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Success in q-commerce requires the highest level of supply chain agility.
Quick-commerce, promising grocery delivery in 10 minutes, is getting popular in several cities where it has been launched. Is it likely to succeed? Will it be a profitable model in future?
The answer to these rather intriguing questions lies in the way their supply chains have been designed. If the focus is on cost containment, the ventures will find it hard to sustain. These networks should be optimized on agility to gain consumer traction.
Supply chain agility in this case needs a demand prediction model which runs at high granularity and high frequency. Certain ML based models can decipher demand patterns at the most granular level, which can facilitate near term demand prediction more accurately.
The agile demand sensing should also be used to set dynamic inventory buffers at various nodes and a TOC-based replenishment model should facilitate flow across various nodes.
Companies which use AI/ML based demand prediction models, coupled with a TOC-based replenishment system have the best chance to succeed. Flawless execution, of course, must follow the right design.