Ecommerce business is an activity to sell, distribute, and market a product which is carried out through the internet via television, the internet and also other things. This has become a common practice today.
In this increasingly sophisticated digital era, it makes things easier and faster with the development of existing technology. Unlike the case in the traditional era, where consumers still have to walk to the nearest shop or mall to fulfill their needs, in this modern era, consumers can easily get the goods they need.
They can easily get an item they want to buy by clicking on their smartphone to shop online. Therefore, nowadays many companies have used internet service providers to support their business activities and in operational management in the company.
The advantages of this ecommerce business include:
Ecommerce business promotes your business wider
By using the internet network, you can market your products or services to consumers anytime and anywhere.
In an ecommerce business, the time operates 24 hours a day, but the costs to support it will be very large. Through the internet, buyers can still access and buy from the store even if you are fast asleep.
Online business operating costs are lower than building shops. In the ecommerce business, business actors do not need to think about employee salaries, building rent, and electricity costs. And in the marketing of goods it is also far more profitable because business actors do not need to pay large amounts of money to carry out promotions.
The success of ecommerce businesses cannot be separated from the support of a well-coordinated supply chain, so that products can be distributed directly into the hands of consumers. However, this convenience can easily be lost if the supply chain is disrupted, for example in the event of a natural disaster or a global pandemic such as COVID-19 which is currently happening.
During this pandemic, many producers or business actors are concerned that the impact of the COVID-19 pandemic can disrupt supply chains. The COVID-19 pandemic has caused major changes to the supply chain of every business sector, including the supply chain in the e-commerce sector. Starting from daily necessities such as food & clothing, to production necessities, it is also experiencing shortages due to disruption of supply chains.
What Makes the Supply Chain Disrupted?
Supply Chain Management is a network that connects all parties concerned and the process of changing raw materials into a product. The supply chain urgently needs coordination of all actions that will be taken to increase profits and take into account the impacts that will occur. These interlocking chains can experience delays as well as inefficiency regardless of where the disturbance occurs.
Types of Supply Chain Interference
Not all supply chain disruptions have the same impact. As is currently the case, supply chain disruption that occurs is a global disruption that impacts the availability of production raw materials. Many business actors choose to withdraw from businesses that were built several years ago.
Here are the types of disruptions that can severely affect your supply chain as well as your business:
- Natural disasters
- Product Problems
In addition to supply chain disruptions, there are barriers that affect the supply chain of E-commerce businesses, including:
Intensive constraints occur when the intensive stages are different, thereby reducing the benefits to the supply chain, such as local functions and structured incentives.
This obstacle occurs in placing and filling orders which leads to increased variability. When a company orders a lot size in an amount that is larger than the lot size when the demand arises, the order variability increases.
This barrier arises when the price policy for a product causes an increase in orders or demand for goods.
The Right Steps In Dealing With Supply Chain Disruption
As a business owner, you must prepare an excellent plan to deal with disruptions to the supply chain such as:
- Conduct a supply chain assessment related to your business process by considering possible impacts and disruptions due to delays in supply delivery.
- Communicating with supply providers used by a company in order to face the worst conditions.
Setting up other providers or suppliers that can support the company’s business operational processes as a backup when a disruption occurs.
- Communicating to consumers
Create an Inventory of major supplies that can keep your business running for several months, even if you experience problems or disruptions.