SUPPLY CHAIN CHALLENGES IN E-COMMERCE

BY
Malik Ahmed Mujtaba
(36883)

TO
Sir Kashif Shafiq

Iqra University, Karachi

1st December, 2019
INTRODUCTION:
Customers today seem to be sick of crowded marts, long checkout lines, angry road traffic and
all the shopping hassles that are interrelated. Have you ever wondered how better an idea for
shopping could be if only with a few clicks these issues were removed! Therefore, the best
option for such customers is online shopping in today's world consumer chooses to turn to the
best option with the least effort.

Since we are all aware that this is the end of the year and therefore the shopping season will soon
be in full bloom, attention online retailers will have a great opportunity to attract more customers
with some quick n useful strategies this season.

SUPPLY AND LOGISTIC CONSTRAINTS WITH E –RETAILERS:

Orders from subway cities and from far away places are open. Increasing product supply and
lack of logistics in remote locations may be a challenge for e-retailers. Few e-shops have their
own intra-city logistics network and rely on inter-city third-party services. Others are totally
dependent on Third Party Service Providers (TPSP). There is also no cost effective solution to
warehousing anywhere. TPSP uses the surface network to supply goods, so e-retailers can
choose to keep their delivery expenses low. It would be more costly to use the air supply
network. The e-retailer challenge is to offer quickly to remote locations.

Based on their distribution network and serviceable locations, every TPSP has its own strength.
Only few TPSP can serve some pin codes. Based on its serviceable location pin code, it would
make sense for the e-retailer to link up with 3 or 4 service provider. For pin-code and service
providers, e-retailers would do a one-to - one mapping that would be unique. Therefore, when
the customer places the orders, a delivery request will immediately be sent to the TPSP
concerned based on his email pin-code. Through supplying the Way Bill number or Order
number, consumers may ultimately monitor their orders on the website of third party service
providers.

INVENTORY MANAGEMENT:

Online customers are target oriented shoppers. They would immediately switch to another web
site if they did not find what they are searching for. E-retailers collaborate with multiple
suppliers to ensure that they are able to supply items when they need them. There are high-value
items that cannot be expected to meet the demand. High value items from the supplier and stock
at their warehouses are highly unlikely to be ordered by e-retailers. In those cases, the stock of
high quality goods is limited only, in some cases no stock is maintained and no stock has been
held in relation to distributors or sellers so that orders for high value items can be executed
promptly. The problem occurs when there is no stock in the usual distributors or suppliers, and it
must be supplied from other distributors.
There must be forecasting done for each of the products. Based on this e-retailers should
maintain at least a minimum inventory at distributors to avoid the situation of stock-out.
SUPPLIER SOURCE IDENTIFICATION:
You probably have a few thoughts about sources when you set up an e-commerce business. You
should start reading business magazines to find companies that produce the items that you are
interested in even if that is not the case. You might also be able to attend relevant trade shows.
You may also be able to contact business organizations affiliated with the goods you want to
connect with, making meaningful contact with their representatives. These organizations are
actually aimed at connecting manufacturers and retailers, even though they come from different
countries. Locating related associations is not hard. You may simply look up a business
association directory.

Sourcing Directly from Manufacturers Is Desirable but Difficult for Small Players:
Normally a manufacturer does not want to get into contact with small retailers. Wholesalers are
fitted with a sales force and resources to distribute the products to the e-commerce companies to
sell the products. In addition, the producer wishes to commercialize very large volumes usually
outside the reach of smaller e-commerce players. When a manufacturer is prepared to work with
you directly, it's probably due to the fact that it's too low to attract wholesale suppliers ' attention.
We are not able to meet the demands for volume and have to survive on a slow road. The threat
is that each time you need the material, they can't supply you with it.

PRODUCT REVIEWS:
As we know that word of mouth is a significant advocacy for any brand on your market, it makes
your consumers empowered who still have doubt about whether or not to purchase a certain
product with a space for customer reviews on your service page. Allowing the consumers to test
items they have bought helps them to display how they have felt about the overall experience and
how the product itself can be checked by a third party.

PICTURE QUALITY OF YOUR PRODUCT:

While buying a product online, we want to make sure of all the related features that we are
looking for in a product and its quality, so having a quality picture from a professional camera or
a smartphone with HD results will definitely help your consumer to know the product
appearance, so a nice and clear picture with all the angles would be an advantage for selling your
product.

TRENDING OR RECOMMENDED PRODUCTS:

Previewing advice and the trending product is helping your customer expand his / her option list.
That is why suggesting that some products based upon your customer's interest at the end of the
day give the customer an opportunity to purchase a different product. For instance, a customer
buys a pair of heels from your page while they click for details. If so, he will also buy a bag. The
recommendation therefore plays a handy part in your product sale.

EXCELLENT PRODUCT DESCRIPTION:

The description of your product is the essential tool for your selling, explain each and every
aspect of your product, including its size, colour, most importantly price, weight and everything
that is important to your company, so there is no confusion left in your customers about its
purchase. You have to concentrate on the brand strengths, stop jargoning or make it as easy as
possible, add your usp, and use your product's motivational words.
CONVENIENT PAYMENT AND CHECKOUT OPTIONS:
Your check-out page is the ultimate stop on your shopping trip. And one of the easiest ways to
increase conversions and sales is to make it hilariously easy for people to pay you. To facilitate
and streamline your payment process, follow these six tips:
• Have several payment methods available
• Don’t force people to sign up
• Make sure your checkout page matches the rest of your store
• Don’t redirect people
• Make errors easy to fix
• Don’t ask for unnecessary information

CUSTOMER SERVICE:
Clearly a customer is not just a one-time job the main focus when selling a product is to make
your customer happy that he will always go for your name when it comes to shopping, so
offering customer support, valuing their input and providing them with all the access to negotiate
with their purchase would make you approach a never-ending customer support, which is why
customer support is a key to your company.

You'll see improved sales and attracted customers on your page once these six simple strategies
have been implemented in your online store. Let these spells work for your E-business to
succeed.