Navigating Customer Demands and Sustainability with Your Supply Chain

Introduction

Supply chains are under a lot of strain. The pandemic and other major global shifts make it challenging for manufacturers to fulfill their commitments to their customers and to environmental sustainability initiatives. By digitally enabling your supply chain, it is possible to find new strategies to support these commitments while increasing efficiency and navigating uncertain economic conditions.

Aligning strategy with customer demands

Customers expect their products to be delivered on time and in full. Meeting this need builds customer trust. During the pandemic, everyone has been frustrated by greater inconsistencies in their deliveries, making both consumers and companies more open to finding alternative suppliers. In a digitally enabled marketplace, the time to meet these expectations, generate trust, and keep customers happy is frighteningly short. Though online retailers may be able to absorb losses in their logistics costs—many organizations cannot say the same. The supply chain must meet a holistic balance between all relevant stakeholders to create and sell quality products, ensure profits, maintain sustainability, and keep customer satisfaction levels high.

When new technologies and customer expectations disrupt industries—changing consumer markets for both B2B and B2C operations—supply chains often bear the brunt of the impact. Traditional supply chains must evolve alongside new technologies to meet the pressures demanded by more complex operations and major global events. In 2018, more than 57% of manufacturers had already begun embracing direct-to-consumer (DTC) models reports Ally Commerce. This strategy went on to work for many during the pandemic, but while some organizations have successfully navigated DTC, others have struggled deeply with this model over the past year. Many of the most successful DTC winners incorporate DTC as part of a larger comprehensive strategy that combines retail stores, social media, Web3, and online shopping (Wired). Organizations must go beyond a traditional supply chain or a single form of retail. By aligning their supply chains with modern tools and business models, they can deliver to customers better and more efficiently. If you want to adapt your supply chain methodology but don’t know how, look to Datix. We support our clients in developing their business strategy through software and help you every step of the way, from the planning to the implementation and beyond.

Making sustainability initiatives matter

Producing affordable, ethical, and environmentally conscious goods or supplies has never been easy. As supply chains face more obstacles and regulatory scrutiny—as well as evolving regulations across countries and borders—a digitally enabled and networked supply chain can be better positioned to make use of sustainable materials and produce less waste, while also sourcing these materials ethically. That’s not to mention creating working environments, such as in warehouses or logistics operations, that put human welfare top of mind so you can keep and recruit new employees.

A McKinsey report highlights three ways to reduce the impact of these challenges: “Locate critical issues across the whole supply chain; link supply-chain sustainability goals to the global sustainability agenda; and assist suppliers with managing impact—and make sure they follow through.” Technology is critical to achieving on these goals. Modern supply chain tools can be used to analyze and understand production and distribution activities to match them with changing customer expectations as to where and how goods are produced. This allows the organization to better understand what issues the supply chain faces—and where they’re happening. When implementing new technology, it is important to know how it will fit and scale with your business. At Datix, we share our 25 years of experience to provide tailored software solutions to each of our clients. Learn how Datix can support you in achieving your goals.

Supply chain visibility increases the opportunities for new programs to succeed, as well as the ability to view and understand working conditions to eliminate existing and potential partners if they cannot meet ethical standards. This is the objective of the UN Sustainable Development Goals that were established to help countries achieve sustainable development goals (SDGs) by using integrated solutions that can “define development of the future”—and mobilize collective intelligence. In supply chain terms, it’s a matter of visibility and sharing it with all relevant stakeholders to create more collaborative and transparent processes.

Wrap Up

The strength and resiliency of your supply chain can make or break your organization. A digitally enabled supply chain gives you the power to exceed customer expectations, foster sustainability and continue to grow your business. If you supply chain needs improvement, connect with Datix to learn how to be ready for any scenario.

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About Datix

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Please note: This blog post was based on the White Paper “Why supply chain digitization is no longer optional” from Infor and updated by Datix to reflect 2023 market conditions