Question

Discuss FOUR (4) improvements needed on the value delivery network of the online retailers to further enhance their competitive advantages. Provide examples in your explanation.

Answer 1

The following are the three improvements needed on the value delivery network of online retailers to further enhance their competitive advantages.

Use of information system

The advanced information systems shall be used for managing the value delivery network of online retailers. It will help such online retail firms to deliver products to customers more efficiently and in a shorter time and within the budget. For example, a company could use Warehouse Management System for the purpose of managing the value delivery network of online retailers.

Faster logistics facility

An online retailer must ensure that there exists a facility for a faster delivery network. Many different measures could be taken by a company for this. For example, a third-party logistics facility would be faster compared to its own delivery facility of an online retailer. It need not be a single company instead it could be done through multiple companies offering third-party logistics facilities.

Increased accuracy

Online retailers must ensure that there is accuracy for all the processes related to a value delivery network. For example, a company could reduce paperwork to the maximum to improve the level of accuracy and for that purpose, the barcode technology could be made use of.

Optimum warehouse

Online retailers must ensure that they have an optimum warehouse which facilitates effectively managing the cost of labor, storage, etc. The warehouse must be one that ensures the safety and better stock handling. For example, an online retailer could modify its warehouse layout to ensure optimum performance. It also will help a company in delivering products quicker and with less cost.

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