OPTIMIZING E-COMMERCE OPERATIONS AT BEESLINE

Abstract

New e-commerce sales channels compared with traditional shopping can play a vital role in growing the business especially in this time and era. All businesses have been forced to interact with their customers through the enhancement of their e-commerce service due to new technologies, changes in lifestyle and Covid 19. By 2023, the global e-commerce is expected to reach a record of $16.7 trillion. Beesline, is a cosmetics Lebanese company who has had a great increase in demand in its e-commerce service during the last couple of years in Lebanon. Many reasons have influenced this increase, including the economic Lebanese crisis, Covid 19 and the company continuous investment in enhancing its e-commerce service. Beesline have increased its marketing campaigns and have contracted with a third-party logistics to ensure the efficient last mile delivery of its e-commerce orders. Now, Beesline is looking forward to expanding its e-commerce operations to accommodate increasing online demand.

In this project, we present a detailed forecasting analysis of Beesline’s demand to avoid stockouts and have a better customer satisfaction. Another aspect covered in this project is a preliminary feasibility analysis that guides Beesline between three scenarios of Current operation, vertical integration, or third-party logistics (3PL). A detailed cost study analysis has been performed accompanied with a sensitivity analysis. We carry-out further feasibility analysis accounting for the uncertainty of parameters.

As part of the customer satisfaction enhancement, a faster delivery option is analyzed. Several scenarios that can convey a hybrid system of same day and next day delivery are analyzed. In addition, the current utilized replenishment model for the e-commerce sector is analyzed and an improved order up to policy is suggested that is thought to achieve lower inventory investment with minimum shortages.