There are various concerns about discovering the key to success that exists in the vast and volatile retail market and the consumer right. Capgemini looks at the major challenges and emerging trends that undoubtedly will shape this great industry in the coming decade (Sand, 2010). To re-establish the variability reduction in both demand and supply, and an increase in velocity and visibility, new global strategies must be embraced. In 2016 alone, proposals on globalizing the network project were tested to share the supply chain (“Succeeding in a Volatile Market,”N.d., Changing Market Dynamics section). This report hence gets realistic data starting from the manufacturers themselves, retailers and industrial organization. The major common themes to be focused on including customer spending reduction, scarcity of the raw materials, massive customer adoption of technology in the consumer technology and lastly the worrying product safety concern (“Succeeding in a Volatile Market,” n.d, Executive summary section).
Globally, the addition of value to customers and stakeholders, improvement of customer services like operational performance and availability play key roles in profit output. This progress goes hand in hand with effective resources and the in –focus on efficiency for the success of industrial success in this volatile world. Flow of information must be considered and should balance with the cash flow. The primary product flow should as well be above the reverse flow, especially due to damages because this will wholesomely affect the profit margins (Sand, 2010). A focus on Asia alone reveals its diversity, and majorly, it’s centrality to the global commerce and the versatility in marketing. By the year 2018, the findings project that Asia’s manufacturers and retailers will face similar trends to those of the global world industries. These trends include: changing societies, rising cost, increased awareness and information growth which is a good indicator for the supply chain (“Succeeding in a Volatile Market,” n.d, Spotlight on Asia section).The trend in Asia following this projection further explores that urbanization will increase by the year 2040 thus straining the transport, water, sanitation system and electricity. The delay in flow will negatively affect both the reactive and efficiency strategies of supply management. (“Succeeding in a Volatile Market,” n.d, Executive summary section).
An increase in income consumption is a concern, first in China’s high disposable income, then India’s consumer aspirations. The serving of the low-income consumers due to the need of affordable products and the Japanese immigrants who provide labor; both have led to the innovation of products and improved collaboration. With all these factors in place, care will need to be taken against extreme weather, public funds from the governments in Asia and control of pollution, mainly airborne, that will affect the consumers and ultimately the cash flow (“Succeeding in a Volatile Market,” n.d, Spotlight on Asia section).
The arising challenges in reaching the mass that is critical will only mean a reduction in product flow. The SCOR model overview on the planning, source, making and delivery is highly compromised if the Asian future prediction statistics will become real. To curb this vertical-like integration, Asia has to ensure programs that educate the consumer to be provided. Other methods of treating this include transport increase, congestion taxes, and cheaper energy sources. Creation of standards of operation to consumers will also play a role in vertical integration (“Succeeding in a Volatile Market,” n.d, Spotlight on Asia section).
To achieve the economy of scale and scope, a trend is arising in Asia of high growth in technology and market shifts. This also impacts on improved business focus if the systems have customer’s confidence. India has focused on underlying technology while Japan has gone advance to modernize trade like the Walmart business. Modernization of commerce is predicted to have a 50% increase by 2018(“Succeeding in a Volatile Market,” n.d, Spotlight on Asia section).
Changing business models into hybrid ones will attract more investments and data storage collaborations from companies. This change will revolutionize the supply chain from the multiple dysfunctions, through semi- functionality, to integration and finally to the extended enterprise. The mega-trend focus will also help Asia to prevent pollution, footprint reduction, and data standardization. Asia has to learn from pre-existing initiatives to succeed in its supply chain (“Succeeding in a Volatile Market,” n.d, 2018: The Global Perspective section).
In conclusion, by 2018, an increased leverage of partners is anticipated to improve the current dormant state of supply. Raw materials have to be improved globally, and the manufacturers and retailers have to collaborate. Productvalue, increase in technical strength, enhancement of technological strength and improved work access are some of the key areas that the modernized world must embrace in the next decade. Asia must marry the west to achieve the supply chain continuity.
Sand, C. (2010). The packaging value chain. Lancaster, PA: DEStech.
Succeeding in a Volatile Market – 2018: The Future Value Chain | Resource. (n.d.). Retrieved August 08, 2016.