From beauty products to fashion footwear, brands can now expect supply chain disruptions lasting months to occur every 3.7 years, and the most severe events can take a major financial toll, according to a McKinsey & Company report.
To minimize disruptions and strengthen brand loyalty, consumer goods and beauty care companies need to shore up their supply chains. However, building resilience during ongoing market disruptions will entail implementing the right technology for visibility.
How do end-to-end supply chain solutions help?
By providing designers and product developers with visibility into information – social media buzz and style sell-through rates – they gain valuable insight to help create future lines. An integrated product lifecycle management (PLM) solution provides such visibility.
Similar to other sectors, beauty product companies are looking for better exchange between platforms and collaboration among suppliers.
With eCommerce leading today’s shopping experience, consumers will rely on more descriptive information on products and those with technology features (e.g., 3D) can help them better visualize and use the product. With a mere 2D display, a shopper cannot fully experience the product features, which is paramount in the beauty sector.
Within the supply chain, brands must integrate all touchpoints, including distribution centers,
full-package suppliers, third-party logistics providers (3PL) and materials vendors, among others. End-to-end enterprise technology provides an efficient engine to seamlessly connect resources to support online sales.
With visibility into the supply chain, brands, retailers and suppliers are better able to ramp up inventory or pivot quickly to build new styles in response to rapidly changing consumer trends. This insight can help brands plan for sufficient stock allocations and make informed decisions about products or how far to mark down excess or slow-moving inventory.
ABOUT THE AUTHOR
Charles Benoualid is vice president, R&D for BlueCherry, CGS.