If you run a B2B or B2C business, the words ‘drop shipping’ and ‘supply chain’ aren’t uncommon terminology for you. For everyone else, we must have at least enjoyed the services of a drop shipper without even knowing it. Businesses don’t realize that drop shipping and supply chain management are interwoven. It creates a logistic process that is seamless. In this article, we are going to address what drop shipping is. We’ll learn about how it works, and the importance of supply chain management.
Drop-Shipping
Dropshipping is a retail process of delivering an ordered product without being involved in the whole process. Dropshipping is nothing compared to the standard retail model. The business orders a product from a seller and it is delivered by the seller directly.
The general process to drop shipping is essentially a potential buyer browses through your online store. They then order a specific product for their inventory. The difference here is that you don’t need to actually have the specific product stocked. The buyer pays for the product, and all you need to do is contact the manufacturer or wholesaler. Then they deliver the products directly to your customer’s doorstep. Logistics and everything in between will be handled by the manufacturer or wholesaler and not the individual business the customer is purchasing the product from.
Supply Chain Management
Supply chain management is simply all the processes involving in bringing the product from a supplier to the end-consumer. For any drop shipper, customer satisfaction is crucial. More so, management is key in ensuring that the entire delivery process is efficient and hitch-free.
While supply chain management (SCM) isn’t a new trend, it only became popular as a result of the technological advancements which globalized the world. These days, manufacturers, distributors, wholesalers, and retailers are on the lookout for a system. A system that can tackle the scope of the market in the most effective way possible. That’s why SCM is so important for any business.
Benefits of Drop Shipping for Retailers
Dropshipping is one of the many techniques for supply chain management and a good business model for entrepreneurs. It comes with several benefits for online retailers:
- Retailers Need Less Capital: One of the best things about dropshipping is that they don’t need to have significant capital to invest in inventory. What they need to get started is an e-store featuring goods that people are interested in. They don’t have to purchase a product until an order is made and payment is completed by the buyer. This isn’t the typical traditional model of retail businesses where you have to purchase a batch of products and run the risk of not selling them. With drop shipping, they run no such risks. When a customer places an order, the production team orders the products from the wholesaler.
- Quick Set-Up: A drop shipping business is quite easy to set up since they don’t handle the physical products. They don’t have to worry about handling inbound shipments and returns, packaging and shipping orders, tracking inventory, paying for a warehouse, and managing stock level.
- Accessibility: Another benefit to the drop shipping business is that they can run their e-commerce store from virtually anywhere. As long as they have good internet reception, they can accept orders and payments and place the orders from their suppliers.
- Low Overhead Costs: Dropshipping isn’t the usual traditional model of business where they’d have to manage a warehouse and keep track of inventory. They don’t have to pay certain expenses that other retailers have to constantly deal with. All you need is a laptop and the internet.
- More Product Options: Because they’re not purchasing products until an order is placed, their e-store can host several goods at the same time with no extra cost. As long as the product is offered you can make a sale.
Supply Chain & Drop Shipping’s Impact
Dropshipping and efficient supply chain management help both the suppliers and e-store retailers. For a manufacturer and wholesaler, the role of a competent logistics company to handle all the many complexities of product delivery cannot be downplayed.
Dropshipping has no apparent negative impact on e-retailers. It takes a huge toll on suppliers when the system isn’t effective as it should be. Thus, hiring a competent logistics service company like WDG Logistics is great for business.
Why Should You Hire a Logistics Service Company
There are several benefits to partnering with a logistics company. Some of them include:
- Competent Staff: Reliable logistics companies boast of a team with immense experience. They handle logistics along with their expansive list of networks. You can take advantage of the industry connections they have which are needed for the completion of the delivery process.
- Latest Technology: Not all suppliers and distributors are equipped with the kind of logistics tech that’d make them relevant in today’s world. The fact is, these techs are expensive. However, when you partner with a reliable logistics company like WDG Logistics, you can also take advantage of the tech infrastructure to procure better services for your customers.
- Ease Focus: Hiring a logistics service company to handle your logistics gives you enough to focus on your core competencies and improve your marketing strategies. You can rest assured that a team of experts is in charge of the logistics of your business while you handle other significant tasks.
- Better Output for Lower Investments: A professional logistics service company is already staffed with the best team and infrastructure that works. Thus, partnering with them is a surefire way to upscale your business.
Partnering with a competent and professional logistics service company like WDG Logistics will bring a great asset to your company. With years of experience under their belt, equipped with experts and machinery, logistics will no longer be a nightmarish experience for your business. Contact us today to learn more about our services and how we can help your business grow.
