Materials Management for eCommerce Businesses

/ By DSI Marketing TeamFebruary 6, 2023

In the world of eCommerce, materials management is an essential process that helps businesses efficiently manage the flow of goods from suppliers to customers.

With the increasing importance of eCommerce in today's business environment, effective materials management is crucial for businesses looking to optimize their inventory, streamline their supply chain, and reduce costs.

What is Materials Management?

Materials management is a vital business process that directly connects to supply chain management.

It helps ensure the smooth flow and quality of incoming and outgoing supplies, which can make up a significant portion of a business's expenses. As more businesses adopt this function, understanding its potential benefits is crucial.

5 Advantages of Materials Management for eCommerce Businesses

n the world of eCommerce, materials management plays a critical role in ensuring the efficient flow of goods from suppliers to customers. Effective materials management can help eCommerce businesses optimize their inventory, streamline their supply chain, and minimize costs.

Here are five advantages of materials management for eCommerce businesses:

  1. Improved inventory management - Materials management can help eCommerce businesses maintain optimal inventory levels, reduce stock-outs, and improve their ability to fulfill orders on time.
  2. Cost savings - Effective materials management can help eCommerce businesses reduce their overall costs by streamlining their supply chain, reducing waste, and minimizing the risk of stock obsolescence.
  3. Better supplier relationships - Materials management can help eCommerce businesses build better relationships with their suppliers by improving communication and ensuring the timely delivery of goods.
  4. Increased efficiency - By automating processes and using technology to manage inventory and order fulfillment, materials management can help eCommerce businesses operate more efficiently and effectively.
  5. Enhanced customer satisfaction - By improving inventory management and order fulfillment, materials management can help eCommerce businesses provide better customer service and enhance customer satisfaction.

Supply Chain Processes and Control

The supply chain is the most fundamentally important role within the business. The supply chain is responsible for the complete groundwork in which the business functions. Without a good and efficient supply chain, the products and services that the business offers, would cease to exist.

Materials management deals with this process directly and ensures that no bottlenecking occurs whilst the overall quality and affordability are maintained.

Raw Materials and Electronic Products

Raw materials and electronic products are the bread and butter of any E-commerce business. Finding the right suppliers that offer these products can be difficult.

Materials management is a process that ensures the relationship between the business and the supplier is of good nature. Consistently monitoring the supply chain for better opportunities is essential for the success of an eCommerce business.

This can take on many forms such as the financial freedom to increase the types of wares sold as well as the quality. Providing customers with quality products should be the focus of an E-commerce business and materials management ensures this.

Fulfillment Network

A fulfillment network is another important feature of an eCommerce business.

This is a function that allows the orders to be fulfilled via a storehouse or warehouse that houses your products. Having an efficient management system for this fulfillment network is essential in providing the overall service that your customer needs.

The fulfillment network will optimize the business because it allows for faster shipping to the customer with less hassle.

Storage Facilities

Storage facilities, much like the fulfillment network, are where you store your materials. Having your products stored in a protected and easy-to-sort storage facility is imperative to the overall processes of the eCommerce business.

Without a sufficient storage facility, the overall storage management system begins to crumble and the fulfillment network begins to suffer.

Materials management is able to assist in securing the correct storage facilities that completely meet the business's needs.

Inventory Control

Inventory control is a good way to lower the overall expenditure of a business. When excess inventory exists, it means that the business may be overstocking that specific material. This can be bad for the business because it means that the product is going to waste. This can cause additional expenses for the business that is unnecessary.

This unnecessary cost can be detrimental due to the fact that this financial burden could be utilized in other aspects of the business. Having a good grasp on the control of the inventory is essential in material management because it keeps the business constantly aware of what is needed and when it is needed.

This also ensures that no additional expenditure is occurring without complete knowledge of the business itself.

Customer Demand Forecasting and Analysis

Customer demand forecasting and analysis are where an eCommerce business thrives. This function goes hand-in-hand with inventory control.

Understanding what the customer demand is versus what the overall stock count sits at is imperative in running a successful eCommerce business. Without customer forecasting and analysis, it is difficult to anticipate a shortage of materials. On the flip side, it becomes easier to overstock a product that may not have a high demand.

This creates a negative financial decision for the business because the overall financial focus is not clear and is positioned toward growth.

Having a good grasp on customer demand forecasting and inventory control allows the business to utilize trends and data to make a profit without wasting finances on excess inventory that may never sell. Excess inventory results in lowered space in the storage facility and a higher risk of the product becoming obsolete.

These factors are all exceptionally important to take into account when looking at your eCommerce business and it becomes easier to understand why many businesses across the globe have been adding a materials management function into the overall business process.

Choose Distribution Systems International to Handle Materials Management of Your eCommerce Business

Looking at all the benefits that a materials management function can have on a business, adding a good materials management function that is professional and understands how to assist, is a good first step toward the longevity of your eCommerce business.

Distribution Systems International offers fantastic consultative services and materials management that has benefitted many organizations. Receiving assistance that can truly make a difference is important and ensuring the overall success and health of your eCommerce business does not have to be as difficult as it may seem.

To learn more about how we can handle the materials management of your eCommerce business, contact us at 800-393-6090 at Distribution Systems International today!

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