An E-Commerce strategy is a necessity for delivering the best results in the busiest of supply-chains. A Supply Chain has an array of operations that are interlinked with each other. This linking is for the best results in the world of E-Commerce. There are many challenges that the world of E-commerce faces every day. However, the outputs are highly enhanced in terms of the service deliverables for Canadian retailers.
Retailers are very well aware of what they need to get along with the time. They are highly aware of how to get to a structured thought process. This is before they are capable enough to give competitions to companies like Alibaba and Amazon. These companies are the giants in their specific industries.
WHAT IS SCM & WHY IS IT IMPORTANT?
Most people generally think that Supply Chain Management is just a process. A process that only serves the aim of cost reduction. Neither can it be assumed that it is a mission that just creates greater operational efficiencies. Modern Supply chain management is something that encompasses the strategic alignment of end-to-end business processes. It is for the ease of use of the system making things more organized and synchronized in the retail environment. A good Supply chain management strategy can give a huge competitive advantage to firms over their business rivals. This is mainly in terms of many operational deliverables not only for Canadian retailers. But, also for a generally improved scenario in retail and supply chain management.
For the sake of business operations efficiency and improvements in customer services. Importance levels are high in terms of demands for a good supply chain. It also reduces the operating costs and improves the financial position of a company in terms of profitability.
The improvements in customer service are because of the following in an SCM;
- The quantity needs delivering on time and the customer expectations are to receive the correct product mix.
- The product should be in the right location.
- After a sale procedure support, a quick follow-up is a rapid necessity.
How they can reduce the operating costs;
- The decrease in the purchase cost
- A decrease in the production cost;
- A decrease in the Total Supply Chain cost.
Finally, how it improves the financial position.
- By inserting the profit leverage
- By reducing the fixed assets
- And finally by increasing the Cash Flow.
CANADIAN RETAILERS
The Canadian Retail market is a huge market in North America. It also holds huge significance in the Canadian logistics and supply-chain industry. The biggest confusion amongst the Canadian retailers is to know who is having the charge of all the e-commerce functions and activities. These confusions arise mainly when there are situations of chaos and confusion with the retailers. Scenarios where one can’t figure out the issues arising in the supply chain business activities. To attain effective means of communication there needs to be a handy strategy that should be defined. A strategy in terms of the set of operatives to be well aware of the scenarios and for improved results.
CANADIAN RETAILERS E-COMMERCE STRATEGY & SUPPLY CHAIN ACTIVITIES
According to a survey regards to the activities of supply chain & operations in the Canadian retail industry. A majority i.e. 30% of the respondents had the opinion that it’s the operations team. The team that is responsible and in-charge of the activities of Supply Chain. 19% believed that it’s the IT Team that is responsible. Primarily, just because of the recording and retrieval of online records in the databases. According to stats from Canadian retailers, there are some proportions of people responsible for activities relating to E-commerce. Accounts for 14% who believe its responsibility is with the marketing team. 13% believed the responsibility is with the strategy dept. and finally, 12 % believe it’s the e-commerce team domain.
This survey is from a sample i.e. 162 of Deloitte’s retail clients. Deloitte is an MNC professional services network and is one of the Big Four of accounting organizations. In addition to this Deloitte is the largest professional services network in the world as well.
A SUCCESSFUL ONLINE SHOPPING STRATEGY
For a successful online shopping strategy to take effect. All operations must be clear in communications and should have a clear effect on online sales. According to many researchers for online shopping strategies and bringing innovation in online shopping. The recommended solution is to have a solid governance structure. Hence, a structure that makes 100% sure which department is responsible for what activities. At the same time determining the department that is spearheading the efforts.
According to one of the national Canadian retailers’ leaders namely Jennifer Lee who works for Deloitte. She says that the approach here should be highly professional. In addition to this, She also said that you can build the infrastructure. You can also build an effective supply chain you are looking for. However, but how do you make the organization work together is what demands the biggest strategy.
A successful strategy means business. It is detrimental in determining supply chain objectives and how things should shape up for future prospects in online shopping.
BIGGEST CHALLENGES FOR CANADIAN RETAILERS IN ONLINE BUYING/SHOPPING
One of the biggest challenges faced by Canadian retailers is the complicated and long return processes. The handling of returns is a crucial process and a necessary element for retailers to build brand loyalty. Hence, this process should be made fast. This is because similarly as returns are as important for a buyer as an initial purchase process holds priority. The returns that take a significant amount of time or the ones finished too slowly. They are yet another factor in online buying strategy costing huge delays. Once the product is back on the retailer’s online shelves. Hence, time delays are a huge cause of an automatic reduction in the product’s demands and pricings.
The causes for slow return processes and procedures vary according to the Canadian retailers present in the market. After the return of the packages, they are coming back with extra sizes and variable paperwork to process. The time it takes to process a truck full of returns is the time that can be taken i.e. 48 hours. This is because each item has to be individually checked. The labor and space required at the time of initial online purchase are different. In the return process, it takes 20% more space, and double the labor requirements.
Read the related blog: 5 THINGS CANADIAN BUSINESS OWNERS NEED TO KNOW ABOUT BUSINESS