The COVID-19 pandemic, the energy crisis, currency depreciation and soaring inflation have plunged Europe into a period of great uncertainty. As a result, there have been many supply chain disruptions, but demand also fluctuates in uncertain times. So how can you keep your retail business afloat?
The VUCA world is here to stay
As a retailer, you know that launching a new collection is anticipated months in advance. With all the financial risks that this implies in the event of a crisis or a change in trend, for example. How can you avoid accumulating unsold stock or, on the contrary, running out of stock in the event of a sudden drop or rise in demand?
Since the Covid-19 pandemic these questions have never been more topical. Supply chains have seized up. Uncertainty is no longer the exception, but rather the norm. The retail sector, like many others, now operates in a VUCA environment:
· Volatility: consumer shopping habits change rapidly and are difficult to predict.
· Uncertainty: the current retail outlook is unclear and the future is uncertain.
· Complexity: with so many different, interconnected factors in retail, there is a big potential for chaos.
· Ambiguity: customs and regulations in the different countries leave much room for interpretation.
In other words, it is a crazy world out there and we’ll have to do the best we can to deal with it. But you don’t have to take all responsibility on your shoulders.
Embracing a more agile supply chain management
The key to resilience is now flexibility, made possible by agile supply chains. The retailers that do best are those that have the ability to react quickly to unexpected events. In retail, this involves several elements:
1. Reducing the time from order to sale, while being sure to be supplied on time
2. being delivered quickly to meet customer demand without having to build up stocks
3. Keeping initial investments to a minimum, favouring quality but affordable suppliers and ordering only the needed quantities
4. Avoiding fluctuations in the foreign exchange market.
Sourcing from Asia usually keeps costs down. However, it often comes with several constraints that you actually want to get rid of: placing orders at least 6 months in advance, ordering certain volumes and, of course, paying in US Dollars.
Good news! By teaming up with partners like B&C, you can have the best of both worlds: sourcing from Asia but only from a well-established European player. The result: quality goods, available at any time and delivered in less than 48 hours, regardless of volumes and your location in Europe…
