Living in unprecedented times due to the pandemic has disrupted every industry. With more people staying indoors, the onus lies on grocery stores to supply them with their essentials in a timely manner.
However, the changes in consumer habits alongside a rise in consumer demands have left grocery supply chains in a frenzy. As a result, many experts suggest digitizing the grocery supply chain to streamline and optimize processes. Here are some benefits of going digital.
Centralize The Source of Data.
The supply chain is made up of multiple stages. From sourcing to retail, various departments work on the information presented to them. And even if a singular change in one department goes unnoticed, it can trickle down and sabotage the entire supply chain process.
Human error and lack of communication between data in multiple departments can cause these problems to occur. When information is stored separately in each department, it is more likely that the entire chain cannot adjust to disruptions caused during a situation like the pandemic. That is where digitization comes to save the day!
A digitized supply chain can automatically update and keep each department informed of any changes through an integrated system. This means that the margin of error significantly decreases, and each department is aware of the process from start to finish!
Avoid Supply Disruptions
The pandemic has set the supply chain market in a whirl due to the many disruptions. The constant fluctuating market trends can lead to mounting stress on the supply chain market, which leads to a chain of inventory issues.
The COVID-19 outbreak has shown a pattern of panic buying all around the world. The sudden change in consumer behavior may be seen as a small disruption. Still, it causes a ripple effect that can lead to larger issues, such as excess inventory or revenue losses. To stay ahead of the panic, businesses can use the help of technology to have better visibility of their inventory. This way, instead of giving in to the panic and stocking up more than necessary, businesses can look into streamlined storage units and warehouses to ensure they're using their current stock. It can prevent them from stocking up and gambling with subsequent losses when the panic abruptly dies down.
Reduce Operating Expenses
Excessive inventory means investing in larger warehouse spaces, higher insurance, tax payments, and increasing employee numbers to take better care of the rise in products. Any other time, this would just be a minor nuisance. But with the pandemic causing a shift in the economy and budgetary constraints, these avoidable expenses can be a major strain.
Through a streamlined database system, excess inventory can be slashed, reducing operating expenses for businesses. The right software ensures brands make strategic decisions that help them meet consumer demands and drive strong financial goals by offloading excess inventory and reducing costs.
Stay ahead of the game by opting for supplier collaboration for grocery retailers through Simplain's Vendor Portal software—the foundation software platform for digital transformation for grocery chains, convenience stores, and other supermarkets hoping to go a digital route with their processes. Contact us today for more information on our services.
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