COVID-19 Accelerates Retail Supply Chain Evolution
In today’s “Darwinian” retail environment, a new study has identified that maintaining a nimble supply chain is the top business concern among retailers fighting for survival of the fittest.
The report, “A New Reality Demands a Networked Product and Supply Chain,” analyzed a survey of 118 U.S. retailers and direct-to-consumer brands on their businesses challenges due to COVID-19. Other top concerns identified included business model transformation, finding new revenue streams and suppliers, leveraging current suppliers, and supply chain transparency and traceability.
“Our survey found that close to 50% of retailers surveyed felt that the ongoing agility and flexibility of their supply chains was their most pressing business issue in the upcoming 12-24 months,” reported Deborah Weinswig, CEO and founder of Coresight Research. “Recent, unprecedented changes to the retail industry and the world support this feeling — let’s recall that grocery stores across the U.S. rapidly ran out of toilet paper and baking yeast early in spring 2020. How could those shortages have been prevented — getting the customers the products and the retailers the revenue they needed — had supply chains been prepared to pivot?”
The report was sponsored by Bamboo Rose, a provider of multi-enterprise platforms (MEPs) to enable real-time collaboration among retailers, brands and wholesalers. It should not be a surprise that it promotes MEPS as a solution to these particular retail challenges. However, the report makes a strong case that retailers need to step up their game in managing their supply chains and communicating with partners.
“The adoption of MEPs … is paramount for survival in the Darwinian retail industry,” the report concluded. “COVID-19 has accelerated the velocity of change/disruption in retail. Leveraging the full functionality of an MEP can help retail executives transform their business for this new era.”
The full report can be accessed here.