Consumer-Centric Strategies Become ‘New Normal’ for Manufacturers

SupplyChainBrain (9/21, Johnston-JDA Software and Gupta-Accenture) – While many supply chain managers see incremental gains in efficiency as their principal mission, the potential exists for larger gains. In the new normal landscape, excellent supply chain strategies have the potential to drive—not merely influence—superior performance. Consumer-centric supply chains bind business partners together with a unified vision to improve performance. Now is the time for organizations to assess supply chain processes and create an integrated, enterprise-wide information platform. Retailers and manufacturers stand to benefit from advanced information technology and best practices for business process automation and integration, real-time information flow, and improved collaboration among internal and external partners.

- Change your product mix/assortment
- Seize the opportunity for innovative and cost-effective packaging: Manufacturers can respond to consumer frugality by providing packaging that reduces total product cost without tarnishing brand quality.
- Adjust inventory policies: Manufacturers and retailers must be able to rapidly realign inventory policies with changing consumer preferences…Accurate, informed allocation and replenishment decision making is critical for companies seeking margin protection.
- Re-evaluate transportation and logistics
- Establish a more responsive supply chain: Organizations must remove unnecessary delays between multiple planning functions within their supply chains. A single view of demand calls for all planning processes to be brought together...This advanced approach allows the leaders to drive significant costs out of the supply chain while keeping service levels high and quickly changing product mixes to capitalize on buying trends.