Rethinking the Retail Supply Chain


Published on Control is rapidly moving into the hands of consumers, who expect what they want, when and where they want it. To fulfill those demands, retailers must reinvent their supply chains into flexible infrastructures with inventory visibility and intelligence. Explore the future of retail supply chains.

Published in: Business, Technology
1 Comment
1 Like
  • This shift in consumer behaviour is clearly demanding omnichannel capabilities from all retailers. Some consumers check out items in the store and buy online; another set of consumers does research online but still like to buy in stores as it is a social experience. The implication in either case is for outlets to stock more SKUs. SAP is uniquely positioned to deliver these market leading capabilities given its traditional strengths in supply chain planning and omnichannel through the Hybris acquisition. To see how Mindtree can help you, visit &
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Rethinking the Retail Supply Chain

  1. 1. RETHINKING THE RETAIL SUPPLY CHAIN Retool your supply-chain infrastructure to thrive on digital disruption
  2. 2. CRITICAL RESET MOMENT Ever since Wal-Mart revolutionized the supply chain, and Amazon brought it into the digital world, retailers have been trying to figure out how to keep up with the rise of technology in retail. Control is rapidly moving into the hands of consumers, who expect what they want, when and where they want it. To fulfill those demands, retailers must reinvent their supply chains into flexible infrastructures with inventory visibility and intelligence. 2
  3. 3. THE NEED FOR REAL-TIME ANALYSIS While many retailers cite supply-chain tools as important to meet company goals, many of them are finding that their current solutions aren’t giving them the detailed information they need fast enough to compete in the modern retail landscape. • 71% claim current analytics tools provide insights about prior performance only, and they need more predictive tools1 • 69% say it is critical to include unstructured data as part of a view of supply-chain performance2 • 59% claim their existing supply-chain analytics tools are too slow and that it takes too long to get an answer3 As consumers act faster and the volume of information involved explodes, it is impossible for retailers to make decisions as rapidly and as accurately as needed using traditional systems in place. 1 Bloomberg Businessweek,“Supply Chain Innovation Driving Operational Improvements,” January 2013 2 Ibid 3 Ibid According to a Bloomberg Businessweek survey, 73% of companies say supply- chain tools are important to meet company goals. 3
  4. 4. THRIVE ON DIGITAL DISRUPTION Those retailers that master the flow of relevant data will likely gain a competitive advantage. Digital disruption is doing away with archaic means of assembling user data such as basket data and replacing it with more advanced in-store applications that monitor movement, point of service, store traffic management, and in-store promotion. In addition, commerce engines such as customer relationship management and content management are bringing knowledge from the digital space and offering information on customer interactions such as online research and purchasing. Put it all together, and you’re able to leverage insights that will enable you to better personalize and contextualize end-to-end experiences to increase customer satisfaction and loyalty. By 2017, Forrester reports that touchpoints like mobile devices will influence 50% of U.S. retail sales and 10% of all sales will be online. 4
  5. 5. PROVIDE TWIN VALUE Rethinking the supply chain isn’t just about harnessing data. Supply chains now have to provide twin value to accommodate both physical and digital experiences. This approach requires not only optimizing physical selling properties such as flawless fulfillment, but also delivering to consumers the content they need to make their purchasing decisions. As much as consumers enjoy the convenience of the online retail experience, they still like the personal touch of brick-and-mortar stores. You can deliver both by providing a multichannel experience. • Consumer data sourcing and segmenting • Product lifecycle management and inventory • Product information and quality assurance • Location and availability • Online display matching physical in-store display • Content enrichment • Context and purpose content • Community value • Returns on investment (both consumer and company) Inbound Value-added Content Service 5
  6. 6. YOUR REAL-TIME ROADMAP How can your business adapt and incorporate new physical and digital demands for consumers? Here are five steps retailers can take to bring their supply chains into real time. 1. Enable insightful supply-chain management – Leverage a wealth of performance data to gain insight into fragmented business processes and achieve better visibility through key performance indicators. 2. Transition from traditional sales and operations planning to sales and operations business planning – Collaborative efforts can create scenarios and simulate the effects of decisions in real time to increase supply-chain profitability. 3. Embrace the concept of a demand-driven supply chain – Use POS technology, social media, and market research to sense customer demand signals and react in real time. 4. Ensure efficient execution in the areas of logistics and order fulfillment – Track and trace your products and automate processes for timely, accurate delivery to consumers. 5. Streamline the service supply chain – Get the ability to respond to customer demands and procure and plan inventory efficiently with real-time visibility. 6
  7. 7. DEVELOP A HOLISTIC, REAL-TIME SUPPLY CHAIN The need for supply-chain agility and innovation has never been greater. Retail reinvention is no longer a hot topic that is up for discussion. It is now a must-do reality for retailers who want to thrive in the new omnichannel environment. Solutions are available that can provide real-time information that enable you to make decisions quicker while giving you the visibility and control that you need across the supply chain. LEARN MORE ABOUT HOW YOU CAN IMPROVE DEMAND SENSING AND BOOST YOUR PREDICTIVE POWER. DOWNLOAD FREE CONTENT! 7