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The Supply Chain Execution Process Explained

Supply Chain Execution Process Explained

The importance of the supply chain process has increased further in response to the container shortages, port congestion last year. The Supply chain process is like a backbone for Ecommerce businesses.  The supply chain process involves supply chain planning, supply chain management, supply chain execution, supply chain operations.

Supply Chain Execution:

Supply chain execution is one of the most important factors of the overall supply chain process. It only comes second after the supply chain planning stage. It’s evolves around procurement, production of items, logistics and distribution and order fulfilment.

Supply Chain Execution Process Explained

Supply chain execution is the key to success for any Ecommerce business. In today’s blog, we will discuss in detail the complete supply chain execution process. It will help the Ecommerce businesses in better customer satisfaction and profitability.

  • Pre-stage of Supply Chain Execution

Supply chain planning is the pre-stage of the supply chain execution. Supply chain execution efficiency and effectiveness will highly depend upon supply chain planning. So it is necessary to make proper planning. Supply chain planning includes production planning which is a very important aspect of supply chain execution.

  • Procurement of raw material and manufacturing product

The first important step in the supply chain execution is the procurement of raw material of product from the supplier. Proper procurement of raw material within the designated lead-time will help in streamlining the overall supply chain process.

  • Warehouse fulfillment centers and distribution

Warehousing and then product distribution to retailers is the second stage in supply chain execution. At this stage major tasks are packing of goods ordered, checking the inventory levels. Dispatching the packed order for Ecommerce fulfilments.

  • Fulfilment of ordered products

The last stage of the supply chain execution involves the fulfillment of the ordered product. At this stage, the Ecommerce businesses need to efficiently complete the order fulfilments, which can help them in better customer satisfaction.

How to improve supply chain execution?

Ecommerce businesses can increase profitability and sales by improving their supply chain execution. Some tips for better supply chain execution is as follows:

Better planning

Planning is the basis for the execution. The better the planning is the best will be the execution. So to improve the supply chain execution, a company needs to improve its supply chain planning.

supply chain execution system

The use of technology is always beneficial in increasing the sale and profitability and management of the business. The SAP supply chain is a good example of a better supply chain execution system, that can help businesses.

3PL third-party logistics.

The use of 3PL third-party logistics will help the Ecommerce businesses in improving the overall supply chain process and efficiency level.

CONCLUSION;

Supply chain execution is the second stage after the supply chain planning in the overall supply chain process. The good is the planning the better will be the results of the execution. To further improve your Ecommerce businesses, there is a need to improve your supply chain execution systems.

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