Supply chain execution is moving into a collaborative execution model supported by both the internal and external partners across the business model and not just on the extended supply chain partner capabilities. Just as the retail market is being rebuilt by consumer to retailer collaboration, the future supply chain is also in the process of redefinition in order to support the retail market changes. The future supply must focus on collaborative execution not just to meet the changing demands of the market and the consumer but also to gain insight to the the future changes through a robust and flexible collaborative framework that supports cross market partner collaboration and eliminates the historical and cultural silos.
The future supply chain will depend on collaboration, flexibility and engagement to meet the changing current demands and most importantly prepare for the changing future demands that are coming. The supply chain has entered a time of extreme change and disruption that, in my opinion, is driven by changes to the retail omni market consumer demands. The changes to the market are driven by collaboration and engagement of consumers across the spectrum and the supply chain must respond with a similar commitment to collaboration and engagement to react and meet the demands.
The supply chain has realized the changes driven into the market are only the beginning and in reaction have focused on embracing the change to understand and and react to the demands. Most large supply chain organizations have in fact embraced and incorporated the changes. These large supply chain providers have in fact taken the change driven by the omni market as a call to arms and have taken this opportunity to redefine the supply chain, processes and objectives to meet not only the new omni market demands but also drive change to the future. Supply chain service providers are no longer ‘box kickers’, they are technology companies that are driving change into the market to support consumers and provide new services to support the omni market.
This change in the omni market is putting the large legacy retailers in a bind and pinching from two directions. These retailers know they must change and the challenge is how to effect the change while fighting for survival. This is the basic dilemma for the large retailers that are already struggling with razor thin margins. This environment really only has one opportunity for survival and that is for the retailers to focus on engagement and collaboration with all participants in the market to allow them to understand and meet the demands of the market. Consumers realized this a long time ago and supply chain service providers have also realized this and have focused on their foundation and strategy. It is now time for retailers to realize and embrace the change.
And now for the audience participation portion of the show…
ECommerce will have wide ranging impacts on both the retail and manufacturing sectors. How can you focus these abilities to improve the consumer's experience? Improving the consumer’s experience will require a re-evaluation of the sales channels, the manufacturing channels and practices and the supply chain channels and practices from the raw materials to the consumers’ homes. In order to ensure and maintain success in this new reality you must harness the tools and capabilities in many new areas. How can you support these continuously changing requirements?