Introduction:

The supply chain encompasses all the steps involved in producing and delivering a product, from raw materials to the final customer. In ecommerce, managing the supply chain effectively ensures products are available when and where customers want them.

Definition:

A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer.

How It Works / Examples:

Consider your online store selling eco-friendly water bottles:

• Suppliers: Source raw materials like stainless steel.
• Manufacturing: Produce the bottles according to your design specifications.
• Warehousing: Store the finished products in a warehouse.
• Distribution: Ship the bottles to customers upon order placement.

Each step must be coordinated to meet demand efficiently.

Why It Matters:

Understanding your supply chain helps identify potential bottlenecks, reduce costs, and improve product quality. For new ecommerce businesses, a well-managed supply chain is crucial for reliability and customer trust.

Additional Resources:

Learn more about Supply Chain Management on Wikipedia.