Optimizing inventory levels across the enterprise has always focused on two important balancing acts—balancing supply with demand, and balancing inventory costs against customer service levels. But today two key trends are upending these delicate balances—omni-channel fulfillment and market volatility. These issues stand out in the recently released JDA Vision 2015 Supply Chain Market Study.

Optimizing inventory levels across the enterprise has always focused on two important balancing acts—balancing supply with demand, and balancing inventory costs against customer service levels. But today two key trends are upending these delicate balances—omni-channel fulfillment and market volatility. These issues stand out in the recently released JDA Vision 2015 Supply Chain Market Study. The study is based on a global survey with over 250 responses coming from executives in 17 countries across many industries.

Omni-channel fulfillment challenges
In the omni-channel marketplace, the consumer is clearly in control of the selling process and they are placing much greater demands on retailers and suppliers for improved and faster service. Demands for cross-channel fulfillment options such as buy online / pickup from store and for same-day or next-day deliveries are putting tremendous pressure on the supply chain, quickly tipping the balance toward service factors from the recession era focus on cost.

When asked to rank their top reasons for optimizing inventory management, respondents overwhelmingly selected ‘Moving Inventory Closer to Demand’ and ‘Improving Service Levels.’ The former is critical for omni-channel fulfillment and faster deliveries while the latter factor reflects the increased focus on service.