We all know that the world can be unpredictable. But retailers can’t let volatility and the unexpected stop them from bringing quality, high-demand products to their consumers. “We didn’t plan for that earthquake at our factory in Bangladesh” might be understandable, but it doesn’t put products on the shelf or consumer dollars in your register. The retail industry is constantly at risk due to factors outside its control – including global economics, labor issues, source factory issues, natural disasters and variations in resource prices – but there are ways to mitigate that risk and plan for the unknown.
Most companies take one of three approaches to risk planning: A large number of retailers do nothing, a much smaller number of retailers does a little more (but isn’t tremendously effective) and the best retailers take a comprehensive, “what if” costing approach. A “what if” costing approach allows retailers to:
- Make more informed strategic business decisions
- Stay up-to-date with geopolitical and economic changes
- Manage uncertainty
Retailers employing these strategies can manage more suppliers and improve margins while mitigating potential risk.
Find out how to be a part of that third group of retailers. Read more in our latest whitepaper: “Mitigating retail risk and uncertainty through what-if, any-market costing.”