Retail Dude

We all agree that supply chain is a backbone of retail business, but if retail is all about customers centricity and for the past 10 years it strived hard to change its product centric strategy to customer centric strategy and developed a face, a face that cares about customers, for whom customer is a king, then it definitely need its behind the scene player i.e. their supply chain to be customer centric. That strategic shift has weathered recent economic uncertainty, and we have seen it grow in both scope and complexity as retailers look to tackle localization and customer service that increasingly crosses channels. But this strategic shift from supply chain 1.0 to supply chain 2.0 have lots many hurdles in  its path, and one of is as usual the evergreen challenge that is getting the forecast to match demand. Apart from that due to globalization the supply chain is extended and require more resource to operate effectively, moreover the virtual stores also depend on the supply chain for their proper operations, these increases the pressure on precision in planning and execution of supply chain. The other challenges that are there on the way to shift are localization of assortment, SKU proliferation, and even customer demands for more supply chain precision – are putting new and different pressures on supply chain.

Now if we talk about solutions or about what will be new in the supply chain 2.0 than I will like to say that “the visibility” is what is a one word answer from many problems that supply chain faces today. With the help of latest technologies like RFID, intranet and real time information movement/Electronic Data Interchange (EDI), data synchronization and defined Universal Product Code (UPC), evolved and more enhanced and powerful Transport management systems (TMS) & Warehouse management systems (WMS) and other optimizer packages, the face of supply chain will definitely changed. But along with these technology enables the supply chain require to work out of their silos in collaboration with retailers.

Ultimately the customer will be satisfied with the combined efforts of both the retailers and their supply chain.

In last what I think I forgot to mention one big block in the path of supply chain 2.0 to be implemented in India is the infrastructure, so along with visibility the Indian supply chain requires good support from the infrastructure of the country.

-Prateek Katiyar

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