Capgemini: creating sustainable resilience in supply chain
The resilience of a supply c...
The resilience of a supply chain is decided by two major factors: the ability to avoid or contain risks, and the importance of stabilising and returning to normal following a disruptive event. Despite both areas being key, organisations often fall short in one of two areas - sacrificing agility for preparedness or alternatively favouring nimbleness over hindrance.
Over the past few years, natural disasters have forced companies to deal with unprecedented disruption to their supply chains - which costs organisations millions of dollars. So how can these challenges be addressed? Capgemini lists four approaches to make supply chains more resilient.
Develop or enhance monitoring capabilities
It is important to introduce control tower solutions across your supply chain to deliver real-time visibility and quick reaction times that develop a true competitive advantage linked to customer experience.
Leverage and master supply chain data
Bottlenecks in supply chain processes directly affect the agility of operations and adversely affect supply chain resilience. Inefficient supply chain master data management is set to disrupt operations, create stock outs, and tie up valuable resources. However, with the right combination of cost-effective resources coupled with intelligent automation solutions, master data management can be dealt with easily to help optimise operations.
Optimise the supplier landscape
By utilising blockchain solutions to obtain instant data across all partners, it allows supplier risks such as bankruptcy or compliance issues to be managed proactively rather than reactively.
Create buffers to foster agility
Any change in laws and regulations can be addressed by having scalable, agile teams that are agile and lean to address any operational effect of unprecedented changes.
With organisations having more data than ever before at their disposal, the upward curve of supply chain complexity is caused by increasing globalisation to create unsustainable situations for supply chains. In order to achieve success, the importance of operating a resilient supply chain is fundamental. Capgemini’s study has shown the ability to create added scalable capacities is important to handling and dealing with unexpected regulation changes and creating business continuity.
For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.
Pandora and IBM digitise jewellery supply chain
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”.