The food ecosystem is evolving and what was once supply-driven and linear, is now demand-driven and undergoing transformation. In this dynamic ecosystem, consumers are at the centre of every development; product taste, packaging and distribution, are all designed with consumers’ convenience in mind. Businesses are also developing newer sales channels in their quest to explore deeper into geographies to boost consumer interactions and respond to their needs. With multi-source supply, numerous SKUs and widely spread consumption centres, businesses need to plan accurately, source mindfully, manage warehouses efficiently and ensure on-time fulfilment. Though many businesses have realised the need for the end-to-end integration and have taken initiatives to strengthen their supply chains for better flexibility, agility and resilience. Majority of these businesses still lack better understanding of strategic supply chain partnerships and their need for business assurance.
Supply chain partnership is indispensable for demand-driven growth
Changing consumer habits, trends, convenience and demographics, now drives demand, access and delivery. Awareness regarding the significance of a healthy lifestyle and the changing work habits in the Indian households has risen demand for naturally sourced food options, plant-based diets and ready-to-eat foods. This dynamic demand has been accelerated by the pandemic and to adapt to these emerging changes, supply chains need to anticipate, evolve and respond quicker. Long-term strategic supply chain partnership enables partners to re-imagine, re-define and re-configure the entire value chain to form a value exchange platform that equally benefits all the ecosystem participants. The Coca-Cola and McDonald’s partnership is a perfect example of how a strategic partnership enables partners to be leaders in their respective industry. Supply chain partnerships enable businesses to capture consumer data and relay it across the ecosystem in the form of actionable insights to deliver enhanced customer experience through integrated planning & fulfilment, enabling the businesses to manoeuvre the variability, bring in responsiveness & stability in uncertain times.
Strategic partnerships mature gradually
Supply chain partnerships are the key for enhanced customer experience and business growth. However, the success of these partnerships rely on the ability to identify, evaluate and select the right partner. Participants should set a clear foundation for the desired supply chain outcomes and mutually align their capacities & capabilities towards achieving them. Forming equitable relationships and exchanging value among the ecosystem participants helps in achieving accelerated growth. From the same Coca-Cola and McDonald’s partnership we learn how forming a long-term strategic partnership at the right time enabled both to outperform their competition and create substantial value for the entire ecosystem together. Drawing on the recent observations of Gartner in its “Hype Cycle for Supply Chain Strategy, 2022”, it is estimated that the businesses in next 5 to 10 years will be able to proactively mitigate risks to ensure business continuity. To achieve this resiliency and be adaptable to the evolving BANI (Brittles, Anxious, Non-linear, and Incomprehensive) world, the businesses need to establish matured ecosystem partnerships over the next 2-3 years.
For businesses who wish to reap the benefits of future-ready supply chains, the time is now to start assessing and engaging with partners as supply chain partnerships require considerable time and resources to mature and deliver the desired outcomes. The true essence of a supply chain partnership is founded on the balance of four pillars – Trust, Right Contracting, Unified Approach, and Execution. Getting these founding pillars rights is very much crucial for a partnership to thrive and create substantial value together. Through strategic long-term supply chain partnerships, food brands can be better equipped to handle disruptions, enhance supply chain performance, improve profitability and enable sustainable growth.
Understand from our experts how supply chain partnerships can open up new avenues to achieve growth, improve customer experience and build business assurance. Backed by our rich experience and expertise, we’ll help you co-create supply chain partnership or to strengthen the existing ones, to deliver impactful outcomes.
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