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Distribution Systems Evolving in Ecommerce

The landscape of Supply Chain in E-tailing is drastically changing for the better. Here is a look at some of the improvements taking place at the leading online retailers in India.

Large distribution centers: Improves order fulfilment with higher inventory levels that are directly under your control compared to a 3rd party.

Improved technologies: Deeper integrations with supplier inventory reduces the chances of received orders not getting fulfilled because of stock unavailability.

Better tools and systems: Better scanners, conveyer belts, automated packaging systems, automated labelling systems have decreased the time taken at multiple points of procuring and packaging.

Smarter Analytics: Predictive analysis is being used increasingly to anticipate customer order patterns and stock accordingly.

Production Panning: Increasingly, Ecommerce companies, who are more aggregators than manufacturers, are planning their sales and promotions and going directly to the manufacturers with a set of orders and an delivery schedule based on demand. This backward integration has not only cut out the middlemen, but also given better controls to the Ecommerce companies.

Infrastructure-as-a-Service: The TATAs own a company called Drive India, which basically provides large scale infrastructure to any company that requires it. I believe this IaaS model will grow in the Ecommerce industry.

Better talent: As the Indian Ecommerce market matures and customer orders increase and the investments pour in, better talent is getting attracted to the sector. And with the influx of better talent, the supply chain built around the Ecommerce trade is constantly improving in quality.

Category: Ecommerce, Logistics

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