Sample eCommerce Business Plan

Operation Strategy 36 © BPlanExperts.com Cross docking In this strategy we are moving our goods directly from our warehouses to consumers. This distribution strategy we have applied in which the customers and distributors are supplied (in case of B2C & B2B) by central warehouses which act as coordinators of the supply process and as transshipment points for incoming orders from distributors and consumers but in this strategy we are not keeping any stock. We are moving goods from one truck to another set of trucks. In some cases we take off pallets or boxes containing items from incoming truck and move directly to outgoing truck to avoid inventory cost. This technique is mainly used for the larger time slots that are 1 day & 2 day. Refresh inventory We are constantly refreshing our inventories through the received orders and products coming from the distributors. When a new lot of product comes to the warehouses then we send those products to the customers who are already present in our warehouses and through the various time slots we are continuously refreshing our inventories. Transportation cost This includes the cost of moving the items from the warehouse to warehouse and warehouse to consumers. As seen from the diagram given below we have two slots for the transportation costs. The overall transportation cost is thirty one percent of the total capital estimation: Warehouse to warehouse It includes cost of moving the items from one warehouse to other. This will mainly occur when the cost of moving goods from distributor to warehouse is high than the cost of moving products among the warehouses. Example, when one consumer demand for any variety of products and it’s not available in the nearby warehouse, then we order the product from the nearby warehouse to avoid the high cost of ordering product from the distributor. Warehouse to customer