The retail sector is in a state of flux. The rise of Amazon and e-commerce has accelerated this transformation, setting new standards in terms of personalization, speed, transparency and multi-channel approaches. The Covid-19 pandemic has compounded these challenges, revealing severe supply and logistical constraints, with losses estimated at a trillion dollars per year due to stock-outs – as is the case for mustard today with the war in Ukraine. Transport problems, such as stuck boats, strikes, and a lack of truck drivers, are adding to environmental constraints linked to decarbonisation, complicating logistics flows. In addition, the sector is facing a shortage of qualified supply chain personnel.
Traditional retailers, not being "digital natives" like Amazon, are struggling to adapt to this new reality. Their supply chain processes, unchanged since the emergence of ERP and APS 30 years ago, rely excessively on reporting and Excel, occupying up to 50% of their time. They seek to identify risks and issues in a multitude of reports, and perform manual simulations to assess the impact of potential solutions. But faced with the exponential increase in the volume of data, the complexity of the offer and the supply chain, they struggle to solve the root cause of the problems, often confining themselves to a permanent crisis management mode.
To effectively address these issues, retailers need to transform their processes to adapt to the specifics of customer needs, embrace technology to limit manual work, and focus on gaining insights rather than drowning in raw data. As machines process data at scale and offer recommendations, humans need to focus on making informed decisions from this information to better manage their sales, supply, inventory...
Supply Chain Genius (SCG) offers an innovative solution to meet the challenges of retailers. SCG automates manual tasks related to distributors' and wholesalers' inventory and supply management, which are currently performed in Excel. SCG's solution focuses on identifying the best inventory management rules (replenishment frequency, target service level, type of over-stock or cross-dock flow, etc.) and purchasing (quantity scales, multiple of purchases, the best incoterm for import, etc.), calculating supply plans, and managing exceptions such as stock-outs or overstocks. By ingesting and analyzing a variety of data (sales, inventory, transit time, assortments, purchasing conditions) from ERP, APS, or Excel files, SCG breaks down organizational silos, facilitating cross-departmental collaboration and accelerating decision-making.
The benefits of the CRS solution are manifold. It reduces inventories and costs, increases revenue through better product availability, and optimizes the working time of supply chain professionals. By freeing them from the burden of reporting and Excel, SCG allows them to focus on strategic tasks such as improving sales, collaborating with suppliers to reduce stock-outs, and coordinating with logistics to minimize impacts on distribution capacity.
To learn more about Supply Chain Genius, visit their website.