SUPPLY CHAIN
The pandemic exposed a major fault in supply chains : a lack of agility . Today , dynamic supply chains able to match supply to demand are vitally important . But how is agility achieved through inventory management ? Dove feels an agile inventory strategy is possible only when there is close partnership between retailers and their suppliers . An example of this is the way
“ Retailers can no longer use the past as the best explanation of the future ”
MIGUEL DUARTE CONSUMER HEALTH LEADER , EY
Microsoft works in tandem with its retailers on sales-inventory strategy for its Xbox .
Microsoft gives point-of-sale data from its biggest customers to retailers , who then combine this with their knowledge of what ' s on shelf , what ' s back of house and what ' s inbound . This combined data allows retailers to use algorithms to predict what will sell , and they are even able to legislate for ecosystem factors , such as weather .
“ Demand is dynamic and changes constantly , and so communication between retailer and supplier allows them to be in sync , and to minimise costs and maximise availability ,” says Dove .
Duarte agrees that advanced consumer analytics can drive agility , but only if - like Microsoft - retailers “ put behaviors , processes , technologies , data banks and algorithms in place that can make those capabilities a reality ”.
So far , we ’ ve explored the immediate and near-term challenges being faced by retail inventory managers . But what of the future ? What might that hold ?
“ Omnichannel ,” says Duarte , without hesitation . “ Consumers will navigate shopping in a seamless way on interconnected channels ,” he says . “ They will be able to make real-time decisions according to their needs and convenience .”
He explains that retailers must be ready to provide all manner of information – quantity ,
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