ues have been hit and suppliers have halted production or gone out of business. Businesses can no longer afford to rely on some previously successful strategies.

We’ve also seen changes to the way people shop. As the world went in and out of lockdowns and adapted to working from home, retailers saw a rapid rise in demand for laptops, TVs and other electronics. This change in consumer habits, coupled with chip manufacturing factory shutdowns, has caused a global semiconductor shortage.

There’s no way for retailers to completely overcome global supply-chain challenges. But a long-term, strategic procurement strategy will help reduce the effects. Automating processes through digitalisation improves adaptability, resiliency and sustainability.

Delighting customers this Christmas

Retailers should find out about supply and demand forecasts for popular items, holding stock where possible. Encourage customers to order early to give them the best chance of getting Christmas gifts on time.

Thanks to the pandemic, people are more familiar than ever with the need to order ahead. This change in behaviour is good news for retailers willing to change the way they operate to meet demand.

It’s also worth investigating whether subscriptions could work for your business. There are companies offering monthly delivery of everything from razor blades and toilet paper to fruit and vegetables.

Planning for the future

Reports show businesses with digital procurement strategies were able to navigate the challenges of the pandemic more easily. It’s no longer enough to be reactive, ongoing risk intelligence and continuous monitoring of supply chain risk are essential.

As the world continues to recover from the pandemic, there will be no quick-fix return to normality. Businesses need to set new goals based on technology’s capabilities, rather than trying to use technology to meet existing goals. The right strategy should help identify, scale and evaluate risk. Focus on five-year goals, keep them close and have regular checks with stakeholders to discover whether expectations are being met.

Top tips to reduce pressure on suppliers and identify risks

Treat suppliers as partners

From reduced costs and improved efficiency to a strengthened supply chain and new innovations, there are multiple benefits to improved supply-chain performance insights.

Integrate supply-chain operations 

A major benefit of digitalisation is real-time information sharing. An early warning about potential issues can make all the difference in prevention or initiating a quick reaction to events.

Reduce wasteful processes

Some retailers may still be loyal to the idea that holding stock holds no value, but if you haven’t got it, you can’t sell it. Shift from a ‘just in time’ inventory reduction to a balanced just in time process. There are other ways to eliminate waste, such as dealing with duplication and removal of manual processes.

Expand your supply base 

Deloitte research found 47 per cent of chief procurement officers plan to diversify their supplier base. Breaking down supply chains across multiple suppliers, rather than relying on a single point of (potential) failure, is an effective way to reduce risk. Avoid impractical solutions such as like-for-like switches, which can have the impact of shifting the issue, or attempting to nearshore.

An opportunity for change

With continued pandemic-related disruption, increased climate risk and other threats, now is the time to make sure you have the right digital strategy in place.

Retailers with digitalised procurement and supply-chain strategies are in the strongest position to handle shipping or production disruptions and outperform competitors. They have the advantage of being able to tap into the power of the cloud and intelligent technologies for more informed decision-making, greater agility and better visibility.