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Many ecommerce fulfillment centers spend much of their time implementing reactive tactics without ever thinking through the strategy of what they’re trying to achieve. The terms “tactics” and “strategy” are often confused and incorrectly used interchangeably. Strategy defines the long-term goals fulfillment goals for your ecommerce business in alignment with its plans and how you’re going to get there. Tactics are more specific activities involving the assessment of the problem, the development of options and decisions to proceed. Tactical decisions are then made by developing project plans and tasks, using appropriate best practices, identifying resources needed and starting initiatives to implement. In short, strategy is the destination you’re trying to reach, and tactics help you get there. No two companies will have the same strategies and tactics. We recommend performing a strategic assessment of your supply chain and then identify customized tactics to fit your ecommerce business objectives. Supply Chain and Fulfillment Assessment Defining your strategy starts with an assessment of your supply chain and fulfillment center. This should include an FC operations audit, which will help you determine if they’re as efficient as possible. Take into account quantitative and qualitative aspects of your processes and systems. First, assess your center’s processes and costs, then answer these questions: How can you spend less on labor to receive product and fill orders? How can you ship to customers in the least amount of time and for the lowest cost? How can you improve inventory control to eliminate back orders and shrinkage? How can you increase the capacity of your existing space to store product? These 8 supply chain strategies should help you regardless of FC size or the markets you serve. While every ecommerce business has different supply chain challenges, there’s something here for everyone. Make the Inbound Supply Chain […]
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