Expert
Column: Adapting the Supply Chain to Meet Consumers' Omnichannel Needs
October 1, 2014, 11:35 am By Mike
Mulqueen, Manhattan Associates
Grocery supply chains are stretched. In the face of increased
competitive disruptions and new trends in consumer behavior, grocers are seeing
more strain in their supply chains. Disruptors like AmazonFresh are delivering
directly to the home, and other big box chains are fighting to gain ground in
grocery. With the rise in omnichannel in other retail sectors, consumers are
demanding new concepts, greater variety and new options in delivery and pick-up
from grocers.
The concept is simple: customers should be able to go to a
store, see something they like, and order it for home delivery. Or order the
item online and pick it up at a store.
Today’s grocery supply chains must be more nimble and agile in
order to deliver these experiences. Achieving success in this new paradigm is
dependent upon having a sound distribution and logistics infrastructure in
place, yet the importance of a good transportation management system (TMS) is
surprisingly misunderstood.
As we’ve seen in other retail sectors, this new variety of
consumer options creates extreme complexity that requires supply chains to be both
flexible and dynamic. In essence, it doesn’t matter when, where or how the
customer wants the product — retailers must be able to deliver.
Grocery supply chains change dramatically over the course of a
year. From summer produce to high-peak holiday volumes in November and
December, knowing how and when your supply chain needs to flex is what makes
today’s grocery supply chain needs so extreme.
Supply Chain Commerce Solutions
Supply Chain Commerce solutions are available to help grocers
get commerce ready and dramatically increase flexibility in their supply
chains. For today’s grocer, TMS is central to ensuring that supply chains are
ready to sell and ready to execute.
A TMS solution can help grocery chains lower costs and reduce
complexity across these omnichannel fulfillment paths. The benefits of a robust
TMS solution as a critical component of the omnichannel technology stack
include:
·
Probabilistic modeling functionality performs
a variety of “what-if” scenarios, such as determining optimal freight term
assignment. Unlike traditional modeling tools, probabilistic modeling accounts
for variability, which can provide more accurate results than simply using
averages. This capability can help grocery chains be more agile and respond
faster when supply chain disruptions occur, such as winter storms. It also
helps provide fresh insight into the business ramifications of expanding into
new territories, opening up a new distribution center and addressing other
supply chain changes.
·
Transportation planning helps
provide greater visibility into the capacity for shipments across multiple
modes and locations as well as common motor carriers or private fleets. This
can identify the best transportation management scenarios to meet logistics
requirements for quality, cost and speed and can reduce empty miles, improve
on-time performance and pinpoint anomalies that impact the supply chain.
·
Yard Management maximizes
yard and warehouse efficiency by managing the flow of inbound and outbound
goods, which enables organizations to plan, execute, track and audit loads
based on characteristics like shipment type, load configuration and labor
requirements.
Grocery chains most effectively take advantage of these
next-generation productivity and efficiency capabilities through a
single-platform approach where TMS is integrated with other solutions, such as
warehouse management. Having complete, uninterrupted visibility into operations
offers a single version of the truth in this complex and dynamic age.
Those in the food and beverage sector that truly want to
differentiate themselves based on service and profits should consider TMS a
critical component to a successful, overall omnichannel strategy
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