The retail supply chain: Underutilized growth lever?
July 11, 2018
In today’s complex integrated marketplace, delivering the right product at the right price is no longer enough. This is incredibly challenging to do—and much harder to do so profitably. The supply chain is essential to meeting customers’ expectations for hyper-personalization and fast delivery. With advanced supply chain capabilities and a clearly defined purpose, customers won’t just buy from you, they will buy into you. However, new Accenture research shows few retailers’ supply chains are at this level.
Retailers should be doubling down on IT investments.
To find out how digital technology investments are being made across retail supply chain executives, Accenture conducted a survey among industry supply chain executives in 2018.
The survey showed that just over half (57 percent) see the supply chain as a growth enabler and competitive differentiator (53 percent), but 60 percent continue to view the supply chain as a support function.
See supply chain as more than a support function.
To have a supply chain that can fully fuel profitable growth by 2020, the C-suite must take action now—elevating the supply chain to be a key component of the overall business strategy. They must invest where it counts most and double down on investments that drive automation, improve inventory visibility, reactivity and placement, that optimize flow of inventory across a number of channels and that improve collaboration with manufacturers to help elevate service levels.
New IT is driving efficiency in last mile delivery and hyper-personalization
Two leading capabilities retailers must address are last-mile delivery and hyper-personalized experiences. Companies are investing and seeing benefits today from new technologies. Customer expectations for immediacy mean retailers have to get last-mile delivery right. Creating positive interactions through last-mile delivery will help build trust and lead to purchasing frequency.
Power your growth and become more agile in the New
- Use new technology, such as cognitive computing, to drive a more efficient supply chain, which garners savings that you can reinvest in advanced supply chain capabilities.
- Invest in new IT that optimizes the network and enables hyperlocalization and precision.
- Align executives across functions to break down silos and ensure a focus on outcomes, such as meeting customer expectations for immediacy.
47%
of retail supply chain executives believe there is a reluctance of workforce to embrace new IT
48%
of retail supply chain executives cite an absence of clear business strategy to deploy and drive value with new IT
Accenture is a Leader in the IDC MarketScape for manufacturing supply chain strategy consulting
IDC MarketScape Worldwide Manufacturing Supply Chain Execution Strategy
Consulting Vendor Assessment
Supply Chain & Operations
Supply Chain & Operations
Industry X.0
Subscription Center
Stay in the Know with Our Newsletter
Stay in the Know with Our Newsletter