Covid-19 and the change in consumer behaviour – How supply chain solutions can shape the new “normal”
By: Dean Boulter, Senior Consultant – Development
A recent Gartner article suggests that 69% of supply chain organisations expect a decrease in consumer willingness to visit stores over the next five years.
Being based in Melbourne, the world leader in the number of days locked down during the COVID-19 pandemic, I completely understand this sentiment and, now that we’re rapidly moving back to an open economy, pose the question – what impact does this have on the supply chain and subsequently, how do we enable flexibility to support ever-changing consumer habits?
We all understand that, by necessity or personal choice, consumer behaviour has evolved over the past 18+ months to a ‘digital’ first, ‘bricks & mortar’ second purchasing approach. Although it’s a topic that everyone has discussed for a number of years, I feel the fuse has finally been lit – perhaps not willingly – for retailers to focus on how to maximise the virtual experience while elevating their in-store experience to entice consumers away from their screens.
So, how can the supply chain enable this shift and support ongoing growth?
https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png is currently working with a number of our partners to determine the most efficient supply chain solution and provide a path forward in the ever-evolving omnichannel marketplace. We have recently had multiple conversations with our partners about returning to a pre-Pandemic ‘normal’ however, inventory levels, origin lead times and ordering profiles, all of which have been heavily reported, suggest the future is very different to what we have known, or accepted, previously.
Shifting from five or six stock turns per annum to an average of three for many retailers has increased supply chain costs, complexity and highlighted the need for all organisational functions to work ever more closely together to create an efficient inventory and fulfilment model which encourages channel integration and customer loyalty.
Thankfully, https://threesixtyscg.com/wp-content/uploads/2022/08/GABC-Website-Image-1.png has the experience and knowledge to evaluate current consumer behaviours and translate this meta-data to tangible supply chain initiatives, enabling an optimal customer experience – either in-store or online. We are working on projects to increase warehouse utilisation, productivity, network rationalisation, digital strategies and implementing order management systems to support speed to market and the customer which is always crucial. However, as we emerge from the global pandemic this is now critical in enabling efficient business growth.
