You know the dilemma that many supply chain managers are now in; how can they meet rising demands for greater customer intimacy while still maintaining the operational efficiency of their supply chains to ensure profitability? We’ve all worked hard over the years to optimize linear supply chains to make them highly efficient and scalable while reducing their operating costs. By implementing the latest demand forecasting technologies, we were able to gradually feed data back through the supply chain so managers in manufacturing, warehousing and transportation could make cost-effective decisions. We felt that we were really getting to know the customer.
The new customer intimacy
But now, mobility and social media-driven connectivity has redefined what we always thought of as customer intimacy. Consumers now expect instant access to everything from catalog/assortment to pricing, order, availability and delivery status. Ordering anything at any time requires active visibility and heightened responsiveness. The old supply chain model is breaking down under the pressures of the omni-channel.
The future supply chain network is a grid
There is no longer a linear flow in how supply chains actually work. Every path is situational. Fulfilling individual consumer orders across dynamic product flows creates a strain on profitability. How can you achieve individual consumer responsiveness while still maintaining scale and financial performance? But advances in supply chain technology have turned this into a false dilemma.
Achieving profitable resiliency with JDA Intelligent Fulfillment
JDA Intelligent Fulfillment which is enabled by JDA FLEX technology, helps profitably solve the inventory planning, replenishment and order fulfillment challenges brought on by omni-channel. It empowers companies to make profitable inventory distribution and order fulfillment decisions even in a supply chain grid.
Key strategies for converging planning and execution
Intelligent fulfillment helps companies thrive in an ever-changing, fast-paced, high-volume, mobile and customer-centric world by innovating several key enabling strategies:
- Destination-driven demand provides a feedback mechanism that accounts for variations and inventory repositioning in multi-channel fulfillment. Intelligent fulfillment differentiates between sources of demand, sources of fulfillment and points of consumption. That differentiation impacts your decision on where to position inventory for the future to better meet demand given changes in consumer behavior.
- Execution-enabled planning allows more effective fulfillment plans that leverage warehouse constraint visibility and inventory-aware transportation planning. Visibility helps you anticipate potential replenishment execution bottlenecks.
- Intelligent execution provides item-aware transportation planning, iterative optimization and seamless execution flows across order management, warehousing, transportation and store to enable cost-effective resiliency.
With JDA Intelligent Fulfillment, there’s no reason that the supply chain needs to be trapped in a false dilemma between profitability and the new customer intimacy. You can have both.