Late last year we published the Top 11 Priorities for Profitable Growth for Retail Companies. Number 5 on this list entitled “Uncertainty, Agility and Visibility” made the key point that “Uncertainty is Certain.” The advice we have given to retailers is to accept this new norm by implementing agile processes to create greater supply chain visibility.
 One year later, we are seeing this priority (as well as the others) turn out as predicted – uncertainty of fuel pricing, uncertainty of consumer demand, uncertainty in response to earthquakes, uncertainty to political unrest, uncertainty of what Washington, DC, is up to, uncertainty in taxes on e-business, uncertainty in pricing, uncertainty in recession recovery, and the uncertainty continues.
The repercussions of uncertainty on planning, sourcing and sales have been huge, and this has resulted in uncertainty on costs, lead times, customer satisfaction and inventory. And companies have reacted in one of two ways:
1. Ignoring the realities of the current situation, doing nothing and making excuses for uncertainty and indecision.
2. Taking aggressive action of S&OP, working on synchronizing supply to demand in order to reduce inventory, decrease lead times, enhance Supplier Relationship Management and ensure more emphasis on contingency/scenario planning.
The first reaction is resulting in the erosion of both the top and bottom line. The second reaction is resulting in growth of both the top line and the bottom line. So, where are you?
We strongly believe that this is still a major priority, and if you have not made preparations for uncertainly, now is the time to take action. Uncertainty is not going away. Learn how to deal with it and, even better, turn it into a competitive advantage by increasing agility and visibility.
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