For retailers, the benefits of globalization extend far and wide. Globalization is undoubtedly complex in nature, but embracing it can enable companies to position themselves for growth and sustained success in a future of uncertainty. Selling internationally provides greater access to fast-growing foreign markets for increased sales and revenues, while buying internationally enables companies to diversify their resources to pivot against supply chain disruptions in certain areas of the world.
However, globalization also presents a fair share of challenges. The COVID-19 pandemic, rising tariffs and export fees, natural disasters and international trade disputes have revealed the roadblocks of global supply chains. When the global economy has struggled, retailers have learned that they cannot solely rely on single-sourced supply chains without the ability to efficiently navigate unexpected obstacles on a wider scale. Globalization is here to stay, so rather than being slow to adopt it, retailers of all sizes should focus on how to reshape their supply chains for navigating its most intricate nuances.
By integrating the use of supply chain digitization and advanced technology solutions, they can position themselves to reap the short- and long-term benefits that globalization has to offer.
The Benefits of Supply Chain Digitization
Beyond the ability to overcome language barriers and cultural complexities, the strength of a company’s supply chain is the most important factor when successfully selling abroad. In order to navigate the volatility that exists on a global scale, retail supply chains must be flexible enough to weather unexpected disruptions without generating high volumes of excess inventory.
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Digitization can provide exactly that by enhancing the visibility of a retailer’s supply chain. Through advanced forecasting systems, RFID technology and artificial intelligence (AI), retailers can leverage data-driven insights to improve transparency among wholesalers, distributors and buyers, bridge supply chain gaps that cause disruptions and increase their supply chain’s agility with offshore, nearshore and localized suppliers.
Prioritizing Ecommerce Fulfillment
A globalized approach is also dependent upon the strength of a retailer’s ecommerce offerings. Before COVID-19, global ecommerce sales had already reached a record $29 trillion in 2019 — a trend that has only continued to rise during the pandemic.
Digital experiences are the future of retail, and customers have come to expect seamless online shopping experiences and quick delivery. Retailers need to ensure their ecommerce platform, fulfillment centers and distribution handlers can support the demand on a global scale. Leveraging advanced technology is a proactive way they can do exactly that.
Advanced analytic systems, RFID technology and machine learning foster consistent ecommerce efficiency during periods of peak demand and market volatility. In addition, omnichannel needs to be part of the equation through innovative, consumer-first offerings like BOPIS and curbside pick-up that add unrivaled convenience to the customer experience.
Limiting Excess Inventory Waste
As climate change continues to cause more and more damage by the year, retailers must align their global efforts to the needs of the environment. The companies that place a high emphasis on sustainability will be the ones that find success in 2021, considering today’s generation of consumers are more inclined to support companies with a reputation for being environmentally responsible.
According to the World Business Council for Sustainable Development, 67% of Chinese consumers, 52% of Australian consumers and 42% of U.S. consumers are more likely to purchase from a company that prioritizes sustainability. The growing trend magnifies the need for retailers to be equipped with innovative technology that can help keep excess inventory levels low — such as advanced supply chain forecasting for demand volatility and digital inventory optimization platforms for offloading inventory into the third-party and off-price markets.
The past year has provided a series of learning lessons for retailers. Above all, they’ve learned that making the right investments in advanced technology solutions is a proactive way to develop the critical supply chain visibility needed to succeed in a global environment. By embracing globalization and all that comes with it, companies can position themselves for growth and future sustained success.
Ronen Lazar serves as the Co-Founder and Chief Executive Officer of INTURN. He can speak for hours about the intricacies of off-price, the importance of digital supply chain and the future of retail. Prior to INTURN, he co-founded startups to innovate in the non-profit, entertainment and web directory industries.
