1. Introduction

1.1. Importance and Challenges of Cross-Border Supply Chains

Cross-border e-commerce has emerged as a pivotal driver of global trade, connecting businesses and consumers worldwide. This innovative trade model capitalizes on advancements in internet technology, global logistics infrastructure, and digital payment systems, enabling companies to reach international markets with minimal barriers. By providing access to diverse products, it has significantly enhanced consumer choices and accelerated the global flow of goods.

However, the effectiveness of cross-border e-commerce depends heavily on the efficiency of its supply chain. Research on cross-border e-commerce supply chain cooperation models highlights insufficient stakeholder coordination and fragmented logistics processes as major contributors to inefficiencies and delays. These challenges are particularly pronounced for SMEs, which often lack access to advanced technologies and infrastructure [1]. Customs clearance, inconsistent international regulations, and high logistics costs exacerbate these issues, negatively impacting operational reliability and customer satisfaction. Optimizing supply chain processes is critical for overcoming these barriers and ensuring long-term competitiveness in global markets.

1.2. Research Status

Scholars extensively study traditional supply chains, but cross-border e-commerce supply chain management receives less attention. Research typically focuses on isolated aspects such as logistics efficiency or technology adoption, with limited emphasis on integrated optimization models [2]. Studies on synergistic development strategies highlight the potential for aligning logistics processes and stakeholder collaboration to enhance supply chain performance [3]. While technologies like blockchain and AI are recognized for improving transparency and efficiency, they face implementation challenges.

Additionally, most studies concentrate on large corporations, overlooking SMEs. Limited resources and restricted access to reliable logistics services make supply chain optimization a priority for SME survival and growth.

1.3. Theme and Objective of This Study

This study addresses these gaps by exploring strategies to optimize supply chains in cross-border e-commerce. It focuses on three main areas:

• Improving supply chain logistics timeliness for SMEs by addressing cross-border shipping delays through streamlined customs clearance, optimized multi-modal transportation, and scalable solutions like localized warehousing and bonded logistics.

• Improving supply chain logistics timeliness for SMEs by addressing cross-border shipping delays through streamlined customs clearance, optimized multi-modal transportation, and scalable solutions like localized warehousing and bonded logistics.

• Reducing supply chain operational costs by employing consolidated shipments, dynamic pricing strategies, and energy-efficient transportation methods.

• Enhancing collaboration among supply chain stakeholders through better coordination between suppliers, logistics providers, and platforms, leveraging strategic partnerships and profit-sharing models.

This study analyzes existing literature, real-world practices, and emerging technologies. It then proposes a framework for businesses, particularly SMEs, to enhance supply chain efficiency and remain competitive in cross-border markets.

2. Current Situation of Cross-Border E-Commerce Supply Chain

2.1. Core Supply Chain Processes

Cross-border e-commerce supply chains rely on five core processes: procurement, inventory management, order fulfillment, logistics, and post-sales support:

• Sourcing and Procurement: Products are sourced from suppliers across various countries, often requiring international air transport. Companies prioritize quality assurance, cost optimization, and supply chain reliability, but SMEs frequently struggle to secure favorable terms due to limited bargaining power. This challenge makes sourcing agreements more expensive, and complex compared to those of larger enterprises.

• Inventory Control and Management: Maintaining optimal stock levels is essential to prevent overstocking or stockouts. Businesses should adopt data-driven demand forecasting and technology-driven strategies to address potential or existing issues.

• Order Processing and Fulfillment: This process involves picking, packing, and preparing orders for international shipment. It requires streamlined and highly efficient warehousing operations while ensuring compliance with platform-specific regulations.

• Logistics and Distribution: International shipping encompasses customs clearance, freight forwarding, and delivery. Models like bonded warehouses and direct shipping reduce transit times and costs. However, SMEs relying on third-party providers often face delays and reliability issues as larger clients receive priority.

• Post-Sales Support and Returns Management: Comprehensive return policies and reliable support systems are critical for ensuring customer satisfaction and building trust. Consistently stable services also enhance reputation and attract new customers.

2.2. Current Logistics Operations Analysis

Logistics in cross-border e-commerce benefit from innovations like real-time tracking and partnerships with local providers, improving delivery efficiency [1]. Despite these advancements, customs delays, inconsistent infrastructure, and varying regulations continue to disrupt operations. Additionally, the lack of standardized logistics practices and clear communication among supply chain stakeholders hampers reliability, highlighting key areas for improvement [1].

2.3. Supply Chain Structure and Key Stakeholders

Shared warehouses and consolidated shipments help reduce costs, but significant challenges persist, particularly for SMEs with limited resources [4]. Customs duties, taxes, and fuel surcharges impose high financial burdens, while unpredictable disruptions like geopolitical instability further inflate expenses. SMEs also encounter trust issues when partnering with larger stakeholders, often struggling to negotiate favorable terms or ensure equitable treatment in shared facilities. These challenges underscore the need for improved financial strategies and stakeholder collaboration [4].

3. Current Challenges in Cross-border E-commerce Supply Chains

3.1. Timeliness Challenges in Logistics

Timeliness in logistics remains a critical challenge in cross-border e-commerce, particularly for SMEs with limited resources. Customs clearance delays, often caused by inconsistent regulations and incomplete documentation, result in unpredictable delivery timelines, increasing risks of lost sales and reduced customer trust [5]. Gaps in transportation infrastructure, such as poor road networks and limited port capacities, exacerbate these difficulties. SMEs heavily dependent on third-party logistics providers frequently face lower prioritization compared to larger competitors, further affecting operational efficiency [5]. Innovations like bonded warehouses and collaborative freight networks have improved delivery speeds but remain inaccessible to SMEs due to high upfront costs and limited access to advanced technologies [6][7]. Addressing these issues requires tailored strategies that enhance timeliness and enable SMEs to compete effectively in global markets.

3.2. Information Asymmetry and Coordination Issues

Information asymmetrical and inadequate coordination among suppliers, platforms, and logistics providers generate inefficiencies in cross-border supply chains, particularly for SMEs. Fragmented systems delay data sharing, causing stockouts and late deliveries. Misaligned stakeholder priorities, such as suppliers emphasizing production efficiency and platforms prioritizing rapid delivery, lead to operational bottlenecks and increased costs [6][7]. Implementing integrated systems and aligning objectives are critical steps toward improving collaboration and ensuring effective operations.

3.3. Regulatory and Policy Barriers

Cross-border businesses face significant challenges in navigating diverse trade regulations. Complexities such as tariffs, taxes, and legal compliance impose substantial costs and operational burdens, particularly for SMEs. High tariffs in developed markets and inconsistent tax systems like VAT and GST require businesses to frequently adjust pricing strategies. Additionally, compliance with varied consumer protection laws and data regulations demands significant resources, including legal expertise and monitoring systems. Integrated strategies, technological adoption, and effective stakeholder collaboration are essential to achieving compliance and maintaining competitiveness [7][8].

4. Strategic Recommendations for Supply Chain Optimization

Businesses in cross-border e-commerce face challenges like logistical inefficiencies and regulatory complexities. To stay competitive, companies must optimize supply chains by leveraging technology, fostering collaboration, and addressing compliance barriers, ensuring smoother operations and stronger performance.

4.1. Overcoming Logistical Bottlenecks

Efficient logistics management is essential for cross-border e-commerce, particularly for SMEs with limited resources and fragmented networks. Several strategies can address logistical challenges:Dynamic Route Optimization: Advanced AI algorithms and live data, including traffic, weather, and port conditions, optimize shipping routes, reducing transit times and operational costs. However, implementing such systems often requires significant capital investment, which may be a barrier for SMEs [5][6].

Localized Warehousing Strategies: Regional warehouse hubs improve delivery efficiency and reduce costs by positioning inventory near high-demand areas. This strategy, while beneficial, involves high upfront investments in land, infrastructure, and operations. Demand miscalculations could also lead to inefficiencies, such as overstocking or underutilized capacity [7]. Collaborative Freight Networks: Partnerships with freight consolidators and cooperative logistics networks enable SMEs to leverage multi-modal transportation and streamline cross-border shipments. These collaborations improve cost efficiency but may create challenges due to unclear contractual terms, potentially causing misaligned expectations or delays [6][8].

4.2. Reducing Supply Chain Costs

Efficient cost management is essential for SMEs in cross-border e-commerce, where high operational expenses present a significant challenge. The following strategies address key cost concerns:

Consolidated Shipments: Combining smaller shipments into larger ones reduces per-unit shipping costs and achieves economies of scale. While this method benefits SMEs with limited budgets, poor planning or mismatched cargo types can cause delays or damage, reducing efficiency [6][7].

Dynamic Pricing Strategies: Flexible pricing models leverage big data analytics to adjust shipping rates based on seasonality, capacity utilization, and demand fluctuations. These strategies optimize cost control and transport asset use but require access to advanced analytics tools, often challenging for SMEs [8].

Energy-Efficient Transportation: Partnering with logistics providers using hybrid vehicles, optimized routes, or intermodal methods reduces transportation costs and supports sustainability. However, adopting these methods involves high initial investments, posing difficulties for SMEs with limited financial resources [9][10].

These strategies highlight practical ways to reduce costs while addressing potential risks like operational delays, mishandled shipments, and high implementation costs for advanced systems.

4.3. Strengthening Collaboration Between Stakeholders

Effective collaboration among stakeholders is critical for reducing inefficiencies and ensuring smooth operations in cross-border e-commerce supply chains. SMEs can adopt the following approaches:

Strategic Partnerships with Logistics Providers: Building long-term relationships with reliable logistics providers enhances efficiency and mitigates operational risks. Data sharing among partners can identify inefficiencies and streamline processes. However, the absence of standardized agreements or performance metrics may cause disputes or misaligned expectations [6][8].

Profit-Sharing Models: Sharing financial incentives among suppliers, logistics providers, and platforms fosters joint accountability and improves performance. For instance, suppliers meeting delivery benchmarks may receive bonuses, promoting trust and cooperation. Nevertheless, this approach could lead to rushed processes that compromise quality or increase risks without sufficient safeguards [9].

Integrated Communication Platforms: Adopting cloud-based systems enables real-time data sharing, improving transparency and coordination across the supply chain. These platforms reduce delays and errors but require significant technical expertise and resources, posing challenges for SMEs [7][8].

While these strategies enhance coordination, SMEs must carefully balance stakeholder relationships to avoid potential risks like unequal decision-making power or disproportionate penalties. Focusing on transparent agreements and aligned incentives can help mitigate these issues and promote long-term success.

4.4. Enhancing Technology Integration

Advanced technologies are critical for overcoming the complexities of cross-border e-commerce. For SMEs, adopting these technologies can reduce operational costs, improve decision-making, and enhance supply chain visibility.

• Blockchain for Transparency: Blockchain provides a decentralized ledger for verifying transactions, reducing fraud risks and improving data accuracy. Real-time tracking builds trust across the supply chain, but high implementation costs and technical expertise remain barriers for SMEs [6].

• Cloud-Based Platforms: Centralized platforms streamline communication among suppliers, distributors, and logistics providers. These systems enhance inventory tracking and enable quicker responses to disruptions. However, SMEs often face financial and technical constraints in adopting such platforms [7].

• AI-Driven Automation: AI simplifies supply chain operations through warehouse automation, route optimization, and predictive analytics, improving efficiency and reducing errors. Nonetheless, the high costs of adoption and the need for skilled personnel challenge accessibility for smaller enterprises [9][10].

Although technologies like blockchain and AI offer efficiency gains, SMEs face challenges related to scalability, cybersecurity risks, and dependence on external expertise, requiring careful planning and resource allocation [7].

4.5. Navigating Regulatory Challenges

Regulatory complexities remain a major challenge in cross-border e-commerce, particularly for SMEs with limited resources to manage diverse global policies:

Leveraging Local Expertise: Partnering with local compliance consultants improves adherence to market-specific regulations, including labeling requirements and import restrictions. However, the associated costs can strain SMEs' budgets [8].

Automation in Compliance: AI-driven tools streamline regulatory processes, reducing errors and saving time. Despite these benefits, high upfront costs often prevent SMEs from adopting these technologies, highlighting the need for affordable solutions [9].

Proactive Monitoring of Policy Changes: Regularly tracking trade agreements, tariffs, and tax policies helps businesses anticipate risks and adjust strategies. Automated systems or trade bulletins can assist with monitoring, though smaller businesses may find these tools resource-intensive without external support [7].

While leveraging local expertise and automated tools reduces compliance risks, the financial burden of implementation may challenge SMEs, emphasizing the need for scalable and affordable solutions.

5. Conclusion

Optimizing cross-border e-commerce supply chains is critical for addressing inefficiencies, high costs, and regulatory challenges, especially for SMEs. Dynamic routing, localized warehousing, and consolidated shipments improve timeliness and cost-efficiency. Strengthened stakeholder collaboration through profit-sharing models and real-time communication platforms enhances operational coordination. Advanced technologies like blockchain and AI, combined with automation tools for regulatory compliance, provide a robust framework for sustainable growth. These solutions equip SMEs to streamline their operations, adapt to market changes, and achieve long-term success in the competitive global marketplace.