FOCUS: SUPPLY CHAIN
However, promotional periods can lead to volatile demand patterns, and retailers will need accurate, up-to- date supply chain data in order to move stock to the areas where demand is highest to better protect their margins.
Identifying inefficiencies fast In response to this market uncertainty, our retailer research showed brands are planning to get on the front foot in the areas they can control, first and foremost in their supply chains. To reduce operating costs and improve cashflow in the year ahead, 40% plan to review their supply chain to find efficiencies, 37% will renegotiate terms with suppliers, and 29% will replace existing suppliers with new ones.
Interestingly, retailers put these actions ahead of reducing sales and marketing budgets (24%) and cutting staff (20%). Only 13% said they are planning to close bricks and mortar stores.
To make their supply chains more agile and resilient, retailers need access to the most accurate, timely data. Vector, our bespoke supply chain software, draws together data from sales channels, warehouses, order fulfilment sites and freight tracking, to provide an integrated overview of how supply chains are performing. Companies can quickly identify where bottlenecks are occurring or where costs are building up and make necessary changes, so they don’t miss out on periods of peak demand.
The power of supply chain integration to multichannel strategies
With more shoppers turning to eCommerce, including online outlets and clearance stores, the number of sales channels available to footwear retailers is evolving at pace and provides multiple routes for brands to connect with consumers and drive sales.
In order to deliver an effective multichannel sales strategy, it requires moving beyond the sales funnel- centric approach, to better determine the web of stock inventory and supply chain complexities that selling through multiple different outlets creates, and ensuring goods reach their destination in the shortest time and at optimum cost to better manage sales margins. This approach provides valuable insight about how supply chain challenges impact consumer buying journeys and will allow retailers to respond more quickly to redistribute stock to channels that are experiencing the most consumer activity, so they never miss an opportunity. By staying informed with the most accurate supply chain data, and software tools that help them to draw insights from it, retailers can stay responsive and put their best foot forward to make the right decisions quickly – particularly during uncertain times.
transportation and parking. Another 12% revealed they have started to buy products from outlets and clearance stores.
Data delivers better decisions Armed with this insight as the peak festive trading season starts, and deadlines approach for delivery before Christmas, many footwear retailers will be looking at extending discounts and promotions beyond Black Friday weekend to drive sales in response to changing consumer behaviour. This is in line with the broader retail sector, with 46% of our survey respondents planning to add new, lower-priced products and 31% to invest more in promotions and discounts.
Caroline Ellis is commercial director at Advanced Supply Chain Group.
To find out more about ASCG’s intelligent supply chain solutions visit:
www.advancedsupplychain.com or contact
marketing@advancedsupplychain.com.
MARCH/APRIL 2023 • FOOTWEAR TODAY
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