1、Supply Chain Visibility is Vital for Creating an Agile Retail Operation1Supply Chain Visibility is Vital for Creating an Agile Retail OperationSupply Chain Visibility is Vital for Creating an Agile Retail Operation2IntroductionRetail success depends on agile,reliable,and resilient supply chain logis
2、tics.As the world continues to struggle with the aftermath of pandemic-induced supply chain disruptions,manufacturing shortages,and rising inflation,retailers are working to overcome supply chain challenges to meet customer expectations today while figuring out how to make their supply chains more r
3、esilient.Its a band-aid rather than long-term strategic approachand both are necessary for retailers to stay afloat and competitive during current conditions.What makes for a resilient retail supply chain?There are multiple factors,but at the core lies visibility.In this eBook,we examine why and how
4、 gaining supply chain visibility is necessary to become and remain an agile retail operation.Supply Chain Visibility is Vital for Creating an Agile Retail Operation3State of the Retail Supply ChainThe retail ecosystem continues to experience manufacturing and labor shortages that ripple across the s
5、upply chain.1 Raw material shortages;shipping and port delays;manufacturing,warehouse,and delivery driver labor shortages;geopolitical factors;and high fuel and transportation costs are all contributing to scarcity of goods and,for retailers,delays in order fulfillment and delivery.Inflation and ris
6、ing interest rates are tempering and slowing consumer spending.While grocery and beauty categories continue to lead in sales,shoppers are expected to trade down or stop buying more discretionary items until the economy recovers.Inventory that was in demand in 2021 and the first half of 2022 may no l
7、onger be during peak season or into 2023.Shipping delays have caused many retailers to cancel orders or receive large orders of once highly-sought-after products months after that demand or season has passedcompelling them to sharply mark down products to avoid costly warehouse storage fees.While mo
8、st retailers are no longer grappling with major out-of-stocks or lack of inventory,they are still dealing with product shortages and shipping delays.Consumers have adapted to the fact that products may be out-of-stock or difficult to find,but they have also returned to pre-pandemic expectations for
9、two-day order fulfillment and delivery on items that they are able to purchase.2Overall,retailers and consumers remain in a period of uncertainty about when the economy will recover,and when supply chains will stabilize and return to reliable operations.Meanwhile,shoppers continue to expect retailer
10、s to offer great customer experiences,be fully omnichannel,and meet their needs for fast,accurate order fulfillment.Retailers have come to understand that in a world full of uncontrollable factors,gaining as much control over their supply chain as possible is crucial to avoid a repeat of what happen
11、ed in 2020 when 56%of retailers experienced at least moderate disruption.3 This includes having to adapt for eCommerce,renegotiating contracts,finding alternate sourcing options,and undergoing shortages and out-of-stocks.The Effect of COVID-19 on Supply Chain Management Globally4Its clear that suppl
12、y chain resilience is imperative to be able to navigate future global disruptions.64%56%28%28%Adapted for ecommerceRenegotiated contractsTried finding alternative sourcing optionsUnderwent shortages and out-of-stocksSupply Chain Visibility is Vital for Creating an Agile Retail Operation4Supply Chain
13、 Resilience for RetailersA retail supply chain is composed of multiple parts,including supplier sourcing and relationships,warehousing,inventory management,picking and packing,shipping and carrier partnerships,and reverse logistics(returns).In a broad sense,a supply chain begins with raw materials a
14、nd ends with a finished product in the hands of a consumer(or returned to the retailer).Every step along the way is connected and impacted by the other stepsthus a“chain.”When one part of the chain is disrupted,it ripples across the rest of it.Retailers typically do not control every part of the cha
15、in unless they are a direct-to-consumer business.However,larger retailers can have considerable influence on their supply chainssuch as large retailers that have fined suppliers a percentage of the cost of goods if shipments are late or early in an effort to gain control over inventory.5 The more pa
16、rts of the supply chain that a retailer can exert control over,the better.However,for many,control is not entirely feasible.Instead,retailers are looking for ways to become resilient.What is Supply Chain Resilience?Resilience is another term for elasticitythe capacity to successfully adapt to change
17、.Resilience is built into businesses through partners,policies,processes,and technology that include risk management,compliance,and security.In a supply chain,resilience refers to the ability of a retailer to have partners,policies,processes,and technology in place that give the retailer flexible op
18、tions to continue to meet order fulfillment and delivery times when one or more parts of the chain are disrupted.For example,if one supplier cannot fulfill their orders,the retailer has multiple suppliers that can.To become resilient,supply chains must first become interconnected ecosystems,leveragi
19、ng AI,ML,and IoT to connect and track every part of the system in real time.A connected supply chain generates data that is then analyzed and used to make real-time supply chain management decisions that results in resiliency.As supply chains digitize,data has become increasingly important.In fact,d
20、ata analysis is the top IT priority for 41%of supply chain professionals(with IoT and cloud computing coming in second to tie at 39%).6 The three priorities work in sync to enable an agile,resilient,digitized supply chain.To obtain data,however,retailers need visibility into every aspect of the supp
21、ly chain.A resilient supply chain will:Connect and synchronize all parts of the supply chain with complete visibility.Include capacity and inventory buffers that may include on-demand manufacturing,predictive demand forecasting,and virtual inventories to offset disruptive incidents.Understand and le
22、verage data through artificial intelligence(AI),machine learning(ML),Internet of Things(IoT),modern databases,integrated systems,intelligent automation,and data analysis.Diversify suppliers and partners to ensure there is a network that can deliver when disruption happens in one part of the ecosyste
23、m.Resilient supply chain technologies like sensors,blockchain,and advanced analytics enable retailers to manage complex,multiple partnerships and suppliers worldwide.Supply Chain Visibility is Vital for Creating an Agile Retail Operation5Visibility Enables AgilityA digitized supply chain is only as
24、good as the data it makes useful for decision makers.Data must be connected and integrated across systems,infrastructure,software,and platforms.Too often,supply chain data remains siloed in disparate systems when there are multiple suppliers and carriers involved.Retailers that want to become data-c
25、entric must start with gaining visibility across the supply chain.It is reported that 69%of companies do not have complete visibility into their supply chains while 15%only have visibility into production.7 However,as of 2021,40%of retail supply chain leaders indicated they are prioritizing investin
26、g in real-time supply chain visibility.8 The need for visibility is clear,but supply chains are still overwhelmingly focused on prioritizing increasing efficiency(63%)and managing/reducing costs(59%)over key actions that would lead to increasing responsiveness/resiliency(21%),increasing diversity,an
27、d segmenting suppliers(13%).9 This indicates that companies are still in a defensive mode and have not yet pivoted to prioritize building resilience,even though they see moderate to major risks across the board from not doing so,as seen in the following chart from PwC.The disconnect between what sup
28、ply chain leaders are prioritizing versus the level of risk they perceive is compelling,as it indicates that retailers that do not digitize and build resilience over their supply chains continue to be vulnerable.Retailers that act sooner rather than later will be better positioned to weather further
29、 disruption and retain customer loyalty.A Stark Disconnect in Supply Chain and Supplier Attributes1027%37%26%10%Securing raw materials from suppliers24%44%25%7%Supplier operational issues21%37%29%12%Supplier financial health19%43%28%10%Insufficient diversification of supplier bases for critical supp
30、lies19%40%31%10%Insufficiently localized supply chain19%41%32%8%inablility of suppliers to respond to technological challenges16%33%37%13%Supply-related political risks10%30%42%18%Supplier ethical concerns No risk Minor risk Moderate risk Major riskSupply Chain Visibility is Vital for Creating an Ag
31、ile Retail Operation6The Benefits of VisibilityRetailers cannot manage what they cannot see,and while they may not be able to control all aspects of their supply chain,visibility gives them the capacity to spot issues immediately and make decisions that can head off trouble or resolve problems befor
32、e they ripple across the chain or impact the customer.In addition to averting costly disruptions,this helps ensure a positive customer experienceagain,meeting customers expectations for fast,accurate fulfillment and delivery.Visibility also gives retailers the ability to let customers see the status
33、 of their order and be automatically informed when the status changes or when delays are expected.How do retailers gain visibility into their supply chains?Through supply chain visibility technology.There are multiple types of technology that help deliver visibility,including IoT sensors,AI,ML,block
34、chain,big data analytics,and cloud computing.However,for data to be useful,it must be unified and combined into one platformwhich is where supply chain visibility software comes in.Supply Chain Visibility SoftwareSoftware that provides supply chain visibility can be stand-alone visibility platforms
35、that connect to a retailers enterprise resource planning(ERP)platform,an order management system(OMS),or built-in capabilities within an ERP or OMS that provides visibility.The purpose of supply chain visibility software is to aggregate data from all relevant sources into one platform to easily see
36、every component of the supply chain in real time.With so many disparate parts,how does the software connect to every part of the supply chain and the systems in use?This is accomplished through data and application integration.Solutions should come with pre-built API connectors that can be used to i
37、ntegrate into other applications and with pre-made connections to major ERP,OMS,logistics,carrier,and other supply chain software.Retailers should inquire with suppliers,vendors,third-party logistics(3PL)providers,and carriers to ensure that APIs are available for integration.Once these integrations
38、 are made,the platform provides visibility into data from these other systems and compiles it into easy to interpret dashboards.Supply Chain Visibility is Vital for Creating an Agile Retail Operation7Types of Supply Chain VisibilityDepending on the type of software retailers use,various components c
39、an benefit from gaining visibility.Suppliers and ManufacturersInsight into suppliers and manufacturers enables retailers to see product before it is shipped to warehouses and fulfillment centers.Available stock,whats in production,and when product is shipping out help retailers manage inventory appr
40、opriately and head off any supply issues should they need to switch to an alternate supplier to meet fulfillment commitments.InventoryInventory visibility enables retailers to bring all inventory data from every fulfillment channel into one dashboardwhether an order,available inventory,or third-part
41、y supplied products.With everything in one place,retailers can then better understand inventory data and make informed decisions.Retailers can see inventory thats in demand and whats being left behind so they know exactly what to order.With better inventory data,retailers can improve first time fill
42、 rate,minimize split shipments,reduce time in transit,and lower transportation costsall of which helps build resiliency.Order FulfillmentOmnichannel order fulfillment involves multiple fulfillment channelssuch as doorstep delivery,store fulfillment,ship-to-store,ship-from-store,dropship,etc.Visibili
43、ty into order fulfillment coupled with intelligent order orchestration ensures that retailers select the most cost-effective,efficient fulfillment option to meet customer expectations.When changes need to be made,retailers can quickly see the best solution to overcome challenges to meet delivery dea
44、dlines.Logistics and TransportationMost retailers work with numerous shippers and carriers.With visibility into their transportation networks,retailers can track order status,address issues proactively,better allocate labor for dock duty,and manage inventory stocking/restocking more easily.Customers
45、 can also be kept informed of delivery status.Reverse LogisticsMerchandise that is returned undergoes reverse logistics.Insight into this process ensures that returned inventory is put back on the shelf,used for store fulfillment stock,or returned to the manufacturer if defective.Tracking reverse lo
46、gistics improves efficiency and minimizes the cost of returns.Supply Chain Visibility is Vital for Creating an Agile Retail Operation8Choosing a Supply Chain Visibility SolutionThere are multiple solutions on the market,each with different capabilities,integration capacities,and functions.For retail
47、ers looking to simplify and streamline their tech stack,choosing a supply chain visibility solution that is integrated into their OMS can ensure that they have only one platform to work with,rather than several.Here are things to consider when evaluating a solution:Integrations.Does the solution eas
48、ily integrate with APIs and pre-built connectors?Request a demo to see if integrated systems and applications work seamlessly together in the platform,or if they feel clumsy or do not feel streamlined into one pane of glass.Real-time data.Does the solution work from real-time data and,if not,what is
49、 the time delay?Real-time data is critical for making on-the-spot decisions and understanding how every part of the supply chain is impacting the whole.Built for retail.Software solutions that are built for retail will have a better user experience,offer more retail-focused features,and be designed
50、to align with the core business needs of retailers.Backed by industry expertise.Software providers are often only technology experts.Solutions built by providers that have real-world expertise and experience within the supply chain industry will offer a more tailored and relevant solution.Profession
51、al services.The software provider should offer robust and friendly professional services for fast and easy implementation,training,and support.Supply chain visibility is essential for building resilience and agility in the retail industry.Retailers that prioritize visibility will establish a foundat
52、ion for data-based decisions and improve efficiency,lower costs,and help ensure exceptional customer experiences no matter what kind of disruptions happen.Radial is here to help.Contact one of our supply chain,fulfillment,and transportation management experts to learn more.Supply Chain Visibility is
53、 Vital for Creating an Agile Retail Operation9References1 Davidkhanian,Suzy.“US Ecommerce Forecast 2022,”Insider Intelligence.July 26,2022.https:/ 2 Ritchey,Laura.“Survey Reveals Consumers Shopping Behaviors for the 2022 Retail Peak Season,”Radial.September 21,2022.https:/ 3 Chang,Jenny.“97 Supply C
54、hain Statistics You Must Know:2021/2022 Market Share Analysis&Data,”FinancesOnline.January 14,2022.https:/ ibid5 McKevitt,Jennifer.“Walmart will fine suppliers for late,early deliveries in push for inventory control,”Supply Chain Dive.July 12,2017.https:/ Chang,Jenny.“97 Supply Chain Statistics You
55、Must Know:2021/2022 Market Share Analysis&Data,”FinancesOnline.January 14,2022.https:/ ibid8 ibid9 “PwC Digital Trends in Supply Chain Survey 2022,”PwC.2022.https:/ ibidSupply Chain Visibility is Vital for Creating an Agile Retail Operation10About RadialRadial,Inc.,a bpost group company,is the leade
56、r in eCommerce solutions.Premier brands around the world confidently partner with Radial to deliver their brand promises,anticipate and respond to industry disruption,and compete in a rapidly evolving market.Our expansive network of fulfillment centers,flexible transportation services and advanced o
57、mnichannel technologies,help clients meet increasing consumer expectations and maintain market competitiveness.With our personal customer care services and intelligent payment and fraud solutions,brands confidently deliver high-value customer experiences required today.We are flexible,scalable,and focused on our clients business objectives.Learn how we deliver todays retail for you at .2022 Radial,Inc.All rights reserved.Radial and its logo are trademarks of Radial,Inc.
sgpjbg002
工作日 8:30 - 17:30
会员动态：
报告分类
新质生产力
ChatGPT
新能源汽车
大模型
Sora
机器人
微短剧
芯片
薪酬
白皮书
低空经济
数据要素
创新药
人工智能
AI产业
信息科技
互联网
消费经济
汽车交通
电商零售
传媒娱乐
医药健康
投资金融
能源环境
地产开发
传统产业
全球化
其它
扫码登录
手机快捷登录
账号登录
