How does the supply chain support system of e-retail companies work? Are these outsourced or done internally? Reference to e-comm companies like futurebazaar, indiatimes shopping, sify shopping etc
It would be great if you can explain specific company wise supply chain set-up rather than a generic one!
Location specific: India
Good Answers (2)
Richard S.
Export Manager at Thermon Manufacturing
Best Answers in: Planning (1), Supply Chain Management (1)
Haresh, this is a question that can only be addressed properly after reviewing specific requirements. Some smaller e-retailers initially avoid inventory, and prefer suppliers to drop ship on their own parcel carrier account. These relationships are best managed by a 3PL that can monitor performance against customer orders. One a company reaches a volume that justifies a DC these processes are usually internalized for better internal control and inventory turns to avoid stale merchandise.
Tim S.
National Account Executive at PC Mall
Best Answers in: Computers and Software (10), Information Storage (2), Facilities Management (1), Personnel Policies (1), Telecommunications (1)
We wave our hands and shazam! The order goes out. Just kidding, wish it was that easy.
I can only speak as an e-commerce IT supplier. We will have our own warehouses followed by virtual warehouses that we all share via EDI.
So it's half and half, outsource is a strong word though, because we're governed to ship within a geographical area (US), we work through US based warehouses as well as our own. Some competitors only have 1 warehouse, whereas we typically pull from warehouses closest to the final destination. EDI is a real time inventory control system that works like a sonar, pings the warehouses, to find who has it, etc, when an order is placed it "holds" that part and then ships product once it goes through payment verification, following through with tracking and ultimately (we aim for) a happy customer. But maybe I'm not understanding the question?
