Every business needs an efficient supply chain as its backbone to succeed in the market. In a globalized world, it is essential to have adequate visibility in supply chain operations to ensure that the business can continue to meet the demands of the customers. The importance of supply chain was realized by businesses during the COVID-19 crisis, semiconductor shortage and even when Ever Given, a container ship, had run aground in the Suez Canal.
For the consumer durables sector, supply chain transformation is significant. Companies in this sector face many challenges in managing their supply chain, including balancing supply and demand, meeting customer expectations, reducing costs, and maintaining product quality.
Furthermore, globalization has led to increased competition, with companies facing pressure to reduce costs while maintaining quality standards. These pressures have led to a growing need for companies in the consumer durables sector to transform their supply chains to remain competitive, reduce costs, and enhance customer satisfaction.
Transformation strategy for Building Resilient and Sustainable Supply Chain
The consumer durables sector is experiencing significant changes driving the need for supply chain transformation. Here are some of the critical drivers of supply chain transformation in the consumer durables sector:
The advancement of technology is driving significant changes in the consumer durables sector’s supply chain. Digital transformation with technologies like artificial intelligence (AI), the Internet of Things (IoT), and automation is revolutionizing supply chain processes, making them more efficient and transparent. Companies should conduct an audit of the current supply chain system to identify the possible technology interventions. The audit should identify inefficiencies, bottlenecks, and areas for improvement.
The selection of appropriate technology is critical to the success of the supply chain transformation process. Companies must carefully evaluate available technology solutions and select the ones that best meet their needs.
Changing customer expectations
Consumers now expect fast delivery times, real-time tracking of their orders, and a personalized shopping experience. Companies that fail to meet these expectations often see their market share shifting to competitors who can provide a better customer experience. As a result, companies in the consumer durables sector must focus on meeting changing customer expectations to remain competitive.
A cross-functional team should be formed to oversee the supply chain transformation process and its impact on customer experience. The team should include representatives from all functions involved in the supply chain, including procurement, manufacturing, logistics, and customer service.
Need for greater efficiency
The consumer durables sector faces pressure to reduce costs while maintaining quality standards. Companies must find ways to optimize their supply chain processes, minimize waste, and streamline their operations to improve efficiency and reduce costs.
Change management is a critical aspect of supply chain transformation. Companies must develop and implement change management initiatives that address the human side of the transformation process, including communication, training, and employee support.
Globalization and increasing competition
The globalization of the consumer durables sector has led to increased competition, with companies facing pressure to reduce costs while maintaining quality standards. As a result, companies must find ways to differentiate themselves from their competitors through their supply chain operations.
Supply chain transformation is essential for companies in the consumer durables sector to remain competitive, reduce costs, and enhance customer satisfaction. Key performance indicators (KPIs) should be established to measure the success of the transformation process, and regular reviews should be conducted to identify areas for improvement. By following these steps, companies can transform their supply chains, optimize their operations, and achieve their objectives.
The author is the CEO of Elista. Views expressed are personal.
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