In an omnichannel world, traditional companies with legacy systems are rapidly losing market share to emerging companies who are getting better at being discovered by consumers and providing them with a superior / quicker delivery experience. ![]() This will allow them to dynamically adjust to the points of demand origination and demand completion. This unpredictability requires companies to redesign their stocking and distribution processes and create a nimble infrastructure. In other words, where the demand originates and where it is fulfilled is fluid. The dynamics of operating in an omnichannel environment are fundamentally different from the traditional offline (plus some online presence) environment that companies are generally used to.įor instance in the Omni-channel world, whether the consumer’s interest is generated online and the supply happens at an offline store and vice-versa is unknown. The pandemic has accelerated the adoption of online channels for many categories and has created a truly multi-channel market. ![]() To de-risk their businesses and to build supply chain resilience, companies, therefore, have to diversify their resources, and move to a model which allows them to tap into a larger number of vendors/service providers – be it raw material suppliers, logistics providers, warehousing, distribution partners, etc. The pandemic has alerted companies to the risk of dependency in case the vendor or the region was disrupted. While the model has been reciprocated by companies so as to optimize ‘efficiencies of scale, the model of consolidating becomes a bottleneck when one or few of the stakeholder in the consolidated pool are impacted. This is primarily because there is heavy reliance on a few vendors/ service providers at every step. Until now, disturbance in one step would lead to disturbances in the whole supply chain. This calls for a lot of learning and more importantly unlearning for the entire ecosystem.īelow are a few factors impacting businesses, all of which can largely be resolved by implementing a nimble and dynamic supply chain operation.įor any organization to continue on the path of growth, their supply chain must be undisturbed even if there is an issue at one or more steps such as raw material procurement, production, stocking and distribution. The supply chain management in today’s environment needs to build end-to-end synchronization between different stakeholders, so that the supply chain can be nimble to respond to a changing market environment. In such a changing market environment, only the companies that are able to quickly reconfigure their supply chain, warehousing and logistics operations will be able to survive and thereby thrive. In order to reconcile with the new normal, it has now become critical to factor in the uncertainties while developing the supply chain of the future. ![]() And hence, ‘Supply Chain Resilience’ surfaced as a priority being placed at the forefront of every boardroom discussion to build agile and sustainable businesses. However, during the pandemic companies recognized that they need to strengthen their supply chain processes and technologies significantly to avoid being impacted by the disruptions and uncertainties. The dynamics of most markets have been altered in fundamental ways, requiring companies of all types and sizes to quickly reorient themselves to the changing market dynamics.įor years, the supply chain has been considered a backend function and supply chain operations were noticed only in case of a disruption. The pandemic has led to turmoil across industries, creating a lot of disruptions and uncertainties.
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