(i) Shorten the turnover cycle and reduce the turnover inventory rate
Cross-border e-commerce faces the problem of long lead time due to the complexity of the supply chain, especially the customized demand of the B-end of cross-border e-commerce, which will undoubtedly make the lead time longer. Cross-border e-commerce companies can adopt
delay strategy and just-in-time (JIT) in production, that is, produce the same parts of consumer demand in the product production process according to the plan first, and then assemble them according to the differentiated needs of consumers after the consumer places an order. Reduce turnover inventory by shortening the lead time. Take the air fryer as an example (see Figure 6-7). Although the product is the same model, the plugs in different countries are different. Therefore, the seller can establish a product inventory system in advance and configure the power cord with the corresponding plug according to the country where the consumer is located after receiving the order.
(ii) Control uncertainties and reduce safety stocks
The root cause of the existence of safety stocks is uncertainties. There are many sources of uncertainties in the supply chain, mainly from information asymmetry and poor execution.
Information asymmetry can be solved through business and technical means. For example: establish an IT information system for information sharing, constrain suppliers with contracts and performance appraisals, and find channels for sharing information more easily and effectively.
Poor execution is manifested in: the agreed delivery period is 2 weeks, but the goods have not been shipped for 3 weeks. This is the supplier’s poor execution, which increases the uncertainty of supply. The natural response of the supply chain is to increase safety inventory, reduce turnover cycle, and reduce uncertainty factors. Taking measures that can effectively shorten the turnover cycle will also reduce uncertainty factors, thereby reducing safety inventory.
(III) Improve planning and reduce excess inventory
It seems that excess inventory is caused by the lack of execution of the supply chain, but in fact it is caused by inadequate planning. Supply chain planning starts with demand planning, especially for cross-border e-commerce sellers, who have a long cross-border transaction cycle and a long supply chain, so they must do a good job of demand planning. Demand planning is based on data analysis, on the one hand, big data analysis, and on the other hand, purchase, sales and inventory data analysis. Enterprises can use a variety of product selection tools (Google Trends, Jungle Scout, Oulu Big Data), as well as sellers’ historical sales data, establish databases for consumers, etc. to conduct comprehensive analysis to improve the accuracy of demand forecasts, and then determine production and procurement volumes based on inventory. The latter is based on the former. This interlocking system constitutes a supply chain planning system and drives the operation of the entire supply chain.