Optimizing the Inbound Supply Chain Enables E-Commerce Growth

A complete supply chain management program includes many elements that must be synchronized to optimize the performance of the supply chain and the overall business.

It is important to develop strategies for outbound shipping, technology platforms, and sourcing. However, one of the most important elements is to create a strategy that will manage not just sourcing, but also the inbound supply chain management functions.

E-commerce has greatly magnified the importance of optimizing the inbound supply chain and opened up many areas of opportunity. Companies can develop efficiencies in this area and also enable their e-commerce business by leveraging their vendors to ship products inbound to their own locations as well as directly to their final customers.

The growth of electronic commerce has driven online retailers to increasingly work closely with other firms to enrich the assortment of order fulfillment services offered to customers. Online retailers also have started working with logistics service providers to tap into resources and skills to fulfill their customers’ orders more effectively and efficiently.

They have engaged them to optimize their inbound supply chain functions by controlling supplier shipments both to the online retailer as well as direct shipments to the end customer.