Until recently, the trends in your retail supply chain were easy to track and prepare for. There were always the seasonal peaks and valleys, and, depending on your business, they tended to stick to the same trajectories, year after year. Then there were the growth periods when demand increased from the same period of the previous year. Both of these made it easy to adjust to the changes.
But in 2020, the COVID-19 pandemic is wreaking havoc on businesses worldwide. Never before has anything on this level had such an impact on the face of the business and retail world. This episode is a “black swan event”: an unpredictable situation with a significant (primarily negative) effect.
Now that we’ve all seen the impact of the pandemic on the business world, what can you do to prepare (and protect) your retail supply chain to meet customer demands in the post-COVID-19 business environment? It certainly has been a shock to the system in all areas of life outside the business world. And the goal is to not only survive the interruption but thrive.
Keeping Your People Safe
Naturally, nobody wants to slow down (or close) their facilities due to illness or the spread of any virus. Keeping your employees and workplace safe by following the recommended guidelines for workplace safety is paramount. As long as your supply chain is up and running, you can adjust your business to deal with changes in the world that are outside your control.
Taking Stock of Your Stock
A vital factor is your inventory. Remember that no list equals no sales. First and foremost, you must secure your inventory and have enough to fulfill all your orders, especially if you source products from overseas, because the impact of COVID-19 is different in other parts of the world from North America. For example, laws and regulations might have changed in other countries, affecting shipments coming from those regions.
If any of this means adjusting the window between order and delivery, then you will have to modify your buying practices:
- Ordering earlier than normal.
- Planning on having more (or less) inventory on hand.
- Understanding the issues that might affect the shipping of your products.
It can also mean changes in your delivery options. For example, “contact-free” delivery has become an appealing choice for consumers in the post-COVID world.
Planning by Being Flexible
Preparing for both the long- and short-term demand due to these retail industry trends (along with other factors) will help you keep things running smoother, reduce consumer anxiety and stabilize your revenue stream. The ability to remain flexible will undoubtedly lessen the sting of any black swan event such as COVID-19.
Of course, understanding consumer demand for your product is paramount. Are you selling something prone to “panic buying”? Are your products something that customers want more (or less) of during uncertain times? Is it something they would stock up on? Or are your products “out of sight, out of mind” until the crisis subsides? Either way, you will have to plan on allocating resources where they’re needed.
Identifying the Bottom Line
Maintaining consistent retail distribution is mandatory for your company to maintain its goodwill in the industry. Having an experienced third-party logistics (3PL) partner in place is critical. Doing so will allow your business to move quickly during times of crisis or other business interruptions, whether that means scaling up or down seamlessly, to meet your customers’ expectations. The need for such flexibility is not only a luxury but a requirement for maintaining the bottom line in this environment of “the new normal.”
References
https://www.rila.org/coronavirus-resources-for-retailers
Chris Capelle is a technology expert, writer, and instructor. He has worked in the publishing, advertising, and consumer products industries for over 25 years.