Automated Robot Carriers And Robotic Arm In Modern Distribution Warehouse
Photo: iStock / imaginima

Why Supply Chain Transparency And Sustainability Are So Important Right Now

Robots were everywhere last month at ProMat, a major material handling trade show, along with were autonomous guided vehicles, artificial intelligence, inventory and network optimization software and mobile technology.

Extended supply chain transparency and sustainability were frequently discussed in educational sessions and on the show floor.

Nearly three-quarters of supply chain leaders are increasing their supply chain technology and innovation budgets this year, according to the 2023 MHI Annual Industry Report, released at ProMat in collaboration with Deloitte. The report titled “The Responsible Supply Chain: Transparency, Sustainability, and the Case for Business” indicates that solutions for improved supply chain transparency and sustainability are getting top priority.

Supply chain companies face increasing pressure to become more environmentally responsible and sustainable. Nearly half of the survey respondents (48 percent) say they face increased pressure to adopt a more sustainable supply chain. This pressure comes from consumers, regulators, industry groups, traditional and social media and other stakeholders who expect brands and their supply chains to follow higher standards.

“Responsible supply chains must react in real-time to changing conditions, this requires actionable data, automation and automated decision-making,” said John Paxton, CEO of MHI. “Investments in automation and other digital solutions like IoT, advanced analytics and AI not only arm your operations with speed, accuracy, and improved visibility. These solutions enable the real-time decision-making and transparency necessary for reporting and improving performance up and down the responsible supply chain.”

The 2023 report, the tenth in a series of annual industry reports published by MHI and Deloitte, also revealed that hiring and retaining qualified workers (57 percent) and the talent shortage (56 percent) were the top supply chain challenges cited by survey respondents. This was followed closely by supply chain disruptions (54 percent), out-of-stock situations (52 percent) and customer demands (52 percent).

BrainTrust

"How can we compete with a real-time, all-the-time internet juggernaut like Amazon with yesterday’s technology?"

Ken Morris

Managing Partner Cambridge Retail Advisors


"True transparency is “real-time” information. For reasons I do not understand, retail has been incredibly slow in recognizing the value of a slick supply chain."

Gene Detroyer

Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.


"I’d love to see more retailers exploring solutions here–there are many untapped tools for solving this problem, especially in the digital space."

Melissa Minkow

Director, Retail Strategy, CI&T


Discussion Questions

DISCUSSION QUESTIONS: Do you agree that technological solutions for improved supply chain transparency and sustainability deserve to be among the top priorities for retailers now? Which technologies will significantly impact the retail supply chain in the next five years?

Poll

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Ken Morris
Trusted Member
11 months ago

How could supply chain tech solutions not be top priority? We don’t know what we sell in real time, because everything is updated a day late. How can we compete with a real-time, all-the-time internet juggernaut like Amazon with yesterday’s technology? It’s time we wire our retail central nervous system to compete in this always-on world.

RFID technology is a smart addition. It’s a great way to increase supply chain transparency, and it can provide real-time visibility into the entire supply chain while improving inventory accuracy. Retailers should focus on staying in stock in all channels. Your customers should never have to question whether your in-stock numbers are correct. And don’t forget returns. Applying tech in strategic parts of the returns process makes everything more efficient and more sustainable.

Paula Rosenblum
Noble Member
11 months ago

At RSR, we have been saying that supply chain was the next big thing since before the pandemic. As soon as any-channel retailing became a reality, available-to-promise inventory has grown more and more in importance.

Sustainability is just a huge issue for all of us, especially for those of you who have children. We’ve been treating our environment like an infinite supply of what we need, while using it as a dumping ground for our “stuff.”

The thing is, it has to be real. We’ve had a lot of conversation about CX and how it’s the differentiator and the next big thing. All the while, the CX has gotten worse and worse across all consumer facing industries.

One of these days we have to stop kidding ourselves and get real. Consumers have choices. I just discovered I got a free subscription to Walmart+ with one of my credit cards. Now my orders tend to be split between the usual suspects and Walmart. The company tends to be in stock and deliver on time

Yes, it’s quite critical. And it’s long overdue.

Richard Hernandez
Active Member
Reply to  Paula Rosenblum
11 months ago

This. We have been talking about supply chain pre-pandemic and while it has cleared up some, the waters are still muddy and consumers aren’t waiting around for solutions. At the end of the day, they still have families to feed, etc and if they don’t have laundry detergent on the shelf, they are going somewhere else to get what they need.

Bob Amster
Trusted Member
11 months ago

Our firm has been touting and even helped design systems to do just that since the early 1990s. It is hard to understand why the industry had not been aware of the importance of supply chain visibility (and as Ken Morris emphasizes, in real time). Now that most retailers are feeling the pain, they are jumping on the wagon–and the technology with which to do it has been out there for at least a decade.

David Spear
Active Member
11 months ago

Transparency in the supply chain is the hottest topic, and why not? The pandemic cratered nearly everyone’s chain, and we all felt it, with lots of empty shelves, lots of out-of-stocks, and lots of pain. Seemingly things are getting better, but retailers shouldn’t rest. They ought to be looking for faster turns, fewer out-of-stocks, and near real-time visibility into every piece of the inventory chain.

Gene Detroyer
Noble Member
11 months ago

True transparency is “real-time” information. For reasons I do not understand, retail has been incredibly slow in recognizing the value of a slick supply chain.

Sustainability? The transparent and efficient supply chain is sustainable. The cost of the supply chain builds as retailers are always a step behind in solving their problems. More time, more costs, more lost sales, and too many “do-overs.”

Melissa Minkow
Active Member
11 months ago

I absolutely believe supply chain sustainability should be a top priority. Manufacturing is one of the greatest sources of carbon emissions in the retail lifecycle. I’d love to see more retailers exploring solutions here–there are many untapped tools for solving this problem, especially in the digital space.

Andrew Blatherwick
Member
11 months ago

This is a win-win. Retailers who improve the efficiency of the supply chain are invariably also making it more environmentally sustainable. Supply chain efficiency has to be at the top of most retailers’ agenda–the last few years have taught us that if it was not evident before. Empty shelves are not a great recipe for success and the huge increase in costs have taken many retailers to the wire. Improving supply chain efficiency is key to surviving and being successful.