E-Commerce Is Forcing Merchants To Collaborate More With Supply Chain

Introduction

In today's dynamic business environment, the collaboration between supply chain management and merchandising is becoming increasingly vital for success. One of the primary driving forces behind this shift is the challenge of managing and allocating inventory across multiple sales channels. As inventory management becomes more complex, merchants are compelled to gain a deeper understanding of how their supply chains operate to ensure efficiency and effectiveness.

Merchants can no longer rely on simply ordering more inventory as they did in the past. The need for precision in distributing products to the right locations at the right times has become critical. This reality has prompted enhanced collaboration between the merchandising and supply chain teams.

Successful organizations that have begun to tackle these challenges are focusing on aligning their operations around key metrics. An essential factor in this alignment is a clear view of inventory position, which provides an overview of stock levels across the business. However, businesses are also drilling down deeper into specific metrics that track performance, such as On Time In Full (OTIF) delivery. While many merchants are aware of this metric, there is often confusion regarding its implications and importance.

The increasing importance of effective inventory management and supply chain collaboration will likely continue to shape the e-commerce landscape, prompting businesses to refine their processes and enhance teamwork across disciplines.

Keywords

E-commerce
Merchants
Supply Chain
Collaboration
Inventory Management
Allocation
On Time In Full (OTIF)
Metrics

FAQ

Q: Why is collaboration between merchants and supply chain important?
A: Collaboration is crucial because it ensures that inventory is effectively managed and allocated across various sales channels, which can significantly impact sales and customer satisfaction.

Q: What is a major factor pushing merchants to collaborate with supply chains?
A: The increasing complexity of inventory management and allocation across multiple channels is a major factor that drives this collaboration.

Q: What is On Time In Full (OTIF) and why is it important?
A: OTIF is a metric that tracks whether deliveries are made on time and in full. It is important because it reflects the efficiency and effectiveness of the supply chain in fulfilling orders accurately.

Q: How can organizations improve their supply chain and merchandising collaboration?
A: Organizations can improve collaboration by aligning around key metrics, such as inventory position, and enhancing communication and understanding between the two departments.