Retailers turn to eCommerce solutions to manage supply chain and improve efficiency

Inventory Management

The supply chain became a central focus for many merchants in the midst of the economic recession. As consumers grew more cost-conscious, many retailers weren’t able to raise item costs to improve margins. Instead, they were forced to reevaluate the efficiency of their distribution techniques and discover ways to reduce expenses by streamlining operations.

The right eCommerce solution can help improve transparency across the supply chain, which enables merchants to better coordinate both the incoming stock they purchase directly from manufacturers and the outgoing customer orders. With greater transparency, merchants can identify hiccups and iron them out, which helped them reduce costs during the recession.

Supply chain management may become a pressing issue again in the near future, so merchants’ jobs are far from over. Supply chain logistics expert Rich Thompson recently wrote for Retailing Today that, with the economy recovering from the recession, supply chain and third-party logistics companies may begin charging more for their services. Merchants must be proactive if they want to continue to enjoy their margins.

Retailers were forced to reevaluate the efficiency of their distribution techniques and discover ways to reduce expenses by streamlining operations.

“Taking steps now to manage supply chain costs will help retailers avoid the edges of the improving economy’s double-edged sword,” Thompson explained. “By advance-managing the downside of an economy in growth-mode, retailers can maintain delivery commitments to consumers, secure prime locations near population centers and stay a step ahead of the competition.” 

Operating a streamlined supply chain can greatly improve retailers’ cost efficiency. Merchants looking to reduce costs should explore different ways to bolster supply chain management . The right eCommerce solution can help them do just that.

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