U.S. supply chains are currently in a time of uncertainty as risks like the impending trade war with China, environmental standards, transportation challenges and labor regulations are putting a strain on production and retail profits. Factor in the growth of fast fashion, one unforeseen challenge could destroy a retailer or a brand.
Forbes reports that while the trade war with China will drive up costs, it may also give brands the final push to make their supply chains more efficient, streamlined and future-proof.
Many companies have reportedly had talks with clients to go over potential replacements for Chinese and other non-U.S. suppliers. While it may take years for companies to move decades-old supply chains out of china, it likely won't guard against the "unknowns" of the modern age, Forbes reports. Automation and advanced analytics will drive supply chains to to compete in a modern age.
In order for supply chains to move forward in this day and age, they will have to focus on technology innovation, speed and the idea of "supply chain analytics versus supply chain analytics," Forbes reports. While some brands are moving towards that thought, not nearly enough have taken the dive.
Forbes reports that real-time is no longer fast enough. Retailers have to build predictive analytics and automation into the supply chain in order to benefit from being able to predict future needs and facilitate necessary changes into their operations. Brands like Marks & Spencer, vineyard vines and rue21 are using predictive analytics to learn what specific designs resonate with customers and at what price point. Using predictive analytics lets the companies to more accurately and quickly make items that consumers desire to help boost sales. Additionally, predictive analytics gives retailers insight on what products aren't selling as well so that they're able to eliminate them.
To read the full original article, please click here.