Info-Tech Research Group, a Toronto-based information technology research and advisory company, recently released new research that it said retail organizations can tap to become more demand driven, cost effective, and competitive as they navigate a challenging global supply chain.
The new research, “Building the Demand-Driven Supply Chain Network in Retail,” outlines a new customer-centered approach to supply chain management that focuses on a cloud-centric planning system integrated with AI features and autonomous analytics execution tools, the company said.
“To meet the demands of empowered tech-savvy buyers and drive supply chain networks, retail organizations must adopt omnichannel demand-driven fulfillment strategies. These strategies require understanding buyer preferences and aligning operating models and customer service levels accordingly,” Rahul Jaiswal, principal research director at Info-Tech Research Group, said. “By focusing on customer demand and leveraging customer intelligence, retail organizations can shape merchandising strategies, improve brand loyalty, and drive profitability. These insights can also inform the design and launch of innovative products and services that align with market demands.”
The blueprint details four strategies for enhancing visibility and expediting market entry by aligning supply chain fulfillment with demand, the company said. Research by the firm indicates that inefficient forecasting in the retail industry can significantly impact the industry through things like poor customer service and inventory shortages. Additionally, the research found, limiting integration with existing systems can lead to duplicate orders and a lack of coordination. To overcome those challenges, Info-Tech recommends transitioning to flexible and responsive networks.
To do this, companies should understand and respond to demand in real time, deliver on omnichannel supply chains, fulfill omnichannel demand, and build value networks.
The company said its research found that most demand-driven networks still rely on outdated industry business reference architectures and to stay competitive, retail organizations should shift to cloud-based planning platforms with AI capabilities and self-directed analytics execution capability tools.