In the wake of the Covid-19 pandemic, retailers have been compelled to reevaluate their forecasting tools due to the fractures that emerged within their supply chains. With the aim of closing the gaps that emerged over the past three years, retailers are increasingly turning to new technologies and leveraging data to manage the flow of goods efficiently. This blog post explores how retailers are adapting to the ever-changing consumer markets by incorporating innovative solutions into their supply chains.
Navigating Complexity and Volatility
Recognizing that complexity and volatility are here to stay, retailers have heightened their awareness of the need to effectively manage these challenges. By acknowledging the nature of the evolving world, retailers are actively seeking improved strategies for managing their inventory, boosting sales, and maintaining profit margins.
Macy’s: Enhancing Forecasting Abilities
Macy’s, a prominent department store chain, has been proactively upgrading its forecasting abilities through the integration of new technology. By utilizing data-driven decision-making processes, Macy’s has gained increased visibility into consumer spending habits and improved flexibility in responding to market changes. This approach proved instrumental in minimizing excess inventory, positioning Macy’s favorably during a shift in consumer demand last year.
Dr. Martens: Leveraging Technology for Growth
Dr. Martens, the renowned London-based shoe retailer famous for its iconic black leather boots, is implementing a new demand and supply forecasting system. The company’s Chief Executive, Kenny Wilson, has emphasized the importance of investing in their business to support growth. Dr. Martens aims to improve its omnichannel capabilities, enhance customer insights through a customer-data platform, and ensure increased resilience to achieve its mission of becoming a £2 billion brand.
Adapting to Shifting Consumer Demand
The past three years witnessed sudden shifts in consumer demand, including the rapid surge in online shopping during lockdowns and subsequent transitions to service-based spending after restrictions were lifted. These disruptions, combined with manufacturing and shipping challenges, highlighted the crucial need for nimble forecasting methods. Traditional projections based on predictable patterns are no longer sufficient, as retailers must adapt swiftly to changing consumer preferences and market dynamics.
The Pursuit of Agility and Speed
Retailers now recognize that agility and speed are paramount in their operations. This realization has triggered shifts in supply-chain staffing, with an increased emphasis on technology and analytical tools. Retailers are seeking employees with data-science backgrounds who can go beyond relying solely on past sales to predict future demand. They aim to unlock the potential of advanced algorithms to gain deeper insights into consumer behavior and demand profiles.
Strengthened Collaboration with Suppliers
Effective supply chain management requires enhanced collaboration between retailers and their suppliers. Beyond basic order placements, retailers are now sharing projected demand with manufacturers as early as possible. By providing suppliers with a clearer view of expected consumption, retailers enable them to pivot more quickly in response to market shifts. This collaborative approach ensures better alignment between retailers and suppliers, enabling them to navigate the evolving marketplace more efficiently.
E-commerce’s Impact on Forecasting
The rapid growth of e-commerce during the pandemic has added another layer of complexity to forecasting efforts. Retailers must now analyze demand not only for physical stores but also for online channels. They need to align sales forecasts with their fulfillment strategies to optimize their operations. As volatility increases, traditional forecasting approaches become riskier, compelling retailers to explore new methodologies and tools.
The post-pandemic retail landscape demands adaptability and resilience from retailers. By harnessing new technology and leveraging data across their supply chains, retailers are taking proactive steps to overcome the challenges of forecasting in a rapidly changing market. The integration of innovative solutions, coupled with strengthened collaboration and agile decision-making, enables retailers to thrive in the face of complexity and volatility, ultimately enhancing customer satisfaction and business performance.
They aren’t the only ones. Visibility and transparency are vital to each step in the supply chain, including transporting goods from raw materials to finished products. Your logistics partner should be rising to meet the moment in the evolving landscape as well. Utilizing the Alba Tracking and Visibility Portal, our customers are empowered with immediate access to vital shipment information, enabling them to make well-informed choices and enhance their supply chain strategy. This system furnishes timely notifications on the whereabouts of shipments, as well as departure and arrival schedules, item specifics, and other crucial data elements, guaranteeing comprehensive transparency throughout the entirety of the logistics journey. To learn more about the Alba Visibility Portal click here or reach out to your Alba representative today.
