How to Achieve Effective Supply Chain Collaboration: What Retailers and CPGs Need to Know

Published by RELEX

This whitepaper discusses the current disruptions in the global supply chain, primarily driven by the COVID-19 pandemic, which has exposed longstanding weaknesses in the industry. Retailers and consumer packaged goods (CPG) companies have been heavily impacted, struggling to move products to end-consumers. Effective supply chain collaboration is identified as a crucial element in preventing and mitigating supply chain disruptions.

The key to successful collaboration is data-sharing that provides real-time visibility into supply and demand throughout the supply chain. This visibility, along with improved relationships, helps mitigate the bullwhip effect and various issues arising from supply and demand changes. Collaboration is necessary not only for managing exceptional events but also for adapting to pre-pandemic trends accelerated since 2020.

Modern technology, including AI and machine learning, now supports collaboration, overcoming previous obstacles such as manual data sharing and data format mismatches. The whitepaper emphasizes the importance of a collaboration portal, enabling real-time data sharing, direct communication, and qualitative insights between supply chain partners.

Effective supply chain collaboration yields benefits for retailers and CPG companies, including increased availability, balanced goods flow, and improved demand forecasting. It supports sustainability by reducing waste and improves efficiency throughout the supply chain, even in non-disruptive times. Collaborative efforts are seen as essential for the industry's future success.

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