In this article we look at how transparency and business ethics are driving supply chains to the foreground, and how new technologies can give your business an edge.
Supply chain management is business critical in the FMCG sector. It ensures that the right goods and ingredients get to market when they are freshest, when there is demand, in time for any promotions, and at the lowest cost. But it also ensures that consumers are getting what they pay for: not only a product that's consistent with its marketing – including where it comes from and what it contains - but also a product consistent with the consumer's values. These values increasingly focus on sustainability and business ethics as part of a brand's image.
We have previously explored how the use of artificial intelligence and big data analysis is being used by retailers. Artificial intelligence and machine learning can help to forecast sales, reduce waste, and deal with shrinkage: the mismatch or loss of stock due to damage or stocktaking errors. This was considered inevitable until recently, but is now something which businesses have a real hope of eliminating entirely.
In this article, we look in particular at the increasing value placed by consumers on provenance and ethics within supply chains, and how new technologies can help businesses demonstrate transparency and their ethical credentials. We examine how businesses are using new technologies to optimise their supply chains, not only to drive "just in time" and other operational efficiencies, but also to support broader brand value.
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© Herbert Smith Freehills 2019