According to research, e-commerce companies in India are currently experiencing peak growth: India’s e-commerce sector expanded by 12% annually in FY25, with GMV exceeding Rs. 1.19 lakh crore (US$14 billion). Additionally, there is no indication that consumer demand will decline. But as order volumes increase, the real question is: “Can your business systems scale fast enough to keep up?”
Yes, this could be challenging! And with the growth of demand, specific pain points associated with running an e-commerce store will become quite apparent, such as:
- Inaccurate data
- Inadequate management of inventory
- Errors that occur during the logistics and shipping of products.
- Multiple SKUs to be managed on various marketplaces
- Siloed System
However, these challenges may cause:
- Lost Sales
- Increased operational costs
- Your team has no time to innovate
- Poor Customer Experience
- Lack of Operational Efficiency
But don’t worry! This is the norm in every industry.
So, this blog will help you understand why integrating supply chain management in e-commerce becomes challenging at scale and how tools such as WMS and OMS can address these challenges.
What is Modern supply chain management in e-commerce?
Modern supply chain management in e-commerce refers to the use of advanced technology, real-time data, and integrated systems to manage the end-to-end flow of products from sourcing and warehousing to order fulfillment and last-mile delivery.
Unlike traditional supply chains, modern e-commerce supply chains are built for speed, flexibility, and customer-centricity. They rely on automation, AI-driven forecasting, and seamless integrations across platforms to ensure products are available, processed, and delivered efficiently.
Key elements include real-time inventory visibility, automated order management, demand forecasting, and optimized logistics. These systems work together to reduce delays, minimize costs, and improve accuracy across operations.
In simple terms, modern supply chain management enables e-commerce businesses to deliver the right product, at the right time, through the most efficient and scalable processes while meeting rising customer expectations for fast and reliable delivery.
Which Operational Problems Limit E-commerce Growth?
The growing market and increasing competition keep pushing your brand to innovate and do something new to stay different. And in e-commerce, the shoppers are growing each day, so this pressure grows even bigger. In the last three years, 125 million new online shoppers joined India’s e-commerce market, and by 2025, it is expected to add another 80 million.
That clearly shows one thing: being slow implies losing customers.
But why does this happen?
- Lack of real-time inventory visibility: The first problem is zero visibility into inventory. Your stock is available at warehouses, on Amazon FBA, in retail stores, and at multiple locations. You don’t know what is in stock or exactly where it is.
- Wrong dispatch: Dispatching the wrong products or delaying dispatch simply because they do not know the exact location of the product inside the warehouse.
- Poor return management: Returned products are mixed with sellable items, which introduces counting errors. This also makes restocking more difficult and slows down any refunds.
- Poor Handling of Order Surges: During peak season, high order volumes can lead to out-of-stock situations when data is not accurately predicted.
- Human Error: Manual data entry and analysis lead to many understocking errors, slowing the innovation process.
But can these issues be overcome by your standard management system? Alternatively, your brand may require something larger.
Let’s dive in to learn more!
Difference Between Traditional and Modern Supply Chain Management in E-Commerce
It may appear like maintaining an e-commerce supply chain is simple, but when you get into it, you will discover how complex it is. So whether you manage traditionally or modernly is entirely dependent on the size of your organization. Both have their advantages and disadvantages.
So, let’s lay out the differences between the two so you can make an informed decision.
How Warehouse Management Systems and Order Management Systems Fix E-commerce Supply Chains?
As you can see, each has its advantages and disadvantages, so if you own a significant e-commerce business and are considering what elements you require in your current supply chain management.
Here’s a tutorial on how contemporary technologies, such as warehouse management systems (WMS) and order management systems (OMS), may address it and which types of businesses can use them.
What features of warehouse management systems (WMS) benefit the supply chain?
1. Batch Management:
Batch management enables businesses to track inventory based on batch numbers, especially for products with expiry dates. Using FIFO and FEFO methods ensures older or soon-to-expire products are sold first, reducing wastage and maintaining product quality.
2. Automated SKU Counts:
Automated SKU counting simplifies regular cycle counts by reducing manual effort and human errors. It ensures accurate stock levels, improves inventory visibility, and helps maintain consistency across warehouse operations.
3. Sufficient Shelf Management:
Efficient shelf management optimizes warehouse layout by organizing products strategically based on demand and movement. This improves picking speed, maximizes space utilization, and enhances overall operational efficiency.
4. Bundle Handling:
Bundle handling allows businesses to manage and sell multiple SKUs as a single unit, especially during peak seasons or promotional offers. It ensures accurate inventory tracking and seamless order processing across all sales channels.
5. Barcode Scanning:
Barcode scanning enhances accuracy by enabling quick and precise identification of products during receiving, picking, and shipping. It ensures real-time tracking and complete traceability of every SKU within the warehouse.
6. Simplified Return Management:
Simplified return management streamlines the returns process across multiple warehouses, ensuring faster inspection, restocking, and refunds. This improves customer satisfaction while maintaining accurate inventory records.
What types of e-commerce enterprises need WMS?
- Brands that buy inventory in bulk.
- Brands use shop replenishment to avoid empty shelves.
- Businesses that deal with fast-moving or perishable items should implement batch tracking.
What features of the order management system (OMS) benefit the supply chain?
- End-to-end Automation: Automate every element of the process, from order capture to product distribution, including automatic inventory updates and client notifications.
- Smart Order Routing: Automatically routes the order to the nearest warehouse or the nearest available stock location to reduce the risk of cancellation or delays.
- Multiplace tracking: Track orders from any marketplace, including Amazon, Myntra, Flipkart, and other commerce pages, to avoid stockouts or overstocking.
- Central dashboard feature: A single dashboard with centralized updates allows for maximum control and transparency.
- Optimized transportation options: Better logistics and delivery options based on order location to save money and time.
What types of e-commerce enterprises need OMS?
- Brands that receive 300 to 600 orders per day from various marketplaces.
- Have influencer traffic or multichannel demand.
- Businesses that are facing cancellation, RTO, or overselling.
Final Thought
So, as an e-commerce firm, you don’t need everything; you only need to take the appropriate steps to increase your brand’s popularity with the public by addressing supply chain management as a core functional area that directly helps you achieve results when under pressure.
And for that, Unicommerce is your partner for supply chain management in e-commerce. Whether you’re setting reorder times or syncing across all marketplaces (Amazon, Myntra, Flipkart, Meesho) to manage expiry, it helps you integrate all your work in one place, without errors and at scale.
FAQs:
1. What does SCM stand for in e-commerce?
SCM stands for Supply Chain Management. In e-commerce, supply chain management refers to the process of managing the movement of products from suppliers to warehouses to buyers. Inventory management, order processing, delivery, and returns are all included to ensure that deliveries run smoothly and on time.
2. What is the importance of supply chain management in e-commerce?
Supply chain management in e-commerce is essential because it directly impacts order accuracy, delivery speed, and customer satisfaction. A solid supply chain enables e-commerce firms to reduce delays, avoid stockouts, manage returns efficiently, and scale operations during peak demand periods.
3. What is the main goal of SCM?
The primary goal of supply chain management in e-commerce is to get the right product to the right customer at the right time while keeping operational expenses low. It focuses on increasing productivity, decreasing errors, and providing a seamless purchasing experience.
4. What is a key responsibility of suppliers in the e-commerce supply chain?
Suppliers’ primary job in e-commerce supply chain management is to provide high-quality products on schedule and with consistent stock availability. Reliable suppliers help brands avoid inventory shortages and ensure that orders are fulfilled smoothly.
5. What are common SCM challenges?
Poor inventory visibility, manual data errors, delayed shipping, high return rates, and the complexity of managing many warehouses or marketplaces are all common difficulties in e-commerce supply chains. These difficulties frequently raise prices and affect the customer experience.
6. How does Unicommerce help in supply chain management in e-commerce?
Unicommerce improves e-commerce supply chain management by providing integrated solutions, such as WMS and OMS. It offers real-time inventory visibility, automated order processing, precise demand forecasting, and seamless management of numerous warehouses and marketplaces, allowing firms to scale efficiently.
7. What is the difference between WMS and OMS in e-commerce?
A Warehouse Management System (WMS) focuses on managing inventory, storage, and warehouse operations, while an Order Management System (OMS) handles order processing, routing, and fulfillment across channels. Together, they ensure seamless supply chain operations.
8. How does real-time inventory visibility improve e-commerce operations?
Real-time inventory visibility helps businesses track stock across warehouses and marketplaces instantly. It prevents stockouts, reduces overselling, and ensures faster, more accurate order fulfillment.
9. Can small e-commerce businesses benefit from supply chain automation?
Yes, small businesses can significantly benefit from supply chain automation by reducing manual errors, improving efficiency, and scaling operations without increasing costs. It helps them compete with larger brands effectively.
10. How does supply chain management impact customer experience in e-commerce?
Efficient supply chain management ensures faster deliveries, accurate orders, and smooth returns. This leads to higher customer satisfaction, better reviews, and increased customer loyalty.