Guest Column

Streamlining supply chain efforts can help retailers survive the changing landscape, says this Houston expert

A study found that approximately 88 percent of retailers see dropship as inevitable to long-term success. Pexels

It's undeniable that retail habits of consumers is changing. DiCentral, a B2Bi managed services provider, recently partnered with the Center for Supply Chain Research at Lehigh University to survey over 180 global retail and manufacturing decision-makers and identify how evolving consumer buying behaviors are driving this dramatic shift in the retail landscape. The transformational supply chain challenges retailers and manufacturers are facing today indicate a new reality for retail.

The first of its kind study titled, "Supply Chain Collaboration in Transformative Vertical Industries: Implications of Omnichannel and Dropshipping," examines the motivations, challenges, benefits, and supply chain implications of the dropshipping model through which retailers ship orders directly from vendor warehouses, thereby reducing excess inventory and warehousing costs.

The study found that approximately 88 percent of retailers see dropship as inevitable to long-term success. According to 87 percent of those retailers surveyed also experienced an increase in revenue as a result of dropshipping. Customer service also benefitted from dropship, with 84 percent of retailers noting improvements to customer service after adopting the dropshipping fulfillment model.

From the manufacturers' perspective, dropshipping can significantly improve relationships with retailers as reported by 71 percent of manufacturing respondents. As many as 66 percent of manufacturers also experienced an increase in revenue after implementation of a dropship order fulfillment capability.

Challenges for both retail and manufacturing respondents point to systems limitations as being a primary obstacle to deploying an enterprise dropship program. According to the study, 40 percent of manufacturers acknowledged system limitations as being a challenge. Retailers responded similarly, with 32 percent identifying systems (ERP, EDI, WMS, etc.) as a hindrance.

While retailers and manufacturers face similar obstacles in streamlining supply chains, the benefits to both remain clear. As businesses look to maximize revenue and enhance customer service, dropshipping is a proven advantage to achieving both goals. Decision-makers in retail and manufacturing would be prudent to explore dropshipping as a means of achieving the ROI and improved quality of customer service.

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Steve Scala is executive vice president of corporate development at Houston-based DiCentral, a growing SaaS company.

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Building Houston

 
 

Amy Chronis, who oversees the Houston office for Deloitte, has a new role she will be adding on to her plate. Photo courtesy Deloitte/AlexandersPortraits.com

Amy Chronis has had a big year. First, she took over as the Greater Houston Partnership's 2021 chair. And on February 25 she was named a vice chairman of Deloitte LLP and leader of its oil, gas, and chemicals sector.

In her new role, Chronis will lead the overall strategic direction of Deloitte's oil and gas arm while she continues to serve as managing partner of the company's Houston office. She succeeds Duane Dickson, who will be retiring from the leadership role in May.

Chronis is a licensed CPA and known to be a thought leader in aspects of the energy transition with a 30-year background in the oil and gas, technology, and manufacturing industries.

"Our industry is at a crossroads and going through one of the most challenging business environments on record," Chronis said in a statement. "It's an honor to take on this role at such a pivotal time for our oil, gas and chemicals clients engaging in the energy transition and emerging from the pandemic. I look forward to helping them navigate the winding road ahead."

Chronis spoke with InnovationMap earlier this year about Houston's evolving image and impressive innovation in the health, space, and energy industries that often gets overlooked.

"Houston needs to step up and state our case as often as possible," she told InnovationMap last month.

Chronis is also an advocate for inclusion in the workplace. She co-leads the Houston cohort of Deloitte's Board Ready Women and Women on Boards programs and will aim to advance Deloitte's diversity, equity, and inclusion efforts in her new role.

Click here to read a run down of Chronis's address to the GHP earlier this year.

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