2020 will be a year many in retail want to forget. When lockdowns of the retail industry on a global scale landed on the world’s doorstep leading to mass disruption of supply chain, we weren’t prepared. No business — from the small one-man band to the Fortune 500 has escaped unscathed. Spectrum-wide retail practices are being tested and steadily rising trends are falling, from the fashion to food industries.
The food trade and supply chain management, in which we specialise in technology tools for here at Orderly, is a partnership of delicate balance and grand design. One relies on the other, especially in the modern world where the farm field no longer only sustains the farmer’s family. From whole foods, canned goods, to the restaurant plate or fast-food packet, the food industry is constantly changing and the prediction for grocery retailers and logistics models is to adapt — fast.
Here are some of our predictions for the future:
1. Pivoting away from the retail legacy mindset
Rethinking, adaption, and reinvention are the only tools for salvation. Pivoting, one of the new business buzz words of 2020, is the act of real-time adaption to market and consumer demands in order to stay present, relevant, and prosperous in times of uncertainty and/or exponential change. The concept of pivoting should be embraced with open arms, as it has proven to be an effective lifesaver to many a company in adapting business models.
Benjamin Lorr, in his book, The Secret Life of Groceries, acknowledges that the supply chain “responds to our actions, not our pieties; and in its current form it demands convenience and efficiency starting from the checkout counter.” If this isn’t a poster endorsement for pivoting and reinvention then what is? Produce “kept in suspension” can only go so far. Many will consider pivoting food distribution warehouses to hybrid wholesale/retail online sales models to combat inventory management issues in safety and loss.
A growing trend will also see physical grocery stores incorporating online food supermarkets to their expanding repertoire and this is a global trend. According to Logistics Middle East, Asian market-polled consumers have taken positively to online grocery shopping for their fresh foods as an alternative to fighting the cold and the heat, commuting, long queues, mask-wearing, and constant reapplication of hand sanitiser. 52% of respondents from India and 50% of respondents from China answered that they will continue to purchase fresh food products online.
2. Tech trend investments
With coronavirus disrupting the world’s way of functioning and threatening to take away or alter our way of life, 2020 logistics technologies have taken some leaps that will see trends bound into 2021 and beyond. Artificial intelligence, digital twins, real-time supply chain visibility, and blockchain are some of the major players to invest in.
3. Artificial and augmented intelligence
Augmented intelligence amalgamates human brainpower with AI tech. It takes the best of both worlds to generate super intelligence solutions and eliminate AI oversights and human mistakes. Along with other technologies, AI can save revenue from being wasted and processes to be streamlined.
4. Digital twins
Computerised modelling is taken to new heights with digital twinning. Technological parts wear down and modifications need to be made to suit the end-user. Digital twin tech creates digital replicas of the physical, e.g. warehouses, stores, etc., allowing the user to interact with operations as if onsite. The possibilities are exciting. Needing to make some physical changes to facilities but you’re not quite sure how that will work? Make a 3D model alteration and visualise it.
5. Real-time supply chain visibility (SCV)
With the interruption to SCV experienced in 2020, real-time visibility is crucial to get the supply chain back up and running and to avoid future potential delays and stoppages from crippling your business operations. Having real-time data, e.g., weather and traffic, at your fingertips and IoT sensor technology to track shipments and awareness of potential risk means you have on-the-ground visibility from anywhere you are.
The bottom line
No matter what the product or business model, supply chain management is a vital part of daily operations that cannot be ignored. The lockdown-accelerated trend of online food shopping and purchasing, on the whole, is set to continue its line graph meteoric rise well into the future. 2020 was just the beginning of a whole new way of working.
The solution to tech trends and investments begins with superior supply chain management. You can’t afford to be without it. Orderly can help; why not get in touch?
