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Quickly-growing ecommerce businesses often reach a point where they need someone dedicated to overseeing the strategy of all departments within their organization. Companies with complex logistics needs can particularly benefit from the leadership of a VP of Operations.

This article explains what a VP of Operations does, how to know when to hire one, what qualities to look for in candidates, and a sample VP of Operations job description you can use to kickstart the search process.

What Does a VP of Operations Do?

A Vice President of Operations (VP of Operations) is a senior executive responsible for overseeing the day-to-day operations and managerial activities within an organization. This person will typically report directly to the Chief Executive Officer (CEO) or Chief Operating Officer (COO). 

At a growing ecommerce company, the VP of Operations orchestrates the overall efficiency of the supply chain, logistics, and warehouse management to ensure that the operational infrastructure can scale with the company's expansion. This role involves strategic planning, process optimization, and cross-departmental collaboration to support sustained growth and meet evolving market demands efficiently. Common day-to-day work includes negotiating with vendors, managing warehouse operations, overseeing order fulfillment, and developing a shipping strategy. 

Core Responsibilities and Job Description for VP of Operations

The responsibilities of a VP of Operations may vary depending on the size, nature, and industry of their organization. However, the main purpose of this role is to implement operations strategy initiatives alongside other members of the operations management team. 

Supply Chain Management: A VP of Operations in ecommerce manages and optimizes multiple parts of their organization's supply chain, including inventory management, procurement, logistics, and distribution processes. 

Strategic Planning: A VP of Operations works closely with the CEO and other senior executive positions to develop long-term business strategies and goals. They analyze market trends, identify areas for improvement, and develop and implement plans to drive process improvement.

Operational Management: This role involves managing staff members, implementing standard operating procedures, and monitoring supply chain KPIs to identify bottlenecks in team workflows. 

Budgeting & Financial Management: A VP of Operations is responsible for creating annual budgets, monitoring expenses, and identifying cost-saving opportunities. They work closely with the finance department to ensure that financial goals are met.

Team Leadership & Development: Human resources departments turn to the VP of Operations to lead and develop teams of staff. Their responsibilities within this specific area include interviewing and hiring staff members, training new hires, setting performance goals, and reviewing employee performance.

Compliance & Risk Management: A VP of Operations ensures that operational activities comply with relevant legal and regulatory frameworks. They take the lead in managing risks related to supply chain disruptions, cybersecurity threats, and data privacy laws to maintain the operational integrity of the business as it expands.

Technology Integration: A VP of Operations oversees the deployment and functionality of their organization’s enterprise resource planning (ERP) systems, customer relationship management (CRM) tools, and ecommerce platforms. 

VP of Operations vs. Supply Chain Manager vs. Logistics Manager

The roles of VP of Operations, Logistics Manager, and Supply Chain Manager are often confused or even equated with each other for their similar responsibilities. Although these three positions satisfy the same primary objective of ensuring organizational efficiency, they require unique skills and experience and also deliver different benefits to the company.

Supply Chain Manager

A supply chain manager generally focuses on the execution of procurement, manufacturing, and distribution on a large scale. As the title suggests, this role is responsible for managing and improving all aspects of the supply chain to ensure timely delivery of goods or services. The job requires strong attention to detail, analytical skills, and the ability to troubleshoot any issues that may arise in the supply chain process. This role is important for growing companies facing complex supply chain challenges that require specialized management of vendor relationships and streamlined production processes.

Logistics Manager

Logistics managers oversee the end of the supply chain, focusing primarily on distribution and fulfillment. Their everyday responsibilities include coordinating shipping and warehousing, as well as managing product inventory and shipping logistics. They also manage relationships with third-party vendors and carriers, negotiate contracts, and optimize transportation routes to reduce costs. Logistics Managers ensure that the storage and delivery of goods are conducted efficiently, safely, and cost-effectively. Your business might want to hire a Logistics Manager when operational efficiency in fulfillment becomes a bottleneck to growth or when customer satisfaction scores need improvement due to logistics issues.

VP of Operations

VP of Operations is an executive title that often involves much more cross-collaboration with company leaders than the aforementioned roles of supply chain manager and logistics manager. While all of these individuals possess decision-making power, a VP of Operations executes strategies on an organizational level, often alongside a CEO or COO. 

This position calls for both strong leadership skills and a strong understanding of the company’s objectives and vision. VP of Operations is the right role to establish when you need more than logistical expertise alone. Its job responsibilities cover important aspects of supply chain performance but also extend to greater company-wide objectives. Professionals with the right qualities and experience can manage supply chain and logistics functions while contributing to overall business growth.

Hiring a VP of Operations should be considered when an ecommerce company is scaling its operations and becomes more complex, as they can strategize to improve efficiency and ensure that operational capabilities support the company’s overall strategic objectives.

How Your Business Can Benefit from a VP of Operations

Here are a few explicit examples of the benefits a VP of Operations can bring to your business:

Streamlined Supply Chain Management

A VP of Operations has the expertise to identify inefficiencies and implement solutions that can reduce costs, increase efficiency, and improve reliability in your fulfillment center or warehouse. They are also instrumental in adapting to and implementing new technologies or systems within the supply chain, keeping pace with industry advancements. The secondary benefits of streamlined supply chain management, such as improved customer satisfaction and faster order fulfillment, are invaluable in an ecommerce landscape as competitive as today's.

Confident Planning and Decision Making

A VP of Operations uses their experience and data analysis skills, using tools like predictive analytics or ERP systems, to identify trends, anticipate market changes, and make informed decisions that align with larger goals. A deep understanding of operational strategies enables them to confidently structure plans that ensure your business is well-equipped to tackle any challenges or capitalize on new opportunities.

Cross-Functional Collaboration

A VP of Operations works to improve collaboration across different departments within your company. They set clear goals and performance metrics that align with the company's overarching objectives and ensure that all teams are working together effectively. Regular meetings with departments like Marketing, Sales, and IT can align everyone in the company to work more efficiently toward business goals. They can also introduce common platforms and project management tools to streamline processes and enhance organizational communication. 

Within a growing ecommerce company, a VP of Operations can organize teams across departments for specific projects, bringing together varied skills to solve complex problems, such as optimizing supply chain efficiency and ensuring each department can keep up with increased demand. These efforts can make a company’s operations more efficient and boost its ability to innovate and compete in a tough market.

Risk Management

VPs of Operations are skilled at identifying potential risks, including compliance, operational, and strategic risks. This can include machine failure or labor disruptions (operational risks), regulatory non-compliance or data breaches (compliance risks), and market shifts or competitive threats (strategic risks). They implement contingency plans to maintain a smooth flow of operations, which is crucial for ecommerce businesses in the face of unexpected challenges, such as supply chain disruptions or cyber attacks.

Effective Resource Management

Whether it's personnel, equipment, or budget, a VP of Operations has the skills to effectively manage and optimize your business's resources. They implement continuous improvement processes to reduce waste, increase productivity, and improve overall performance. 

Stakeholder Engagement

A VP of Operations is usually the organization’s main point of contact with external stakeholders like suppliers, regulatory agencies, and industry partners. Communication and engagement in everything from contract negotiation to compliance are imperative to ongoingly meeting the expectations of these parties.

When to Hire a VP of Operations

Hiring a VP of Operations can bring a lot of value to an ecommerce business, but hiring for an executive position too soon might not be the best use of resources. So how do you know if your company is ready to hire for this role?

Growth is usually the main factor behind a company's decision to hire for this role. Rapid expansion creates additional work in the way of logistics, supply chain management, and overall operational efficiency. With that expansion comes the need for a dedicated leader to oversee and optimize these important aspects of a business. If you find yourself struggling to keep up with the demands of growth and your current management team is stretched thin, it may be time to consider hiring a VP of Operations.

Another factor to consider is the complexity and size of your business operations. As a company grows, operations tend to become more complex and require someone dedicated to overseeing the entire strategy to manage effectively. A VP of Operations’ ability to streamline processes, implement systems, and improve efficiency is invaluable in this regard. They can also bring fresh perspectives on how to best handle the growing demands of your business.

When making the decision to hire, businesses should assess their current operational challenges. Broad and complex circumstances often warrant the full-time attention of a VP of Operations. Growth trajectory is another important thing to consider, as expansion into new markets requires enough bandwidth to sustain existing operations while planning new endeavors. In some cases, a team’s limited capacity is enough of a sign to hire a dedicated leader. 

However, a VP of Operations isn’t the only option. Hiring a Logistics Manager or Supply Chain Manager might be more appropriate if the primary challenges or opportunities for improvement are specifically centered on logistics or supply chain issues. These managers are ideal for focusing on specific areas such as shipping, distribution, warehousing, procurement, inventory management, and supplier relations, especially in the earlier stages of business growth or when operations are on a smaller scale, and may provide a more cost-effective solution without the broader strategic responsibilities of a VP of Operations.

Some businesses opt to outsource the complexities of logistics altogether by partnering with a third-party logistics (3PL) company. Partnering with a 3PL provider comes with several benefits, including saving on shipping costs, faster fulfillment times, and access to industry-leading processes and tools, without having to build out another internal role in your company. 

Tips for Hiring a VP of Operations

Now that we've established some situations where hiring a VP of Operations may be necessary, let's discuss how to select the right candidate for the role. These tips and best practices will help ensure your recruitment process is a successful one:

Look for a Background In Ecommerce

While no two ecommerce companies are the same, all can benefit from hiring a VP of Operations who’s worked in their industry before. Organizational operations look different depending on the business, market, and customer base at hand. Ecommerce comes with a particular set of considerations such as inventory management, order fulfillment, and customer service.

For instance, many businesses sell products on more than one ecommerce platform and therefore use systems designed to integrate between them. A VP of Operations with experience in ecommerce will have familiarity with these complexities and may already know how to improve operations within this environment.

Decide What Specific Skills and Expertise You Need

Every business is different, and can therefore benefit by seeking out a VP of Operations with skills and expertise relevant to their needs. For example, if your company is expanding into international markets, a VP of Operations with a proven track record of success in global operations management would bring invaluable experience to the table. Or if your supply chain is heavily reliant on technology, a candidate with a strong background in supply chain software and systems would have an easier time getting up to speed with internal workflows. Additional certifications or advanced degrees in supply chain management, logistics, or operations can also be valuable assets.

Determine Years of Experience Required

The number of years of experience required for your VP of Operations will depend on multiple factors, including the size of your business, the complexity of its operations, and the salary budget you have to work with. However, it's important to remember that the right candidate doesn't necessarily need decades of experience in a VP role specifically – they may have years of experience in other operational roles or leadership positions that translate well to the VP role. It’s best to establish a target range that safely includes your ideal length of experience but also keeps the door open to other potentially viable candidates. 

Use a VP of Operations Job Description That Clearly Defines What You're Looking For

The key to attracting the right candidates lies in the clarity of your job description. More than just an explanation of responsibilities and requirements, job descriptions have a big influence on how candidates perceive your company and the role itself. They can even impact the discoverability of your listing. Most job sites use keywords to match job descriptions with relevant candidates, so the language it’s written in is critical.

VP of Operations Job Description Sample Template

If you’re looking for a basic VP of operations job description to start with, download our free and fully-customizable template.

VP of Operations Job Description Template Download

It can take some time to hire a VP of Operations, but the work is more than worthwhile for the value it can bring to a quickly-growing ecommerce operation. With the right candidate in place, long-term success and scalable growth are easier to achieve.

Another option for achieving long-term success while scaling your business is to partner with a trustworthy Third Party Logistics provider like ºÚ°µ±¬ÁÏÍø. Working with our fulfillment experts means having access to VP of Operations-level expertise and so much more. Our advanced inventory management software, strategic warehouse locations, and dedicated on-site Account Managers keep your fulfillment process running like a well-oiled machine. Take the first step in establishing stress-free operations by reaching out to a member of our team today.