How Does Just-In-Time Delivery Work for E-commerce?

E-commerce, also known as online retail, has changed the way consumers shop. Despite accounting for just over 13% of global retail sales, e-commerce generated an estimate of $215 billion in the United States. Retail has seen substantial changes because of technological advancements, which have had an impact on e-commerce. As businesses have attempted to accommodate unpredictable fluctuations in supply and demand, such changes have come with the complexity of inventory management connected with e-commerce. Many online retailers have adopted Just-In-Time delivery to optimize inventory management and ensure customer satisfaction.

What is Just-In-Time (JIT) Delivery?

Just-In-Time (JIT) delivery is a supply chain inventory management strategy in which products or supplies are delivered just when they are needed, reducing costs, eliminating waste, and increasing efficiency. An example of Just-In-Time delivery is when a consumer orders a product from an e-commerce aftermarket auto part company, the part is shipped from the manufacturer. Because commodities are only delivered when they are needed, the organization may boost efficiency while minimizing inventory expenses.

How does Just-In-Time Delivery work for E-Commerce?

1. Maximize Order Accuracy and Minimize Cost:

Because Just-In-Time delivery can eliminate wasted warehouse space, the company has greater chances to reduce inventory costs or optimize the warehouse footprint for other uses. Furthermore, because the staff is not working on unprofitable products, labor costs are lowered. When products are delivered just-in-time, they arrive when they are needed and are instantly entered into the shipment or inventory record. As a result, inventory control errors can be avoided, increasing efficiency, and ensuring accuracy.

2. Enhance Inventory Management:

Just-In-Time delivery enhances inventory management accuracy and efficiency by requiring more accurate demand estimates. Furthermore, fulfillment center location is crucial for ensuring proximity, since e-commerce companies must plan for lead times to ensure that their products are delivered as quickly as possible.

Those from China, for example, will have a far longer lead time than products from a local fulfillment partner. NewStream Enterprises, LLC, for example, is located only 90 miles from the United States’ center, allowing for nationwide delivery within 1-3 business days to support the merchant’s distribution needs.

More organizations are using warehouse regionalization to reduce shipping times by choosing smaller distribution and fulfillment facilities that are strategically positioned. Despite its complexity, warehouse regionalization can decrease the cost of shipping to consumers across the country from a single site while still fulfilling customer delivery expectations. Because of the potential for JIT delivery to be complex, many e-commerce retailers have employed 3PL providers to free up time to focus on their core competencies and sales growth.

Optimize Just-In-Time Delivery in your E-Commerce Supply Chain Management with a 3PL Provider

E-commerce businesses can have peace of mind by outsourcing Just-In-Time delivery to an experienced 3PL provider. This allows them to focus on their company’s sales growth and competencies. Most 3PL providers have their own distribution center network throughout the shipping zone, allowing merchants to reduce their overhead expenses associated with holding their inventory. 3PL providers also offer additional expertise and add-on capabilities such as warehouse space, innovative technical equipment, and professional staff to help enhance supply chain efficiency. As a result, e-commerce merchants will have more opportunities for growth while also lowering their costs. OEM part companies, for example, can contract a third-party logistics provider to help them store inventory and manage orders without sacrificing the OEM’s reputation for prompt delivery.

To find the best 3PL supplier for a Just-In-Time delivery system that can produce the most precise inventory forecasts and balance stock for demand, E-commerce merchants must be able to answer the following questions.

1. What is the true cost of inventory?
2. What is the bare minimum of inventory that we require to fulfill orders?
3. Is there a limit to how much demand there can be?
4. To maintain in-stock status, how much inventory must be restocked?

Just-In-Time delivery is a supply chain solution that can help e-commerce merchants enhance order fulfillment logistics while also increasing efficiency and controlling costs to increase profits and improve customer satisfaction. NewStream Enterprises, LLC has the infrastructure and skilled team to assist your company in designing and implementing a low-risk JIT delivery process that will help you optimize profitability and decrease friction points.

Contact our experts today to learn more about how our Just-In-Time delivery service can benefit your company!