Creating Agility in Today’s Supply Chain

By: Pat Walsh, Chief Business Development Officer and Vice President, Supply Chain <p><img style="float: right; margin-left: 10px;" title="Data - Supply Chain" alt="Data - Supply Chain" data-displaymode="Thumbnail" src="https://www.fmi.org/images/default-source/blog-images/data---supply-chain.tmb-large-350-.jpg?sfvrsn=9875786e_1" /><br /> At the end of any well-executed grocery supply chain is a satisfied consumer. However, as we witness an era of unprecedented change in food retail, supply chains must become more agile to keep today&rsquo;s consumer satisfied. Here are a few ways the supply chain is evolving: </p> <p><strong>Changing Consumer Preferences<br /> </strong>Shoppers look for fresher and more natural products in-store to meet their health and wellness needs. &nbsp;Consumers also crave a greater personalization in the foods they purchase creating an opportunity for new niche products in the supply chain.</p> <p><strong>Shifts to Omnichannel<br /> </strong>According to the <a href="https://www.fmi.org/digital-shopper/">FMI Digitally Engaged Food Shopper</a> report, consumer spending is set to hit $100 billion in online sales by 2022. As e-grocery sales continue to climb, grocers are looking for new ways to accommodate the digital shopper with more personalized options and delivery services.</p> <p><strong>The Technology Revolution<br /> </strong>Emerging technologies like artificial intelligence, human-machine interactions, and digital-to-physical conversions are digitalizing the supply chain from farm to fork.</p> <p>This year, the TPA Supply Chain Committee worked to identify five imperatives that may allow supply chains to operate more effectively to resolve these disruptions. </p> <ul> <li><strong>Agility</strong> regarding what, when and where products are produced and distributed will create maximum profitability.</li> <li><strong>Increased productivity</strong> through tools like zero-based budgeting and economies of scale will enhance cost efficiency.</li> <li><strong>Digital tools and data analysis </strong>will be applied throughout the supply chain to enhance agility and productivity.</li> <li>Integration across the chain will compel manufacturers, suppliers and retailers to think and act from <strong>end to end</strong>.</li> <li>New forms of <strong>talent development</strong> will give the industry a workforce equipped with the tools to operate throughout the supply chain in the most effective way possible.</li> </ul> <p>These imperatives, and others, are topics on the program at the <a href="https://www.fmi.org/supply-chain-conference">2018 TPA Supply Chain Conference</a> from April 15-17 in Orlando, Florida. Learn more at <a href="http://www.fmi.org/supply-chain-conference">FMI.org/Supply-Chain-Conference</a>. </p>