Daily News
From Home Furnishing Business
Pandemic Challenges, Global Supply Chain Issues, Rising Costs
December 27,
2022 by HFBusiness Staff in Business Strategy, Industry 
According to a report in Retail Info Systems, retailers have been having a tough time serving their customers since the beginning of the coronavirus pandemic. They have been having trouble managing their inventories to meet customer demand because of supply constraints which were multiplied by supply chain problems.
The biggest problem that retailers faced in 2022 is excess supply and low demand. Central banks have been raising interest rates which reduces the purchase power of consumers and continues to extend the supply problem. This wide gyration in the gap between demand and supply is the bullwhip effect.
Rising costs in supply chain operations is another challenge retailers will have to overcome in 2023. Rising labor, energy, and commodity prices impact the cost of running the supply chain, making it difficult to maintain the profitability of retail operations. Sustainability challenges also trouble supply chain professionals from a long-term future outlook.
Catering to consumer demand from multiple sources is a tough challenge, but you need to deliver a seamless experience for users hopping across channels. This challenge of omnichannel strategies depends on supply chains delivering for their customers.
Supply chains will have to adjust to demand and supply in 2023. This means the retail supply chain and the supporting machinery have to accommodate these market conditions. The retail supply chain needs to be agile and nimble going forward; it’s required for serving customers with an omnichannel approach.
The retail supply chain also has to tame rising costs of operations. This is achieved by improving the operational efficiency and life of supply chain assets.
Retail businesses depend on robust supply chains to improve their margins. A broken supply chain can break the business for a retailer. Today retailers have to face many challenges to serve the customer.
You need to bolster your supply chain by improving warehouse operations, supply chain visibility, introducing automation, and investing in MRO. These initiatives help to increase efficiency of supply chains and reduce the cost of operations. This means you can remain profitable in a highly competitive business environment.
Check out the article to see their analysis.