The following is a Supply Chain Matters guest blog commentary contributed by Ken Sickles, Vice President of Product & Strategy, 1WorldSync. As a result of a recent briefing regarding the increasing importance of the product information supply chain we invited 1WorldSync to contribute this educational commentary for all readers.
In the retail industry, the supply chain has long been viewed as critical to success and profitability. Companies with tremendous reputations like Apple and Wal-Mart have long enjoyed the fiscal and customer satisfaction benefits of an efficient supply chain. But the retail industry is changing, and so will the supply chain.
In the past decade, advances in primarily mobile and social technologies have allowed consumers to become much more digital and connected to information and each other, and it has altered the way they discover and purchase products. While e-commerce has grown to almost 10% of the overall retail industry, analysts estimate as much as 50% of the retail industry is influenced by a consumers digital interactions. These “digital consumers” have a thirst for transparency about the products they are buying, and their thirst for information about them seems unquenchable. In some cases, digital consumers are so vocal about their needs; we are seeing governments put regulations in place requiring consumer transparency (e.g. EU 1169 – a European Union regulation requiring digital access to nutritional, ingredient, and allergen information for consumers at the point of sale).
The result is retail and manufacturing organizations have to be better at capturing, managing, and sharing product data through the supply chain. In fact, the need is so great, a data supply chain in its own right needs to be developed. Developing a Product Information Supply Chain, tightly integrated with the traditional supply chain, will help organizations ensure that ultimately consumers in the digital world have complete, up to date, and quality information where and when they need it in their purchase lifecycle.
We are already seeing evidence of the product information supply chain taking shape. The industry is investing heavily in the software and processes that create and share product information. From the product development – aggregation and management of product data at the manufacturer – to setting an item up for sale at a retail or online store – to presenting that information to the consumer. Industry organizations such as GS1 are investing in new initiatives and capabilities to support the product information supply chain.
While the supply chain has long been a critical component to success in the retail industry, the product information supply chain may be an even more important to success in the future of the retail industry, as every consumer becomes a digital consumer.