Many U.S. supply chain managers may see the holidays as a bit of a humbug, despite the fact that they create an increase in demand for many large retailers. In the "Supply Chain Impact" survey released by Capgemini, 83 percent of supply chain managers said they found it challenging to adequately prepare for peak demands, such as those that occur during the holiday season.
The Cost of Supply Chains That Can't Keep Up
Only 21 percent of managers surveyed believe their systems provide accurate, real-time insight into performance, allowing them to meet customer expectations for inventory and delivery. More than half of the 150 managers surveyed said supply chain issues have a negative effect on their revenue. A failure to meet those demands can turn costly, according to the portion of the survey that measured consumer satisfaction.
- If an item is delivered late, 89 percent of consumers said they would shop at a different retailer in the future.
- If customers find an item is out of stock, 73 percent would purchase it at another retailer.
- Consumers' largest frustrations with holiday shopping are delivery of the wrong product, late delivery and items being out of stock item, according to the survey.
- Of surveyed supply chain managers, 31 percent said they believe that top executives are not concerned with supply chain interruptions during the holiday season impacting revenue.
Data Collection Can Increase Supply Chain Accuracy
In RFgen's white paper, "The Data Collection Software Buyer's Guide," one of the many benefits listed for automated data collection systems is the improvement of customer satisfaction. The white paper also recognizes the expectations of customers to have products delivered on time, and at a reasonable price. Automated data collection promotes an increase in quality by giving organizations the ability to analyze data in real time, improving accuracy. Data collection also reduces the amount of time spent on certain activities, streamlining supply chain processes. This means quicker delivery with fewer errors.
Barcode Scanning Technology Can Help Keep Shelves Stocked
To help ensure that an out-of-stock item doesn't cost an organization a sale, distributors should improve barcode scanning on the receiving end of the warehouse and through the logistical portion of the supply chain. Distributors can harness mobile data collection to track merchandise in real-time, as it is entering and leaving the warehouse. If inventory is off or inaccurate, the trickle down effect will contribute to the 73 percent of shoppers who leave the retailer to shop elsewhere.