Organizing Logistics and Supply Chain Management Teams in Successful E-commerce Companies (Case Studies of Fab and Gilt)
Effective logistics and supply chain management is crucial for the success of e-commerce companies. Successful e-commerce giants like Fab and Gilt have meticulously organized their teams to ensure smooth operations and efficient management. This article explores the organizational structures of these companies and provides insights into how they manage their logistics and supply chain processes.
Lower-Level Operations Teams
The lower-level operations teams at these e-commerce companies are responsible for the day-to-day activities, such as data entry, exception handling, and customer service. These are the individuals who directly interact with the Enterprise Resource Planning (ERP) systems and are often the subject matter experts (SMEs) for the business process flow. They have detailed knowledge about each customer account, product, and supply-demand dynamics. Their roles often involve mundane but essential tasks, such as managing order requests, processing exceptions, and providing customer support.
Upper-Level Business Groups
Typically, the supply chain is divided into different business groups, each focused on specific aspects of the operation. These include:
Ordering Associates: Responsible for processing orders and ensuring that orders are fulfilled accurately. They work closely with warehouse and manufacturing teams to match supply with demand.
Booking Associates: Handle the booking of shipments and tracking of logistics. They ensure that orders are dispatched in a timely and efficient manner.
Tracking and Monitoring: These teams monitor the movement of goods through the supply chain and ensure that shipments are managed effectively. They communicate with relevant stakeholders to address any issues that arise.
Planning and Valuating: This group is responsible for the strategic planning and financial valuation of supply chain operations. They ensure that the company's logistics costs are optimized and that the supply chain is financially sustainable.
Financial Payments: Manage the payment processes, including procurement and transportation costs. They ensure that all financial transactions are accurate and timely.
Manufacturing and Procurement: Handle raw material sourcing, transportation rates, and services. They also manage the procurement of IT software to support the supply chain operations.
Mid-Level Business Analysts and Report Analysts
At the mid-level, business analysts and report analysts play a critical role in optimizing the supply chain processes. This team has a range of specialists, including:
Data Scientists: They work closely with the reporting and analytics team to predict trends and optimize the supply chain based on the latest data. Data scientists contribute to the overall strategy by identifying new opportunities and areas for improvement.
Operations Support Specialists: These experts act as superusers to assist end-users and customer service representatives (CSRs) in handling complex exceptions and resolving issues within the system. They are also trained to escalate issues to the IT team when necessary.
Continuous Improvement Analysts: This team focuses on implementing continuous improvement practices to enhance the efficiency and effectiveness of the supply chain. They often have a forecasting team that forecasts future demand based on existing trends, ensuring that the company is prepared for high-demand periods.
IT Support Teams
The IT support teams at these e-commerce companies have a critical role in ensuring that the ERP systems and other logistics-related software are functioning optimally. They handle the technical aspects of supply chain management, including:
System maintenance and support
Solving technical issues related to logistics operations
Upgrading and implementing new technologies
These teams work closely with suppliers and external service providers to ensure that technology solutions align with the company's strategic objectives.
Conclusion
The success of e-commerce companies relies heavily on the efficient organization and management of logistics and supply chain teams. By segmenting these teams into specific roles and responsibilities, successful e-commerce companies like Fab and Gilt are able to manage their operations more effectively. Each team plays a crucial role, from the lower-level operations teams to the mid-level business analysts and IT support teams, ensuring that the supply chain operates seamlessly and efficiently.