2024 Retail Supply Chain Challenges & How to Avoid Them

The global supply chain is still facing significant issues. Post-pandemic challenges, such as labor disruptions, economic unrest, and extreme weather, have forced retailers, manufacturers, and wholesalers to innovate to remain competitive and find growth opportunities. As we look toward 2024, here are some strategies for supply chain leaders to stay ahead.

1. Supply Issues

The Challenge: Recent years have highlighted how easily the flow of goods can be disrupted. Businesses have struggled to obtain necessary supplies due to production shutdowns and logistics problems.

The Solution: Companies need to strengthen their supply chains to withstand unforeseen events. This can involve building better relationships with suppliers for preferential treatment, maintaining different stock levels, or managing cash flow more effectively to support operations during delays.

2. Changes in Demand

The Challenge: Customer behavior can shift quickly due to societal, political, and economic factors. These changes can lead to significant increases or decreases in sales. For instance, during the COVID-19 pandemic, demand surged for masks and cleaning products while dining out dropped dramatically.

The Solution: Develop contingency plans. Consider diversifying your supply chain by finding suppliers in various locations and diversifying your product offerings to remain relevant across different contexts.

3. Tracking Stock Levels

The Challenge: Many businesses still rely on outdated methods to track inventory, despite the availability of warehouse management tools and barcode technologies. Without accurate inventory visibility, making informed supply chain decisions becomes challenging.

The Solution: Implement the right supply chain technology to access real-time product information. This will empower you to monitor stock levels, trends, and locations, providing a comprehensive view of your operations.

4. Not Enough Time or Money

The Challenge: Supply chain teams face numerous operational issues that require time and resources, making it difficult for them to focus on long-term strategies. Manual demand forecasting and inventory adjustments leave little room for strategic planning.

The Solution: In 2024, companies should invest in supply chain digitization tools to enhance employee efficiency and address inventory management challenges. Automation can increase productivity across all business areas, including inventory management.

5. Labor Shortages

The Challenge: The ongoing labor shortage in operations and transportation, which began during the pandemic, continues to impact supply chains. Companies struggle to find and retain skilled workers, leading to slower processes and rising costs.

The Solution: Optimize your current workforce by promoting smarter working practices. Automation can streamline processes that are prone to human error, allowing employees to focus on critical tasks. Additionally, enhance your employee offerings to attract and retain talent.

6. A Shift to Omnichannel Retail

The Challenge: Customers expect a seamless shopping experience across in-store, online, social media, apps, and e-commerce platforms. Failing to provide this can drive customers to competitors.

The Solution: Leverage technology to connect your systems and ensure effective communication across your operations. This integration will provide a broader perspective on your business, enhancing coordination from your warehouse to your retail store to your online platform.

The Bottom Line

In 2024, supply chains will continue to encounter numerous challenges. However, each challenge presents an opportunity for innovation and competitive advantage. Staying adaptable and committed to learning is crucial in a constantly changing environment. If you need fast access to funding to implement these changes, consider a Merchant Capital Cash Advance—a leading fintech solution designed for supply chain retailers, providing working capital in under 48 hours.

‍