At this time of the year businesses from small to large find that supply chain management plays a fundamental role in success. As a period of such peak demand and opportunity it is vital to ensure stock levels are managed effectively. This can be no easy task as it means coordinating with suppliers, forecasting requirements, identifying and reacting to demand to ensure sales are maximised and potential over stocking is controlled, making sure the right stock is in the right place at the right time and fulfilling orders swiftly and accurately.
The impact of the supply chain throughout a business
Supply chain management touches nearly all areas of business operations. Individuals managing supply chain operations find that they face a wide range of challenges from responsiveness and planning, visibility and coordination, internal pressures to optimise operations along with skills and knowledge base within the business.
A recent Capgemini survey of 150 senior supply chain managers across retail, distribution and manufacturing companies in the US saw 83% of respondents indicate that it is challenging to plan for peak requirements with only 21% saying their systems do an excellent job of providing the insight they need.
Consumer choice makes availability and fulfilment key areas to excel
The survey also polled 1000 consumers and provided an interesting insight into consumer behaviour. 73% of consumers said they would purchase an item from a different store than originally intended if the item they went for was not available, with 24% stating they would pay more for the same item elsewhere. While I am sure we can all relate to this scenario, having what the customer requires is no guarantee of a successful transaction either. A staggering 89% of consumers said they were less likely to shop with a retailer who delivers an item at least 1 day late. It is therefore no surprise that 69% of supply chain managers said that executives and decision makers are concerned about supply chain issues impacting the company’s revenue and profitability.
The headline findings
Headline findings indicate that the majority of retailers and manufacturers struggle to respond to peak demands in the supply chain, more than half of supply chain managers say issues have negatively impacted revenue or profitability as 9 out of 10 consumers say they will go elsewhere if they experience out of stock items or fulfilment issues.
Granted this research was carried out in the US, but as consumers ourselves we only have to think about our own reactions to these situations to appreciate the parallels that can be drawn with sentiment from shoppers in the UK.
Supply chain control
OrderWise provides business of all sizes with a complete range of tools and functionality to bring supply chain operations under control and providing a complete end to end solution. If you recognise or have concerns regarding any of the issues highlighted above then OrderWise can help your business overcome them.
For more information on OrderWise and how it can help you improve supply chain operations watch our videos or download the brochures.
To discuss your requirements in more detail contact us today on 01522 704083.