Today’s supply chain is undergoing a shift in the way it operates, as more importance is given to the last mile of delivery. Coupled with promises to maintain high customer service levels and flexible deliveries, companies face the heat when they are unable to match customer demands. Companies such as retailers, warehouse distributors, manufacturers, and logistics firms who work with supply chains, or have their own supply chains, must deliver exceptional customer experiences and drive bottom-line growth by optimizing the supply chain.
New Challenges in Supply Chain
The supply chain faces new challenges with global Internet retail sales expected to grow to 4.48 trillion US dollars by 2021. As the retail market is booming across the globe, customers are free to order goods from anywhere, and expect them to be delivered at a stipulated time. In light of these trends, it is a growing challenge to reach customers in certain locations, and at a time of their stipulation, particularly in areas that are remote or less densely populated.
The other notable challenges include keeping the last mile delivery costs low, problems related to road congestions and delays, and providing end-to-end visibility. As delivery and logistics companies become more aware of the challenges that lie ahead of them, adoption of digital solutions for supply chain optimization will become inevitable to overcome these challenges and drive growth. Cutting-edge supply chain optimization solutions can help retailers achieve better inventory control, faster order fulfilment, accurate demand planning, and higher customer satisfaction levels.
The Move to Digital Solutions
In today’s era, digital technology is the game changer that is reshaping logistics and delivery. In the retail segment, this technology will play a vital role in improving logistics capabilities and optimizing the entire supply chain. It can bring together all components of the supply chain – planning, manufacturing, dispatch, warehouse, transport, and external stakeholders such as partners, drivers, and customers – to achieve higher operational efficiency and better customer satisfaction.
Having an in-house development team to develop the supply chain solution requires functional experts to conduct knowledge transfer sessions to the IT teams, which deviates from their core competencies. Therefore, selecting the right technology partner is important to realize the benefits of optimizing the supply chain processes. To choose the right solution and the partner, it is important to understand:
- The time it will take to build the complete solution and implement it.
- The development, testing and documentation processes to be followed for future iterations or software updates.
- The service and support that will be required after implementation.
- If the solution will seamlessly integrate with other stakeholder systems (CRM, ERP, etc.).
- The additional investment for setting up in-house infrastructure.
The advantage of implementing a purpose-made supply chain solution is that there is evidence of its benefits from previous implementations and customer testimonials. A partner who provides such a solution will also have the advantage of past experience and will be knowledgeable about the inherent challenges and requirements from multiple perspectives and use cases.
The supply chain landscape presents new challenges every day. However, it also offers new opportunities to retailers, manufacturers, and logistics companies to expand their operations beyond international boundaries. Therefore, leveraging the right technology solution can make all the difference, bringing in much-needed process optimization and improvements in supply chain.
Are you working in the supply chain ecosystem – as a retailer, warehouse owner, or logistics provider? Do you want to establish operational excellence in your field of activity by using digital solutions? IGotIt is an industry-leading delivery management platform dedicated to optimizing deliveries across the entire supply chain and delivery ecosystem. If you want to explore the various delivery management features that we offer, drop us a line, and we’ll get back to you.