The goal of each business is to meet and exceed customer expectations by accurately fulfilling orders even when against extreme demand. Many organizations choose to fulfill with at least one manual rules-based approach based on factors like proximity. While this may seem like an ideal solution, there are automated supply chain methods companies can implement that benefit both businesses and consumers.
Investing in advanced supply chain automation and intelligent order management (OM) systems will not only improve how your organization fulfills against extreme demand but also serves your consumers more effectively in the end.
The Business Impact of Outdated, Manual Systems
Working within outdated, limited supply chain models can cause suboptimal inventory management due to a lack of data correlation and system integrations between suppliers, carriers, and consumers. Without a view of real-time data and full visibility into your company’s supply chain, it can be difficult to make predictive adaptations for your business, causing issues such as overstock or backorder inventory.
When companies fail to manage inventory properly, delivery times can be extended which can jeopardize customer relationships. In fact, 71% of US-based companies say that one delayed order is enough for a consumer to take their shopping elsewhere. Manual systems can also result in reduced revenue and lower profit margins due to the lack of a holistic view of inventory, especially when companies rely on the proximity between consumer and distribution centers as a means to fulfill orders. When companies have a larger inventory holding and multiple fulfillment locations, it becomes much more difficult to forecast demand and optimize inventory, leading to further issues with consumers, inventory holding costs, and mitigating risks with inventory down the line.
Businesses Must Shift to Automated and Intelligent Technology
With the increase of online shopping due to COVID-19, the need to fulfill against extreme demand becomes more important than ever. Automated supply chain and OM systems will enable your business with a global view of inventory and your supply chain, as well as allow the extension of fulfillment channels.
What Businesses Receive with Automated Systems
Prioritizing intelligent fulfillment creates a balanced relationship between the business and the consumer. In fact, 61% of businesses see an increase in customer loyalty, as well as gain other benefits such as increased revenue and profit margin, and higher inventory turnover levels due to complete supply chain transparency. For example, our client, a leading fabric and craft retailer, was experiencing issues with extending its customer experience online and needed help improving inventory visibility within its supply chain and OM system. After implementing a cloud-based solution that focuses on omnichannel fulfillment and inventory management, we gave the company a global view of inventory across thousands of store locations. As a result, the customer experience improved and our client saw record sales numbers during the COVID-19 pandemic.
Businesses gain knowledge around new processes and skillsets by investing in advanced supply chain optimization and fulfillment, as opposed to limited, outdated, manual systems that cause rifts and breakdowns in the supply chain. Companies that implement modern, intelligent technology can meet every consumer expectation and shift quickly to meet current trends.
More Information and Resources
Automated and intelligent systems give your organization the power to know every detail of your inventory, supply chain, and various fulfillment options to create an impeccable customer experience. To learn more about the statistics behind these automated systems, download our commissioned study from Forrester Consulting, Get Supply Chain Right! Intelligent Fulfillment Boosts Customer Service And Return On Inventory Investment or check out our recent webinar, How to Drive Better Customer Service With Intelligent Order Management.