Sample eCommerce Business Plan

Operation Strategy 35 © BPlanExperts.com Time slots for delivery We have different time slots depending upon the demand of the customers. They are categorized as: • 2 HOUR This is the best time slot provided by us and it will deliver the products within 2 hour after the order is placed. In this category we will not provide any discounts as the service level is highest in this category. This will target mostly the working peo ple who don’t have time and they just order when they want any product. • 6 HOUR Customers will get a certain minimal amount of discount in this time slot. This will target the family based customers who plan to make something few hours later and need the products in a few hours of time. They will be generally middle sized customers. • 1 DAY Quite a god amount of discount would be given to these customers as they are just directly reducing good amount of transportation cost i.e. from warehouse to warehouse or from warehouse to consumers. These customers are also the family based customers but their demand is slightly flexible than the previous time slot. This will target customers who are middle-sized and above. • 2 DAY This will mainly target the upper segments that are used to keep product stock. They will be benefited maximum discounts as the transportation costs are least here because time to deliver products is too large. In this much time several orders can be seen in the places around the ordered places. How we managed our inventory This is a key term in terms of cost effectiveness. It is the direction and control of activities with the purpose of getting the right inventory in the right place at the right time in the right quantity in the right form at the right cost. We optimized our supply chain by keeping the inventory level very low by using certain techniques such as fluctuation inventory, lot size inventory & cost of placing orders. We are maintaining lower inventories from the 2 hour & 6 hour time slots because these orders are smaller in quantities and carry lower inventory costs. Fluctuation inventory This is introduced in our inventory management with a purpose of preventing disruptions in deliveries to customers. We have maintained a buffer stock which will protect against fluctuations in supply and demand and lead time and it will also remove stock out situation. Lot size inventory We are purchasing items in quantities greater than needed to take advantage of quantity discounts, to reduce s hipping and setup costs. This portion of our inventory depletes gradually as customers’ orders come in and is replenished cyclically when new orders are received. Depletion is done according