CEOs deem retail supply chains as 'not optimal': Survey

NEW DELHI: A majority of global retailers believe that their retail supply chains are currently 'not optimal' in the current retail environment, said a survey conducted by PricewaterhouseCoopers (PwC) for JDA Software.

As per the survey titled 'CEO Viewpoint: The Strategic Role of Supply Chain in an All-Channel World', 83 % of worldwide CEOs believe that their retail supply chains are currently not optimal for today's changing retail environment.

“Digitally-connected consumers have turned retail models upside down as omni-channel shopping has transformed supply chain from an important business concern to a mission critical one,” the survey said.The survey pointed out that 50 % of CEOs recognise that their supply chain can be a strategic differentiator. “As mobile commerce comes of age, one of the biggest challenges facing CEOs is managing the transformation to omnichannel retail,” it added.

However, as per the survey, only 34 % of CEOs consider the rise of omni-channel shopping to be an external threat while only 22 % said it will have a direct impact on their organisation. “The rise of omnichannel is one of the most transformational shifts that has occurred in retail in recent times,” JDA Software chairman of the board and interim CEO Baljit Dail commented on the survey findings.“Retailers who don't understand the strategic alignment of their supply chain with consumer expectations are in danger of becoming non-competitive,” he added.

Survey said CEOs top priorities are centered on more traditional areas of growth by entering into new regions and markets, by opening more stores, or through mergers and acquisitions. “These priorities highlight potential missed opportunities for more than two-thirds of CEOs who failed to consider enhancing distribution capacity and supply chain as a key contributor to drive profitable growth,” the survey said. CEOs think three fundamental risks will have the most impact on their organisation over the next three years: increasing competitive threats (41%), margin erosion and cost reduction (39%), and attracting and retaining customers (24%), it added.