What a year 2020 was for the wine supply chain—and the same can be said for all global supply chains, no matter the market sector.
In the face of the global pandemic, how resilient was your wine supply chain? Moreover, how prepared is your supply chain for a rapidly changing, digital world?
According to a key annual supply chain industry report put out jointly by Deloitte and manufacturing and materials handling trade group MHI, close to two-thirds of supply chain leaders surveyed—including those in the food and beverage sectors—believe more major disruptions are coming in an uncertain future, even though only 30 percent of those leaders surveyed think their organizations currently have the ability to adapt.
The top six company challenges from those surveyed for the report include:
- Hiring and retaining qualified workers
- Customer demands for lower costs
- Customer demand on response times
- Rising customer service expectations
- Supply chain disruptions
As a result, close to half of the survey respondents said they are increasing investments for supply chain innovations due to the Covid-19 disruptions.
When it comes to innovation, a significant trend highlighted in the report is the rise of the digital supply chain. Twenty-two percent of the survey respondents indicated that “digital” is already the predominant supply chain model, and 83 percent expect it to become the predominant model in the next 5 years.
Not surprisingly, part of what is driving digital supply chain innovation is e-commerce sales, which were up 44 percent last year, according to the report. However, the digital supply chain, in its fullest state, has a wider reach. Grocery stores, for example, are increasingly embracing omnichannel, as consumer behavior has been altered beyond just the increase in direct-to-consumer shipping, but also buying online and picking up at the store as a way for consumers to avoid paying freight costs for home delivery.
The CEO of a big box discount retailer said its company had fulfilled 75 percent of its digital orders through in-store pickup, curbside pickup, and same-day delivery from its local stores, according to the report.
The clarion call in the report is not just “doing digital,” but “being digital.”
“A long-term technology strategy and business case can help deliver quick wins to build confidence and trigger a culture shift towards innovation within the organization,” said the report’s authors.
“Create roles for digital subject matter experts (SMEs) and digital champions on your teams, and then ask them how your organization can reap the benefits of digital and stay competitive in a digital world,” they said.
Moreover, “Understand customers better,” stressed the report. “To thrive in a post-disruption business environment, organizations need to become more customer-centric. Visibility and transparency are key ingredients for creating and maintaining a strong customer connection. Digital innovation can help your organization collect customer feedback so it can better understand its customers and quickly respond to their needs. Similarly, AI and advanced analytics can help your organization anticipate customer needs and provide a more personalized customer experience.”
A bottle of digital wine, anyone?