Salsify solutions offer unique functions to help brands, retailers, and distributors drive results.
Empowering brand manufacturers to manage, syndicate, and optimize product content for winning shopping experiences.
Empowering retailers to create engaging, high-quality shopping experiences for the digital shelf.
Salsify is the foundation for digital shelf success, empowering industry leaders with the tools to win.
Salsify drives results for customers worldwide, empowering them to win on the digital shelf.
Salsify offers a wide selection of resources and tools to drive success at every stage of the digital shelf journey.
Explore our resource library to get everything you need to win on the digital shelf.
Watch our on-demand webinars to gain expert advice and tips from our community of industry leaders.
Register for our upcoming in-person and virtual events to connect with other industry insiders.
COVID-19 has disrupted all areas of ecommerce, and one of them is the supply chain. According to Accenture, 94% of Fortune 1000 companies are seeing supply chain disruptions from the pandemic, and 55% of them plan to downgrade their growth outlook (or have already done so).
With vaccinations rising and daily virus cases reducing, Americans are eager to get back to their favorite outside activities and have the option of returning to their workplaces.
Data from Deloitte shows that in Q2 2021, U.S. consumer spending recovered and grew at 20% to 30% year over year, reaching 4% to 7% above pre-COVID-19 levels. This will put more pressure on ecommerce supply chain management.
In this post, you’ll learn about what’s causing ecommerce supply chain disruptions, how they have impacted businesses, and what you can do to turn these challenges into meaningful changes.
Enforced COVID-19 lockdowns and social distancing rules accelerated ecommerce. According to Blue Yonder’s 2021 State of Supply Chain Execution report, online sales increased more than 120% over 12 months, and logistic service providers (LSPs) saw a 200% growth over the same period.
Deloitte added that consumer spending will be set for strong growth during 2021–2022 as they still have a large amount of savings to deploy. Their survey found that “consumers saved about $1.6 trillion more than what they would have saved had there been no pandemic.”
To adapt to this trend, traditional pure-play brick-and-mortar retailers that had been reluctant to grow their online presence started creating or expanding their ecommerce offerings. However, the following resulted in extreme supply-side disruptions for many firms:
Additionally, consumers’ expectations for visibility into their shipping and delivery have escalated. They now expect:
While some brands added these services to their processes, others have still struggled to incorporate these options as standard practices.
With the pandemic still a live threat and consumers’ pent-up demand, the disruptions to ecommerce supply chains continue to be severe.
Many retailers have tried different ways to overcome current supply chain disruptions. According to Blue Yonder, direct-to-consumer (D2C) brands have applied approaches like partnering with micro-fulfillment centers and building infrastructure to facilitate a wide range of delivery drop-off and pick-up systems.
Another strategy is to buy up all the inventory as soon as it’s available and store it at leasing warehouse space in the U.S. and abroad.
Other businesses also lease warehouses near their factories to keep up production. Mark Baxa, president and CEO of the Council of Supply Chain Management Professionals, shared with Digital Commerce 360 that this strategy is great because it allows brands to store inventory that can’t be shipped now caused by shortages of shipping containers, port closures, and other factors.
These strategies can help brands deal with current inventory problems and demands of consumers. That said, given the increasing complexity and need for optionality in the modern logistics world, there is another vital area supply chain managers need to pay more attention to: clean and accurate data.
In the past, manufacturers, retailers, warehouses, and delivery services operated separately and focused solely on their areas of expertise. As explained by a recent research study, this made it difficult to obtain information on the entire supply chain accurately or in time, resulting in periodic overproduction and shortage of goods.
Considering that, along with increased customer expectations of seamless omnichannel experiences, brands need to centralize data from all partners into one place and create a single source of truth for information.
The ultimate solution is to implement a product information management (PIM) system. With PIM, you can:
According to Accenture, businesses with digital platforms, accessible data, and advanced analytical capabilities will respond more quickly, accurately, and successfully to COVID-19 disruptions.
This is also aligned with DHL’s report, stating that “the need for accurate information about product availability, shipping, and inventory counts will become the single-most strategic element for driving bottom-line success and establishing customer loyalty.”
The COVID-19 pandemic isn’t just a short-term crisis, even with improvements in vaccine status and a falling number of cases. No one knows when it’ll actually end. There’s no doubt that ecommerce will continue to be on the rise.
Brands need to make rapid decisions and take immediate actions to keep supply chains under control, address customers’ needs, and sustain their digital shelf success.
So, are you ready to get started, but aren’t sure how? Take the Digital Shelf Maturity Curve Assessment to evaluate your current commerce experience and receive recommended strategies from experts in just 10 minutes.
Standing out on the digital shelf starts with access to the latest industry content. Subscribe to Below the Fold, our monthly content newsletter, and join other commerce leaders.