![]() Create a digital architecture that integrates legacy solutions with new technology. Leverage the power of cloud, data, and AI through interoperable systems across the enterprise. Build on the digital core. The data generated inside the warehouse will provide insights needed for continuous reinvention.From there, use advanced simulation techniques to run various scenarios to determine the impact of process changes, technology, and automation with a clear financial view. Consider working with a partner focusing on the opportunity and creating synergies with existing assets. Focus decision making. There are many options for warehouse management systems, material handling equipment, and devices.Sustainability. How can fulfillment operations support ESG targets? How can improved waste management programs and energy efficiency initiatives-inside the warehouse and with vendors-support sustainability goals?Īssessment of the current state and alignment with the company’s broader vision are the pillars on which supply chain leaders can build their strategy for fulfillment reinvention.īut how does it all come together for fulfillment operations?.Customer. What is the customer segmentation strategy? How are segment profiles, buying trends, and service expectations evolving? What are the commitments of the business to service levels for each segment?.Business. What are the long-term revenue targets? Is the company growing through acquisition or divesting product lines? How much flexibility do fulfillment operations need to respond to business disruption and seasonal spikes?.To align fulfillment with the company’s broader vision, supply chain leaders must answer fundamental questions, including the following: Align fulfillment with the company’s broader visionĬhanges to fulfillment operations have an impact on the entire organization. These dimensions must be underpinned by key performance indicators (KPIs) that evaluate the performance inside the warehouse as well as overall fulfillment performance.Ģ. Financial. Analyze the cost to serve, including pick/pack/ship, labor, operating expenses, and capital investments.Systems and data. Evaluate the systems used to manage operations, data sources, and connectivity.Labor. Measure productivity/activity and cost.Processes/equipment. Assess the product flow from dock to stock with advanced simulation techniques.This assessment focuses on current capabilities and typically includes the following: Understand the current stateĪ complete fulfillment assessment is a strategic starting point. This strategy needs to align operations with customer promises and create a fulfillment network that is efficient, flexible, sustainable and offers a clear ROI to the business. Supply chain leaders must bring the right technologies and new ways of working together in a holistic strategy. New technology enablers include digital twins, predictive analytics, and AI, each of which promises greater fulfillment accuracy. These new ways of working can include wearable technologies, automation, autonomous vehicles, and drones. Putting fulfillment reinvention into practice Recent research from Accenture shows that technologies and ways of working allow supply chain leaders to totally reinvent core elements of fulfillment-supply chain operations and customer service-and, thereby, their entire fulfillment operations. Fulfillment operations require an overhaul from the ground up so companies can remain competitive and meet customers’ expectations. These challenges call for more than Band-Aid fixes. If just one of the steps in the process is out of alignment, fulfillment operations are, at best, less efficient. Inside the four walls of the warehouse are highly choreographed flows of products, people, and materials fueled by data, equipment, and devices. Why? Because evolving consumer demand, labor challenges, and ongoing supply chain disruption are causing warehouse operations to fall short of delivering on the promises made to customers and investors. If supply chain leaders know one thing, it’s this: Their fulfillment operations need to change significantly. ![]()
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