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The momentum of e-commerce adoption in the cabinet industry

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2018-06-05

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The growing momentum of e‑commerce in the cabinet industry—according to the general manager of Hongtai Door Industry—shows that e‑commerce is an unavoidable trend for both the door and cabinet sectors. To secure a competitive edge, companies must learn to embrace and adapt to this new business model. E‑commerce platforms have been evolving for some time, attracting an increasing number of merchants. The cabinet industry can likewise leverage these platforms; however, because cabinets are custom‑made products with high transportation costs, their expansion on e‑commerce channels faces certain limitations. If logistics expenses can be effectively controlled, the trend toward e‑commerce in the cabinet sector will become even more pronounced. Logistics costs are a key factor in product pricing…

The momentum of e‑commerce in the cabinet industry—according to the general manager of Hongtai Door Industry, the shift toward online sales in both the door and cabinet sectors is an inevitable trend. To secure a competitive edge in these industries, companies must master and adapt to e‑commerce business models.

E‑commerce platforms have been developing for some time, and an increasing number of merchants are turning their attention to them. The cabinet industry can likewise leverage e‑commerce platforms; however, since cabinets are custom‑made products with high transportation costs, their growth on these platforms is somewhat constrained. If logistics costs can be brought under control, the trend toward e‑commerce in the cabinet sector will become even more pronounced. Logistics costs represent the monetary value of all labor—both human and material—that is expended in moving a product across space or occupying it over time.

Specifically, it is the total sum of labor, material, and financial resources expended by a product throughout its physical movement—covering activities such as packaging, handling and loading/unloading, transportation, storage, and in‑process processing.

Modern logistics costs encompass a broader scope, spanning the entire spectrum of a company’s operational activities—from raw material procurement all the way to delivering finished goods into the hands of consumers. Logistics providers must meticulously analyze market conditions based on the specific types of import and export cargo. To maintain the lowest possible cost, they must carefully weigh trade-offs among product quality, sourcing, asset management, transportation services, and other factors. In other words, in commercial relationships, both shippers and recipients typically make concessions—each yielding certain benefits in exchange for equivalent concessions from the other—in order to ultimately secure purchase prices that are not only acceptable to customers but also reflect low‑cost efficiency. Throughout the procurement process, it is essential to recognize that the choice of transportation mode, packaging requirements, and the geographic location of supply sources all play a critical role in reducing delivery costs.

This article is excerpted from: Guangxi Door Industry Network http://www.gxmenye.com

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