Retail decisions ripple
…and most brands don’t notice.
In our latest contribution to Sourcing Journal, we argue that supply chain strategy can’t be built by looking forward alone.
You have to look in the rearview mirror and understand how decisions made at the buyer/brand level echo backward through materials, sourcing, and production.
“When learning to drive, we are taught to periodically check the rearview mirror as we move down the road. This is part of scanning our surroundings and is essential when we need to brake suddenly. Without it, we may miss important context, like a driver following too closely, and trigger unintended consequences.
We argue that merchant teams can benefit from a rearview mirror of their own. Today, teams need a deeper understanding of how decisions made at the brand level ripple backward through the supply chain. Without that context, product and assortment choices can unknowingly create avoidable financial and operational costs.”
Here are the ideas that matter most:
– Buyer decisions don’t just impact immediate inventory. They cascade upstream, affecting suppliers, components, material availability, and downstream costs.
– Without visibility and understanding of these ripple effects, brands are reacting to symptoms rather than driving intentional supply chain strategy.
– Treating the supply chain as a linear process leaves brands blind to how small decisions amplify into major disruptions.
Optimizing forward plans without looking in the rearview mirror is a mistake.
Understanding the impact of past decisions equates to supply chain resilience.
Read more over at Sourcing Journal by clicking here.
