Tag: supply chain

retail supply chain

Top 5 Trends Shaping the Future of Retail Supply Chains


In today’s competitive world, consumers are defining how companies structure their retail supply chain. They are demanding a more fulfilling experience from retailers and necessitating the need for options such as ordering online with in-store pickup and free returns across all channels. The explosion of mobile-driven shopping and the increasing popularity of no added cost returns only underscore the pressure that a retail supply chain faces.

However, not every retail supply chain is efficient enough to meet fast-evolving consumer demands in a cost-effective way. They are creaking under the pressure of the new multichannel world. Also, a majority of companies possess a retail supply chain that is optimized for stores, and online channels are considered as a bolt-on separate business. This results in poor cross-channel coordination among fulfillment processes and increases the chances of out-of-stocks.

At SpendEdge, we realize the impact that latest trends can have on the retail supply chain. Therefore, our team of experts has listed out the upcoming trends that can impact companies in the retail industry.

Managing retail supplies can become an arduous task if not handled smartly. Request a free demo and know how our experts can help you improve retail supply chain management.

Trends impacting the retail supply chain

#1 Smart buyers

Majority of millennial buyers, nowadays, prefer to research a product online before visiting any store.  They compare prices and see if they can avail any digital discounts or coupons. Many times, they even opt to buy online but pick up in-store “to avoid shipping fees.” This creates opportunities for retailers to harness both the in-store mobile phone-toting shoppers and ones coming to stores.

#2 Moving product assortment closer to demand

Retailers willing to enhance direct-to-consumer value proposition are constantly working to reduce delivery lead time and offer a larger assortment. They deploy varied stock-keeping units (SKUs) to fulfillment centers and activate each picking warehouses to offer next day delivery to their customers.

#3 Big data

Big data is a major trend in the retail supply chain, as the need to seamlessly share data back and forth with customers has increased exponentially. It allows real-time location tracking apart from real-time traffic updates and makes it possible for retailers to optimize delivery windows. Moreover, it helps companies to make crucial decisions and track inventory effectively.

Want to know how integrated technologies can revamp an outdated retail supply chain and ensure the timely delivery of retail supplies?

#4 Adopting collaborative robots

Although, it applies for all industries, the retail supply chain needs them the most. Companies in the retail industry are always striving to improve picking times. The situation becomes worse during the seasonal peak periods.  With companies adopting collaborative robots, companies can accommodate seasonal demands and return them after the requirements are met.

#5 Integrating retail and the “sharing” economy

As consumers continue to shift from “things” to “experiences”, the impulse to rent will grow substantially. The retail supply chain that can adapt to these changes will witness long-term success as consumers will be spending more on offering better experiences. Moreover, embracing trends such as self-service stations will reduce the burden on shoppers of cumbersome tracking and shipping costs.

Integrating retail and the “sharing” economy can impact the sale of retail supplies. Get in touch with our experts and know how an efficient retail supply chain can help manage it.

Purchasing and supply chain management

Purchasing and Supply Chain Management Challenges and Ways to Overcome Them

In the current competitive scenario, purchasing and supply chain management is a reverse of prior practices where manufacturers supplied product to customers. Now customers tell suppliers how and when they want their inventory delivered. The objective behind purchasing and supply chain management is to remove inefficiencies, excess costs and excess inventories from the supply pipeline which extends from the customer back through suppliers.

By effective purchasing and supply chain management, it is hoped that inventories, caused by uncertainties and slow response, will be significantly eliminated. However, it is increasing challenges for businesses. The intersection of many disciplines, such as marketing, procurement, management, operations research, and logistics is making it difficult for businesses to analyze the impact of purchasing and supply chain management.

At SpendEdge, we understand the impact that purchasing and supply chain management can have on your business. Therefore, in this blog, we have compiled a list of purchasing and supply chain management challenges and the possible ways to overcome them.

Purchasing and supply chain management can provide tremendous competitive and business advantages. Request a free demo and know how our experts can help you leverage the same.

Purchasing and supply chain management challenges

Compliance

As navigating global markets is becoming challenging day by day, understanding and following the compliance requirements of various regional, national, and international markets is getting invariably complex. No matter what your company offers in terms of products and services, there are always sets of rules and regulations that your purchasing and supply management must comply with.

This includes various safety laws, environmental protection laws, standards and quality specifications that your product should be compliant with.

Your team, from managers and engineers to people managing your inventory and logistics, need to be aware of the relevant rules and regulations across the complete purchasing and supply chain management process.

Solution: Thorough understanding of supply partners and the risks associated with them in a timely and cost-effective manner are the basic steps towards effective purchasing and supply chain management. SpendEdge can help you in identifying the need and planning the purchase by critically evaluating the procurement process while complying with regulatory requirements.

Rapidly evolving markets

Consumer behavior is usually affected by cultural social, personal, and psychological factors that rapidly evolve due to changing market demands. This fast-changing market brings purchasing and supply chain management challenges and increases pressure on your procurement teams to keep up with the latest trends. You need to innovate new products while keeping the total manufacturing costs low as the trends don’t last long. Additionally, you constantly need to update the features of your products to sustain the competition. This increases the complexity of purchasing and supply chain management.

Solution: The accurate real-time insights pertaining to supply markets will help you make effective planning decisions and tackle challenges arising in the purchasing and supply chain management created by fast-changing markets.

 

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Globalization

Unlike earlier, supply chains are no longer confined to specific regions. The production of products can involve dozens of countries and hundreds of parts vendors and facilities. Even something as humble as pen or pencil might involve quite challenging logistics. This requires an efficient purchasing and supply chain management and detailed analysis of market size and entry barriers.

Solution: Extensive understanding of these global trade lines, and the ways they impact your company’s products and roadmap will allow you to optimize supply chain purchasing process and utilize emerging opportunities while expanding to a new market.

Supplier management

While managing your supply chain is crucial, selecting the right supply chain partners and the right suppliers is important for purchasing and supply management. They ensure that you are able to gauge market opportunities and achieve your organizational goals. Moreover,  with the right set of suppliers, you can follow the necessary standards, and pass the quality controls that your business demands.

Solution: The detailed study on every attribute from the supplier’s financial stability to the level of short and long-term liabilities will consolidate suppliers and reduce the risks associated with currency and interest rates. SpendEdge can also help you to reduce purchasing and supplier management costs and increase the efficiency of your procurement process.

Is your organization facing purchasing and supply chain management challenges that are hampering the growth of your business? Get in touch with our experts and know how they can assist you with tailor-made solutions. 

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Supply Chain Best Practices to Drive Business Success

The importance of supply chain management in today’s competitive market landscape cannot be undermined. With the expectations of both shareholders and consumers soaring, the collective capability, technology, resources, and scale of most supply chains have become insufficient.

Moreover, it can be said that the exponential increase in business complexities is one of the biggest challenges facing the supply chain. This surge in the complexity has been further fueled by challenges such as supply chain globalization, acquisition pace, new retail channels (i.e. omnichannel), regulations, and a rapid increase in the pace and complexity of new product introductions. This has forced companies to adopt supply chain best practices and renew their supply chain approach.

At SpendEdge, we understand that adopting supply chain best practices requires both knowledge and capabilities. Therefore, our team of experts has highlighted the supply chain best practices that companies can adopt to increase value creation across the supply chain.

Want to know how supply chain best practices can help you manage complexities? Get in touch with our experts and implement supply chain best practices for your organization. 

Supply chain best practices for companies

#1 Align supply chain responsibilities

Often, the decision-making power is divided among different people in organizations. This not only slows down the operations but also makes it difficult for companies to make quick decisions. Aligning supply chain responsibilities will ensure better supply chain management and greater efficiency for organizations.

#2 Utilize technologies

Companies integrate too many software to increase their efficiency without analyzing the needs of their organization. Instead, companies should analyze the efficacy of their processes that need improvement and then implement technologies that can address those needs. This is one of the supply chain best practices that can help companies to make better utilization of their supply chain.

#3 Devise strategic sourcing strategy

Strategic sourcing is imperative for supply management. It ensures the availability of supplies, lowers total cost, streamlines processes, and increases responsiveness to customers’ changing needs. Companies looking to implement supply chain best practices should focus on strategic sourcing rather than considering it the sole responsibility of the purchasing department.

Interested in devising a strategic sourcing strategy?

Request a free proposal and know how our experts can help you to devise state of the art sourcing strategies.

#4 Consider value over price

It is never advisable for companies to cut costs at every point of time, especially if they are aiming to achieve long term business goals. At times, they need to put value over price to retain their customers, keep business flowing, and establish themselves as a reliable supply chain partner. This requires companies to implement supply chain best practices and achieve better profits in the long run.

#5 Better inventory management

Inventory management is one of the supply chain best practices that companies are intending to improve upon in the years to come. It helps companies to substantially improve the bottom line and minimize their working capital. Even the top-notch companies are paying attention to inventory at the highest levels as it could represent over 50% of the cost of an item.

#6 Taking social initiatives

Reducing a supply chain’s carbon footprint is no more a choice for companies. It is one of those supply chain best practices that necessarily needs to be practiced. The reason being, buyers and consumers take it into consideration while choosing products or services. Any company not having productive social responsibility programs risks criticism from one or the other sources.

Implementing supply chain best practices is pivotal to increase the efficiency of the global supply chain. To know how your organization can benefit from these practices, request a free demo from our experts now!

 

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Six Effective Ways to Build Better Supplier Relationship Management

What is supplier management process? 

Most organization rely on third-party vendors or suppliers for the purchase of goods and services. Therefore, how an organization engages, manages, and communicates with their suppliers and builds supplier relationships is critical to their overall success. Supplier relationship management refers to the process systematic assessment of the suppliers’ assets and capabilities in view of the organizations overall business strategy. This determines activities to engage in with different suppliers, and planning and executing of all interactions with suppliers to maximize the value realized through those interactions. Supplier relationship management seeks to develop a two-way, mutually beneficial relationships with the strategic supply partners of a company. Supplier relationship management helps build better supplier relationships and thereby achieve greater levels of innovation and competitive advantage than could be achieved by operating independently or through a traditional, transactional purchasing arrangement.

Supplier management strategy and solutions for business

The strategic approach to supplier relationship management has always been critical for businesses that rely on third-party suppliers. For businesses that strive to succeed in the market, having trusted relationships with dedicated suppliers should be one of the primary goals. In this blog post, we are going to take a closer look at some of the key supplier relationship management strategy that will help you improve relationships with suppliers and streamline your supplier relationship management framework:

Suppliers are not just vendors

For a smooth supplier relationship management, businesses must consider their suppliers as their partners. This partnership should be based not only on financial transactions but also on mutual trust and loyalty between both parties. Suppliers should be made to feel like they are a part of the business. They must be informed about your processes, such as product launch and promotions. It is also essential to listen to their concerns or grievances. 

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3 Procurement Trends That Can Change the Dynamics of the Mining Industry in 2019

Today commodities are moving back broadly into the global market balance but the challenges for the mining industry are far from over. In a world of more complex ore bodies, deeper mines, social and geopolitical risks, growing energy costs, resource nationalism and lack of infrastructure, global mining industry remains under exceptional pressure to control costs, boost efficiency and improve safety performance.

Rising cost is a cause of concern for the mining industry as the strategies of mining companies depend heavily on the current state of the market. Also, the rise in cost is resulting in the declining quality of ore and limited accessibility of new deposits. This will squeeze the supply in the years to come, potentially driving a commodity-price rebound as the global demand continues to rise. So, the companies need to analyze the new procurement trends in the mining industry that can offer exceptional opportunities for efficiency gains and can help in controlling costs as well.

At SpendEdge, we understand the impact that rapidly changing procurement trends can have on your mining business. And to help companies in the global mining industry to reposition their portfolios and excel in the competitive landscape, our team of experts has highlighted three procurement treContact USnds that have the potential to change the complete dynamics of the mining industry in 2019.

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How Market Intelligence Can Dramatically Boost Your Supply Chain

The supply chain in modern companies is increasingly complex and dynamic in nature. From suppliers and industries to raw materials and commodities, there have been steady changes taking place across the supply chain of new age companies. Furthermore, the increasing uncertainty in the economic markets are forcing organizations to closely monitor market conditions and respond appropriately through improved supply chain strategies.

Traditional ERP systems are undoubtedly highly useful management tools, but they are mostly blind to external data. Their “inside-out” approach can leave companies inadequately equipped when planning and executing competitive supply chain strategies. However, with the advent of new market intelligence tools can resolve this problem. With the help of supply market intelligence, ERP systems can now incorporate real-time insights on suppliers, customers, and competitors, thus creating a perspective to reduce risk and create a competitive advantage. Here are just five benefits companies can realize with a market intelligence intelligence-driven supply chain.

Improved supply chain strategies

 It is vital to take into consideration the impact of potential events before undertaking supply chain planning. For instance, factors such as a sudden increase in demand, or in the event of any supplier undergoing a catastrophic event, companies must be able to be prepared to handle such situations. Market intelligence provides early warning signals and unique insights into events that are likely to occur. Furthermore, it can also help in assessing alternative suppliers and approaches. This prepares companies to handle unforeseen contingencies better.

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Competitive advantage

Competitive advantage often comes to companies who are more agile, nimbler, and react faster when compared to their peers in the market.  In fact, a quick reaction to unforeseen disruptions is the route for modern companies to gain a competitive advantage. For instance, if a particular supplier is struggling to meet the company’s demand, they can quickly move to an alternative. Or, if a key component may be difficult to procure, companies can lock up the supply before the competitor does. Market intelligence via real-time alerts is key to achieve this as it gives faster insights for companies to be prepared for contingencies in the future.

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6 Major Causes of Supply Chain Risk and Ways to Overcome Them

Supply chain risk is an inevitable component of a business, and these risks evolve and become more prevalent with time. In this dynamic scenario, yesteryear’s supply chain risk management strategies often prove to be ineffective. Businesses having a poor grasp of hazards in the supply chain will increase freight spend and diminish the brand value. However, having an idea about the supply chain risk that companies endure in the global market will help reduce their impact. This will also enable shippers to mitigate the likelihood of occurrence and minimize disruptions simultaneously.

Unfavorable weather conditions

Extreme weather is a significant supply chain risk to ocean freight activities. Tropical storms can prove disastrous for ocean carriers. The recent reports on the global climate change indicate tropical storm threat is on the rise. One of the ways in which shippers can avoid such supply chain risk is through re-evaluating ocean route used and determining which carriers can increase shipping in anticipation of tropical storms.

Connectivitysupply chain risk

In the age of modern trade, supply chain risk exists within the connectivity of systems. The integration and modification of systems increase the risk even though systems can be integrated through an open-source software. Furthermore, poorly integrated systems could lead to bottlenecks and disruptions in the supply chain. To stay prepared for such contingencies, companies must create a backup data resource and decentralize the data storage. It is also vital to ensure that the system connectivity is on a secure network. Furthermore, companies must give emphasis to avoid unnecessary modifications, and work with expert supply chain systems’ integrators in order to maximize profitability and efficiency.

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Answers to the questions

5 Useful Tips to Boost your Supply Chain Management

Efficient supply chain management is the key to boost a company’s revenue and stay competitive in the marketplace. To achieve this, companies must be hyper-focused on reducing waste to generate cost savings and minimize the risk in supply chain management. Furthermore, the rising customer demand calls for better service and availability of right products at the right time so that companies don’t lose their valuable customers to competitors. Here are the five key tips for companies to boost their supply chain management:

SUPPLY CHAIN EFFICIENCY

Tips to boost your supply chain management

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Partner with current suppliers

Often, companies tend to face market wide challenges in supply chain management. Developing an effective solution for this kind of scale might be a difficult task for a single partner within the value chain. Hence, it becomes necessary to develop deeper partnerships with your suppliers to help grow each of your businesses. Creating a mutually beneficial strategy can be tricky, but with the right planning and strategies in place, it is easily attainable. Here enterprises must lay the focus on clearly defined, revenue sharing-based, and easily trackable KPIs, and information transparency. Furthermore, they can also develop a coalition charter that outlines the arrangement in detail. In this manner, firms can tackle issues in supply chain management at a scale beyond their current capabilities.

Maximize IT investment

Today, the IT department is tasked with both supporting daily operations and expanding the business operations. It is important for modern businesses to invest in new technologies that can help employees perform tasks in a much-simplified manner and in turn boost the company’s supply chain management.

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Comprehensive training of the workforce

A training program should be aimed at teaching the workforce more than what the daily tasks that they are expected to perform. It is vital for companies to share their comprehensive plan to the employees in order to increase productivity while reducing costs. The workforce must be trained on the importance of internal and external customer service. It is also important to incentivize them to act in accordance with your business’ vision, mission, and values. Sharing this and training will drive a successful organization by creating aligned goals while improving supply chain productivity.

Improve information sharing and visibility

Transparency is an essential ingredient to determine the efficiency of operation in supply chain management. Furthermore, it is high time that companies eliminate slow, unreliable spreadsheets to provide information. Rather they must share up-to-date information through current technology solutions. Other ways to increase information sharing include taking advantage of big data analytics, measuring supply chain metrics regularly, and also involving employees in identifying inefficiencies in the system. By keeping the workforce and the clients informed, companies can create opportunities for innovation.

Analyze customer trends and opportunities

Supply chain managers must keep a constant watch on the trends and opportunities in the market. This will not only help them be in line with the newest market opportunities but will also consequently improve the overall supply chain management and its efficiency by adopting innovative techniques to cater to customer demand.


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