The final quarterly report of the 2020 fiscal year highlights the importance of the digital transformation of retail sourcing.
SAN DIEGO, December 9, 2020 (Newswire.com) – CBX Software, the world’s leading supply chain management software provider from concept to delivery, has released its official Q4 2020 Retail Sourcing Report Forecast. While global trade suffered as a result of the COVID-19 pandemic, the report notes how metrics from Q4 and projections for 2021 suggest that we are on the road to recovery. It proceeds to detail how global manufacturing rebounded through Q3 and Q4, with output figures, exports, and new orders having spiked to some of the highest levels recorded since 2018. While the futures of individual economies will vary on a country-to-country basis, there is one constant trend that is likely to remain prevalent on a global scale – retailers continuing to invest in digital capabilities to enhance production.
“These statistics demonstrate why it is more critical now than ever before for retailers to invest in digital capabilities,” said Mark Hudson, Global Vice President at CBX Software.
“We have found a direct correlation between the retailers that managed to succeed through the pandemic and their willingness to prove themselves as adaptable, customer service-oriented businesses that are not afraid to innovate in areas such as PLM software, product development, logistics, marketing, and inventory management.”
According to the report, physical-distancing and stay-at-home orders have accelerated the progression of the e-commerce industry, with e-commerce accounting for over 16.1% of total global retail sales in 2020, up from 7.4% in 2015. By 2023, online retail should comprise 22% of total retail.
Per e-Marketer, nearly half of consumers shifted their spending across online verticals such as apparel and electronics, and categories such as health, fitness, groceries, and DIY did especially well as people spent more time at home. Online orders in most of these categories grew by two or three times year-on-year, with some retailers seeing increases of more than 20 times.
Some of the report’s other positive metrics included oil and commodity prices continuing their strong recovery trend into Q4; this is projected to continue assuming pandemic recovery. Additionally, both the Euro and the Chinese Yuan appreciated against the USD. However, the USD remained a strong safe-haven currency through this period of uncertainty.
While there are many indicators pointing to recovery, the report recommends approaching 2021 with more wariness than confidence given the unknowns of the pandemic, the US political climate, and widespread economic volatility.
With the exception of China and Vietnam, Asian economies are still struggling with lockdowns and unemployment even with the rising consumer demand in Europe and North America. Shipping carrier rates have climbed higher into Q4 on tight capacity, even as service and reliability (on-time deliveries) plummeted. Similar narratives are causes for concern heading into the new year, and should be monitored closely by both businesses and consumers in 2021.
During the pandemic, many successful retailers have adjusted their entire system of operations to meet the needs of consumers, as the demand to be faster and more efficient has never been higher. Retail supply chain management software has allowed companies to thrive and continue to innovate and grow through these trying times. Those who are unwilling to adapt and update their current processes will be left behind by the fast-moving competition.
To learn how CBX Software can help your retail business thrive and achieve continuous innovation during the ongoing health crisis, please visit: https://www.cbxsoftware.com.
About CBX Software
CBX Software is the world’s leading Supply Chain Management software provider from concept to delivery – combining people, processes and solutions. CBX helps retailers and brands streamline product development and sourcing all the way through order, production and delivery. Through innovative Sourcing Management, Product Life-cycle Management (PLM Software), and supplier management software technology solutions, CBX empowers the supply chain network by driving collaboration to over 15,000 retail & supplier partners, and 30,000 users in more than 50 countries. For more information, visit www.cbxsoftware.com.
Global Vice President, Marketing
Source: CBX Software