May 17, 2020

70% of Businesses Record Supply Chain Disruptions in 2010

sectors/outsourcing/70-businesses-record-supply-chain-disrup
Freddie Pierce
1 min
Businesses face supply chain disruptions

The research, which covered 35 countries, looked into the impacts of the supply chain on business continuity.

It showed that while awareness of risks...

The research, which covered 35 countries, looked into the impacts of the supply chain on business continuity.

It showed that while awareness of risks in the supply chain is increasing, businesses remain exposed to high levels of risk.

Adverse weather conditions were found to be the main cause of disruption.

Unplanned IT and telecommunication outages was the second most likely disruption, according to 35 percent of those surveyed, up from 20 percent last year.

The failure of service provision by outsourcers was identified as the third likely disruption. The research found that outsourcing, in IT and manufacturing particularly, often reduces cost benefits through greater exposure to supply chain disruption.

As many as 20 percent of the businesses surveyed went so far as to say that their brand or reputation had suffered damage due to supply chain disruptions.

In fact, outsourcing was continually identified by organizations as having disrupted the supply chain. Those businesses that had shifted production overseas to low cost countries were more likely to be on the receiving end of disruptions. In this instance, transport networks and supplier insolvency were the main reasons for interruptions in the supply chain.

For advice on how to minimize supply chain disruptions when it comes to outsourcing, read Supply Chain Digital’s report ‘Managing Your Suppliers Successfully’.

Edited by Rebecca D'Souza

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Jun 21, 2021

Pandora and IBM digitise jewellery supply chain

supplychain
IBM
Pandora
omnichannel
2 min
Jewellery retailer Pandora teamed with IBM to streamline supply chains as sales of hand-finished jewellery doubled across ecommerce platforms

Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery. 

The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales. 

A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.

Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs. 

Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption. 

"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added. 

 

Pandora’s pivot to digital 

The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand. 

“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”

Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”. 
 

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