When it comes to supply chain analysis and the future of retail, the success of supply chains will largely depend on their ability to evolve. A 2016 KPMG report detailed the importance of a demand-driven supply chain for businesses who wanted to survive.
While retailers are aware of the need to evolve to keep up with the likes of Amazon and Alibaba, it’s not always clear where to start. The best means of driving customer satisfaction and loyalty remain woefully mismanaged. Supply chain analysis and the future or retail are closely intertwined.
Here’s how to leverage that knowledge as you go forward.
Multichannel Consumption Drives Multichannel Supply Chains
Demand sparks the need for enterprises to move towards a multichannel supply chain. It’s important that enterprises match their supply chains to this demand and while there are some industries that can survive with monolines, consumers are driving multichannel purchases.
Supply chains will need to adapt to these needs in order to remain relevant. Simply relying on foot traffic to sell goods can open the business up to online competitors or retails that provide omnichannel options — and vice versa.
Speed And Convenience
Overnight and express delivery are key driving forces behind consumer demand. With larger companies meeting this demand through their well-oiled distribution channels, small to medium-sized enterprises might not have the capability to ship in such a short timeframe.
Through supply chain analysis, businesses will have greater insight into areas that can improve both speed and convenience. This could lead to roping in the help of outside fulfillment or tightening internal processes.
The Digital Demand And Response
The digitization of the supply chain is about more than a simplified process from production through to fulfillment. While it offers the opportunity for industries to handle a number of flows, it also enhances user experience.
Consumers not only have access to the products online but can also track their product delivery status through intuitive apps. The future of supply chain management will depend on an enterprise’s ability to adapt to the user demand of that particular era.
Currently, this means embracing the technological advancements of mobile devices and the ease with which consumers can now perform product research online. An end-to-end digital platform is required for modern businesses.
Ever-Evolving Supply Chain
Whether the business is an eCommerce behemoth, mom-and-pop shop up the street or a mega-factory, the supply chain evolution will determine the efficacy of fulfillment. Proper supply chain analysis will highlight gaps in the process, especially for businesses that are unable to meet the speed and convenience parts demands of modern supply chains. Think industries such as specialty products that are made to order or businesses that need to ship to outlying areas.
The awareness of supply chain analysis and the future of retail will allow businesses to harness all the tools at their disposal for the ideal supply chain for their business. The digitization and demand for multichannel purchases will drive a technological response to the supply chain. It’s also important that businesses remain flexible enough to embrace changes on an ongoing basis, thanks to the ever-evolving nature of the supply chain.
In this regard, data holds the key to unlocking the full potential of your operations. A supply chain analysis allows employees and leaders across an organization to derive the insights they need to make decisions.
This, in turn, affects revenue-driving change.