Monaf found that under the sophisticated warehousing system and diversified consumer demand, there are two major pain points in the supply chain transformation of the logistics industry.

First, regardless of the different levels of warehouse category design, stacking, storage, and the intelligent deployment of a warehouse operation network, it is often difficult for companies to accurately predict demand as the trunk planning of each link becomes more complicated. The difficulty of controlling the circulation channel warehouse has increased. In practice, facing the above-mentioned pain points, Monaf found that some industry-leading companies are gradually using data as the starting point to improve algorithms and customize production to complete a supply chain.Take FamilyMart convenience store as an example. As a benchmarking company in the retail industry, FamilyMart obtains local consumer insights by integrating POS data and membership card data; by sharing data with manufacturing and distributors, optimizing inventory management, making inventory turnover days only Half of other competitors. In addition, consumer analysis also provides a rigorous basis for how the new store determines product mix, optimizes shelf arrangements, and selects products, which greatly improves the accuracy of demand forecasting.Second, the separate logistics system has caused a significant increase in inventory costs and storage costs. Previous research conducted by Monaf showed that for companies that account for more than 20% of online sales, the additional costs brought by the discrete logistics system accounted for more than 5% of the total logistics costs, which greatly increased the burden on the company. Rising costs have made more and more companies realize the importance of the integration of online and offline warehousing and distribution. However, many brands still struggle to break through the bottleneck. For example, about 30% of Nike's products have been sold online. However, the brand is responsible for the logistics of products sold on the 2C end of JD.com and Tmall, while the 2B end is outsourced to logistics companies.

In this regard, Monaf suggested that one of the important ways to reduce costs in the future is to consolidate inventory and operations. We have found that integrating online and offline inventory will generally bring about a 20%-40% reduction in inventory under the same sales volume.