Supply chain management in times of digital transformation

How the “Buy now” button challenges companies

US platforms, start-ups and the e-commerce sector are bringing a breath of fresh air to the European logistics sector due to increasing globalization and outsourcing to external partners. “Ordered today, delivered quickly” not only reflects customer expectations. In fact, leading supply chain experts have adopted this credo. This is made possible above all by an excellent partner network.

More time for the core business

If you want to set up an online store, for example, you need more than an innovative business idea, web design skills and marketing knowledge. In order to have a good chance of competing internationally, webstore founders need a customer center for possible questions and complaints, an accounting department that takes care of tax and business management issues, and a logistics service provider to ship the goods.

This does not necessarily have to be mapped under one roof. This is because outsourcing individual business processes allows you to concentrate more on your core business. Outsourcing is a popular way for companies to save money and, above all, time, especially in the course of digitalization.

Smooth communication is essential

But outsourcing work areas seems easier said than done. Successful outsourcing depends on smooth communication with other companies. Constantly discussing wishes, requirements and special features with several external service providers is not only challenging, but essential.

Outsourcing also means relinquishing control and dependence on other companies. Anyone who entrusts specific areas of responsibility and processes to others – even across national borders – is inevitably dependent on them. Quality defects or delivery delays, for example, are two of the many possible consequences of outsourcing.

The challenges

While more and more European consumer goods manufacturers such as Ikea are opting to outsource business processes, global marketing is also on the rise. Start-ups with innovative ideas, fashion brands and other sectors are looking for customers not only nationally but also worldwide. German retailers are also increasingly trying to gain a foothold in the international e-commerce market.

However, cross-border online trade is associated with numerous challenges. Flawless handling of complex delivery and production processes is the be-all and end-all. In addition to the legal and fiscal framework conditions of the respective country, a selected payment method is also included.

Not to mention the handling of dangerous goods, transportation protection and customs, as well as shipping time and costs. According to the Fraunhofer SCS, more and more companies are looking at an end-to-end tracking solution to optimize their processes.

Trust, fairness and stability – the future of SCM

One solution is supply chain management – SCM for short – which plans and controls the value and supply chain through to the end customer in a process-oriented manner. One of these supply chain and fulfillment service providers is Rhiem, a company that defines trust, fairness and stability as the basis for successful business relationships.

Over time, the former print shop took on additional services, such as warehousing for customers in the early 1990s and offering the production of plastic packaging. Today, Rhiem supports its customers in areas such as warehousing and shipping, returns processing, the implementation of IT solutions and the procurement of shopfitting equipment.

Willingness to adapt to customer needs

“When it comes to supply chain management, big is not the same as great,” says Dr. Thorsten Voigt, Director of Development and Sales at Rhiem, referring to the comparatively manageable size of the owner-managed company. According to Voigt, flexibility, speed and the willingness to adapt to customer needs are much more important in the industry than size.

With a global “alliance” of medium-sized service providers, Rhiem is able to shorten delivery routes, for example, and offer products on the market more quickly.

(Source: www.handelsblatt.com)