1、Brightpearl 2022.All rights reserved.1Book a DemoFollow us on LinkedinFollow us on FacebookBRIGHTPEARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain Crisis10 Steps to Boosting Cash Flow During The Supply Chain CrisisYour guide to optimizing cash flow and staying in control during this

2、 challenging timeGUIDEBrightpearl 2022.All rights reserved.2Book a DemoFollow us on LinkedinFollow us on FacebookBRIGHTPEARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain Crisis10 Steps to Boosting Cash Flow During The Supply Chain CrisisGlobal shortages,surging e-commerce demand and

3、the small matter of a global pandemic have caused supply chains to crumble causing operational chaos for online retailers everywhere.The latest research by Brightpearl paints a scary picture of the ongoing supply chain crisis,with 85%of UK retailers,and 80%in the US,having been impacted in the last

4、12 months.The crisis has added 21%to retailers costs over the last year and 58%have put up prices as a result.Nearly half(46%)of shops and e-commerce brands have experienced stockouts,resulting in a loss of sales and certain sectors have been particularly badly affected,such as luxury goods with 92%

5、of firms impacted.In fact,supply chain issues are now the number one threat to the survival of retail businesses in both the UK and USA.Many are just weeks away from a cash flow emergency thanks to issues like frequent stockouts,product shortages and rising shipping costs.2Brightpearl 2022.All right

6、s reserved.10 Steps to Boosting Cash Flow During The Supply Chain Crisis4 Weeks From Disaster Brightpearls research reveals that retailers in the UK and US are dangerously close to going bust as a direct result of supply chain issues.A quarter(26%)of UK brands are just four weeks away from supply ch

7、ain issues causing crisis point issues with cash flow.A third(31%)of US brands are eight weeks away folding under the pressure of supply chain issues.Urgent action is needed if e-commerce brands want to weather the storm(and still be able to grow).Follow these 10 steps to streamline your processes,o

8、ptimize your cash flow and stay in control.Brightpearl 2022.All rights reserved.3Book a DemoFollow us on LinkedinFollow us on FacebookBRIGHTPEARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain Crisis1.Analyze your data The supply chain crisis has brought with it huge uncertainty,which

9、has cranked up the pressure on merchants to make the right decisions at the right time.Merchants now need real-time,advanced data at their fingertips.With the right data,you can make smarter,faster decisions about everything from which new channels you should add to boost profit,to which new items y

10、ou should invest in.In these uncertain times,data removes any guesswork and will help you make speedy,confident decisions about the best next steps.Wondering which data to focus on?Try these:Channel performance.Assess which of your sales channels are doing well,and which need some attention.Product

11、performance.Carefully analyze which items are selling well,and which are slow movers.Pay close attention to trending products which demand is increasing for these can be a game changer for cash flow.Seasonal fluctuations.Compare your historic data to understand the impact of promotions and seasonal

12、peaks on the revenue coming into the business.Customer feedback.Stay on top of your reviews and feedback via social media it provides valuable insights on the areas you can improve in order to keep sales steady.Marketing results.Go further than taking an occasional glance at your ROAS(Return On Ad S

13、pend).Take the time to work out if your marketing budget is being spent on the right things-and how you could make your investment have a more immediate impact on cash flow.310 Steps to Boosting Cash Flow During The Supply Chain CrisisBrightpearl 2022.All rights reserved.4Book a DemoFollow us on Lin

14、kedinFollow us on FacebookBRIGHTPEARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain CrisisStockouts,shortages and delays are a major threat for retailers and they have a serious impact on cash flow.The trouble is,the ongoing supply chain crisis makes avoiding them a seri-ous challenge

15、.Almost half of shops and e-commerce brands(46%in the UK,52%in the US)have experienced stockouts in the last year,resulting in a loss of sales,while up to 68%of brands have struggled due to a shortage of goods(68%).The issue has a huge knock-on effect on con-sumers;the average American was let down

16、four times when shopping online last peak season and a quarter(26%)of Brits have annoyingly discovered a product is sold out or unavailable when they came to order online.Its even eroding shoppers brand loyalty,with 37%of UK shoppers reporting they bought from a new brand in the last year because an

17、 item was out-of-stock at their regular supplier.Why use demand forecasting?The best demand forecasting software enables retailers to regain control on supply by making intelligent and accurate suggestions on when to order products,how much to order and how to make stocks last between shipments.By c

18、onnecting sales data,supplier timescales and factors such as seasonality and promotions,merchants can strike the delicate balance of avoiding running out of the most profitable items and avoiding having warehouses packed with inventory that cant be shifted.Armed with accurate inventory forecasts,ret

19、ailers can focus,if necessary,on replenishing the most successful items to keep cash flow steady and to avoid upsetting customers.Heres what Brightpearl customers say about the power of forecasting demand“Being able to accurately forecast our stock needs using Brightpearls Inventory Planner Premium

20、has been a huge help for us we no longer have to spend hours on spreadsheets!”Alvaro Gomis,Co-founder,Jimmy Lion“The data Brightpearls Inventory Planner Premium has generated for us has been everything,absolutely everything.We couldnt have managed the pandemic and achieved such growth without it.”Ja

21、mes Ewens,Head of E-Commerce,FurnitureBox“The Inventory Planner Premium has been phenomenal for us.It factors in seasonality so that we can look at the data and instantly say ok,we need to order 100,000 of that item,not 10,000 otherwise were going to run out in two months”Trevor Martin,Vice Presiden

22、t Operations,Snow42:Accurately predict demandNext-level demand10 Steps to Boosting Cash Flow During The Supply Chain CrisisBrightpearl 2022.All rights reserved.5Book a DemoFollow us on LinkedinFollow us on FacebookBRIGHTPEARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain CrisisWith co

23、ntainer costs up by around 600%,its time for retailers to get smart about the way they use this method of shipping stock.Containers are shipped at a fixed price for the space(and sometimes according to weight).This means merchants can save a ton of cash by calculating ex-actly how much of each produ

24、ct to buy in order to fill every last square inch of space in each container.Unless you happen to have a degree in physics and lots of spare time,working that out on pen and paper isnt an option.But it is possible with the right inventory demand planning software.Simply enter the weight and/or dimen

25、sions of items to optimize shipping container usage in just a couple of clicks.You can even place a PO directly from the software-sav-ing even more time and hassle.3:Optimize container usage510 Steps to Boosting Cash Flow During The Supply Chain Crisis4:Avoid stop-gap solutionsAccording to our resea

26、rch,worrying numbers of retailers are turning to stop-gap ways to survive the supply chain crisis.For instance,51%of US brands are putting up their prices due to supply chain issues.In the UK,40%are extending delivery timescales,one in three(29%)are taking a hit on profits to keep prices competitive

27、 and 17%are reducing marketing spend.Though these choices might mitigate problems in the short term,choosing them runs the risk of punishing or even driving away customers especially those in younger demographics,which are particularly comfortable with shopping around to get what they want at a pric

28、e they like.Instead,there is cutting-edge tech available that can enable brands like yours to stay competitive while automating and streamlining operations eliminating the need to take a hit on your bottom line.Brightpearl 2022.All rights reserved.6Book a DemoFollow us on LinkedinFollow us on Facebo

29、okBRIGHTPEARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain Crisis5:Stay on top of your suppliersAt least 40%of brands in the UK and US have reported being impacted by rising prices of raw materials and longer lead times.Theres now no excuse for getting stuck in a rut with the same su

30、ppliers youve always used,simply because its more comforta-ble that way.You need to actively monitor your suppliers fees and performance and be ready to switch things up if needed.Take a closer look at how much you pay for shipments and factor in the current lead time.Analyze whether or not supplier

31、s are meeting their targets and your standards.This will help you work out the cost effectiveness of each provider.Sounds complicated?Invest in a leading operations software(ROS)that can do this for you.Its a small but fundamental step that can help stabilize your supply chain and save costs.6:Ditch

32、 the just in time approachA shortage of goods has impacted 67%of businesses in the last 12 months,with longer lead times hitting at least 42%.Brands must consider how long it takes to convert inventory into cash and whether it still makes sense to use a just in time approach to placing inventory ord

33、ers(spoiler alert:it probably doesnt,at least for certain products).If your cash is tied up for more days in inventory and raw materials than in days to collect on sales,you need to switch up your oper-ations to speed up the conversion of inventory into cash.A good inventory planning system will mak

34、e this simple and stress-free.7:Boost productivityTime is money and the chances are,youre wasting yours on tedious post-purchase tasks that could easily be automated to optimize cash flow and make your supply chain more efficient.From placing POs to processing invoices,almost every manual task withi

35、n your business can be automated using the right op-erating system.Automation doesnt just reduce errors,save time and cut costs;it boosts productivity by freeing up your team to fo-cus on more important,business-critical tasks(like your strategy for growth or your expansion plans).It also speeds up

36、workflows and makes supply chain processes smoother,while increasing data accuracy.With more accuracy and fewer errors,you save on costs and immediately boost cash flow.And with a reduced need for human labour for manual tasks,resources can be re-directed to help generate a higher ROI and scale your

37、 business.The right Retail Operating System should make it easy to set up powerful automation rules in just a few clicks-and certainty with-out any coding.3 ways to use automation to streamline your supply chain Automate tedious tasksThe power of automation can be used to dramatically improve your p

38、ost-purchase workflows mitigating the impact of the supply chain crisis by ensuring team members are focussed on generating a higher ROI and scaling your business,rather than wasting their time on simple tasks that dont require human input.From invoicing to dropshipping,there are simple but powerful

39、 automation rules every business can use to save time,optimize cash flow and boost efficiency.Automate order fulfillmentWhen there are supply chain delays that are out of your control,its even more important to ensure orders are fulfilled quickly.Set up an automation rule to fulfill and prioritize o

40、rders based on conditions including stock allocation status,payment status,and sales channel.Automate commsIf the supply chain crisis is causing delays to orders,customers deserve(and want)to know about it.Set up an automation rule so that an apologetic and explanatory email is sent to customers for

41、 orders that havent been dispatched within a certain time frame.Its a small detail that can make a big difference.At least 40%of brands in the UK and US have reported being impacted by rising prices of raw materials and longer lead times.610 Steps to Boosting Cash Flow During The Supply Chain Crisis

42、Brightpearl 2022.All rights reserved.7Book a DemoFollow us on LinkedinFollow us on FacebookBRIGHTPEARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain Crisis8:Rethink shippingDid you know Amazon can ship to 72%of the US population in just one day?That presents other retailers with a ser

43、ious challenge especially when shipping is already costing so much more(and everything else in the supply chain is taking longer).To compete,retailers must remove as much inefficiency from their shipping processes as possible.Once again,automation holds the key.Taking care of the shipping process ma

44、nually is inefficient and hurts your bottom line,revenues,and sales.If you are shipping large volumes,doing it manually is madness and can even hinder your ability to grow as you limit your ability to handle increased sales.A dedicated Retail Operating System can automate shipping so that,as orders

45、are placed,pick,pack and ship workflows including choosing the best shipping provider,sending invoices and printing labels are triggered automatically.An automated shipping process can even enable a brand to benefit from dropshipping and the use of 3PLs.3PLs typically access reduced rates from carri

46、ers because of the volumes they ship and many pass these savings on to retailers.By connecting 3PLs to a central operating system using automation and native integrations,brands can make huge time savings and add much-needed protection to profit margins.Ultimately,rethinking shipping to include tech

47、 tools like automation and 3PL providers can increase your brands capacity to grow,even amidst the ongoing supply chain troubles.It can dramatically boost supply chain efficiency,while saving valuable time and resources and keeping cash flow steady.Did you know Amazon can ship to 72%of the US popula

48、tion in just one day?710 Steps to Boosting Cash Flow During The Supply Chain Crisisuel prices are driving supply costs to new highs and businesses with a cross-border model are most exposed as they have a single point of failure.Many are being forced to increase prices or use low quality,slow transp

49、ort services,sacrificing their conversion and retention rates.“Spreading the risk with a hub-and-spoke model retains stock agility,drives strong demand planning and helps brands get closer to customers,reducing the last mile distance,increasing speed to market and decreasing fraud all while driving

50、down cost.“At eComplete our supply chain strategy does just that,we optimize your global distribution network to meet commercial imperatives.”Expert ViewLonya Sherief Director Supply Chain at eComplete Brightpearl 2022.All rights reserved.8Book a DemoFollow us on LinkedinFollow us on FacebookBRIGHTP

51、EARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain CrisisTechnology offers a solution to many of modern lifes challenges and the supply chain crisis is no different.From a shortage of goods to the rising prices of raw materials,there are tech tools that can help minimize and even elim

52、inate the impact of the concerning issues currently impacting retailers.For instance,as this guide has shown,cutting-edge demand planning software plays a critical role in minimizing issues like stockouts and boosting cash flow.However,less than half(47%)of brands currently use it.The good news is,t

53、his looks set to change,with 30%of merchants reporting they are actively investing in technology,such as a retail operating system,or new vendor partners to mitigate supply chain issues.If you run a retail brand and you havent yet embraced the power of technology,now is the time.9:Embrace tech810 St

54、eps to Boosting Cash Flow During The Supply Chain CrisisBrightpearl,including its in-built Inventory Planner Premium,is a key technology that is helping retail brands navigate issues with the supply chain.Heres what some of them have to say:How retail brands are using Brightpearl to beat the supply

55、chain crisisSupply chain systems are critical infrastructure for an e-commerce brand and a brands tech stack is the beating heart of its e-commerce ecosystem.“Enabling visibility and automation across not only Supply chain functions but also the departments they serve,including marketing,demand plan

56、ning,procurement and finance,is essential.“Invest well and ensure the health and wealth of your business;underinvest and risk ending up at the bottom of the food chain.“I analyzed 22 operating systems before making a decision on the right option for us and Brightpearl came out on top.The Plug&Play i

57、ntegrations with apps,tools and 3PL providers have helped us make key savings on shipping and iron out issues with our supply chain.”Trevor Martin,Vice President Operations,Snow“Brightpearl,as our Retail Operating System,has given us accurate predictions that help us avoid stockouts and navigate iss

58、ues with our supply chain.”Jeff Elvin,President at Dakota Stones“Inventory Planner Premium has revolutionized our stock management.The risk of stockouts before was previously huge,but now its non-existent.We can accurately forecast demand,even factoring in promotions and peak periods.”Jorge Henrique

59、s,COO at Bond TouchExpert ViewGabe Sansby Operations Manager at eComplete Top 5 supply chain issues impacting UK retailers Shortage of goods(68%)Increased shipping costs(64%)Longer lead times(54%)Stockouts(46%)Rising prices of raw materials(40%)Top 5 supply chain issues impacting US retailers Shorta

60、ge of goods(67%)Increased shipping costs(59%)Stockouts(52%)Rising prices of raw materials(47%)Longer lead times(42%)Brightpearl 2022.All rights reserved.9Book a DemoFollow us on LinkedinFollow us on FacebookBRIGHTPEARL GUIDES10 Steps to Boosting Cash Flow During The Supply Chain Crisis9Solve Your Su

61、pply Chain Issues NowAt Brightpearl,we have a solution to the supply chain crisis.Our market-leading Inventory Planner Premium software helps retailers Eliminate costly stockouts Effectively manage longer lead times Optimize container usage(to cut shipping costs)Monitor supplier performance Save mon

62、ey and regain control10:Act now Its true:more than half(52%)of brands in the US(and 46%in the UK)have experienced stockouts resulting in a loss of sales and shipping costs have jumped by up to 55%across the board.Brands are bracing themselves for the situation to get even worse,with costs expected t

63、o increase by up to a quarter over the coming months.Some brands are already folding under the pressure.More than a quarter of UK firms(26%)risk running out of cash in four weeks if things do not improve and,in the US,a third(31%)of brands are just eight weeks away from crisis point.There isnt time to lose.If you run an e-commerce business,you need to take action immediately.Get a free demo10 Steps to Boosting Cash Flow During The Supply Chain Crisis