In an increasingly competitive and globalized business world, supply chain management is critical to the success of any company. Companies that can manage their logistics processes efficiently have a significant competitive advantage.
However, according to a recent study, only 6% of companies report fully understanding their supply chain. In addition, 80% of companies' data is currently unstructured or not in use.
These figures suggest that there is great room for improvement in this management. The following are some suggestions to enhance its potential
- Improve visibility: Companies must improve their supply chain visibility in order to make informed decisions. This can be achieved by implementing data analytics, artificial intelligence and intelligent connectivity solutions.
- Improve collaboration: Companies that collaborate with their supply chain partners can achieve greater efficiency and effectiveness. By building strong relationships, standardizing processes and providing transparency of information.
In the particular case of retail businesses, demand forecasting effectiveness is a key metric for supply chain management. A recent study found that the average effectiveness of demand forecasting in retail is 63%. This means that, on average, retailers have 37% excess or insufficient inventory.
To improve this effectiveness retailers should use data analytics and artificial intelligence solutions to predict product demand. This will help them have the right inventory in the right place at the right time.