Driving American Business with an Optimized Supply Chain
As Americans kick back and relax this July Fourth, many brands may wonder how they can remain patriotic year-round. As trends point brands to expand into the global market, many are working to invest in local communities as well. To fuel initiatives that benefit business and the economy, brands can start with revamping the supply chain. Seventy-nine percent of companies with high-performing supply chains achieve greater revenue growth than their industry average — fueling momentum that, when leveraged strategically, can help brands meet modern consumer and worker expectations. By optimizing the supply chain to deliver on digital age demands, brands can lay out a pathway to elevate the future of local and global business.
Innovation is Imminent
The digitally-driven market demands a digitally-driven supply chain. American brands that integrate the digital, mobile and cloud solutions available to them accelerate business, with revenue at “fully integrated” companies outpacing non-integrated companies by 20 percent. More than modernizing, however, American brands need to look at country-specific trends to inform their supply chain strategy. For example, the average inventory accuracy threshold for U.S. retail and manufacturing operations is only 63 percent. Low accuracy often leads to items going out of stock and forces brands to purchase or hold more inventory than they can sell. Currently, $1.1 trillion, or seven percent of the U.S. national GDP, is tied up in inventories, accounts receivable and accounts payable. By deploying solutions that optimize demand planning and provide visibility into inventory levels, brands can purchase more efficiently and free up their cash flow.
There is a widespread fear that automation will take or eliminate jobs in the U.S. This digital transformation is something that the market must prepare for, however, with 83 percent of organizations pursuing increased automation to streamline supply chain processes this year. Automation, AI, and robotics are an efficient way for brands to reduce labor costs and optimize their warehousing and manufacturing operations, but it’s even more essential helping American business boom. Automation will help to shrink global manufacturing cost differentials over the next decade, meaning brands can afford to keep their operations domestic and serve regional markets. And, by streamlining mundane work, automation opens the door for more strategic roles available to American workers.
Brands are expected to offer two-day shipping, free returns, a flawless e-commerce portal and 24/7 customer service — and they need a skilled workforce to deliver. Reportedly, supply chain industry experts predict roughly 270,000 job openings in supply chain management per year with a median salary of $80,000 (compared to 37,600 job openings total between 2018 and 2024 in financial management). While technology simplifies laborious tasks, the competitive digital age demands constant improvement — calling for more engineers, data analysts, manager, and even human resources executives. Top American universities are quickly catching on, adjusting their manufacturing and logistics programs to cover the entire supply chain, including statistics, management of information systems, finance and accounting. By creating a more strategic supply chain, brands can make way for more strategic American jobs.
An optimized supply chain benefits the brand, its consumers and its employees, making it the perfect opportunity to grow and nurture American business. As the global landscape and market continue to shift, both abroad and at home, innovation and progress will always be worth celebrating.
To learn how ModusLink can help optimize brands’ supply chains with end-to-end management solutions, visit our solutions page.
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