RedPrairie Industry Report
July 1, 2009Maximizing Speed and Agility in the High-Performance Supply Chain
To be truly effective, demand chains must reach beyond the retailer’s own organization, plugging in to collaborative communities of retailers and suppliers
The weaknesses of existing supply chains are seen every day on retail shelves: persistently high out-of-stocks at the store level, despite serious investments of time, money and technology to address supply chain challenges. Today, in addition to long-standing supply chain issues such as a lack of data visibility, multiple (and often contradictory) forecasts and little or no collaboration between retailers and suppliers, there’s an economic downturn that has caused rapid, dramatic shifts in consumer demand.
In order to gain the speed and agility of a high-performance supply chain, retailers need to focus on turning their traditional supply chains into demand chains that are capable of responding to customer demand at the store level and across multiple channels. To be truly effective, these demand chains must reach beyond the retailer’s own organization, plugging in to collaborative communities of retailers and suppliers.
These communities would build on the advances already made by acceptance of EDI and Internet-powered portals, but would be modeled on today’s social networks. These new collaborative communities would aggregate and analyze demand signals from the store level, quickly sharing the information with those who can cost-effectively fulfill retailers’—and customers’—needs.
Also included in this report -
To Achieve High Performance, Make the Store the Center of Supply Chain Planning
By André Martin, CEO, RedPrairie Collaborative Flowcasting Group LLC
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