How Retailers Can Keep Up With Flash Demand

With the rise of mobile shopping, e-commerce growth and same-day shipping, the retail landscape looks very different than it did five years ago. In today's e-commerce world, much of the retail experience lies heavily in the hands of changing consumer behavior. Shoppers can make purchases at any time, from almost anywhere and expect a seamless experience that allows them to choose from various options for ordering, receiving and returning their purchases.

The digital age has also introduced other challenges for retailers, one of which is a phenomenon called "flash demand." Flash trends can take off in myriad ways and are often unexpected. Think of when an A-list celebrity appears on the red carpet wearing a unique dress. Within days, consumer demand for the style often reaches a fever pitch.

Or what about when two teams are competing in the Super Bowl and everyone wants to purchase a winning NFL jersey? Online deal sites and "flash" sale events create unexpected demands for retailers. In the omnichannel age, retailers must be able to respond quickly to these surges in demand and adapt their supply chains accordingly. As such, it's critical that supply chain managers take steps to ensure that their systems are ready in advance and flexible enough to adapt.

Forecasting and Flexibility
In recent years, supply chain fundamentals have changed tremendously. Distribution centers have historically been the focus of all online and in-store fulfillment, however, today's enterprise considers all inventory locations as potential points of fulfillment. Retailers need visibility into every touchpoint in each inventory location in order to deliver successfully on consumer demand, regardless of the circumstances. Flash demand is a great example of how the marketplace can change in the blink of an eye. Having an agile and flexible supply chain is critical to ensure that all selling opportunities are converted quickly and efficiently.

Retailers must prepare for dramatic shifts in demand in advance of when they happen. For the supply chain, this means being commerce ready — i.e., ready to sell and ready to execute any way, any time, anywhere. To achieve this, retailers need a fulfillment execution system that's flexibly designed at its core so that it dynamically aligns supply with customer demand in the most optimal means possible, without intervention by the enterprise.

Are You Commerce Ready?
In order to get commerce ready, retailers must obtain complete control of their inventory — which channel they sell through, which segments they sell to, to whom they sell and when. It also means having the ability to leverage their entire supply chain network when deciding how to fulfill orders. Previously, orders were only fulfilled in the distribution center. In today's omnichannel market, things aren't that simple. Retailers now have the power to dynamically offer supply wherever it makes the most business sense. This includes leveraging retail stores and, sometimes, vendors directly.

For example, some retail locations may have high-demand products that are less popular in other regions. As a result, inventory can become depleted in some store locations while remaining available in others. Following a surge in demand, having the flexibility to fulfill orders from other stores is crucial to maximizing conversions and customer loyalty while managing orders successfully. The ability to fulfill from all parts of the supply chain allows retailers to adapt to seasonal changes and unforeseen circumstances (e.g., flash trends). This not only helps fulfill orders more efficiently, but it also guarantees that your customers’ needs can be met at all times, regardless of the situation.

Reap the Long-Term Benefits
Being able to adapt to fluctuations means more than simply fulfilling a set of orders high in demand. Today's retail arena is heavily influenced by brand perception and customer loyalty. In the case of flash demand, when customers simply must have an item immediately, the ability to execute and meet that demand could result in more than a one-time sale for a retailer. Having the ability to deliver immediately to a customer's needs can create positive brand reputation and increase customer loyalty. Not only will being able to operate in this fashion help at the time of a demand, but it will keep customers coming back in the long term.

In today's omnichannel world, with new purchasing options and growing expectations from consumers, supply chains are continually challenged to keep up. However, with the right combination of a flexible approach, advanced supply chain management solution and strategic planning, retailers can overcome fulfillment hurdles and cope with flash demand more effectively.

Scott Fenwick is senior director of product strategy at Manhattan Associates, a provider of supply chain management software.