The ever-growing complexity of the retail supply chain
There has been much talk in recent weeks about the retail experience and the role the supply chain plays in it. Topics such as “omni-channel retailing” have been bringing the importance of ‘customer experience’ to the forefront of supply chain management in the retail sector. In a recent report released by Oracle titled “New Retail Democracy” the company presents some alarming statistics.
Consumers are placing an increasing amount of emphasis on the topic of availability. According to data collected by Oracle, 93 per cent of consumers will not wait for a product to come into stock, and 88 per cent of these consumers facing this stock-out situation will purchase the product from a different source. This places a significant amount of pressure on the retail supply chain and emphasizes the importance of proper demand planning and forecasting.
Click here to read the report and view the infographic
Food prices on the rise?
In a recent report released by the Intergovernmental Panel on Climate Change, experts warn that the world is not prepared for the consequences resulting from a changing climate. One specific consequence mentioned is the potential for a significant increase in food prices. It is predicted that global food prices could increase by up to 84 per cent by the year 2050. Climate change has already negatively impacted the global aggregate of wheat and maize crops and yields from rice and soybean crops have also been smaller in major production regions.
Dealing with the threats and risks of climate change is no easy task as future impacts will depend on societal choices, government policies and technological advancements. For this reason, the exact impact cannot be estimated, but scientists warn that the climate change threat is real.
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Apple seeking supply chain security through potential acquisition
Renesas, a key supplier of semiconductors for Apple’s iPhone screens, is currently restructuring its business, focusing on its core auto business. Currently making a loss, the Japanese firm is looking to sell a 55 per cent stake in its chip business, and recent reports have revealed that Apple is interested in making a deal.
This news fits right into the trend of current smartphone producers looking to gain control over their supply chains. More supply chain control results in more control in areas such as costs, production schedules and product information.
To read the full story, click here.
Have a great weekend!
