Retailers ‘ don ’ t plan around supply chain kinks ’
SUPPLY CHAIN
Retailers ‘ don ’ t plan around supply chain kinks ’
Last year , many multinational retailers faced an unprecedented glut of inventory , most notably Nike . Part of the problem is that retailers are adept at planning for recession , but are not so great at doing so for kinks in the supply chain . The average recession is 10 to 12 months long , and retail CEOs are planning for economic uncertainty ; they ’ re planning for this economic risk factor .
“ But they are less likely to plan for supply chain imbalances , and take proactive steps to de-risk their supply chains .
Alla Valente , Senior Analyst at global market research firm , Forrester , agrees retailers need “ to do a better job at planning for the correct levels of demand ”.
“ If retailers want to restore supply chain to its former healthy state they need to consider unplanned events ,” she said . “ For example , how much longer will the war in Ukraine last ?
“ And what about climate chaos in certain parts of the world ? How might this impact suppliers in high-risk areas ?
“ Then there ’ s record inflation . How much further is it going to peak , and how is that going to impact companies that are suppliers or maybe suppliers of your suppliers ?”
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