Don’t Predict the Unpredictable. Build Structural Supply Chain Flexibility

Organizations can’t predict the unpredictable

Supply chain predictions require forecasting future events based on past data. The problem: The past offers a hazy view of the future. Even pre-pandemic, the average forecast error was 50%—a coin toss.

And two years of constant supply chain disruption make the past an unreliable data source for future predictions.

One third of consumers planned to spend less on holiday gifts due to inflation. Sixty-three percent of economists forecast a recession in 2023 per a Wall Street Journal survey. And the U.S. average forecast for growth next year is 0.3%, the third lowest since 1989.

Embrace uncertainty and drive structural flexibility

Change is the only constant, and fresh disruptions mean new challenges in 2023.

Instead of trying to predict the ‘right’ answer to potential disruptions, successful organizations focus on supply chain speed, agility and scalability.

Supply chain leaders avoid predicting the unpredictable. They invest in agility and evolve fast to beat future challenges. Flexe CEO Karl Siebrecht explains, “The best strategy is to admit forecasts are wrong and embrace variability.”

The result: Structural supply chain flexibility.

To unlock structural flexibility, invest in technology and networks instead of fixed assets and leases. Instead of making big, fixed cost investments based on historical data, focus on flexible, technology-driven strategies and supply chain visibility tools—from transportation and warehousing capacity to retail distribution and eCommerce fulfillment. Focus on speed-to-implement and time-to-value.

Retailers that invest in structural flexibility can then rapidly pivot as market dynamics change.

Deep dive: Flexe Logistics Programs drive structural supply chain flexibility

Successful supply chain strategies require speed and flexibility. But traditional supply chains aren’t designed for either.

Leading organizations find paths to both—access urgent capacity and expand distribution and fulfillment networks—with Flexe Logistics Programs. The result: Scalable, dynamic logistics networks designed to overcome supply-side disruptions and exceed customer expectations.

Optimize distribution networks

Optimized distribution reduces stockouts and boosts sales. Plus, placing distribution centers close to key intake centers cuts transportation and storage costs. Flexe Distribution Programs create distribution flexibility without slowing retailers down. Distribution programs leverage the Flexe network and the Flexe Logistics Platform to seamlessly integrate and optimize distribution.

Drive effective eCommerce fulfillment, meet customer delivery expectations

Customers expect fast eCommerce delivery. But speed is costly: Forty-five percent of brands don’t offer fast shipping options because it makes total costs too high. And shipping success depends on locating inventory near customer locations.

Leading retailers and brands respond to customer demands, run effective promotions, improve delivery speed and accelerate growth with Flexe Fulfillment Programs. All without CapEx investments, fixed costs or long-term commitments.

Boost warehouse capacity for surplus inventories

Organizations manage surplus inventories strategically with Flexe Capacity Programs. Retailers and brands find critical warehousing through North America’s largest logistics network—often at lower costs and with no term commitments.

You might also be interested in:

• Article: Flexe Institute Market Watch: Peak Season Proves Unpredictable
• Video: Aterian Uses Flexe Logistics Programs to Achieve 97% Two-Day or Less Delivery Speeds
• Article: Retailers Shift to In-Store Fulfillment, BOPIS Drives Additional Sales