Retailers have been investing in supply chain technology for some time. Now they need to take it to the next level: the store. New technology advancements are making it possible for retailers to cut logistics costs significantly while dramatically improving customer service.
Over the past five years Best Buy Co. has developed a world-class supply chain that supports the company's position as one of the nation's top retailers, while saving millions of dollars in costs.
To meet the ranking's exacting criteria, these companies' supply chains had to be driven by demand forecasting, use cutting edge technology and produce industry leading financial results.
The pressure is on for companies to employ demand-driven strategies - technologies and processes that can "sense" and communicate real-time demand across customers, suppliers and employees.
The company acknowledges it was a "terrible supplier" of its line of highly seasonal lawn and garden products. It now has a whole new approach to working with retailers, matching supply with actual demand.
Increased offshore manufacturing coupled with growing demands for more customized products and rapid delivery require a more flexible order-fulfillment model. Supply-chain strategists and solution providers are responding to this challenge.