Businesses across every industry have faced unparalleled disruption to their operations as a result of the coronavirus pandemic. In the retail sector, we’ve seen shelves across the globe being repeatedly stripped bare, as supply chains that simply weren’t geared-up to deal with such sudden and dramatic changes in buying behavior have struggled to keep up.
Managing complexity is at the heart of supply chain strategy. Whether it’s in logistics, planning, procurement, or warehousing, supply chains provide firms with a competitive advantage by adding intricate, automated, or resource-heavy capabilities that can’t be easily replicated.
When EDI first came into use, supply chains were simpler, with a limited number of suppliers. Now, thanks to globalization and specialized manufacturing, there might be hundreds of suppliers in a supply chain. And, as prices change, businesses move overseas, and market conditions evolve, these suppliers change as well.
Digital disruption is having a profound effect on every industry, but the changes are perhaps most striking in industries like manufacturing, transportation logistics, and retail. Companies must be able to deliver new products and experiences, quickly adjust to changes in the marketplace, make business processes smooth and invisible to the end-consumer and, most importantly, be agile. Customers simply won’t tolerate delays because of a supply chain issue,
Traditional supply chains are coming under growing pressure as organisations search for growth in increasingly competitive markets. Around the world, changing economic conditions and customer demands mean that organisations need to find a way to be increasingly agile. Those unable to evolve their operations to match these new conditions risk quickly losing market share to their rivals.
The challenge is being made more acute because of restrictions on IT budgets.
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