The chasm between supply chain planning and its execution is continuing to widen dramatically. The world is changing at such a rapid rate that a supply chain plan is likely obsolete by the time it is deployed.
The pandemic set a new standard for drastic changes to supply chains at short notice, and just as organisations pivoted to deal with these developments, the war in Ukraine then began in 2022. Such is the reliance on global supply chains that this level of disruption saw a significant reduction in grain exports. African counties rely on grain from Ukraine and Russia to support more than 50% of domestic consumption. To add to the global challenge, Britain and countries in the EU are still navigating red tape associated with Brexit.
At a time when supply chain planning is set with ever more diverse and seemingly frequent challenges, the execution expectations are now for sub-second response. As the consumer clicks on item to add it to their basket, they want to know what options they have available, and at what cost to obtain the items, and have that answer immediately.
In addition though, those same end users who also want to reduce the environmental impact of their spending. It’s a combination of pressures that are pushing supply chains to be more dynamic and versatile in their nature, while also containing costs and reducing environmental impact.
Adapting to changing customer demands
More end users want to pick from sustainable delivery options when purchasing online. For example, a survey discovered that 26% of consumers would be more likely to buy from a company if they knew they delivered the item via an electric vehicle. 40% said they would do this because they care about the environment and want to make a sustainable difference.
More consumers are also becoming concerned about the inefficient use of delivery vehicles running largely empty, and travelling inefficient paths to each destination. Concerningly, it’s not unusual for multiple deliveries to be made to the same address on the same day. Businesses need to adopt an agile approach that places consumer expectations at the forefront and pivot to deal with the ever-evolving supply situation as macro factors continue to wreak havoc with little notice.
There are a few practical solutions that businesses can implement to deal with these challenges. For example, real time consolidation of orders can reduce the number of individual trips to single addresses. Click-and-collect order fulfilment options can put the convenience in the hands of consumers to pick up items when it suits them, perhaps when they are travelling already for another reason. To make these options a possibility, organisations need technology that offers real-time solutions via a web-based and intuitive platform.
Technology provides the answer
Businesses that are aiming to further their growth strategies in the midst of an increasingly complex environment need transparency across their entire supply chain. As those companies look to expand their channels to market, through owned websites, marketplaces, drop ship arrangements, the growing complexity leads to further synchronisation challenges.
Distributed Order management software provides this visibility. As orders come in through from the various touch points, all pockets of inventory through the business can be assessed in real time against those orders. The impact is an organsiation-wide optimisation of order to inventory matching, meaning stock in retail stores, dark stores, distribution centres or and even partner locations, can be considered as a potential fulfilment source. By taking a network-wide perspective, a range of strategies may be exercised, from flushing inventory from stores at end of season, through to lowest cost fulfilment options for non-urgent orders.
With inflation driving up prices and putting strain on business budgets, organisations are looking to optimise all areas of logistics cost. A modern Warehouse Management System (WMS) can enable businesses to make use of Cartonisation technology to recommend the minimum size packaging to safely carry the customer’s single or multi-product order. Space is then used efficiently and shipping costs are kept to a minimum.
Putting the power in the hands of brands as uncertainty continues
Brands are understandably focused on battling the range of supply chain challenges that continue to threaten operations. Needing to expect the unexpected has, after all, become the norm as one major disruption follows the next. It doesn’t mean however that companies can take their eye off the ball when it comes to changing consumer habits, namely the need to be engaged and maintain influence on the strategies made by organisations in the name of sustainability.
Businesses today can leverage technology solutions to facilitate more flexible delivery options and provide a range of choices to consumers as they adopt new attitudes to their online purchases. With the right technology implemented, Brands can gain full transparency of their supply chain operations across all partners, locations and stores, with the ability to be agile and responsive as changes quickly materialise.
