We are continuing our discussions on “Innovating Your Retail Enterprise For Suatainable Profitability And Growth: Keys Imperatives For Success”. As already mentioned in part 1 of our discussion, “Innovating Your Retail Enterprise For Suatainable Profitability And Growth: Keys Imperatives For Success – Part 1”, successful retailer must commit to innovation and execution and strive to hit the mark on merchandise trend, supply chain efficiencies, employee recruitment, development and engagement, deliver superior store execution and better customer experiences…. Retail management teams must begin to add more “science” to those areas, driving incremental productivity out of the enterprise. Today, we present “Innovating Your Retail Enterprise For Suatainable Profitability And Growth: Keys Imperatives For Success – Part 2”
THE AGILE SUPPLY CHAIN
A complete, consumer-aware, sensing and responsive supply chain network properly encompasses trading-partner collaboration, product information management, data synchronization, RFID and advanced inventory planning with time phased replenishment.
In such an environment, the retailer, its suppliers, distributors, transporters, and warehouses all coordinate their activities using a single synchronized plan for inventory, delivery, execution, promotion, events, and more. That helps ensure the right amount of inventory is available in the right place at the right time.
A lean inventory flow does NOT mean a higher risk of stock outages and backorders. It means optimizing the flow of inventory around customer expectations to get material where and when consumers want it. The objective is to make the inventory flow transparent: “enablers” in the enterprise systems and processes streamline inventory flows as part of standard practices.
The tools and disciplines that make this possible encompass store-inventory-management, advanced inventory planning, transportation management, and product lifecycle management
all of which help fine-tune the inventory flow and distribution-channel participation.
The bottom line: A leaner, more agile supply chain wrings out costs out of the retailing process
In summary, the agile supply chain is a single, well-integrated network of internal resources and external trading partners that creates and supports a responsive supply chain and lean inventory flow. The retailer, its suppliers, distributors, transporters, and warehouses all coordinate using one synchronized plan for inventory, delivery, execution, promotions, events, and more. This ensures that the accurate amount of inventory – not too much, not too little – reaches the right stores to meet customer demand and maximize profitability resulting from:
- Reduced supply-chain costs
- Improved inventory turns and asset utilization
- Improved speed-to-market and responsiveness
Watch out for part 3.