Typically, supply chain operations have been regarded as individual elements and have been handled separately. However, companies are now adopting a more holistic view of the supply chain.

End-to-end logistics encourages businesses to consider their supply chain as an integrated whole, emphasising the importance of communication and collaboration between teams and operations. 

This guide to end-to-end (E2E) supply chains will outline everything you need to know about E2E logistics, including benefits, challenges, and best practices for optimising your supply chain processes.

 

What is an end-to-end supply chain?

An end-to-end (or E2E) supply chain is a holistic approach to supply chain management. It integrates a business’s supply chain processes into a single, continuous workflow from the procurement of materials and goods to home delivery and reverse logistics processes.

Not only does end-to-end logistics consider the operations involved in the supply chain process, but also how the different operations interact with one another in a streamlined, efficient way. 

 

End-to-End vs. Traditional Supply Chain

Both end-to-end supply chains and traditional supply chains aim to reduce costs and satisfy customers by providing them with goods and services quickly and efficiently. They both include many of the same operations, such as manufacturing, shipping, delivery, and customer service. However, the way they view these operations differs.

In traditional supply chains, every step of the process is siloed, and the different departments operate independently from one another. End-to-end supply chains, however, offer businesses a more holistic view of supply chain processes. Instead of seeing each operation individually, all the different operations involved are integrated and work together. 

 

End-to-End

Traditional

Comprehensive overview of the supply chain - it is one streamlined operation. 

Each step within the supply chain is approached as an independent operation. 

Upstream and downstream data is used to form a holistic view of supply chain operations.

Downstream data is used to focus on each individual task. 

 

What’s involved in end-to-end logistics?

End-to-end logistics considers all stages of the supply chain, from product design and procurement, all the way to delivery and customer service. The main stages of E2E supply chains are outlined below: 

 

Procurement

Procurement refers to the sourcing and purchasing of stock and materials needed to fulfil orders for the best price possible. It also includes other processes, such as estimating production lead times, managing stock levels, and receiving goods at the warehouse.

End-to-end supply chain management aims to consider all aspects of procurement to make sure the production team has all the materials and resources required to keep production running efficiently and seamlessly.  

 

Manufacturing

Manufacturing is a key part of the supply chain, so it is important that the process is optimised and efficient. If there are delays with manufacturing, there is a risk of running out of stock and having to catch up on a backlog of orders. 

For the manufacturing process to be efficient, the raw materials being used should be of high quality, and finished goods should be suitably organised and sorted so orders can be fulfilled quickly and correctly. 

 

Distribution

Distribution is the stage of the supply chain process that gets products finished and ready for sale. During this stage, it is important to keep an eye on inventory levels and allocation as inefficiencies can be costly and result in dissatisfied customers. 

 

Storage

Storage is an important consideration when it comes to end-to-end logistics, and it is important to strike the right balance between having enough stock to consistently fulfil orders, but not too much that would lead to wasted goods and storage costs. 

Some businesses might choose to store all their goods in their in-house facilities, rent storage facilities, or outsource to a 3PL. 

 

Shipping and last-mile delivery

Customers are increasingly expecting free and fast delivery options, making it a crucial part of the supply chain. Optimising your shipping and last-mile delivery processes can be the difference between a potential customer converting and choosing to order from elsewhere. 

 

Sales

To effectively sell a product, sales teams need up-to-date, accurate data about stock levels, pricing, costs, production schedules, and inventory records. With the holistic approach of end-to-end supply chain management, this information can easily be communicated between teams. It also means that if there are any unexpected changes anywhere in the supply chain, prices can be easily adjusted in response. 

 

Customer service

End-to-end supply chain management also includes post-sales customer service. For example, it might include managing product maintenance on items under warranty or dealing with ecommerce returns. Good post-sales customer service can help create customer loyalty and encourage customers to return. 

 

Benefits of end-to-end supply chains

There are many benefits of end-to-end supply chains, including:

 

Improved efficiency

As E2E supply chains provide a comprehensive view of all the operations involved, processes can be streamlined and made more efficient with little risk of causing problems further down the line. 

 

Reduced risk of supply chain breakages and delays

End-to-end supply chains provide visibility of the entire supply chain. This means that any vulnerabilities in the supply chain can be identified, and informed decisions can be made in terms of the measures put in place to reduce the impact of any delays or breakdowns. 

 

Improved relationships with consumers and suppliers

The transparency and reliability of end-to-end supply chains can help improve relationships with both consumers and suppliers. 

By utilising technology like tracking software, customers are able to see the progress of their order, where it currently is in the supply chain, and when they can expect it to arrive. They can also be notified of any delays or problems with their order. 

This level of transparency can help give customers realistic expectations and peace of mind that their order is being handled.

For suppliers, an effectively managed end-to-end supply chain has a transparent, organised way of ordering goods and services. This means that suppliers are less likely to have to deal with rushed orders or arrange emergency shipments. 

 

Better transparency in operations and inventory 

Having full visibility across the supply chain is beneficial for businesses as it can help them identify any issues with the production process and address them. 

For example, end-to-end supply chain logistics can help collect data on inventory levels and production schedules and implement measures to prevent bottlenecks, over- or under-stocking goods, and delays in the manufacture of products. 

 

More opportunity for data analysis and forecasts

With end-to-end logistics, data is collected from across the supply chain and can be used for demand forecasting, creating efficient production schedules, and managing inventory to minimise carrying costs and storage waste. Up-to-date and accurate data can also highlight any flaws in the supply chain that can then be addressed before major issues occur.

 

Challenges with end-to-end supply chains

Despite the benefits of end-to-end supply chain management, there are some challenges that are important to consider:

 

Complexities

Supply chains are complex, and it can be hard to achieve and maintain full visibility across all operations. It can be challenging to keep up collaboration between all departments, and communication can break down. 

This might be a particular challenge for small businesses looking to implement E2E supply chain management, as it can require significant time and financial investments to put into place. 

 

Delays in improving processes and cutting costs

Focusing too much on the supply chain as a whole can cause delays in decision-making, such as when it comes to improving processes and cutting costs. 

For example, time might be wasted considering how one cost-saving change might impact the whole supply chain, and the opportunity might be missed. 

It is important to find the right balance between weighing up the impact of big decisions and taking good opportunities before they pass. 

 

Risk of setting unrealistic expectations

Sometimes, giving too much visibility to your customers can give them unrealistic expectations and set them up for disappointment. 

For example, promising delivery times for items that are still being processed might be inaccurate and result in customers receiving their goods later than expected, leaving them disappointed or frustrated.

 

End-to-end logistics best practices

We have outlined some best practices for implementing effective end-to-end logistics processes when managing your supply chain:

 

Implement good communication channels throughout the supply chain

To maintain an integrated, holistic view of the supply chain, communication and collaboration are of vital importance. Every manager or team leader working in the supply chain should be able to access supply chain data and be encouraged to build strong working relationships and work together. 

You might also want to consider implementing new collaborative strategies, such as one-to-one discussions between team leaders, leadership meetings, performance reviews, and creating strategic action plans to share amongst the team. 

 

Take a lean approach to inventory management

Lean supply chain management aims to reduce waste and costs, making it more efficient and streamlined. 

Taking a lean approach to inventory management is therefore important as it helps prevent overstocking or understocking. Demand planning is one method that can help you control supply levels and inventory. 

 

Ensure your workforce is reliable

For an end-to-end supply chain to be effective, the people working within it need to be efficient and reliable. Adaptable staff members can more easily adjust to any sudden or unexpected changes to operations and use their expertise to avoid breakdowns in the supply chain. 

 

Automate or outsource weaker areas

If you notice there are any particular areas of weakness in your supply chain operations, you might want to consider automating some processes or outsourcing them to a third party. 

For example, third-party logistics (3PL) companies have expert knowledge of logistics processes and access to resources that can help them optimise your supply chain operations on your behalf. 

Learn more about third-party logistics. 

 

Set realistic goals and benchmarks

Setting goals and benchmarks is an important way of measuring success in supply chain operations and identifying any problems. This can ultimately help inform decisions about what works and what other processes need to be implemented. 

 

End-to-end supply chain management with SEKO Logistics

At SEKO Logistics, we provide expert end-to-end logistics services to help make your supply chain as efficient and streamlined as possible. We are dedicated to providing a client-first service across a range of ecommerce logistics operations, including: 

Contact us today to speak to a logistics expert about how we can help manage your supply chain.