If you’re just getting started in your ecommerce business endeavor, you might think that hiring an outside company to help you with supply chain management is overkill – especially if your customer base is still relatively small. However, there are benefits in having a trusted partner to assist you right from the start. Below, you can learn more about the benefits associated with having a supply chain management and order fulfillment partner even as a small business.
Why You Need a Supply Chain Management Strategy
Your supply chain consists of all the various links that hold your business together. These links might include things like vendors, manufacturers, shipping partners and warehouse space, as well as processes like order processing and packing. Each link is dependent on the next, and if one of them breaks, the whole thing comes apart. For this reason, even the smallest businesses must have a solid supply chain management strategy in order to be successful. Ultimately, it reduces your costs, maximizes your profits, and improves your business’s efficiency.
Stop Putting Out Fires
Numerous small ecommerce business owners ultimately find themselves overwhelmed with putting out the small fires that arise from seemingly simple breakdowns in the supply chain. Failing to manage logistics properly can lead to a host of problems. Just as an example, failing to communicate with product providers can lead to understock issues, and in turn, this can lead to dissatisfied customers voicing their dissatisfaction on your Facebook page. Then, as other potential buyers see that dissatisfaction, they become wary of purchasing from you, and things just start to fall apart.
Here’s Why Outsourcing is a Good Idea
eCommerce entrepreneurs and even experienced ecommerce business owners often find that outsourcing their supply chain management – including everything from warehousing to picking, packing, and shipping – is one of the best decisions they ever made. When they can trust an outside company to work hard for them, they find that they have far more time to focus on important parts of running and growing a business. Suddenly, they have more time to look at things like core competencies and marketing campaigns because their time isn’t being consumed by the constant small fires that must be addressed.
Choosing a Supply Chain Management Partner
Though there are several factors that go into choosing a company to help you with supply chain management, there are a few things you should look for. First and foremost, look for a company that customizes and tailors its offerings to the size of your business, your individual needs, and your budget. Otherwise, you may find yourself paying for more than you really need. What’s more, look for a company that understand the ins and outs of not only ecommerce, but also your particular industry or niche. Finally, choose a provider that does not ask you to sign a long-term contract locking you into a specific price. eCommerce can change overnight, and your partner should be just as flexible.
If your small business does not yet have a supply chain management partner and you continuously find yourself fighting small fires that take up all of your time, it’s time to make a change. Consider hiring a company that dedicates its very success on helping its partners and clients find their success.