Retail suppliers have a lot to consider when handling their supply chain. There is competition to be aware of and making sure customers are satisfied with on-time deliveries. Supply chain improvements are needed to make a substantial impact in the retail sector. Essentially, managing a supply chain means maintaining control over costs, inventory levels, scheduling deliveries, and product quality. Here are some suggestions on how retailers can improve their supply chain management.
Technological Software for Supply Chain Improvements
One way to improve the supply chain management is to have high quality cloud-based software. Technology should be a high priority when talking about managing your supply chain. You want to be thinking of implementing software that can track inventory in real time and help with warehouse maintenance. Complex supply chains mixed with uncertain consumer behavior can be a struggle for retailers. Supply and demand have and will always be a huge factor for retailers to be mindful of because of their irregularity. Technology can improve this issue through AI and data-based algorithms. These algorithms can predict demand in a more accurate way and align your supply to those demands. Adapting to trends and fluctuations can be better managed by incorporating technological sophistication.
Fulfillment Center Locations
Running an industry that heavily relies on how its supply chain functions calls for the best locations. Retail highly depends on the location of fulfillment centers because that reflects on timing of delivery, re-stocking, and overall experience. Having fulfillment centers close to the locations where you need the most inventory and close to your buyers. You can bet that there are so many different kinds of locations that can act as a fulfillment center for retailers. This eases in the supply chain and helps inbound and outbound inventory at locations that need it most.
If you deal with a location that is not being productive, then that can cost you heavy delays. In addition, you can eliminate unnecessary added expenses of transportation when you make sure that the stock is already housed close to customers. Delivery times can be greatly improved through proper utilization of storage centers.
Furthermore, you should combine the use of technology with warehouse stock levels to track inventory. There should not be an “out-of-stock” surprising situation. Instead, retailers should have clear visibility in the supply chain process through electronic surveillance and appropriate tagging.
Collaborative Supply Chain Strategy
One of the most important ways to improve a retail establishment’s supply chain is to work well with all other departments and various organizations. It is urged that the sales department mix well with the marketing department to provide each other with accurate predictive demand models. When retailers understand these characteristics, it helps with supply planning. Get to know your suppliers and acknowledge the information that is presented to you.
Moreover, it is important to have open and transparent communication with organizations outside of your own. Be an active participant in a network of other procurement businesses. These connections can help immensely in times of supply chain disruption. Your flexibility is key in making the right strategic decisions and contingency plans.
Partner with a 3PL
To get through the formerly discussed improvement, along with others, consider partnering with a third-party logistics company. 3PL companies provide cost-effective solutions and help with business expansion. Retail logistics coordination is one of the many areas that a 3PL provider like Becker Logistics can handle with integrity and expertise. The internal and external resources at Becker Logistics can guarantee smooth supply chain operations for your retail enterprise. If you would like to work with Becker Logistics, you can request a quote or contact us directly today.