Sample eCommerce Business Plan

 eGrocery Business Plan  Page 30 © BPlanExperts.com  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 shipping 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 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.