SUPPLY CHAIN retailers and customers – and that “ rapidly changing circumstances and fluctuating demand are continuing to take their toll on global supply chains ”.
It ’ s not just uncertainty and disruption that have created difficulties for retailers . Challenges have also come from the shift away from a multichannel consumption model towards omnichannel .
Dorato says digitalisation is the key not only to helping retailers navigate difficult times , but also to “ putting themselves at the heart of growth by attracting more of today ’ s increasingly tech-savvy consumer base ”. She adds : “ Retailers need to ensure that both bricks-and-mortar and online customers get the seamless experiences they crave . That means being able to buy what they want , when they want it , without being exposed to the supply chain chaos that has frustrated the industry for much of the past two years .”
She explains that this is why retailers are reducing on-hand inventory and placing smaller , more frequent orders with shorter delivery times , to avoid being left with surplus stock . But she adds that such a strategy comes with risk , because “ if they ’ re unable to match inventory to customer demand , revenue is put at risk ”.
“ A big blind spot for retailers is connecting store-assortment decisions to demand activity near the store ”
NIKKI BAIRD VP STRATEGY , APTOS
Technology crucial to navigating supply disruption “ This is why technology is becoming ever more critical to navigating disruption , as retailers look to optimise their supply chains through data-driven decision-making and capabilities such as predictive analytics ,” Dorato explains . She adds that many retailers are also investing in automation to ease the challenges of operating as a lowmargin business .
“ Automation can bring significant benefits throughout the supply chain , from fulfilment to check-out ,” she says . “ It helps retailers maintain competitive pricing , while still increasing their profit .
“ Retailers need real-time visibility into customer demand as it ebbs and flows
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