Organizational silos are the bane of so many brands’ and retailers’ supply chains, from disconnected departments to information disparages across channels. But there is relief in sight in the form of today’s next generation supply chain management (SCM) systems that are connecting channels and alleviating the pain silos put on production and profits.
In a recent article by our own Mark Burstein in Supply & Demand Chain Executive, he breaks down a few ways businesses can implement these new SCM practices across their enterprise, by:
- Responding quickly to sales data. Boosting sales and profitability can be summed up with a simple formula: If something is selling, accelerate production and make more of it; if it’s not selling, cut the losses and stop making it, because it’s cheaper to cancel production. Even a handful of poor-selling products can ruin overall profitability. With the SCM hub connecting design, finance, sales and production data in real time, retailers and brands can quickly react to the latest sales information and make the most of every season.
- Postponement. SCM allows organizations to push decision-making further downstream; this concept of postponement—waiting until the last possible minute to make decisions—is central to lead time optimization. And it improves decisions, because the further into the design-production process, the more information companies have and the better decisions they make.
- Performing quality audits at the factory. SCM allows organizations to incorporate quality audits as part of the enterprise platform. This enables you to check for quality at the factory before the goods ship; if an audit fails, you can address it at the source, resolving quality issues quickly and without undue cost.
With omnichannel retailing grown exponentially every year, retailers and brands are looking to new ways their SCM helps meet the demands of consumers and increase profitability. View the full article by Mark, here.