Impacts our activities but also our behaviors, how we interact and go about our day. The advancement in technology has also influenced different industries including the supply chain industry.

And with eCommerce coming into the picture, the structure of the supply chain evolved from a straightforward structure into a much more complex one. The fame of eCommerce is increasing with every passing day.

Importance of eCommerce:

More and more new companies continue joining the eCommerce platform. Furthermore, with the emergence of the covid 19 pandemics, the popularity of eCommerce has further increased.

Amid the lockdowns in various parts of the world, many well-established organizations are moving their businesses to the web to keep up with the evolving demands of customers.

The supply chain structure of an eCommerce is much more intricate than that of a traditional supply chain. The structure of a traditional supply chain involved a simple mortar and brick store with a straightforward model to determine the supply and demand relationship.

You must be wondering what other effects eCommerce has on the supply chain? Let's explore. Complex supply chain structures:

The first thing to note is that the supply chain structures of online businesses are much more complex than the traditional business models. Because of the different benefits that online shopping offers, more and more people prefer to purchase things online.

With the increasing traffic on eCommerce websites, the supply chain managers have to work extra hard for order processing and to make the operations more efficient.

Moreover, many eCommerce organizations hire 3pl logistics companies to assist them in handling distribution and transportation operations and share the workload in the complex supply chains. This way they can focus more on other important fields like sales and marketing.

Accessibility:

People only need the internet to access different websites and buy whatever they want, whenever they want. Instead of getting up and going to physical stores, they can purchase goods with just some clicks.

Better Inventory Management

Whether it's the excess of products or the shortage of products, the supply chain efficiency suffers if the optimum inventory level is not obtained. Having lots of items can result in wastage due to expiration or loss due to unsold products.

On the other hand, if the inventory level is lower than the demand, it can harm your company's reputation. The level of the inventory should be maintained keeping in view the behavior of customers, sale patterns, and speeding up the delivery process.

Order tracking and Visibility:

Modern technology has brought so many benefits for supply chain efficiency. Not only can an organization track their orders but also regularly update their customers about the status of their orders.

This brings transparency to the supply chain. Besides that, the real-time data can show the possible issues in the supply chain and management can deal with them effectively. Moreover, customers also get timely updates about the cause of delay if there is any. For instance, the orders can be delayed during public holidays or extreme weather conditions and customers can be made aware of that beforehand.

Technology's role:

Ecommerce businesses can only work with the help of technology. They include the most recent technology in their supply chains to guarantee efficiency at all stages. The type of technology in use varies with the function it is used for. Let's have a look at some of the famous technologies:

Cloud: For data handling, many companies adopt cloud computing which can share and save loads of data online. This data can be easily accessed from any part of the world at any time.

WMS: Moreover, for efficient warehouse management, many companies include WMS software which allows them to arrange, assemble and access the products easily. goals of a company.

Big Data: Proactive use of big data can help in recognizing failures, making improvements, and executing those plans.

Omni Channels: Omnichannel and eCommerce are presently working together to improve transportation standards and build new touchpoints for the customers to fulfill their customers' orders quickly and efficiently.