Agility in Retail and Consumer Goods Supply Chains
Of all the new opportunities and challenges supply chain leaders face in 2025, agility tops the list. To compete in today’s retail and consumer goods industries, supply chain leaders need to be responsive to consumer demand volatility, to adapt, and make faster business decisions.
Agility helps retail and consumer goods supply chains:
- Quickly switch suppliers, develop more flexible sourcing strategies, and mitigate disruptions from potential tariffs
- Adapt product offerings and pricing strategies to combat the lingering effects of inflation
- Adopt more real-time demand forecasting tools and flexible warehousing solutions to keep up with shopping patterns
- Augment human labor with automation to improve productivity and address labor shortages
Retail and consumer goods organizations that develop greater agility will catapult themselves forward by using insights from their supply chains as a critical enabler.
Nonetheless, many retailers’ supply chains struggle with agility because warehouse data is often still on-premises—and that’s holding them back from the latest technologies. Because data is central to all business processes, it’s data that either fuels or inhibits supply chain growth. Reliance on on-premises data and legacy systems likely inhibits supply chain growth because it:
- Causes latency that slows decision-making since leaders lack access to real-time data and often rely on outdated snapshots of old data
- Prevents visibility and collaboration since data is often fragmented and siloed
- Limits scale because systems can’t efficiently process increased data volumes and fluctuating demand
- Impedes flexibility when systems can’t adapt quickly to shifting market conditions and demand
- Impairs adoption of new technologies and processes when existing platforms aren’t adaptable
The warehouse is the ideal starting place for increased digitalization because investments made at the warehouse create value that extends to other parts of the supply chain and enterprise.
Digitalizing the Warehouse
Digitalizing the warehouse enables operational excellence and innovation through:
- Data-driven decision-making through real-time insights that help managers make more informed decisions and get teams unified around the same information so retailers can get ahead of demand
- Reduced operating costs related to warehousing operations through enhanced efficiencies gained by automation and robotics—and improved warehouse throughput through layout optimization, labor efficiencies, and automation
- Seamless integration throughout supply chain systems, such as enterprise resource planning (ERP) and warehouse management systems
- More scalability, making it easier for retailers to handle seasonal demand fluctuations or rapid growth without disrupting operations
Helping Warehouse Managers Drive Operational Excellence with Agentic AI
The role of the warehouse manager is pivotal in the supply chain ecosystem, yet warehouse managers are overloaded with information from multiple sources, making it hard to parse what’s relevant and useful. Blue Yonder’s warehouse manager AI agent offers an easy-to-digest, interactive report designed to help warehouse managers stay up to date with the most important data and information.
Optimize Warehouse Design, Planning, and Operations with Simulation
Today’s customers expect retailers to have what they want and deliver it fast to their store or home. Warehouses are critical nodes in the supply chain where optimizations can improve growth and profitability. From receiving shipments to sorting, picking, and packaging, every step of warehouse operations is being modernized with AI that analyzes changes in the physical world.
Bend the Curve on Innovation by Digitalizing Your Warehouse in 2025
Improving agility gives retailers the ability to future-proof their business, flex and scale their operations, and be more responsive and adaptive to consumer demands. Supply chain leaders can achieve operational excellence and catapult themselves forward with generative AI, digital twins, and robotics.
Conclusion
Agility is key to competing in today’s retail and consumer goods industries. To achieve agility, supply chain leaders must be responsive to consumer demand volatility, adapt, and make faster business decisions. Digitalizing the warehouse is the ideal starting place for increased agility because investments made at the warehouse create value that extends to other parts of the supply chain and enterprise.
Frequently Asked Questions
Q: What is the main challenge facing retail and consumer goods supply chains in 2025?
A: Agility is the main challenge, as supply chain leaders must be responsive to consumer demand volatility, adapt, and make faster business decisions.
Q: What are some ways to improve agility in retail and consumer goods supply chains?
A: Improving agility can be achieved through quick switching of suppliers, developing more flexible sourcing strategies, adapting product offerings and pricing strategies, and adopting more real-time demand forecasting tools and flexible warehousing solutions.
Q: What is the ideal starting place for increased digitalization in retail and consumer goods supply chains?
A: The warehouse is the ideal starting place for increased digitalization because investments made at the warehouse create value that extends to other parts of the supply chain and enterprise.
Q: What are some benefits of digitalizing the warehouse in retail and consumer goods supply chains?
A: Digitalizing the warehouse enables operational excellence and innovation through data-driven decision-making, reduced operating costs, seamless integration, and more scalability.
