With 2023 in full swing, it is time for supply chain leaders to reflect on the success and difficulties encountered during the 2022 retail ‘Golden Quarter’. Below freezing temperatures, unique product shortages, and a lack of seasonal workers sparked supply chain disruption across Europe during this key retail period. From the UK’s egg shortage to France and Germany’s lack of medication for children, 2022 highlighted new and hard to predict challenges across retail and other industries.
Moving forward, retail organisations should see this disruption as an opportunity to make impactful changes, ensuring they have the capabilities to quickly adapt to fluctuating customer demands. Having the right stock available to keep customers on side, particularly during peak sales periods when demand for certain items is heightened, depends on end-to-end visibility and effective inventory management.
So, how can retail supply chain leaders conquer the next seasonal surge? Organisations can look to technology to mitigate supply chain challenges in 2023. Having visibility across all customer channels, coupled with the ability to plan inventory placement effectively, collaborate with suppliers quickly, and be primed to move inventory whenever and wherever is necessary will be essential to keep customers from looking elsewhere.
Gaining a clear view across channels
Customer journeys are no longer linear, incorporating a wide variety of channels – and organisations’ strategies should follow suit. For instance compared with 2021’s festive season, almost 20% more shoppers hit British high streets, and there was a 56% increase in fashion sales in Germany in the week running up to Christmas. Visibility is key to prepare for these seasonal peaks in demand.
A single, 360-degree view of demand across retail, distribution, and online activity will prove vital to meet ever-evolving customer requirements. Integrated real-time supplier data will enable supply chain leaders to develop a cohesive channel approach and keep operations lean, with resource assigned to exactly where it is needed. This omnichannel visibility is just as important to the customer as the retail organisations, enabling them to more effectively plan and control stock based on this data.
More effective stock planning
Customers tend to lean towards favored suppliers or brands with which they have built a good relationship, however, when surges in demand create unexpected shortages of products or parts, customers are forced to look elsewhere.
The days of relying purely on historical forecasting are over. Experience won’t account for all forward planning, and supply chain leaders need real-time insight to effectively gauge demand. For instance, what story does point of sale level data from retailers tell? Which parts or products are necessary to address short-term gaps in stock and where? Often the stock is readily available, but in the wrong place, so visibility of delivery capacity and all locations’ stock levels are vital.
To keep customers onside, supply chain leaders can use a combination of historical information, real-time data, and demand sensing technologies to plan how much stock is needed, right down to sizing, style, and color, and where to keep it. In short, these technologies will enable more effective short-term stock movement, as well as provide more accurate predictions on long-term demand, enabling retailers to better serve customers and reduce excess stock and inventory.
Working closely with local and cross-border suppliers
It’s not just relationships with customers that require focus – connections with suppliers are just as important. Many retail organisations don’t deal with just one tier of supplier to serve customer demands. The process of product delivery includes a complex structure of various stakeholders to orchestrate manufacturing and distribution, all with their own large data sets. The larger the data network, the more effectively organisations can prepare for seasonal surges in stock demand, armed with the information they need to power enhanced decision-making.
Supply chain technologies can enable enhanced collaboration with suppliers through the exchange of real-time information, ultimately helping business leaders to better manage costs and gain an advantage over competitors. For example, enhanced communication capabilities will enable retail supply chain leaders to share stock forecasts with suppliers in real time, minimising waste and maximising profit.
Additionally, effective use of supply chain technologies can allow for increased, faster, and compliant cross-border trade. Retail supply chain leaders can automatically plan for different variables, including the local logistics needs of fresh produce or temperature and time-sensitive products, as well as the necessary paperwork to move goods across borders smoothly.
Only with total visibility and effective communication can retailers adapt to the multitude of moving parts with their supply network and quickly identify which components need immediate attention.
Adaptability in 2023
In a world where disruption is inevitable, organisations can no longer afford to be disconnected and work with isolated processes, functions, and channels. Orchestrating all supplier ecosystems will empower retailer organisations to make data-anchored decisions that optimise the customer experience through every route to market while maximizing overall margin.
To conquer ever-evolving customer demands, end-to-end visibility of your supply chain is vital for adaptability and resiliency. Whether goods are in the distribution centre, on store shelves, in different regional warehouses, or still in production, a granular level of visibility allows all parties to monitor real-time demand and adapt accordingly. To navigate disruption and plan for seasonal peaks effectively through 2023, visibility will be the enabler.
