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D2C companies are taking the lead in embracing Agile Supply Chain concepts.
Where do FMCG companies look for best practices in supply chain agility? The answer is quite obvious… D2C companies in their industry!
There are several new age D2C companies disrupting the FMCG industry. These companies sell only through their website or through ECom and Quick Commerce channels. They can respond much faster to shifts in consumer demand, which is not only a must for their survival but gives them a serious competitive advantage as well.
As consumer demand evolves in a difficult-to-predict manner, faster and flexible supply chains can adjust their supplies much better than their traditional competitors. This helps them capture market share from the heavyweights. The more agile a D2C company is, the faster it will grow. It’s quite common to see these companies doubling their revenue every 2-3 years.
Online channels carry much lower inventory in the system than the traditional GT, MT channels. Less agile companies are likely to lose a chunk of consumer demand in online channels due to their slow response, whereas agile companies can accelerate their revenue in the same market.
Agility is truly a game-changer in today’s consumer environment.
Are you feeling left behind? Let’s talk…