Company leaders often recognize the benefits simplified procurement, manufacturing and logistical processes can have on their supply chains, especially in the event of a natural disaster or problem that could put complex processes at risk. A new report from Capgemini Consulting, GS1 and The Consumer Goods Forum called on executives to enhance their supply chains by eliminating complicated processes and replacing them with simpler, standardized programs. This is especially important as customers can place orders in various ways and expect prompt service after they make a purchase.
Many face challenges but don't change processes
The report found 44 percent of respondents have a hard time maintaining client satisfaction, while 42 percent struggle with order management complexity and 39 percent have difficulty with inaccurate order promise dates. Firms that fail to implement policies which address these concerns could face problems with consumer satisfaction and slow processes in the long term.
Despite these difficulties, few companies have taken the opportunity to develop new methods that will eliminate potential problems. The report found small and mid-sized businesses don't often take the initiative to create new standards or systems that will help mitigate risk and keep clients satisfied.
However, keeping consumers pleased is essential; few companies can afford to lose a customer over poor supply chain management, especially as the data revealed operational expenses have increased and could continue to rise even more. This will make it critical for firms to keep current clients, as their operating costs may jump.
"Our report shows the urgent need for not only the greater adoption of standards and more consistency in standards implementation, but also improved data, guidelines and governance across the consumer goods and retail sector," said Susan Wood, principal at Capgemini Consulting North America. "This is particularly important due to increasing consumer demands, which are driving the digital transformation needed to improve the shopper all-channel experience."