Supply Chain in E-Commerce Post COVID-19
The growth of eCommerce in both the B2C and B2B sectors has bought a wealth of opportunities for businesses to expand their reach, use omnichannel sales, and target new customers. But at the same time, it also brings intense competition, with new players, both large and small, continually entering the marketplace and vying for a piece of the action and this gives rise to the Supply Chain of E-Commerce companies.
Gone are the days when E-Commerce just meant trading and shopping via the internet. The internet has enabled buyers and sellers to be much closer and connected. A large number of buyers and sellers have come together on dedicated market platforms like Amazon, Flipkart, Myntra, etc. Today, anyone within a few clicks can buy almost everything from a manufacturer in India and have it delivered anywhere in the world. The growth of E-Commerce has brought a lot of new opportunities and challenges to the traditional business models.
The Pandemic Effect –
The coronavirus pandemic had caused whiplash within many supply chains, especially those of e-commerce supply chain companies. Dramatic spikes in orders follow reductions in manufacturing and shipping lanes, along with an expected slowdown in orders as products go out of stock and marketplaces to prioritize the goods that deemed essential.
Customers changed their purchasing habits. Many were spending on essentials, creating shortages across both e-commerce and brick-and-mortar retail. They’re upending predictive models and shifting spending to new stores, channels, and product lines. At the same time, companies that don’t deal in essentials faced spending shortages, as millions of people find themselves out of work. While much of our modern globalized economy suffered shortages and depression, e-commerce and online services have seen a meteoric rise in importance on specific consumer demand. COVID-19 has caused supply chain disruptions not seen since the second world war. Lockdowns intended to slow down the virus have also hamstrung e-commerce supply lines and delayed if not outright shuttered a large flow of goods. E-commerce needed to focus on consumer protection and trust. E-commerce sites during COVID-19 need to do more than offer the product and a good user experience. They needed to offer the social proof that their services and products are delivered on time and in a good state, this no longer seemed to be a bonus, but a necessity.
Post Pandemic World –
In a post-COVID-19 world, supply chain stress tests will become a new norm. The distributed global business model, optimized for minimum cost, is relooked Tomorrow’s model demands
new priorities in optimization. Certain pockets of supply chain activities are now being evaluated for outsourcing for better management & control. The importance of digitalization in E-Commerce supply chain activities is now focused to get the real time data for improved forecasting, better demand planning and customer experience.
Clearly, customers have changed their purchasing habits. The increase in online shopping is going to stay than anticipated. Due to continued shift in consumer behavior, shopping pattern of certain products gets shifted to other. The capability to quickly adapt to these challenges with a responsive supply chain shall be the key to sustainability.
– Saravanakumar R