Industries

Marketing, product development and supply chain go hand-in-hand in these industries with the consumer being the ultimate focus. Management of omni-channel environments and consumer touch-points are becoming the key drivers of success. Responding rapidly to consumer demand requires a deep understanding of the consumer behaviour and how to manage supply responsively and efficiently. The clash between traditional merchandising and modern supply chain approaches is one of the biggest challenges this industry needs to overcome.

As classical brick and mortar players are under pressure by e-commerce players, most retailers and wholesalers have been forced to reinvent themselves. Adding e-commerce channels is introducing supply chain complexity in the both shopping behaviour and supply solutions. Increased quality of private label offerings and attractive pricing have challenged traditional consumer brand loyalty and increased the challenge of retaining consumers and attracting new ones.

Therefore, retailers are always struggling with assortment efficiency at store level, or range efficiency overall. Increasing the share of fast and slow movers, whilst reducing the non-movers is a constant challenge. Integrating effective merchandising, demand and buy planning and sales-based replenishment and supply techniques are key requirements for this industry.

Getting the right mix of products in the correct channel at the right time requires a high degree of consumer insight, flexible and responsive distribution options and perhaps rethinking the entire sourcing and production networks. Competitive pressures are driving industry players to turn to technology in the form of AI, IoT and data analytics to drive efficient value chain design.

Specialty retailing (examples are fashion or cosmetics industry) are always struggling with assortment efficiency at store level, or range efficiency overall. Whether part of a brand, standalone and integrated into an omni-channel setup, increasing the share of fast and slow movers, whilst reducing the non-movers has always been a challenge. Integrating effective merchandise, demand and buy planning, whilst using sales based replenishment and supply techniques, is one of the key requirements for this industry. Consumer personalization has increased the need for the brands to have adaptive product development and supply chain processes at all consumer touchpoints – traditional retail, specialty retail, e-commerce, mobile and social. This combined with an effective social and influencer marketing campaign strategy is a must to stay relevant to its consumers.

Complexity and uncertainty in the airline catering business is high. Dealing with many different classes of products from meals to blankets to equipment, the supply chain must ensure that when a plane takes off, everything is on board. Not only must the in-flight services provide for customers in the air, but storage space within the plane is also used to reposition supplies of service items around the network. The complexity and difficulty of managing a moving supply network cannot be understated. And, unfortunately, frequent changes in flight schedules, as well as high cost pressures, make the task of managing a cost efficient supply chain very difficult.

Airline catering is further complicated by managing food safety and quality issues. As airlines try to scale back on free offerings, customers demand high quality and choice in exchange for in-flight purchases. Meeting these needs requires airlines to innovate new offerings, packaging and technology to deliver customer satisfaction while capturing the data necessary to plan for the future.

The Utility and Energy Sector is a broad category that encompasses providing critical services and energy supply to communities, companies and individuals via infrastructure, installed assets, direct distribution and even retail.

It is further complicated by a combination of public and private enterprises that mix uniquely in each local marketplace. While public entities play a key role in a community through services, infrastructure and employment, they also control supply in some markets. Private entities are disrupting many marketplaces with competitive pricing, new services and innovative distribution methods. Regardless whether a consumer receives energy from private or public entity, providers are faced with the challenges of offering environment-friendly services while keeping pace with the innovation led by technology. The pressure to optimise costs additionally grows with the community’s expectations to have services accessible “at-one-click”. As digital and consumerisation revolutionise consumer goods, footwear and other industries, the utility and energy sector are not far behind. The Digital Revolution (Mobile, Cloud, Analytics and Social) is driving enormous pressure on this industry to revise and revolutionise the way they offer services to consumers, customers, and employees.

In a global eco-system of internal and external factories as well as extended lower tier supply networks with long lead-time components are players in this industry have to manage shortening product life cycles and complex customer needs with comparatively slow supply chains. Advanced planning capabilities to anticipate demand and ensure supply readiness are a key component for competitive advantage. Product innovation is required but it must be balanced with long-lead-times for some components to ensure risks are managed properly.

The Automotive sector, OEMs and their suppliers are facing tough competition and cost pressure. Moreover, there are significant supply chain challenges, such as parts complexity and proliferation as well as customers’ desire to configure their cars individually. Process efficiency is essential for success in this global and complex environment. Increasing concern about global warming and the drive for greener planet by the citizens of various countries are mandating varying levels of governmental regulations. This, along with on-going emerging market development, the rise of e-cars and e-mobility are significant threats that continuously drive the organisations in this sector to re-invent themselves.

The Logistics Service Provider sector began as a mix of regional independent haulage firms and carriers. It has undergone significant consolidation, resulting in global networks that offer customers transport, warehousing and logistics solutions to support end-to-end supply chains for every kind of product imaginable. Fierce competition, low margins and increasing service demands drive cost and efficiency pressure against a backdrop of challenging infrastructure conditions, transport bottlenecks and growing environmental awareness.