By Santhosh Subramaniam, Associate Vice President & Head of Domain Consulting Group for Consumer, Retail and Logistics, Infosys
The past few years – marked by the pandemic, Ukraine war, Red Sea crisis, and inflation – have exposed retailers to the havoc that supply chain disruptions can wreak on business – and made clear how the power of supply chain visibility and agility can help in solving these problems. Being connected through a partner ecosystem is an effective way for retailers to achieve this visibility, and Infosys’s Cloud Radar CPG and Retail Industry Report shows cloud technology is being used by retailers globally to collaborate in partner networks. With cloud technology expected to account for 8% of India’s GDP by 2026, and the strong presence of cloud service providers in the region, it’s definitely a strategy for businesses in India to note. The advent of the Open Network for Digital Commerce (ONDC) initiative, which aims to enable e-commerce penetration and adoption in small towns and rural areas, also
promises to demonstrate the benefits of a collaborative network and ecosystem.
Why retailers need partner networks
A connected partner ecosystem involves stakeholders such as suppliers, manufacturers, distributors, retailers, logistics providers, and technology service providers, all sharing a common vision and mutual benefits from being part of the ecosystem.
There are three key benefits for retailers:
– The data created by the stakeholders in the network is vast, and allows for a rich exchange of inputs between them. All the stakeholders can get real-time updates related to the demand for a product, stock levels, product availability, and possible delays in flow, which can help them act quickly in response to fluctuating demand or supply chain pressures.
– In case of supply chain delays that could impact production and ultimately, delivery to customers, retailers can team up with alternative suppliers in the network to avoid disruptions, get back on track with production, and ensure a positive experience for the customer.
– Visibility into stock availability across partners’ warehouses can help retailers replenish stocks before an item runs out, or direct customers looking for the item to another retailer who can supply the item, thus creating great customer relationships.
How cloud makes networks efficient
Of the 400 CPG and retail respondents from global businesses surveyed by Infosys, many said one reason for them to move to cloud was that it gave them an opportunity to connect with partners through collaborative tools. Leveraging a mix of cloud technology and connected partner ecosystems could do wonders for retail businesses in India too.
Being part of an efficient partner ecosystem starts with selecting the right partners. Rather than wade through an ocean of peer companies to partner with, by themselves, retailers can leverage cloud-based industry platforms created by technology companies to gain easy access to the network of peers available. It allows them to choose the right companies to partner with, saving time, resources, and effort.
Companies need to choose a partner depending on whether they are aligned to their business goals and approach, and bring complementary abilities to the table that can help achieve the shared vision. Mutual gain for all partners is imperative for an ecosystem to come together and work successfully. It is also important for retailers to choose partners who strive for long-term association and are as committed as themselves to achieving the outcomes. The benefits of working with partners via the cloud include:
– Ability to store and have visibility into large quantities of data from a range of partners:
Cloud can provide insights from a huge pool of data in real time, providing a single source of information that prevents confusion or miscommunication between the partners, and potential damage to business. This ease of visibility helps the stakeholders collaborate seamlessly.
– Actionable insights: tools with access to data from all partners in the ecosystem can spot patterns, forecast risks and take pre-emptive action, mitigating the risks of a poor customer experience.
– Security and efficiency: Cloud providers offer security at scale – although retailers across the ecosystem must have appropriate governance and oversight of the providers’ security practices. Cloud can also be cost efficient for data storage – although individual businesses must also understand their cloud estate and manage their own costs.
Using the cloud as part of a strategy of partnering with other retailers to smooth out supply chain disruptions and offer better customer experiences helps every member of the ecosystem build stronger businesses.
