Innovation and flexible business models are more important than ever. Given this year’s disruption due to COVID-19, political events and trade pressures, businesses must rethink the status quo. Rethinking strategies means restructuring logistics and strengthening supply chains, but where do you start? We’ve gathered in this article how big corporations have transformed their business:
Primark: Solutions with a Purpose – The Irish retailer launched a clothing recycling program in July 2020 to reduce the impact of textile waste on the environment. Customers can make donations via a collection box in-store, and all these items will be either reused, recycled or repurposed with profits going to Unicef. [1]
7-Eleven: Supply Chain Collaboration – In Japan, 7-Eleven, Family Mart and Lawson have been experimenting with a joint delivery service in July 2020 to decrease a shortage of delivery drivers in the country. This has also reduced the numbers of vans on the road by up to 30%. The cooperation was deemed a “big turning point” by Japanese observers as the three brands had always worked in silos up until then.[1]
Best Buy: Changing Store Strategies – The American consumer electronics retailer Best Buy is turning 25% of its shops into ‘hub stores’. This means an increase in the volume of e-commerce orders as it serves to allow the business to be closer to the consumer.[1]
Levi Strauss: Increasing digitalization in the supply chain – The pandemic changed the way customers shop. As many stores closed, millions of customers switched their shopping behavior to online shopping. Even before the outbreak of COVID-19, the American-based apparel company Levi Strauss moved a majority of its business online. It included investments in digital technologies such as apps, AI and predictive analytics. Additionally, the company started to fulfill online orders not only via fulfillment centers but also via stores and launched curbside pickups within a few days.[2]
Even though these examples might not be 100% applicable to your small or medium-sized business, you might consider the strategies helpful in giving you inspiration for your business. This is especially if you have concerns about how to deliver your cargo in these unprecedented times.
Growing your supply chain by more than 3% by digitalizing it
Take learnings from this situation and try to think in creative ways. One specific example is the digitalization of your supply chain. According to McKinsey[3], the average supply chain nowadays has a digitalization level of 43%. There is still room for improvement – especially when looking at the potential business growth stemming from digitalizing the supply chain. Current predictions indicate that annual growth of earnings before interest and taxes could grow up to 3.2% and a yearly growth revenue by 2.3%. Additionally, digitalization brings you more flexibility and risk mitigation for your supply chain transformation.
Examples for the digitalization of supply chains are technologies that use techniques such as linking and combining cross-functional data. This includes shipments and schedules as well as Enterprise Resource Planning systems (ERP systems), warehouse-management or forecasting demand and performance with advanced analytics.
At Twill we are here for you and your business. We provide you transparency on costs and a loading guarantee. This means an intuitive platform where you can book and ship with ease. And with the help of our platform, you can easily digitalize your logistics in a few steps.
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