What Will Tomorrow’s Retail Supply Chain Look Like?
If your brick-and-mortar business is in the consumer or retail sectors, you might need to take a new approach to supply chain, according to a new report from McKinsey & Company.
Today’s retailers continue to try to play catch-up with leading retailers, the consultant notes, and are expanding their online selection and experimenting with concepts such as in-store fulfillment of online orders.
“However, many players still struggle with omnichannel success given the requirements it places on their supply chains — especially in terms of speed, complexity, and efficiency,” McKinsey reports. “Customers expect to receive their products anytime and anywhere with a very short time between order and delivery, with excellent service and high convenience. Our research shows that service represents the primary factor that brands and retailers can use to differentiate themselves and ‘delight’ omnichannel shoppers.”
McKinsey advises that the omnichannel supply chain needs to incorporate several key elements. They include digitization and process automation, E2E planning and information flow, and the use of node operations.