulfillment centers worldwide, allowing them to serve customers as no other company can. Even if your business currently can&#x2019;t achieve that kind of reach, consider partnering with 3PL companies with a wide fulfillment center footprint to expand your network.</p> <h3 class="wp-block-heading" id="h-track-inventory-in-real-time">Track inventory in real-time</h3> <p>Automation and digitization should be at the heart of all your supply chain optimization efforts. Suppose you can digitize inventory management. You&#x2019;ll have a clear idea of how much stock you have at any given time, allowing you to fulfill customers&#x2019; demands on time while reducing your overhead from overstocking slow-moving products.</p> <h3 class="wp-block-heading" id="h-use-a-warehouse-management-system">Use a warehouse management system&#xa0;</h3> <p>Warehouse management systems (WMS) lead to improved operational efficiency. With the right system, you maximize warehouse labor and space while also assisting with inventory management, significantly reducing operating costs across the board.</p> <h3 class="wp-block-heading" id="h-partner-with-a-3pl-if-needed">Partner with a 3PL (if needed)</h3> <p>Many small businesses may find it impossible to implement most of these recommendations while staying within their constrained budget. If this is your company&#x2019;s plight, you&#x2019;ll be glad to know that all hope is not lost.</p> <p>Partnering with a 3PL company allows you to scale your operations without incurring the costs of setting up the required infrastructure or hiring the necessary personnel. More importantly, you&#x2019;ll work with supply chain management experts that can further streamline your <a href="https://manychat.com/blog/ecommerce-logistics-2021-trends/" target="_blank" rel="noreferrer noopener">logistics process</a> and other aspects of your eCommerce supply chain.</p> <h3 class="wp-block-heading" id="h-find-more-local-suppliers-and-vendors">Find more local suppliers and vendors</h3> <p>When you work with local suppliers and vendors, you significantly reduce the cost of shipping goods to your warehouse. Furthermore, when order management is streamlined, goods arrive faster, and you&#x2019;re better placed to meet customer demands.&#xa0;</p> <p>Admittedly, this strategy might be difficult to achieve if your vendors are overseas; however, this is not to say that having overseas vendors is a bad idea. If you have distributors that can fulfill your orders on time, at a great price, and with flexible payment terms, don&#x2019;t hesitate to purchase from them.</p> <h2 class="wp-block-heading" id="h-conclusion">Conclusion</h2> <p>Traditionally, SCM has always been about streamlining logistics operations; however, increased automation and data availability in the eCommerce space has subtly shifted the focus to demand forecasting and operations planning.&#xa0;</p> <p>Ultimately, the goal for effective supply chain management will always be to balance demand and supply so sellers spend the least amount possible sending goods to consumers. Examine your current supply process for weaknesses, and strengthen the chain whenever you can to achieve this goal and improve the <a href="https://manychat.com/blog/post-purchase-follow-up-sequence/" target="_blank" rel="noreferrer noopener">post-purchase experience</a>.</p> <p>To improve the post-purchase experience even further, consider using a tool like ManyChat. With ManyChat, merchants can send SMS, email, and Messenger shipping updates and order confirmations to keep customers in the loop with where their products are located.&#xa0;</p> <p>Get started with ManyChat for your eCommerce store today!</p> <div> <div class="wp-block-button"><div class="m_x-auto m_y-xl width_fit"><a href="https://manychat.com/signup" class="p_y-s p_x-l inline-block caps b_rd-xl pointer button"><span class="flex flex_jcc text_center"><span data-text="SIGN UP FREE">SIGN UP FREE</span></span></a></div></div> </div> <p></p> </div></section><section class="w w_l tn-m_y-xl p_b-xl howto-tags trigger"><div class="flex flex_jcc"><div class="flex-item flex-item_8"><hr/><div class="caps text_center m_t-m m_b-s">Originally published: Dec 30, 2020, 10:54 PM, Updated: Jan 28, 2021, 11:44 PM</div></div></div></section><section class="m_b-xxl w w_l flex flex_jcc trigger"><div class="flex-item_8 flex flex_aifs sm-flex_aic"><img alt="Taran Soodan Avatar" loading="lazy" width="100" height="100" decoding="async" data-nimg="1" class="m_r-l b_rd-100" style="color:transparent;object-fit:contain" srcSet="/blog/_next/image/?url=https%3A%2F%2Fsecure.gravatar.com%2Favatar%2F17f8d5616a72d3482f2399039a97bf11%3Fs%3D440%26d%3Dmm%26r%3Dg&amp;w=128&amp;q=75 1x, /blog/_next/image/?url=https%3A%2F%2Fsecure.gravatar.com%2Favatar%2F17f8d5616a72d3482f2399039a97bf11%3Fs%3D440%26d%3Dmm%26r%3Dg&amp;w=256&amp;q=75 2x" src="/blog/_next/image/?url=https%3A%2F%2Fsecure.gravatar.com%2Favatar%2F17f8d5616a72d3482f2399039a97bf11%3Fs%3D440%26d%3Dmm%26r%3Dg&amp;w=256&amp;q=75"/><div><h3>Taran Soodan</h3><p class="rich_text small">Taran Soodan is a full-stack marketer helping businesses with organic growth via SEO, Content Marketing, Partnerships, and more.</p></div></div></section></div></main><footer class="Footer_footer__SqwoT p_t-l tn-p_t-xl text_white bg_black"><div class="w w_m m_b-s tn-m_b-0"><div class="grid grid_5 grid_gap"><div class="relative flex Footer_logo___gJUM"><a href="https://manychat.com/" class="width"><img src="/blog/_next/static/media/logo-white.93c1c234.svg" class="block width" alt="Manychat logo" loading="lazy"/></a></div><div><div class="m_b-xs p_x-xs text_dark-grey caps">Manychat</div><ul class="m_y-xs Footer_links__JCb_o"><li><a href="https://manychat.com/about" class="p_y-xs p_x-xs Footer_footer-link__KC3kN">About</a></li><li><a href="https://careers.manychat.com/" class="p_y-xs p_x-xs Footer_footer-link__KC3kN">Careers</a></li><li><a href="https://manychat.com/security" class="p_y-xs p_x-xs Footer_footer-link__KC3kN">Privacy &amp; 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the \u003ca href=\"https://manychat.com/blog/what-is-ecommerce/\" target=\"_blank\" rel=\"noreferrer noopener\"\u003eeCommerce\u003c/a\u003e industry\u0026#x2019;s growth, moving goods from the manufacturer to the customer is no longer \u0026#x201c;business as usual.\u0026#x201d; Now, more than ever, customers expect lightning-fast yet inexpensive \u003ca href=\"https://manychat.com/blog/how-to-automate-shipping-order-fulfillment/\" target=\"_blank\" rel=\"noreferrer noopener\"\u003eshipping options\u003c/a\u003e.\u003c/p\u003e\n\n\n\n\u003cp\u003eDespite this new customer expectation, though, retailers are faced with the challenge of managing the increased costs that come with speedy and efficient \u003ca href=\"https://manychat.com/blog/ecommerce-fulfillment/\" target=\"_blank\" rel=\"noreferrer noopener\"\u003eorder fulfillment\u003c/a\u003e. So, how do you balance the two extremes of maintaining efficiency while reducing costs? The simple answer is supply chain management (SCM).\u003c/p\u003e\n\n\n\n\u003ch2 class=\"wp-block-heading\" id=\"h-what-is-the-ecommerce-supply-chain\"\u003eWhat is the eCommerce supply chain?\u003c/h2\u003e\n\n\n\n\u003cp\u003eThe eCommerce supply chain details the persons and processes involved in the movement of goods and raw materials from manufacturers to consumers. An efficient supply chain guarantees that the right products get to the right place, at the right time, in the right condition.\u003c/p\u003e\n\n\n\n\u003ch2 class=\"wp-block-heading\" id=\"h-how-covid-19-changed-the-ecommerce-supply-chain\"\u003eHow COVID-19 changed the eCommerce supply chain\u003c/h2\u003e\n\n\n\n\u003cp\u003eThe global pandemic significantly impacted supply chains for business-to-business (B2B) and business-to-consumer (B2C) companies. Consumers rely heavily on online shopping for the safety and convenience it provides. In the same vein, global supply chains have struggled with huge spikes in demand for essential items (e.g., toilet paper and cleaning supplies) and a drop in sales for non-essential items.\u003c/p\u003e\n\n\n\n\u003cp\u003eAlthough the adjustment was a significant challenge at the outset of the pandemic, manufacturers, wholesalers, retailers, and other supply chain partners found creative solutions. These days, most companies can, to a large extent, guarantee a steady supply of goods despite the complexity of delivery and shipments. Here are some of the most significant impacts the pandemic has had on eCommerce supply chains worldwide.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-faster-delivery-speeds\"\u003eFaster delivery speeds\u003c/h3\u003e\n\n\n\n\u003cp\u003eAt the height of the global lockdowns, supply chains struggled with longer delivery times fueled by surges in demand and social distancing practices. For example, warehouses couldn\u0026#x2019;t function at peak capacity because of the stringent safety guidelines, making it almost impossible for a reduced labor force to cope with the significant workload increase.\u0026#xa0;\u003c/p\u003e\n\n\n\n\u003cp\u003eIn response to these disruptions, however, more companies have automated and digitized their supply process. This ensures they can keep up with the fast delivery speeds customers have come to expect, which bodes well for the future.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-real-time-alerts-for-delays-and-delivery-updates\"\u003eReal-time alerts for delays and delivery updates\u003c/h3\u003e\n\n\n\n\u003cp\u003eEven if the pandemic challenges lead to delayed delivery, customers want to stay up-to-date every step of the way. Managers of eCommerce businesses or third-party logistics (3PL) companies have had to develop more reliable tracking systems to provide customers real-time delivery updates and delay alerts.\u003c/p\u003e\n\n\n\n\u003cp\u003eCompanies involved in last-mile delivery have also invested more in their communication systems to ensure accurate transmission of the necessary information. The improved tracking and communication efficiency directly translates to a better customer experience.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-more-ecommerce-businesses-partnering-with-3pls\"\u003eMore eCommerce businesses partnering with 3PLs\u003c/h3\u003e\n\n\n\n\u003cp\u003eAnother significant impact the pandemic has had on eCommerce supply chains is that self-fulfillment has become less attractive for business owners. A spike in orders and movement restrictions worldwide has made delivering products to buyers more challenging than ever, especially for small-scale business owners.\u003c/p\u003e\n\n\n\n\u003cp\u003e3PLs already have robust systems that can cope with such problems, so it\u0026#x2019;s no surprise that more eCommerce brands are willing to leverage the third-party providers\u0026#x2019; superior capabilities to meet customer demands better.\u003c/p\u003e\n\n\n\n\u003ch2 class=\"wp-block-heading\" id=\"h-the-benefits-of-an-optimized-ecommerce-supply-chain\"\u003eThe benefits of an optimized eCommerce supply chain\u003c/h2\u003e\n\n\n\n\u003cp\u003eOptimization involves identifying problem areas in your eCommerce supply chain and implementing solutions to make the process more efficient. For most companies, supply chain optimization is a buzzword that\u0026#x2019;s followed with little to no action.\u0026#xa0;\u003c/p\u003e\n\n\n\n\u003cp\u003eIf you commit to action and take the right steps, your eCommerce company can reap the following benefits from an efficient supply chain:\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-faster-shipping-times\"\u003eFaster shipping times\u003c/h3\u003e\n\n\n\n\u003cp\u003eWhen all processes run efficiently, your customers receive their orders in record time. This sets your company up for rapid growth through word of mouth since your customers will almost always be satisfied with your services.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-cost-effective-shipping-rates\"\u003eCost-effective shipping rates\u003c/h3\u003e\n\n\n\n\u003cp\u003eOptimizing your supply chain at all levels helps you achieve a significant reduction in shipping costs. For example, setting up fulfillment centers in strategic locations shortens shipping routes resulting in reduced shipping time and lower costs.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-fewer-or-no-stockouts\"\u003eFewer or no stockouts\u003c/h3\u003e\n\n\n\n\u003cp\u003eProper inventory management is at the heart of supply chain management. When you optimize your supply chain, you are more equipped to forecast demand, ensuring you always have the right amount of stock.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-better-customer-experiences\"\u003eBetter customer experiences\u003c/h3\u003e\n\n\n\n\u003cp\u003eIf your company always stocks the right products and ships on time at a reduced rate, your customers will enjoy a peerless shopping experience. If lessons from eCommerce giants like Zappos, Alibaba, and eBay are anything to go by, a better customer experience directly results in more customers and rapid growth.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-easier-returns-reverse-logistics\"\u003eEasier returns (reverse logistics)\u003c/h3\u003e\n\n\n\n\u003cp\u003eReturns are inevitable, but it doesn\u0026#x2019;t necessarily spell the end of customers returning to buy from you again. However, if the \u003ca href=\"https://manychat.com/blog/ecommerce-returns/\" target=\"_blank\" rel=\"noreferrer noopener\"\u003ereturns process\u003c/a\u003e is overly complicated, customers are likely to never purchase from your brand again. With an optimized supply chain, you can make the returns process easy to prevent churning customers and increase the likelihood they\u0026#x2019;ll come back for more.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-compete-with-amazon-and-enterprise-direct-to-consumer-d2c-brands\"\u003eCompete with Amazon and enterprise direct-to-consumer (D2C) brands\u003c/h3\u003e\n\n\n\n\u003cp\u003e\u003ca href=\"https://manychat.com/blog/amazon-fulfillment-services-fba-fbm-sfp-mcf-3pls/\" target=\"_blank\" rel=\"noreferrer noopener\"\u003eAmazon\u0026#x2019;s fulfillment services\u003c/a\u003e and incredibly optimized supply chain is one of the company\u0026#x2019;s primary competitive advantages. They almost always have the best items in stock and ensure customers\u0026#x2019; orders are fulfilled in record time. If your company can replicate these qualities, you may be on your way to carving your niche in the eCommerce market.\u003c/p\u003e\n\n\n\n\u003ch2 class=\"wp-block-heading\" id=\"h-how-to-improve-your-ecommerce-supply-chain\"\u003eHow to improve your eCommerce supply chain\u003c/h2\u003e\n\n\n\n\u003cp\u003eOptimizing your eCommerce supply chain is not a process that happens overnight. It involves carefully identifying weaknesses in your current supply chain strategies and creative solutions to improve them. Below are some of the top tips for supply chain optimization that virtually all eCommerce businesses can benefit from.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-use-multiple-fulfillment-centers-to-save-on-shipping-costs\"\u003eUse multiple fulfillment centers to save on shipping costs\u003c/h3\u003e\n\n\n\n\u003cp\u003eHaving fulfillment centers in strategic locations can lead to significant savings on shipping costs while ensuring speedy online order deliveries. For example, Amazon has more than 175 fulfillment centers worldwide, allowing them to serve customers as no other company can. Even if your business currently can\u0026#x2019;t achieve that kind of reach, consider partnering with 3PL companies with a wide fulfillment center footprint to expand your network.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-track-inventory-in-real-time\"\u003eTrack inventory in real-time\u003c/h3\u003e\n\n\n\n\u003cp\u003eAutomation and digitization should be at the heart of all your supply chain optimization efforts. Suppose you can digitize inventory management. You\u0026#x2019;ll have a clear idea of how much stock you have at any given time, allowing you to fulfill customers\u0026#x2019; demands on time while reducing your overhead from overstocking slow-moving products.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-use-a-warehouse-management-system\"\u003eUse a warehouse management system\u0026#xa0;\u003c/h3\u003e\n\n\n\n\u003cp\u003eWarehouse management systems (WMS) lead to improved operational efficiency. With the right system, you maximize warehouse labor and space while also assisting with inventory management, significantly reducing operating costs across the board.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-partner-with-a-3pl-if-needed\"\u003ePartner with a 3PL (if needed)\u003c/h3\u003e\n\n\n\n\u003cp\u003eMany small businesses may find it impossible to implement most of these recommendations while staying within their constrained budget. If this is your company\u0026#x2019;s plight, you\u0026#x2019;ll be glad to know that all hope is not lost.\u003c/p\u003e\n\n\n\n\u003cp\u003ePartnering with a 3PL company allows you to scale your operations without incurring the costs of setting up the required infrastructure or hiring the necessary personnel. More importantly, you\u0026#x2019;ll work with supply chain management experts that can further streamline your \u003ca href=\"https://manychat.com/blog/ecommerce-logistics-2021-trends/\" target=\"_blank\" rel=\"noreferrer noopener\"\u003elogistics process\u003c/a\u003e and other aspects of your eCommerce supply chain.\u003c/p\u003e\n\n\n\n\u003ch3 class=\"wp-block-heading\" id=\"h-find-more-local-suppliers-and-vendors\"\u003eFind more local suppliers and vendors\u003c/h3\u003e\n\n\n\n\u003cp\u003eWhen you work with local suppliers and vendors, you significantly reduce the cost of shipping goods to your warehouse. Furthermore, when order management is streamlined, goods arrive faster, and you\u0026#x2019;re better placed to meet customer demands.\u0026#xa0;\u003c/p\u003e\n\n\n\n\u003cp\u003eAdmittedly, this strategy might be difficult to achieve if your vendors are overseas; however, this is not to say that having overseas vendors is a bad idea. If you have distributors that can fulfill your orders on time, at a great price, and with flexible payment terms, don\u0026#x2019;t hesitate to purchase from them.\u003c/p\u003e\n\n\n\n\u003ch2 class=\"wp-block-heading\" id=\"h-conclusion\"\u003eConclusion\u003c/h2\u003e\n\n\n\n\u003cp\u003eTraditionally, SCM has always been about streamlining logistics operations; however, increased automation and data availability in the eCommerce space has subtly shifted the focus to demand forecasting and operations planning.\u0026#xa0;\u003c/p\u003e\n\n\n\n\u003cp\u003eUltimately, the goal for effective supply chain management will always be to balance demand and supply so sellers spend the least amount possible sending goods to consumers. Examine your current supply process for weaknesses, and strengthen the chain whenever you can to achieve this goal and improve the \u003ca href=\"https://manychat.com/blog/post-purchase-follow-up-sequence/\" target=\"_blank\" rel=\"noreferrer noopener\"\u003epost-purchase experience\u003c/a\u003e.\u003c/p\u003e\n\n\n\n\u003cp\u003eTo improve the post-purchase experience even further, consider using a tool like ManyChat. With ManyChat, merchants can send SMS, email, and Messenger shipping updates and order confirmations to keep customers in the loop with where their products are located.\u0026#xa0;\u003c/p\u003e\n\n\n\n\u003cp\u003eGet started with ManyChat for your eCommerce store today!\u003c/p\u003e\n\n\n\n\u003cdiv\u003e\n\u003cdiv class=\"wp-block-button\"\u003e\u003cdiv class=\"m_x-auto m_y-xl width_fit\"\u003e\u003ca href=\"https://manychat.com/signup\" class=\"p_y-s p_x-l inline-block caps b_rd-xl pointer button\"\u003e\u003cspan class=\"flex flex_jcc text_center\"\u003e\u003cspan data-text=\"SIGN UP FREE\"\u003eSIGN UP FREE\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\u003c/div\u003e\u003c/div\u003e\n\u003c/div\u003e\n\n\n\n\u003cp\u003e\u003c/p\u003e\n"])</script><script>self.__next_f.push([1,"7:[\"$\",\"div\",null,{\"children\":[[\"$\",\"div\",null,{\"className\":\"trigger\",\"data-first\":true,\"children\":[\"$\",\"header\",null,{\"className\":\"m_t-xl\",\"children\":[\"$\",\"div\",null,{\"className\":\"w w_l text_center\",\"children\":[[\"$\",\"h1\",null,{\"className\":\"BlogArticleHeroSection_title__CWlCh\",\"children\":\"How the eCommerce Supply Chain Works\"}],[\"$\",\"div\",null,{\"className\":\"caps m_t-m m_b-xl BlogArticleHeroSection_author__q6w7H\",\"children\":[[\"$\",\"div\",null,{\"className\":\"m_r-s z_0 BlogArticleHeroSection_avatar__SOLx5\",\"children\":[\"$\",\"$L17\",null,{\"src\":\"https://secure.gravatar.com/avatar/17f8d5616a72d3482f2399039a97bf11?s=440\u0026d=mm\u0026r=g\",\"width\":440,\"height\":440,\"className\":\"b_rd-xl\",\"alt\":\"Taran Soodan Avatar\",\"style\":{\"objectFit\":\"cover\"}}]}],\" \",\"Written by\",\" \",[\"$\",\"$L18\",null,{\"to\":\"/author/taran-soodan\",\"type\":\"blog\",\"className\":\"BlogArticleHeroSection_author-name__E_exK underline_link\",\"children\":\"Taran Soodan\"}]]}],[[\"$\",\"div\",null,{\"className\":\"text_bold m_b-l\",\"children\":[[[\"$\",\"$19\",\"eCommerce\",{\"children\":[[\"$\",\"$L18\",null,{\"to\":\"/category/ecommerce\",\"type\":\"blog\",\"className\":\"underline_link\",\"children\":[\"$\",\"span\",null,{\"children\":\"eCommerce\"}]}],false]}]],[\"$\",\"span\",null,{\"className\":\"text_bold\",\"children\":\" - 7 min read\"}]]}],[\"$\",\"$L17\",null,{\"src\":\"https://manychat.com/blog/wp-content/uploads/2020/12/Frame-1268.png\",\"width\":1200,\"height\":629,\"quality\":100,\"alt\":\"How the eCommerce Supply Chain Works\"}]]]}]}]}],[\"$\",\"div\",null,{\"className\":\"sticky-under-header m_b-xxl bg_white flex flex_fdc trigger trigger_delay-1\",\"data-first\":true,\"children\":[[\"$\",\"$L1a\",null,{\"className\":\"h5 flex_jcc tn-p_y-xs p_y-0 m_y-xs\"}],[\"$\",\"hr\",null,{\"className\":\"bg_grey m_a-0\"}]]}],[\"$\",\"section\",null,{\"className\":\"m_b-xxl w w_l flex flex_jcc trigger\",\"children\":[\"$\",\"$L1b\",null,{\"content\":\"$1c\"}]}],[\"$\",\"section\",null,{\"className\":\"w w_l tn-m_y-xl p_b-xl howto-tags trigger\",\"children\":[\"$\",\"div\",null,{\"className\":\"flex flex_jcc\",\"children\":[\"$\",\"div\",null,{\"className\":\"flex-item flex-item_8\",\"children\":[[\"$\",\"hr\",null,{}],[\"$\",\"div\",null,{\"className\":\"caps text_center m_t-m m_b-s\",\"children\":\"Originally published: Dec 30, 2020, 10:54 PM, Updated: Jan 28, 2021, 11:44 PM\"}],false]}]}]}],[\"$\",\"section\",null,{\"className\":\"m_b-xxl w w_l flex flex_jcc trigger\",\"children\":[\"$\",\"div\",null,{\"className\":\"flex-item_8 flex flex_aifs sm-flex_aic\",\"children\":[[\"$\",\"$L17\",null,{\"src\":\"https://secure.gravatar.com/avatar/17f8d5616a72d3482f2399039a97bf11?s=440\u0026d=mm\u0026r=g\",\"width\":100,\"height\":100,\"alt\":\"Taran Soodan Avatar\",\"className\":\"m_r-l b_rd-100\",\"style\":{\"objectFit\":\"contain\"}}],[\"$\",\"div\",null,{\"children\":[[\"$\",\"h3\",null,{\"children\":\"Taran Soodan\"}],[\"$\",\"p\",null,{\"className\":\"rich_text small\",\"dangerouslySetInnerHTML\":{\"__html\":\"Taran Soodan is a full-stack marketer helping businesses with organic growth via SEO, Content Marketing, Partnerships, and more.\"}}]]}]]}]}]]}]\n"])</script><script>self.__next_f.push([1,"e:[[\"$\",\"meta\",\"0\",{\"name\":\"viewport\",\"content\":\"width=device-width, initial-scale=1, maximum-scale=5\"}],[\"$\",\"meta\",\"1\",{\"charSet\":\"utf-8\"}],[\"$\",\"title\",\"2\",{\"children\":\"How the eCommerce Supply Chain Works - Manychat Blog\"}],[\"$\",\"meta\",\"3\",{\"name\":\"description\",\"content\":\"The supply chain for your eCommerce business can have a drastic impact on growth. 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