By: Arun Rasika Karunakaran, Published on June 17, 2023

A company’s supply chain is the core of its operation. Without a well-developed supply chain ensuring products are moving in and out of the business efficiently, the company collapses on itself like countless have before.

However, the key point there is that the supply chain should be focussed on sustainable operations to ensure long-term performance.

Here are five steps we recommend to build a sustainable supply chain in the retail space.

1: Focus on Flexibility and Advancement

One thing that tends to drive supply chains into disrepair and inefficiency is complacency. As new technologies develop, regional and global events change major facets of the supply chain, and various other factors come into play, rigidness can be destructive.

While it’s important to take full advantage of a successful supply chain, it’s also crucial to continuously look for ways it can be improved, anticipate potential issues and harden against them, etc.

2: Streamlining the Supply Chain

Supply chains do tend to be fairly complex in today’s retail world with a wide variety of products and materials coming in from all over the world. However, every effort to streamline the supply chain and shorten the distance from initial production to the end user is beneficial.

This not only includes focusing on finding the right vendor relationships, but it can also be improved with the use of modern POS systems. Point of Sales systems that aid in predictive inventory management help to keep things moving smoothly, maintain an accurate stock of inventory, and anticipate drops or rises in demand that can impact your supply chain needs.

3: Understanding the Supply Chain from Start to Finish

Any business’s supply chain is typically far more complex than the businessowner knows. It’s not just the connection between vendor and business, but it’s the various points from raw material sourcing, product manufacturing, product sourcing, getting it into inventory, and then how it gets out to customers.

Each facet of the supply chain needs to be carefully considered and optimized to maximize efficiency. This should be done from the start and consistently optimized as the business grows, too.

4: Sustainable Supply Chain Monitoring

It’s not enough to simply setup an efficient supply chain and look to the future for any advancements that might be made. We must also invest in monitoring our supply chains throughout day-to-day operations, as well.

Monitoring for issues with inventory numbers, inefficiencies along the chain, and similar issues can help dramatically increase sustainability in both a financial sense for businesses and in an ecological sense due to removing a lot of inefficient shipping and transportation efforts. According to the WEF, only 8 supply chains are responsible for 50% of global emissions, but even smaller-scale supply chains can have a noticeable impact with this simple improvement.

This can be done with real-time RFID label tracking, advanced POS systems that process inventory and vendor data at extreme paces, etc.

5: Focus on Streamlining Delivery Routes

Delivery routes are a key part of any supply chain. Even if a supplier seems like the perfect fit, they might require inefficient delivery paths that do two things. First, they can cause delays that disrupt the entire business. On top of that, the inefficiency of the delivery route from vendor to establishment increases the footprint of the supply chain dramatically.

Working to create better supply routes by collaborating with sustainable suppliers is key to limiting both of those issues.

Securing Sustainability is key Retail Supply Chain Success

A sustainable supply chain is the backbone of successful retail operations. By embracing flexibility, streamlining processes, understanding end-to-end complexities, monitoring for inefficiencies, and optimizing delivery routes, retailers can drive efficiency, reduce their ecological footprint, and secure long-term growth. Implementing these five steps ensures a resilient supply chain ready to adapt to a dynamic global market.

Author: Arun Rasika Karunakaran

Arun Rasika Karunakaran is a Retail Product Professional at Tata Consultancy Services, specializing in transforming merchandising, sustainability, and store operations for Fortune 500 retailers across the US, Australia, and Europe. She has pioneered AI-driven initiatives in space and assortment optimization, pricing, and inventory planning, enabling intelligent decision-making and sustainable operations. With a strategic approach to product management, AI based patents and focus on innovation, Arun Rasika Karunakaran delivers cutting-edge retail AI solutions that align with global trends and benefit both retailers and consumers