There’s an app for that—if the supply chain can sense and pivot

The e-commerce landscape is evolving at light speed—driven by digitization and rising customer expectations—in ways that challenge the entire retail sector from legacy store chains to malls to web portals.

The key differentiators are basically the same—selection, trend-sensitivity, time to market, cost and after-sale service—but now these variables play out in real time, on razor-thin margins, across complex door-to-door networks of retail partners and systems.

Younger consumers often work long hours, spend more time out with friends and make nearly 40% of e-commerce purchases on mobile phones. Impulse purchases are common, based on pop-up ads or recommendations on social media. Shoppers look for a personalized, curated experience from smaller, specialized but trusted retailers, but are willing to invest time comparison shopping online versus instore for bargains and special offers. Value and convenience are critical; sparking intense competition with rewards, free shipping, same or next-day delivery and a choice of delivery options.

Omni-channel and direct-to-consumer (DTC) retail are clearly the future. But providing the level of product choice and service flexibility consumers increasingly expect represents a 180-degree shift from traditional retail industry economics and operations. It places enormous demands on physical supply chains to stage and manage inventory in smaller batches closer to the customer, but also to anticipate and respond quickly to changing consumer preferences and competitive conditions in real time. In short, it requires a supply chain that can sense and pivot.

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