We’ve taken a stand that as consumers become more difficult to satisfy, the supply chain really is “the next big thing ” for retail. It’s only logical, then, that the best performers would already have a different set of internal obstacles in their plans to modernize their supply chain than their peers.

Consider this: the figure below is from our most recent supply chain research, and highlights just how differently these two groups view a landscape that is seemingly identical from an outside point of view.

Winners break from their competitors in a number of ways. Their most frequently cited internal challenge – getting their supply chain, merchandising and marketing teams to work in harmony – is also everyone else’s. But the reasons this is an obstacle for them are different. Average and lagging retailers are far more likely to report that the marketing department’s increasing influence is driving unintended supply chain consequences. This is a sticking point we’ve discovered in several recent reports.

And lack of investment in new selling and product information channels is coming back to haunt average and lagging retailers. Twice as many cite the emergence of new channels popping up too quickly for their inability to either assess their overall impact or support them.

As is typical, Winners are looking at the metrics they currently use to assess supply chain efficacy. Nearly twice as many over-performing retailers report that the way they are measuring their supply chain today is based on antiquated metrics. These retailers understand that the days when cost efficiency was enough have passed.

The new consumer demands flexibility, as well. She doesn’t care how a retailer manages its problems. She just cares that it can meet her needs. Quite simply, she will reward those who do with repeat business – she will shun those who can’t. The best performing retailers are actively seeking new ways to fulfill these needs, even if it adds a degree of complexity and/or expense in the meantime, at least until these processes can be one day systematized and made more efficient. No one has ever cost-cut their way to success, and Winners know thatthe ground work they are laying today to meet customer demands in new ways will play a vital role in determining their ability to play on in the future. We invite you to read the full report here.