World Cup 2014 - Demands on The Supply Chain

For the next month the eyes of 32 competing nations will be either glued to their television screens or hastily seeking out other entertainment to avoid World Cup fever.

It is the global power of soccer–the “beautiful game”–to excite, frustrate, divide, and enthrall.

For fans, preparation is required: match dates must be added to the calendar, time zone differences need to be understood, plans have to be made with friends for get-togethers on match days.

Planning to Meet Demand
For manufacturers, retailers, and suppliers, preparation will have been considerably longer in the making. Businesses promoting the latest widescreen TVs tempt watching fans to splurge. Retailers of the snacks and beverages popular for consumption during televised matches expect an upsurge in sales. To ensure stores are sufficiently stocked–that goods are available in the right places at the right time and in the right quantity–involves some serious supply chain coordination.

As with seasonal goods, suppliers and retailers have had to precisely manage forecasting and inventory to ensure they meet demand smoothly and profitably. They have needed to accurately predict the product lines that will see an increase in popularity–and by what degree–to ensure that all the way from manufacturing to supply, the right goods are in stores when people want to buy them. Not too early, as retailers don’t want to incur expensive over-long storage, and certainly not too late.

Agility to Meet Variability
If demand exceeds forecast, retailers and suppliers need to be agile and adaptable to revise their strategy. They must have exceptional measurement and monitoring so that they know how far along products and components are in the supply chain and how quickly alterations can be made to increase production, or divert deliveries.

Then, of course, there is the unforeseen demand. What if people get behind an unexpected success story, like that of Cameroon in 1990 when the African nation reached the quarter finals, winning fans along the way? How do retailers and suppliers meet variability in demand if a certain player becomes the man of the moment and everyone wants to wear the brand he wears–his shirt, his watch, his cap?

With a global event there will be drama, stories, and new trends that start unexpectedly, burn brightly then perhaps fade away. Successful retailers and suppliers can handle the upturn in particular product lines this unpredictability can cause. Not only by maintaining inventory, but also by scaling up to meet demand and capitalize on the sudden opportunity.

Businesses want customers clamoring for their products, but don’t want to be remembered in connection with a global event as being the brand that failed to deliver, with the negative impact that can have on both finances and reputation.

Collaborating for Success
By operating their supply chain community as a network, retailers can collaborate across the length and breadth of the supply chain. Suppliers and retailers have the visibility and access to the management information they need to be responsive to demand. The level of marketing spend businesses allocate to profit from the huge commercial opportunity of global sporting events can be supported by efficient, adaptable supply and delivery.

Traditional supply chain management tools and processes can fall short in delivering the level of flexibility required. To be fully responsive to expected, and unexpected, demand companies that connect their entire trading partner community through a collaborative cloud-based supply chain management network are best placed for success.

More SC24/7 2014 World Cup coverage:

• World Cup 2014 - Demands on The Supply Chain
• Technology Scores a Goal but Humans Still Control the Game
• The Amazing Supply Chain of the 2014 World Cup Soccer Ball
• Supply Chain Planning: What Can Businesses Learn From the 2014 World Cup?