What is Supply Chain and Why is it Important in E-Commerce?

Planning the delivery process is as important as product quality. This process has a great impact on the brand’s service quality and customer satisfaction. It is necessary to establish an advanced supply chain to deliver the products sold on time and while maintaining their quality. It is possible to ensure customer satisfaction by working effectively in this regard.

Procurement processes constitute an important part of sales operations. In order for the operation to proceed smoothly, this process must be planned effectively. By reading this content we have prepared for you, you can ask “what is the supply chain?” You can find answers to your questions and get detailed information about the processes in question.

What is Supply Chain?

An organization is required for a ready-to-use product to reach the customer. The transportation, communication and storage network established for the organization in question is called the supply chain. In other words, the tools used and agreements made for logistics processes are defined as the supply chain.

The main purpose of the supply chain network, which includes processes such as transportation, warehouse management and stock planning, is to deliver the product to the final buyer. This network is established between the company and suppliers. The operational process in question includes the organization of people, assets, information and resources. The supply chain is also of great importance for the brand to maintain its competitiveness. The delivery conditions of the product are decisive on the service quality. Therefore, the procurement process must be well planned to achieve customer satisfaction. 

What are the Advantages of Supply Chain?

Creating a supply chain ensures that the product is delivered on time. By making effective planning, you can deliver the products you offer for sale when customers need them. In this way, you can ensure that consumers are satisfied with their purchases.

Stock and warehouse optimization are also among the advantages of creating a supply chain. By planning the supply processes, you can select warehouse areas and make them suitable for storing products. In this way, you can ensure that the products you sell are delivered on time and while maintaining their quality.

Creating a supply chain helps to use available resources correctly. By making a good plan, it is possible to optimize the budget and resources. In this way, you can save money and time. With effective resource management, you can also prevent the workload on your staff.

 How to Create a Supply Chain?

To create a supply chain, a plan of the process between production and delivery must be made. Areas where the products will be stored until they reach the end consumer should be determined. Transport networks between the production line, warehouse, sales location and delivery point should also be established. The logistics and warehousing plan includes the following elements.

• Production factory
• Wholesalers
• Distributors
• Retailers
• End consumer

Supply chain processes may vary depending on business models. In B2C sales activities, that is, direct sales to the end consumer, a process like the one above usually takes place. In B2B activities or e-commerce, the product may be delivered directly from the manufacturer to the consumer. In all these processes, stocks must be managed well in order to carry out the supply operation effectively.