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Onmichannel buying behaviour of consumers needs dynamic supply chain planning.
Supply chain planning was much simpler when consumers had limited channel options to buy from. They had to either visit the physical stores or order from the mail catalogues. Products were often segregated between these two buying channels. Consumer tolerance towards stockouts and delivery led time was relatively higher.
The advent of internet and online buying made it more complex. The same purchase requirement could now be fulfilled through several alternate channels. Consumers got more demanding in terms of faster delivery. ‘Same Day Home Delivery’ was launched as the ultimate service offering by some online channels.
Quick Commerce made these channels look obsolete. ’10 minute home delivery’ has made consumers even more demanding.
As we get into channel proliferation and faster deliveries, the frequency of planning refresh also changed. Monthly refresh of demand outlook morphed into daily refresh and now hourly refresh for Quick Commerce.
However, many CPG companies are still using monthly refresh of their demand outlook for supply planning and execution. Is it just inertia? Are they not feeling the pinch? Or is it just the mechanics of frequent demand refresh that looks daunting?
Time for you to break out of inertia and take the first step…