4 Reasons to Invest in Your Business Now

Supply chain partnerships improved in 2022 as traditional buyer-seller relationships gave way to greater communication, collaboration, information sharing and mutual respect. With a sharp increase in technology deployments, supply chain digitalization also advanced to improve visibility for stakeholders such as retailers, brands, wholesalers, manufacturers and raw materials suppliers. Still, there is significant opportunity for improvement, and more work is needed to extend visibility deeper into supply chains and take reporting and analytics to higher levels.

The comprehensive research conducted with over 350 fashion, consumer goods and retail business leaders and stakeholders for CGS’ 2023 Supply Chain Trends and Technology Report details four main reasons why now is the time to invest in your business, especially in supply chain digitalization.

1. Visibility: A slowdown in demand has eased some supply chain disruptions, such as the extremely high demand and constrained supply of 2021 and the major logistics and transportation issues of 2022. This lull presents an opportunity to rethink and retool business processes, particularly to achieve the supply chain visibility needed to comply with expanding ESG regulatory requirements.
2. Automation: Labor costs are high and skilled workers are in short supply, making this the ideal time to invest in automation. From the sewing room to the distribution center to the IT department, there is an opportunity to leverage technology to gain efficiency and do more with fewer resources.
3. Competitiveness: The need to get an edge over your competition is always in vogue. Companies that lean into technology investment now will be better positioned to create and deliver products faster, better and more cost-effectively than their rivals.
4. Cybersecurity: Unfortunately, cybercriminals grow more sophisticated daily, so retailers and their suppliers must do everything possible to avoid the bad actors. CGS has invested significantly to ensure our customers and their mission-critical business information are safe and secure. We have the expertise to conduct security assessments and remediate risks across your IT infrastructure.

While the past few years have taught us we cannot always plan for the future based on the past, these interesting times also have proven the power of innovation, resiliency, adaptability and can-do spirit. This is the time to double down. If you are confident in your business and want to come out of 2023 more competitive, now is the time to invest in business process improvement and supply chain digitalization.

Winners Take Risks, Push Against Headwinds

Winning new business and growing profitably despite 2023 inflation, price pressure and continued risks for supply chain disruptions is not unlike the game of rugby. It requires a lot of basic blocking and tackling. Sometimes it's easier when you've got no one in front of you, but when someone's in front of you, you’ve got to change your balance and push a bit harder. But you don't stop pushing just because someone's in front of you. You push harder.

Some companies try to go the other way, investing less in supply chain relationships and technology based on the conditions on the field. But the winners know that when a headwind is blowing, they’ve got to work harder, not pull back, to make progress.

Successful Businesses Respond Rapidly to Demand

Another key to success in 2023 is responsive speed to market with the right products to meet consumer demand. Nearshoring and on-demand manufacturing will play increasingly important roles in companies’ sourcing strategies. Everyone’s trying to figure out how to make it closer to the time of the order, versus six to nine months in advance.

Inventory management is in the crosshairs as always, especially given how inventories came up short in 2021 and then too heavy in 2022. Executives are now working on what to buy for the next season, so they don’t get caught short or overbuy. They are looking at increasing their sourcing network to get quicker turns. It’s not just about chasing the cheapest needle. If demand picks up, they want to replenish from nearshore suppliers.

Let’s compare 2023 demand planning challenges to learning to drive a car. For years, the conventional wisdom in learning to drive a car was to look out the windshield a hundred yards ahead so that you're not surprised at what's coming down the pike. Today, if you're not looking just over the hood, you will run into something because the world is changing that quickly. You don't have 100 or 200 yards of visibility into what will happen. You’ve got to look much closer; to do that, you have to be nimble.

To achieve this nimbleness, businesses must know exactly where everything is in their supply chain. The only way to do that is to digitize your supply chain. This equips you with the real-time information you need about your goods, production and shipments to react quickly. With real-time visibility, you can quickly and effectively reroute, reorder or rebook when that next disruption comes.

Justifiable Technology to Connect the Dots and Deliver ROI

Connectivity and integration projects Are a priority in 2023. Companies want to open up and augment the technology solutions they have in place, leveraging application programming interfaces (API), seamless data sharing, business intelligence and decision-support systems to achieve their business goals. Each company’s objectives are unique. There is no one-size-fits-all approach to digital transformation. The important thing is to start where it makes sense for your business. For some, the focus will be on improving sourcing and supply chain visibility. Connecting to more e-commerce solutions and marketplaces is the greatest priority for others. Yet others want to do a better job on allocation, fulfillment and replenishment. In all of these cases, systems integration is crucial to fill process and information gaps and connect the dots across different software solutions and stakeholders, all the while minimizing risk and delivering the fastest ROI.

No one should do technology for technology’s sake. CGS’ mantra has always been about justifiable technology. We work with our customers to understand their business priorities, and we make sure the process improvements and technology solutions we recommend have a business justification. Ultimately, technology must solve clients’ complex issues and support their most fundamental business activities.

To learn how more than 350 industry executives and stakeholders view their opportunities, challenges, improvements, technologies and investments for 2023, Download the free CGS Supply Chain Trends & Technology Report.