Recently global retail had supply issues. Could integrated, holistic data-driven culture in the organisation and country have solved this problem? More than one retailer having a supply issue should trigger some form of action from the countries leadership.
First, Retail organisations should have integrated internal data assets.
Let us look at how a fully optimised data process can help.
An ERP system may exist in the organisation, and getting meaningful insight may also exist.
- Inventory management – manage inventory and track goods
- Demand forecasting – forecast consumer demands, maximise sales and minimise costs
- Vendor management – manage vendors, their lead time and performance.
The organisation should have monitoring systems for inventory, demand and vendor supply timelines. Using outlier detection algorithms will inform you when you have a surge in demand coming through for specific products or multiple products. You may have suppliers who can meet unusual volumes in demand. The demand spike should alert the vendors, who will then try to match product requests.
Are you using analytics to optimise your business decision to make the right decision at the right time?
The simple economics reminds one of the demand and supply concept, where a contraction in supply could lead to higher prices, scarcity, a reduction in consumer confidence which in turn leads to panic buying.