What the Future Holds for Retail Supply Chain Logistics?
Retail Tech Insights | Thursday, February 08, 2024
To achieve future success, innovation must move faster than ever, and connectivity among all stakeholders is crucial.
FREMONT, CA: Over the past few years, the retail industry has learned some valuable lessons about supply chain logistics and how to resolve related problems. Although everyone in the industry has been affected by supply challenges, Private Brand manufacturers have been hit particularly hard due to their nuanced regionality and smaller scale in the CPG space. Short-term solutions have been used to deal with day-to-day challenges, but they have only been reactive measures to fix a much larger issue - the need for the supply chain to evolve. To achieve future success, innovation must move faster than ever, and connectivity among all stakeholders is crucial. Two elements that are highly influential to future success are technology and interconnected partnerships.
Taking advantage of technological advancements:
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The advancements in technology and systems have not progressed as rapidly as in other industries across many sectors, which may come as a surprise to some retailers. Placing purchase orders followed by scheduling the pickup and delivery of finished goods are largely manual processes for many companies. Even though we have moved beyond handwritten purchase orders, retail has a long way to go to become technologically efficient. Human intervention is inevitable in the absence of shared systems between stakeholders and logistics teams, which increases the likelihood of costly production errors.
As a solution carried through to on-demand inventory available to consumers, technology that creates integrated communication between suppliers, manufacturers, retailers, and shippers can benefit many processes, including forecasting, order tracking, and check-in or receiving. In addition to generating efficiencies, digitization streamlines communication and reduces errors. Through the use of innovative technologies to automate processes further, organizations also gain access to a wealth of data that can be collected and integrated to facilitate decision-making and problem-solving, resulting in invaluable benefits for both stakeholders and the end consumer in the supply chain.
Partnerships with interconnections: While interconnected platforms will go a long way towards automating processes, connectivity, and communication are just as important components of supply chain evolution. Often, supply chains do themselves a disservice by not working together as key partners to make better decisions and solve problems. Currently, only two of the three primary stakeholders in the retail supply chain - carriers, retailers, and manufacturers - are linked. Ideally, all three stakeholders need to align and work together seamlessly in a triangle of data exchange, problem-solving, and collaboration in order to reap the most benefits.
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