Question 1

What is the difference between supply chain management and logistics?

Accepted Answer

Logistics is one component of supply chain management, specifically the physical movement of goods, warehousing, and last-mile delivery. Supply chain management is the broader system covering sourcing, manufacturing, inventory, demand planning, logistics, and returns, all coordinated together.

Question 2

At what stage should a D2C founder start thinking seriously about supply chain management?

Accepted Answer

From the first sale. Supply chain management for D2C founders is not a function to defer until the brand reaches a certain size; decisions made in the first few hundred orders, supplier terms, inventory discipline, and warehouse process compound significantly as order volume grows. Founders who wait until a crisis forces the issue typically pay a much higher cost to retrofit good supply chain management for D2C founders than they would have paid to build it correctly from day one.

Question 3

How does COD affect supply chain planning for Indian D2C founders?

Accepted Answer

COD orders carry payment and return uncertainty that prepaid orders do not. With COD accounting for 55-65% of orders in Tier 2 and Tier 3 markets and COD return rates at 25-30% nationally, supply chain management for D2C founders in India has to factor this uncertainty into inventory, cash flow, and dispatch decisions from the start.

Question 4

Can a founder manage their supply chain manually before investing in software?

Accepted Answer

Yes, at low volume. The practical inflection point is typically around 100-150 orders a day across channels; below that, disciplined manual processes and spreadsheets can work. Above it, missed orders, overselling, and dispatch delays typically cost more than the software required to prevent them, which is when dedicated tools for supply chain management for D2C founders start paying for themselves quickly.

Question 5

Can a founder manage their supply chain manually before investing in software?

Accepted Answer

Treating inventory ordering as a gut-feeling decision rather than one grounded in sales velocity and return-adjusted demand. This single habit causes more cash flow strain for early-stage D2C brands than almost any other operational choice, and it is the first thing a founder serious about D2C supply chain management should fix.

Supplier and Procurement Management

What Is Supply Chain Management? A Beginner's Guide for D2C Founders

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