{"id":638,"date":"2020-09-22T21:47:06","date_gmt":"2020-09-22T21:47:06","guid":{"rendered":"https:\/\/bhmultisite.com\/resources\/?p=638"},"modified":"2020-09-22T21:47:06","modified_gmt":"2020-09-22T21:47:06","slug":"operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business","status":"publish","type":"post","link":"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/","title":{"rendered":"Operations Management: How to Choose and Manage Your Suppliers for an eCommerce Business"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/lyiuvJavsSHNajWTabcS0kvVtvuw2Cqc5-jM3G74bF6EgEeYF--tKLLVaJ4STHeDQZc1MnJyrUs21tt1_mAuNmT8BozIEYSVWdj07FbOBzt1qJGwnqe7_93DzyGlq6SRcXD0z7uY\" alt=\"\" \/><\/figure>\n\n\n\n<p>eCommerce companies come with a lot of advantages over traditional brick and mortar stores.\u00a0<\/p>\n\n\n\n<p>From decreased startup costs to a lower barrier of entry, expenses are lower and <a href=\"https:\/\/www.bluehost.com\/blog\/how-to-make-a-marketing-plan\/\">marketing<\/a> is easier.<\/p>\n\n\n\n<p>However, even with all the benefits of <a href=\"https:\/\/www.bluehost.com\/blog\/how-to-build-your-ecommerce-website-on-wordpress\/\">eCommerce websites<\/a>, no business owner can escape the need to source and manage suppliers. Operations and supply chain management might have its origins in physical businesses, but it\u2019s just as integral to eCommerce companies.\u00a0<\/p>\n\n\n\n<p>This guide will explore the various components of operations and supply chain management. We\u2019ll also offer tips on working with suppliers.&nbsp;<\/p>\n\n\n\n<p>You\u2019ll learn:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What operations and supply chain management is\u00a0<\/li><li>Why it\u2019s important in eCommerce<\/li><li>How to choose the right supplier\u00a0<\/li><li>How to manage your suppliers\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is Operations and Supply Chain Management?&nbsp;<\/h2>\n\n\n\n<p>Before diving into the nitty-gritty, let\u2019s get some definitions straight.&nbsp;<\/p>\n\n\n\n<p><strong>Operations and supply chain management<\/strong> is a broad term that refers to anything involved in a company\u2019s internal organization and functioning. It also includes any activities that occur in tandem with third parties.&nbsp;<\/p>\n\n\n\n<p>The <strong>operations management<\/strong> portion is chiefly concerned with the inner workings of a business. The <strong>supply chain management<\/strong> portion focuses on all activities that occur outside of the business.&nbsp;<\/p>\n\n\n\n<p>A successful eCommerce company needs to focus on both of these areas to stay organized, competitive, and keep <a href=\"https:\/\/www.bluehost.com\/blog\/how-to-grow-your-online-business-series-webinar-faqs\/\">growing<\/a>.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is Supply Chain Management and Why Is It Important?<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.investopedia.com\/terms\/s\/scm.asp\">Supply chain management<\/a> in eCommerce involves:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sourcing and processing of raw materials<\/li><li>Organization and storage of goods<\/li><li>Balancing supply and demand&nbsp;<\/li><li>Tracking inventory<\/li><li>Managing orders<\/li><li>Handling distribution and delivery&nbsp;<\/li><\/ul>\n\n\n\n<p>It\u2019s the same as traditional supply chain management, except it happens in the <a href=\"https:\/\/www.bluehost.com\/wordpress\/woocommerce-hosting\">eCommerce<\/a> space.\u00a0<\/p>\n\n\n\n<p>Supply chain management is important because it optimizes cost-effectiveness, boosts customer satisfaction, and helps your company stay competitive.&nbsp;<\/p>\n\n\n\n<p>However, without an effective strategy, you\u2019re operating in the dark. You don\u2019t know what customers want, how much to produce, when materials will arrive, or if your customers will receive their orders on time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Choose the Right Supplier&nbsp;<\/h2>\n\n\n\n<p>The supply chain of eCommerce companies doesn\u2019t differ much from that of brick and mortar operations. It\u2019s all about sourcing the right materials, perfecting the manufacturing process, and timing orders with deliveries.<\/p>\n\n\n\n<p>Finding the right supplier is critical to establishing <a href=\"https:\/\/www.bluehost.com\/blog\/better-customer-service-means-better-conversions\/\">customer satisfaction<\/a>, maintaining pricing structures, and complying with quality standards.&nbsp;<\/p>\n\n\n\n<p>When you first enter into the confusing world of operations and supply chain management, you probably don\u2019t quite know where to begin. While you might be tempted to take the most affordable option, cost isn\u2019t the only factor to consider \u2014 it\u2019s not even the most important.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s explore the steps you should take to find the right supplier.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Define Your Business\u2019s Needs<\/h3>\n\n\n\n<p>Operations and supply chain management will look different for each eCommerce business. Before you can find the right supplier, you have to define your company\u2019s needs clearly.<\/p>\n\n\n\n<p>&nbsp;Here are some questions you should ask:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What kind of materials am I working with?&nbsp;<\/li><li>How much do I need to be produced?<\/li><li>How much time can I wait for products?&nbsp;<\/li><li>What kind of <a href=\"https:\/\/www.investopedia.com\/terms\/p\/profitmargin.asp\">margins<\/a> can I afford?<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">2. Look for Suppliers in the Right Places<\/h3>\n\n\n\n<p>After defining your needs, start actively <a href=\"https:\/\/www.businessknowhow.com\/startup\/findsuppliers.htm#:~:text=Simply%20go%20to%20a%20major,help%20you%20find%20new%20suppliers.\">looking for a supplier<\/a>. If there\u2019s a large supplier in your niche that meets your needs, you might be able to request a quote directly on their website.&nbsp;<\/p>\n\n\n\n<p>Trade magazines are another way to find promising leads when there\u2019s no obvious choice available.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Compare Potential Supplier Bids<\/h3>\n\n\n\n<p>Once you receive at least a handful of bids, you can start comparing each to see which is the best match. Be sure to reference your initial list of requirements. You\u2019d be surprised how many unqualified candidates decide to reach out despite not having what you need.&nbsp;<\/p>\n\n\n\n<p>Take an aggregate approach to this assessment. Rather than focusing on one factor and forgetting the rest, consider how well the supplier matches <em>all<\/em> of your needs.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Set Up a Meeting with Your Chosen Supplier<\/h3>\n\n\n\n<p>If you haven\u2019t found a promising supplier after comparing all of your leads, you might need to repeat one of the previous steps.&nbsp;<\/p>\n\n\n\n<p>However, if you\u2019ve identified a potential option you should set up a meeting.&nbsp;<\/p>\n\n\n\n<p>This initial contact can be a short call or video chat to go over the basics. It gives you a chance to clear up any misunderstandings and make sure both you and your supplier\u2019s expectations are aligned.&nbsp;<\/p>\n\n\n\n<p>It\u2019s wise to get everything laid out before moving ahead with more in-depth and legally-involved steps.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Manage eCommerce Suppliers\u00a0<\/h2>\n\n\n\n<p>Managing your suppliers is an important aspect of operating a successful eCommerce business. Let\u2019s go through some of the steps you can take to ensure your supplier relationship is in top working order.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Write a Solid Agreement&nbsp;<\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/wTN90MvbqU_-Op7i6GaekY4qHsraAc-4ZmHGmRz8j8YgUdoFF94CL5T9l8IN81oRpvBKK04_K6iQ2VkISFLFX18fz8J-sYWQNrzfSn9KKsYUmwW8xex132n5ISvCXi6nbAqjfr_D\" alt=\"\" \/><\/figure>\n\n\n\n<p>All great operations and supply chain management strategies <a href=\"https:\/\/www.nolo.com\/legal-encyclopedia\/make-business-contract-agreement-30313.html\">start with a good contract<\/a>.&nbsp;<\/p>\n\n\n\n<p>The goal isn\u2019t to manipulate or take advantage of your suppliers. A solid written agreement should ensure everyone\u2019s needs are being met.&nbsp;<\/p>\n\n\n\n<p>Having clear expectations at the beginning makes it easier to keep your business organized and running smoothly. A good contract can also prevent miscommunication that will lead to mishaps down the road.&nbsp;<\/p>\n\n\n\n<p>It\u2019s always a good idea to <a href=\"https:\/\/smallbiztrends.com\/2015\/02\/low-cost-free-legal-advice-for-business.html\">hire legal help<\/a> to lay out the legalese and then translate it. You need to have a clear understanding of what your supplier agreement says.&nbsp;<\/p>\n\n\n\n<p>Don\u2019t be afraid to ask for changes. It\u2019s perfectly normal for an agreement to go through a few rounds of edits. You want everyone to feel comfortable with your new business relationship.&nbsp;<\/p>\n\n\n\n<p>Only sign with a supplier if the agreement meets all of your needs. Even a seemingly ideal supplier is a no-go if the contract isn\u2019t a fit.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Invest in eCommerce Inventory Management Software<\/h3>\n\n\n\n<p>There are countless moving parts to consider when optimizing operations and supply chain management. Unfortunately, many of these factors aren\u2019t even under your control.&nbsp;<\/p>\n\n\n\n<p>For many eCommerce companies, you\u2019re outsourcing production, manufacturing, and a variety of other business departments to a supplier. Your job is to focus on the management side of the business.\u00a0<\/p>\n\n\n\n<p>You can\u2019t have complete oversight of what your suppliers are doing. So it\u2019s important to have excellent systems in place for everything you <em>can<\/em> control.&nbsp;<\/p>\n\n\n\n<p>This is where inventory management software comes in.&nbsp;<\/p>\n\n\n\n<p>eCommerce <a href=\"https:\/\/www.business.org\/finance\/cost-management\/best-inventory-management-software\/\">inventory management software<\/a> can help you keep tabs on inventory levels to optimize product distribution and production.\u00a0<\/p>\n\n\n\n<p>Don\u2019t waste time contacting a dozen different people or consulting various logbooks. The information you need can be conveniently compiled into one manageable, accessible, and organized location.&nbsp;<\/p>\n\n\n\n<p>With this information close at hand, you\u2019ll make better, more accurate, and timely business decisions.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Keep Lines of Communication Open&nbsp;<\/h3>\n\n\n\n<p>Just like any personal relationship, open lines of communication are an indispensable component of professional associations.&nbsp;<\/p>\n\n\n\n<p>Operations and supply chain management is all about oversight, administration, and control. Regular contact with suppliers helps to establish rapport and build trust.&nbsp;<\/p>\n\n\n\n<p>If you\u2019re only reaching out to your suppliers when something goes wrong, it\u2019s a good sign you\u2019re not communicating enough. From the beginning, be sure to provide new suppliers with your preferred communication method and request the same information from them.&nbsp;<\/p>\n\n\n\n<p>You can conveniently store this information in your eCommerce inventory management software. That way, anyone involved with supply management can reach out to a supplier when necessary.\u00a0<\/p>\n\n\n\n<p>Schedule regular calls to stay up-to-date with any changes, make sure everything is operating optimally, and discuss critical information.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stick to Your End of the Deal&nbsp;<\/h3>\n\n\n\n<p>While suppliers are willing to compete for your business, don\u2019t forget this relationship is a two-way street. To make sure your business continues operating without a hitch, you have to hold up your end of the bargain.&nbsp;<\/p>\n\n\n\n<p>Pay your suppliers on time, communicate regularly, and relay adjustments promptly.&nbsp;<\/p>\n\n\n\n<p>Holding up your end of the bargain shows suppliers that you\u2019re a trustworthy and respectable client. It\u2019s helpful to think of your suppliers as business partners rather than random third-parties.<\/p>\n\n\n\n<p>Your goal should be to <a href=\"https:\/\/www.purchasecontrol.com\/blog\/improve-supplier-relationship-management\/\">create a long-lasting relationship with suppliers<\/a> that powers through uncertainty, finds success, and lasts for your business\u2019s lifetime.<\/p>\n\n\n\n<p>The time it takes to develop a meaningful relationship with clients pales in comparison to the struggle of looking for new suppliers every few months.<\/p>\n\n\n\n<p>Operations and supply chain management is at the core of any eCommerce business\u2019s success. Choosing the right supplier and implementing an effective management strategy can impact your entire business, including customer satisfaction, product quality, and profit margins.\u00a0<\/p>\n\n\n\n<p>Start by determining what you need from a supplier. This information will help you find the best places to look for a partner and make it easier to choose the right match.&nbsp;<\/p>\n\n\n\n<p>After finalizing a contract, start focusing on managing your business. Pay attention to what you can control, and don\u2019t forget to hold up your end of the deal. Think about investing in tracking software for real-time assessments of how your business is functioning.&nbsp;<\/p>\n\n\n\n<p>Equally critical to the success of your eCommerce business is having a high-functioning website. Bluehost has the resources to help you build and maintain your online business. Check out Bluehost\u2019s <a href=\"https:\/\/www.bluehost.com\/hosting\/shared#pricing-cards\">competitive hosting plans<\/a> today.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>eCommerce companies come with a lot of advantages over traditional brick and mortar stores.\u00a0 From decreased startup costs to a lower barrier of entry, expenses are lower and marketing is easier. However, even with all the benefits of eCommerce websites, no business owner can escape the need to source and manage suppliers. Operations and supply [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":240661,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_title":"Operations and Supply Chain Management Tips for E-Commerce | Bluehost","_yoast_wpseo_metadesc":"Effective operations and supply chain management is key to any successful e-commerce website. Learn how to choose and manage the right suppliers.","inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[3311,3326,3330],"ppma_author":[602],"class_list":["post-638","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-analytics","tag-enterprise","tag-how-to-guides"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Operations and Supply Chain Management Tips for E-Commerce | Bluehost<\/title>\n<meta name=\"description\" content=\"Effective operations and supply chain management is key to any successful e-commerce website. Learn how to choose and manage the right suppliers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bluehost.com\/blog\/wp-json\/wp\/v2\/posts\/638\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Operations Management: How to Choose and Manage Your Suppliers for an eCommerce Business\" \/>\n<meta property=\"og:description\" content=\"Effective operations and supply chain management is key to any successful e-commerce website. Learn how to choose and manage the right suppliers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/\" \/>\n<meta property=\"og:site_name\" content=\"Bluehost Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/bluehost\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-22T21:47:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/lh3.googleusercontent.com\/lyiuvJavsSHNajWTabcS0kvVtvuw2Cqc5-jM3G74bF6EgEeYF--tKLLVaJ4STHeDQZc1MnJyrUs21tt1_mAuNmT8BozIEYSVWdj07FbOBzt1qJGwnqe7_93DzyGlq6SRcXD0z7uY\" \/>\n<meta name=\"author\" content=\"Machielle Thomas\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/twitter.com\/machiellethomas\" \/>\n<meta name=\"twitter:site\" content=\"@bluehost\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Machielle Thomas\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/\"},\"author\":{\"name\":\"Machielle Thomas\",\"@id\":\"https:\/\/www.bluehost.com\/blog\/#\/schema\/person\/5f0415b94c1232ec2b636fb579189d3c\"},\"headline\":\"Operations Management: How to Choose and Manage Your Suppliers for an eCommerce Business\",\"datePublished\":\"2020-09-22T21:47:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/\"},\"wordCount\":1603,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.bluehost.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.bluehost.com\/blog\/wp-content\/uploads\/2025\/09\/default-bh.png\",\"keywords\":[\"Analytics\",\"Enterprise\",\"How-To Guides\"],\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/\",\"url\":\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/\",\"name\":\"Operations and Supply Chain Management Tips for E-Commerce | Bluehost\",\"isPartOf\":{\"@id\":\"https:\/\/www.bluehost.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.bluehost.com\/blog\/operations-management-how-to-choose-and-manage-your-suppliers-for-an-ecommerce-business\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.bluehost.com\/blog\/wp-content\/uploads\/2025\/09\/default-bh.png\",\"datePublished\":\"2020-09-22T21:47:06+00:00\",\"description\":\"Effective operations and supply chain management is key to any successful e-commerce website. 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