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Opinion

OPINION: The e-commerce bottleneck – unlocking the next era of fulfillment

Neerav Shah, VP EMEA at commercetools By Neerav Shah, VP EMEA at commercetools April 4, 20245 Mins Read
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Futuristic metaverse digital cubes blocks technology network connection concept. AI generated image

The global supply chain is complex and exposed. Past disruptions, from the US-China trade war to the Covid-19 pandemic-era consumer goods boom and the Russia-Ukraine war, as well as natural disasters and financial failures, were not something anyone could have confidently predicted.

It’s clear that bottlenecks and disruptions on one side of the planet can mean significant delays on the other, severely affecting the global economy. And crises can hit from anywhere, whether it’s pirate attacks in the Red Sea or Chinese fast-fashion companies such as Shein and Temu using all the air cargo planes.

So, how can companies stay competitive in this current landscape?

Predicting a future crisis is impossible but you can do something about the present. To stay competitive in the face of disruption and the customer’s growing demands, companies must ensure they’re running a lean and efficient fulfillment operation – particularly when they’re forced to compete with agile players. If the goal is to continue delivering orders on time and on budget (or at least notify customers early if there’s a problem), e-commerce brands need to up their game. However, questions remain over whether organizations and their investors are willing to make the investments necessary to fortify them.

This means taking a long, hard look at one area they might not have considered improving – their tech stacks.

Staying ahead of the e-commerce game

Technology is the driving force in e-commerce, especially in an age where shoppers have increasingly sophisticated demands of the buying experience. It’s amazing how advanced technologies are already transforming the supply chain industry. From generative AI and data analytics to automation, machine learning, the Internet of Things (IoT), blockchain and more, the ‘smart’ supply chain is quickly becoming the new norm. These innovations are revolutionizing how businesses operate.

However, a strong selection of competitively priced products and good services is rarely sufficient to thrive anymore; it simply lets you participate in the market. To take your game to the next level, you need several essential offerings ticked off the list, including frictionless checkout, top-tier security, customization and a platform that evolves with your business needs.

This is where composable technology can offer a different approach. While this is all about microservices and APIs, think of them as highly customizable links connecting your online store’s different aspects, letting them communicate and share data between various stakeholders. These ensure your website talks to your shipping system, your shipping system talks to your inventory, your inventory to… you get the idea.

With more data and better visibility into your supply chain, you can make better-informed decisions, accelerate time-to-market and futureproof your site to scale and adapt.

But how does it work in practice?

Inventory management

Take inventory management, for example, which can be a difficult task at the best of times. Staying on top of it requires significant effort and expense, and the key is to ensure that you have the right items in the right place at the right time. This solution will fulfill the customer order process by directly showing the remaining stock so the buyer can order as needed.

For retailers, this API tool also includes control of all products from best-selling to unsold surplus, helping managers make timely plans, freeing up warehouse space, saving money and ensuring the best performance. While Shein is planning to adapt its business model by flipping its shipping model on its head to deliver Chinese-made goods closer to Western shoppers, other brands can stay ahead of their inventory by planning ahead.

Shipping and returns management

Shipping and returns are vital parts of order fulfillment processing. APIs will help users create and apply a complete process for transparent shipping and returns, ensuring benefits for stores and consumers, especially in the current competitive e-commerce market.

This support will help retailers connect more closely to customers and the market’s needs. For shoppers, this will be an opportunity to receive the convenience and security of purchasing rights.

Customer management

Customer management is all about building solid relationships with your buyers. It’s about understanding their needs, rewarding their loyalty and making finding the perfect products as easy as possible.

With composable API tools, you can personalize every step of the journey. Your customers will enjoy tailored suggestions, fast checkout and exclusive offers designed just for them. Meanwhile, you benefit from automated CRM, eliminating tedious manual tasks and gaining deep insights for the ultimate in customer care.

This helps you build the kind of connection with your buyers that keeps them returning and strengthens your brand reputation.

Conclusion

In an era of technological revolutions and changing consumer expectations, unforeseen disruptions continuously test the resilience of the global supply chain. This underscores the critical need for e-commerce brands to respond and proactively fortify their operations. The key to doing so is prioritizing operational efficiency and technological innovation in the fulfillment process.

Adopting a more sophisticated tech stack is a necessity. By connecting inventory management, shipping, returns and customer relationship systems, companies gain access to invaluable data and insights. This lets them streamline processes, rapidly adjust to new challenges and offer the personalized experiences modern consumers demand.

Looking ahead, tech stacks will be the backbone of leading strategies, facilitating not only survival but also thriving growth in an unpredictable world and setting a new standard for success in the digital age.

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