Pre-orders, on-demand manufacturing, planning are all innovations in a supply chain

Eco-responsibility, control of unsold goods and cautious investment are all part of a supply chain as the linchpin of retail. However, as the core of issues includes rising costs, geopolitical tensions and falling consumption, supply must become increasingly flexible. Growing uncertainties, both upstream and downstream, impose an increased need for more efficient transformation for more profitable omnichannel and environmental performance.
Through Sophie Baqué. Published on 10 November 2022 à 10h11 - Update on 17 November 2022 à 10h34

The context

In all sectors, retailers are faced with availability issues, linked to the complexity of supplies, which generates turnover losses. They must secure the upstream part of the supply chain to avoid availability problems at the end of the chain. At the same time, while the issue of unsold goods is nothing new, the Covid-19 Pandemic demonstrated the risks of globalised supply chains and buying commitments made too early.

With the end of the Covid-19 restrictions and an inflationary trend, retailers faced a sudden change in demand from the second quarter of 2022, particularly in the U.S.A. The phenomenon will continue in the first half of 2023 as retailers dispose of excess stocks with a series of promotions. This is the case for Kohl’s, whose stocks jumped by 48% in Q2, for brands like Macy’s, Gap and Bed Bath & Beyond.

As we move into 2023, the supply chain is confronted with squaring the circle. It must expand to allow more programmable flows, whilst remaining agile. It must secure the upstream, while allowing for flexibility at the end of the chain. In addition, designs must combine “on demand”, but reduce the high cost of urgent goods sent by air.

If the business of retailers has long been selling, it is now a question of having the right back office support to enable selling more.…

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