Few predictions and forecasts survive reality. Supply chain leaders avoid predicting the unpredictable and instead focus on supply chain speed, agility and scalability.
Key Takeaways
- The past offers a hazy view of the future. Even pre-pandemic, the average forecast error was 50%—a coin toss
- Instead of trying to predict the ‘right’ answer, accept uncertainty and focus on supply chain speed, agility and scalability. The result: Structural flexibility
- Structural flexibility requires investments in technology and networks over fixed assets and leases. Leading organizations boost structural flexibility with Flexe Logistics Programs. The result: Scalable, dynamic logistics networks designed to overcome supply-side disruptions and exceed customer expectations
Organizations can’t predict the unpredictable #
Supply chain predictions require forecasting future events based on past data. The problem: The past offers a hazy view of the future. Even pre-pandemic, the average forecast error was 50%—a coin toss.
And two years of constant supply chain disruption make the past an unreliable data source for future predictions.
One third of consumers planned to spend less on holiday gifts due to inflation. Sixty-three percent of economists forecast a recession in 2023 per a Wall Street Journal survey. And the U.S. average forecast for growth next year is 0.3%, the third lowest since 1989.
Sixty-three percent of economists forecast a recession in 2023 per a Wall Street Journal survey. And the U.S. average forecast for growth next year is 0.3%, the third lowest since 1989.
Embrace uncertainty and drive structural flexibility #
Change is the only constant, and fresh disruptions mean new challenges in 2023.
Instead of trying to predict the ‘right’ answer to potential disruptions, successful organizations focus on supply chain speed, agility and scalability.
Supply chain leaders avoid predicting the unpredictable. They invest in agility and evolve fast to beat future challenges. Flexe CEO Karl Siebrecht explains, “The best strategy is to admit forecasts are wrong and embrace variability.”
The result: Structural supply chain flexibility.
To unlock structural flexibility, invest in technology and networks instead of fixed assets and leases. Instead of making big, fixed cost investments based on historical data, focus on flexible, technology-driven strategies and supply chain visibility tools—from transportation and warehousing capacity to retail distribution and eCommerce fulfillment. Focus on speed-to-implement and time-to-value.
Retailers that invest in structural flexibility can then rapidly pivot as market dynamics change.
The best strategy is to admit forecasts are wrong and embrace variability.
Deep dive: Flexe Logistics Programs drive structural supply chain flexibility #
Successful supply chain strategies require speed and flexibility. But traditional supply chains aren’t designed for either.
Leading organizations find paths to both—access urgent capacity and expand distribution and fulfillment networks—with Flexe Logistics Programs. The result: Scalable, dynamic logistics networks designed to overcome supply-side disruptions and exceed customer expectations.
Optimize distribution networks #
Optimized distribution reduces stockouts and boosts sales. Plus, placing distribution centers close to key intake centers cuts transportation and storage costs. Flexe Distribution Programs create distribution flexibility without slowing retailers down. Distribution programs leverage the Flexe network and the Flexe Logistics Platform to seamlessly integrate and optimize distribution.
In Action: Global Coffee Company Tackles Peak with Rapid Replenishment
Drive effective eCommerce fulfillment, meet customer delivery expectations #
Customers expect fast eCommerce delivery. But speed is costly: Forty-five percent of brands don’t offer fast shipping options because it makes total costs too high. And shipping success depends on locating inventory near customer locations.
Leading retailers and brands respond to customer demands, run effective promotions, improve delivery speed and accelerate growth with Flexe Fulfillment Programs. All without CapEx investments, fixed costs or long-term commitments.
In Action: Aterian Achieves 97% Two-Day or Less Delivery
Boost warehouse capacity for surplus inventories #
Organizations manage surplus inventories strategically with Flexe Capacity Programs. Retailers and brands find critical warehousing through North America’s largest logistics network—often at lower costs and with no term commitments.
Find Out: Strategically Manage Excess Inventories
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