1、 Supply chain has become the 'invisible battlefield' of cross-border e-commerce
In the early stages of cross-border e-commerce development, what people compared was:
Who is more sensitive in selecting products; Who is listed faster; Whose advertising is more aggressive.
Today, with the increasingly mature platform rules, rising advertising costs, and buyers' increasing demands for experience, more and more sellers are realizing:
The supply chain truly determines whether a company can weather the cycle.
Typical pain points include:
Once a popular product appears, overseas warehouses quickly run out of stock and miss out on a large number of orders; There is a large backlog of unpopular products in overseas or domestic warehouses, which seriously occupies funds; Logistics timeliness is difficult to guarantee, and customer service often cannot accurately inform 'where the goods have arrived'; After sales issues are scattered across different platforms and channels, making it difficult to form an improvement loop.
The common root cause of these problems is:
The entire supply chain process lacks' visualization ', making it difficult for management to see and calculate, let alone fine tuned optimization.
2、 Three key levels of supply chain visualization
In cross-border e-commerce projects, Health Smart Hong Kong companies usually break down "supply chain visualization" into three levels instead of pursuing "complete intelligence" from the beginning.
(1) Inventory and order hierarchy: Knowing "what goods, where they are, and how fast they flow"
The goal of this level is to solve the most fundamental problems:
What goods do we have on hand now, where are they located, and whether these goods are "selling" or "sitting there without moving".
The key points that need to be achieved include:
Unified inventory view
Integrate inventory information from different platforms and warehouses (domestic, overseas, third-party, etc.) based on SKU dimensions; Label the attributes of each type of inventory (in transit, available for sale, reserved, return processing, etc.).
The correlation between orders and inventory
Associate order data with inventory data to predict future shipment demand for a certain period of time; Early warning of potential stock shortage risks and timely prompt clearance of "clearly unsold categories".
Basic analysis indicators
Inventory turnover days; The structure of popular and long tail products; The utilization efficiency of different warehouses.
When the relationship between inventory and orders becomes clear, management can make more informed decisions:
Is it necessary to adjust the stocking structure; Do you want to transfer some inventory between different warehouses; Should we use promotions, bundled sales, and other methods to accelerate the digestion of unsold products.
(2) Logistics and fulfillment hierarchy: Knowing what happened to the goods on the way
The customer experience of cross-border e-commerce largely depends on three things:
Whether to receive the goods according to the promised time; Whether the intermediate information is transparent; Can customer service provide timely and accurate answers when abnormalities occur.
If logistics information is fragmented and scattered, customer service can only repeatedly communicate with different carriers, which is time-consuming and laborious, and buyers are also prone to distrust.
Logistics and performance visualization should achieve:
Multi channel logistics information integration
Present the trajectory information of different logistics service providers and routes on the same interface; Standardize the description of logistics nodes (collection, shipment, customs clearance, delivery, etc.).
Abnormal monitoring and statistics
Automatically identify situations such as timeout not updating, customs clearance exceptions, delivery failures, etc; Statistically analyze the timeliness performance and anomaly rate of different routes and service providers, providing a basis for subsequent route optimization.
Linkage with customer service system
Enable customer service to view the latest logistics status of orders in one interface; Provide a standardized explanation template to avoid inconsistent statements from different customer service representatives.
When the logistics process becomes transparent and controllable, there are immediate improvements in customer experience, refund rates, and evaluation systems.
(3) After sales and return hierarchy: turning problems into "data sources" for improvement
Almost all cross-border sellers know that after-sales service is important.
But the reality of many companies is that after-sales problems are broken down into multiple platforms and customer service personnel, making it difficult to form a global view.
The visualization of after-sales and return/exchange is to answer these questions:
What are the reasons that continue to cause customer dissatisfaction? Which products/batches have high incidence of problems? What aspects went wrong: product quality, inconsistent description, logistics experience, service response?
The specific actions that can be taken are:
Unified record of after-sales issues
Regardless of the platform from which the problem originates, it will be uniformly recorded in one system;
Label the reason category, SKU involved, warehouse involved, and responsible link for each after-sales issue.
Regularly conduct structural analysis
For example, monthly statistics:
What is the proportion of quality issues? What is the proportion of logistics issues? What is the proportion of management issues that do not match the description or expectations?
Identify the 1-2 core areas that deserve priority improvement.
Pass on the analysis results to the relevant teams
Provide feedback on the conclusions to the product selection, supply chain, operations, and customer service teams; Develop specific improvement measures and check their effectiveness in the next cycle.
In this way, after-sales service is no longer just a "cost center", but has become an important data source to drive continuous optimization of products and services.
3、 The practical advantages of Hong Kong as a supply chain hub
In the process of visualizing and optimizing cross-border e-commerce supply chains, Hong Kong is not only a convenient place for receiving payments, but also a comprehensive hub for supply chain management and settlement.
(1) Logistics resource aggregation facilitates optimization of routes and combinations
As an international shipping and aviation hub, Hong Kong has a variety of international express, dedicated line, and sea freight service provider resources; Enterprises can centrally connect and evaluate various service providers in Hong Kong, and adjust route combinations based on actual data; For certain high-value or time sensitive goods, a "Hong Kong transit plan" can be specifically designed.
(2) Complete financial and settlement support, conducive to fund and cost management
Centralized collection through multi currency accounts in Hong Kong can reduce the complexity of reconciliation between multiple locations and platforms; Centralize the payment and collection of logistics fees, warehousing fees, service fees, etc. in Hong Kong to facilitate the calculation of the overall profit structure; When communicating with banks, it is possible to present the "business scale cost structure cash flow situation" more systematically.
(3) Centralized data and management is conducive to building long-term cooperation between enterprises and banks
When enterprises manage critical supply chain data and settlement data with Hong Kong as the center:
Banks can see complete and continuous data when conducting due diligence and credit assessments; Enterprises and banks are more likely to reach long-term cooperation arrangements on trade financing, credit limits, etc; Enterprises also have more motivation to continuously improve transparency and management level, forming a positive cycle.
In practice, we will promote cross-border e-commerce enterprises to visualize their supply chains and build a central hub in Hong Kong according to the following ideas:
Sort out existing business models
Platform structure, category structure, and regional structure; Current situation of warehouse layout (domestic warehouse, overseas warehouse, third-party warehouse); Main logistics service providers and routes.
Jointly select the first batch of core indicators for visualization
Not pursuing a 'comprehensive system' from the beginning, but selecting a few key indicators first, such as:
- Turnover of core SKUs; The timeliness and abnormality rate of the main lines; The after-sales problem structure of key markets.
Building a "skeleton" of data and settlement centered around Hong Kong
Establishing operational and settlement accounts in Hong Kong; Establish a basic data aggregation mechanism; Coordinate some supply chain related contracts (overseas warehouses, logistics services, etc.).
Communicate with the bank and gradually explore financing tools
After the improvement of supply chain and data clarity, discuss with partner banks:
Compliance and stability of the receiving account; - Trade background review and simplification path; Whether it is suitable to carry out accounts receivable financing, inventory financing, etc.
Through this path, supply chain visualization not only improves operational efficiency, but also opens the door for deeper cooperation between enterprises and banks.
5、 From operational capability to credit capability: the financial value of supply chain visualization
From an enterprise perspective, supply chain visualization brings improvements in operational efficiency, customer experience, and cost management;
From a banking perspective, what is more important is that business processes are more transparent and trade backgrounds are clearer; More reasonable flow of funds and easier identification of abnormal behavior; The operational and risk control capabilities of enterprises are more supported by data.
Health Wisdom Hong Kong Company believes that:
The cross-border e-commerce enterprises that are truly suitable for long-term cooperation will ultimately be those that have visible operations, clear financial calculations, and clear risk explanations.
The visualization of the supply chain and the establishment of the Hong Kong hub are important steps towards this type of enterprise.
Address:
Eton Tower, 8 Hysan Avenue, Causeway Bay, Hong Kong
External Affairs and Compliance Email:
Info@healthwisdom.hk
CEO email of the company:
ceo@healthwisdom.hk
Copyright © 2023 The Limitless Wisdom Company Limited Company All rights reserved