How eCommerce Supply Chain Management Works
The eCommerce supply chain starts with the supplier and ends with the final consumer — the
most important part of your supply chain.
Here’s how the eCommerce supply chain works. Along the value chain, product flows from the
supplier to the end consumer. Cash flows from the end consumer to the supplier, and information
flows in both directions. The manufacturer converts the raw materials from the supplier to the
finished product, which is transported to the warehouse, fulfillment centers and finally to the end
consumer who placed an order.
Supply chain management systems have evolved from manual and traditional SCM systems to
integrated systems using enterprise resource planning (ERP) software solutions and artificial
intelligence to improve efficiency and speed at every stage of the supply chain.
The Five Stages of eCommerce Supply Chain Management
There are five stages in eCommerce supply chain management.
Planning: In the planning stage, you collect data on your supply chain to determine the
inventory needed to meet your customers’ and market demands.
Sourcing: In this stage, you search for vendors, suppliers and manufacturers that can
provide the inventory needed to meet your customers’ demands.
Making: This stage involves converting raw materials into finished products then testing,
packaging and storing them for delivery to the end customers.
Delivering: This stage is also called logistics. It involves every form of movement of
goods along the chain to the end consumer.
Handling returns: Also known as reverse logistics, this stage involves processing
returned goods from your customers and returning defective and expired products from
your warehouse to your supplier.
The eCommerce supply chain starts with the supplier and ends with the final consumer — the
most important part of your supply chain.
Here’s how the eCommerce supply chain works. Along the value chain, product flows from the
supplier to the end consumer. Cash flows from the end consumer to the supplier, and information
flows in both directions. The manufacturer converts the raw materials from the supplier to the
finished product, which is transported to the warehouse, fulfillment centers and finally to the end
consumer who placed an order.
Supply chain management systems have evolved from manual and traditional SCM systems to
integrated systems using enterprise resource planning (ERP) software solutions and artificial
intelligence to improve efficiency and speed at every stage of the supply chain.
The Five Stages of eCommerce Supply Chain Management
There are five stages in eCommerce supply chain management.
Planning: In the planning stage, you collect data on your supply chain to determine the
inventory needed to meet your customers’ and market demands.
Sourcing: In this stage, you search for vendors, suppliers and manufacturers that can
provide the inventory needed to meet your customers’ demands.
Making: This stage involves converting raw materials into finished products then testing,
packaging and storing them for delivery to the end customers.
Delivering: This stage is also called logistics. It involves every form of movement of
goods along the chain to the end consumer.
Handling returns: Also known as reverse logistics, this stage involves processing
returned goods from your customers and returning defective and expired products from
your warehouse to your supplier.
