Supply chain refers to involvement of various individual and organizations that assist in effectively accomplish the process of production of goods and delivery products. Supply chain 5.0 is related to the use of modern technology and artificial intelligence in effectively carrying out this process. It is mandatory for the firm to keep in face with changing environment that assist in effectively fulfilling demand and supply within firm. Supply chain 5.0 also focuses towards using environment protection and human centric approach while completing this process. This report will discuss on various challenges that retail industry in UK is facing in relation to implementing supply chain5.0 within its operations effectively. It will also discuss various strategies and policies that company should implement to overcome all obstacles and achieve its objectives. This report will also provide information regarding skills that are required for creating a sustainable and strong supply chain within retail industry.
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Main Body
Challenges faced by retail industry implementing supply chain 5.0
Supply chains 5.0 focus towards effectively converting raw material into finished product by coordinating action of human being with artificial intelligence. Most of the retail companies are not using this method for supply chain. The rationales behind this, firms are facing various challenges in effectively using this strategy. Some of challenges that company face in effective implementation are as follows:
Expensive method: Supply chains 5.0 are related to using technology and sustainable measure to fulfil the process. This involves company to incur towards acquiring latest technology which can effectively convert raw materials and provide high quality goods to customers. Overall portability and financial position of company has been impacted by incurring expenditures towards gaining such technology (Challenges faced during implement supply chain, 2023). This supply chain also include focuses towards sustainable approach which requires company to indulge in activities that aim at protecting rights of human being and eliminate environmental impact. Using sustainable method requires company to indulge cost towards research & development results into improving overall costing of the organization (Ageron, Bentahar and Gunasekaran, 2020). In retail industry, products are provided with minimum profit margin as it works perfectly in competitive market. This creates challenge for company as it cannot incur huge cost towards this technology which results into increasing cost of the operations. As cost of operations increases prices of particular goods will rise which result into making product expensive for consumer.
Challenges in identify and retaining highly qualified human resources: Human resources is the crucial element that company needs to hire for effectively implementing new and integrated supply chain. Company face challenges in attracting and retaining highly qualified employees that can operate such technology. This requires company to incur cost towards identify, recruit and retain employees that result into increase in the cost of operation for the firm (Ali et al, 2019). As the supply chain 5.0 is emerging so there is less number of employees within the industry who can efficiently work with latest technology. This creates challenges for company to hire such human resources within the budget that assist in not creating negative impact on financial position. There is constant development in technologies and devices which require company to conduct training & development session which will help in enhancing skill of the employee’s results in increasing expenses of company. Retail industry in UK is facing issue in retaining highly qualified employees due to economic condition prevailing in country. Increases in inflation and cost of living result into reduction in the firm’s motivation for providing financial incentives (Attaran, 2020). This results into increases in turnover rate of company leading to colliding overall functioning of the firm.
Aligning organizational and environmentalgoals: As company is targeting towards using supply chain 5.0 It requires company to align company’s goals with environment goals. Company is targeting towards establishing goals that helps in improving overall profitability and reduces the cost for company. It creates challenges for company to set goals that protect environment and society and fulfil organizational objectives (Bag et al, 2021). Focusing on such goals requires firm to invest time resulting in deviating from core objectives. Implementing this supply chain will result into reducing the number of manual workers in the process leading in increasing unemployment within country. Retail industry in UK has been record a decline of 60000 employees as compared to previous year because of continuous use of technology and focus towards introducing automation. This creates negative impact on society resulting in reducing consumer confidences. Company faces challenges in managing organizational efficiency with focuses towards fulfilling the needs and preferences of all external factors.
Difficulty in creating collaboration between machines and human beings: Supply Chain 5.0 was introduces as previous supply chain was only concentrating towards one aspect i.e. either machines or human beings. This supply chain management is paying emphasis towards collaborating and balancing both resources at a time for obtaining effective results (Bak, Jordan and Midgley, 2019). It is challenging for firm to decide on measures and identify human resources that can effectively work with technology. It is very difficult for company to determine humans that are not fragile and can easily handle particle technology. Company need to identifying measures and strategies by which human creativity and technology efficiency could be adequately mixed so that optimum results could be gained from that. Tesco has introduces various machinery in its operations that results streamlining the purchasing process within firm. This results into creating difficulty in colluding human resources with technology.
Resistance by employees: Retail industry focusing on bringing supply chain 5.0 in their organization but the resistance created by employs creates challenges in effective implementation. This has been arise as introducing and depending more towards technology will results in termination of employees within organization which result in resistance by worker to adapt to changing environment (Bressanelli, Perona and Saccani, 2019). If company initiated new devices within its operation than employees needs to focus towards developing skills and competence which are also creates issue for employees. This resistance to changes creates challenges for manager to motivate employees towards adapting changing environment and work according to it. Retail industry is working in highly competitive market which forces company to focus towards maintain the employees and customer engagement as turnover rate is high in this industry (Elluru et al, 2019). This creates pressures for company to work according to needs and preferences of employees and they cannot forces employees to adapt to changing environment.
Data security: Retail industry is facing huge challenges in effectively managing the data and confidentiality of data. This approach is related to using automation in collecting and storing information which creates concern related to security of data.
Strategies and measures for effectively implementing supply chain 5.0
It has been determine form above classification that supply chain 5.0 is aiming at using automation and human effort together for improving efficiency of organization. This approach has been arises after identifying the consequences of full automation. Under supply chain 4.0 focuses has been paid towards using total automation that ignore creativity and innovation within operation (Frederico et al, 2019). There were various challenges that company face while shifting to new and integrated supply chain. Firm should focus towards using various strategies which will assist in effectively implementing supply chin 5.0 within retail industry:
Conducting effective training and development sessions: It is challenging for company to determining employees that can effectively use this technology and developed collaboration between them. For promoting collaboration and improving skills and competencies of employees, firm should focus on conducting training & development session that assists in enhancing skills of employees (Garay-Rondero et al, 2020). This includes providing information regarding the benefits of technology in operations and develops skills which help in effectively operating new devices. As retail industry is in direct contact with customer, supply chains 5.0 will help in producing goods at time and help in maintaining adequate relation with them. Training session will helpful in improving efficiency of machinery and employees by clearly defining measures to use technology. There are large number of competitors in retail industry which creates challenges for employees to maintain their skills and competences according to the requirement of market. This leads to rise in demand for providing training and maintaining competitive edge within industry.
Involving employees in Supply chain 5.0: It has been identified that company is facing huge challenges in managing and controlling resistance of workers that results in ineffective implementation of supply chain process (Ghadge et al, 2020). To reduce the resistance level, employees should be involved in the process of supply chain as it helps in creating awareness among workers regarding usefulness of this technology. Employees engagement will also helps in improving their satisfaction leading to improving overall functioning of company. Involving employees within operation of firm will make them feel valued results in reducing turnover rate within firm.
Investment towards Research and development sessions: It has been identified that company faces issue in effectively implementing this supply chain due to high cost requirement for this process. Company need to focus towards developing measures and strategies that assists in reducing the impact of supply chain on overall budget of firm (Ghadimi, Wang and Lim, 2019). To reduce the impact firm needs to lay more focus on investing in Research & development session which helps in evaluating current situation and helps in determining the best solution. Conducting continuous R&D will also help in determining changes that are occurring in retail industry which further helps in gaining competitive edge.
Conducting motivational sessions: These sessions are linked with providing information regarding the importance of these changes which assist in creating growth opportunity for individual. Employees within firm will be educated regarding the importance of using such technology and how this will help in their overall development (Ghode et al, 2020). Conducting this session will help in improving motivation of employees which further results into reduction the rate of employee’s turnover.
Focusing towards betterment of society: Company’s goals & objectives should be determined after making evaluation of the needs & preferences of both society and environment. This has been identified that automation is resulting in increase in use of devices leading to decreasing employment rate. Implementation of this process should focus towards using equitable number of devices and human resources that assist in creating positive image among consumer (Grosse et al, 2023). Awareness should be created among consumer and employees regarding such measures so that employee’s dissatisfaction form polices also reduces and company can effectively implement this supply change management.
Establishing employee’s retention strategies: It has been determined that company faces challenges in retaining highly skilled employees within its organization (Employee’s retention strategies, 2023). To increase the retention rate focus should be paid towards providing various financial & non-financial incentives that assist in improving satisfaction level of individual and results into reduction in employee’s turnover rate. Career development session could be conducted that helps in developing their competencies leading to increases in motivation level of the employees.
Evaluating business environment: It is becoming difficult for company to take action which can help in compiling firm’s objective with society. This requires company to evaluate internal and external business environment before forming any polices. It will help retail Company in establishing strategies that assists in mitigate the impact of factors on operation of company (Hastig and Sodhi, 2020). As company is targeting towards creating human centric supply chain this will help in identifying the needs & preference of individual that assists in developing trends and pattern in market. After evaluating business environment, organization will form strategies by taking into account the company’s objective and society’s welfare. This will also support in overcoming the resistance of external environment in successful establishing new supply chain.
Various Skills and competences requires for creating human centric, Resilient and sustainable supply chain
Human centric supply chain refers to designing and adopting supply chain that is focusing towards the needs, belief and preference of individual working in company. Sustainable supply chain aims at carrying out operation of film with focus on less impact on environment and society. This is related to identifying measure by which retail industry could reduce its wastage and aim at optimum utilization of resources (Ilham et al, 2019). There are various disruptions that occur within an effective supply chain. Resilient supply chain focuses towards developing various measures and strategies that helps in reducing such obstacle results in optimum resources utilization. There are various skill and competence that an employee’s and manger need to develop for effectively carrying out this process. Some of the crucial skills are as follows:
Communication skills: It is very crucial skills that an individual needs to develop for efficiently creating supply chain. The process of supply chain includes continuous communication with various organizations and individual (Importance of communication in supply chain, 2023). This requires manager to focus towards communication skill which helps in effective conflict resolution, negotiation and stakeholder management (Jamil et al, 2019). For developing human centric and sustainable supply chain, manager need to transmit appropriate strategies to other so that one could be clear regarding their goals and supply chain could be formed accordingly.
Problem solving: Manager involved in developing a sustainable and human centric supply chain need to focus towards gaining problem solving skills. There is complex process involve in carrying out process of supply chain. An individual should be capable of developing various measures and find alternative for overcoming particular skills. Resilient supply chain concentrates on developing measures by which measuring all destruction coming in the path of success could be resolved (Kurpjuweit et al, 2021). This requires manager to develop skills that assist in determining most appropriate solution for every situation and aim at effectively implementing supply chain in organisation. The level of problem solving ranges from basic to advanced skill that involves managing risk and data analysis.
Leadership skills: It has been identified that for adequately carrying out set objectives, manager should have effective leadership skill. For creating sustainable supply chain, manager needs to formulate strategies and polices that facilitates goals accomplishment. This also involves providing employees with various motivation sessions according to individual’s needs and preferences that help in appropriate implementation of policies (Maddikunta et al, 2022). While implementing supply chain 5.0, employees needs to adapt to changing environment and learn new skills for ensuring effectual use of new technology. Gaining and developing this skill will result into motivating and influencing employees to adjust according to changes and help in effective change management.
Research skills: For creating human centric, resilient and sustainable supply chain, manager requires skills of researching. This mainly includes continuous research for new trend & pattern in market and formulate polices by which this could be achieved (Tarigan et al, 2021). For creating human centric supply chain, manager should research on process that helps in optimum utilization of human resources and effective carrying out supply chain process. Sustainable supply chain focuses on determining new and innovative ideas by which impact on surrounding could be reduced. For achieving the same, an individual should conduct research activities that aim at determining new measures by which organization’s operation will be carry out without impacting society and environment.
Controlling: This skill aims at effective planning, directing, managing, monitoring and analysis of supply chain. Manager should focus towards developing these skills that is related to measuring and evaluating performance of team according to set objective. In retail industry, various consumer goods are produced which requires checking and evaluating on the basis of quality. Controlling skill will help individual in evaluating and comparing actual performance with standards being set (Tordecilla et al, 2021). While creating resilience suitable supply chain, company will focuses towards identifying the effectiveness of strategies that has been formed for overcoming various obstacles. Human centric chain will be developed by this process as it involve observing behaviour of employees and form polices that are according to their belief, thought and values.
Time management skills: This skill is related to decide on appropriate time of production and delivery of goods to consumer. This skill is requires in effective supply chain as it helps in determine appropriate time frame in which an product should be products and do not involve late deliver. This helps in reducing the scope of waste and helps in developing sustainable supply chain. Time management help in determine the appropriated time when the research need to be conducted and helps in determining potential obstacles that can occur in the path of successful supply chain. Time management skill began with basic time management and also involves various other tasks such as resources allocation, prioritization and management of various projects.
Data analysis and prediction: As company is Targeting towards developing integrated supply chain, manager should have skills that assist in effective evaluating the historical data. For developing sustainable and resilient supply Chain Company need to focus on the financial position of firm before taking any decision. In retail industry, the profit marking in products are very low which make it necessary for company to determine the market demand before taking any decision (Villar, Paladini and Buckley, 2023). Data analysis skills will help in evaluating financial statement of firm and helps in determine its potential in incurring huge investment towards such technology. Prediction should be carry out related to the benefits which Retail Company will gain from implementing new strategies and comparison should be done to identify its effectiveness.
Conclusion
It has been concluded form report that supply chain 5.0 is focusing towards using technology and human skills for effectively carrying out process. Fully automated supply chin lack the benefit of innovation and creativity leading to emergence of new and integrated supply chain. Retail industry is facing various challenges while implementing this supply chain 5.0 that restrict company in taking innovating measures. It has been identified that company needs to incur high cost towards acquiring technology leading to negatively impacting financial position of retail company. Retaining and hiring employees, resistance by staff and difficulty in consorting company goal with environment goals are various other challenges that are impacting effectual execution of supply chain. It has been identified that to overcome such issue company need to concentrate on developing training and development session, incurring towards R& D department and conducting motivational session. This has been identified that communication, controlling, leadership, Research and problem solving skills are various competences that an individual develop to create resilient, sustainable and human centric supply chain.
References
Books and Journals
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Maddikunta, P.K.R., Pham, Q.V., Prabadevi, B., Deepa, N., Dev, K., Gadekallu, T.R., Ruby, R. and Liyanage, M., 2022. Industry 5.0: A survey on enabling technologies and potential applications. Journal of Industrial Information Integration, 26, p.100257.
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Tordecilla, R.D., Juan, A.A., Montoya-Torres, J.R., Quintero-Araujo, C.L. and Panadero, J., 2021. Simulation-optimization methods for designing and assessing resilient supply chain networks under uncertainty scenarios: A review. Simulation modelling practice and theory, 106, p.102166.
Villar, A., Paladini, S. and Buckley, O., 2023, July. Towards Supply Chain 5.0: Redesigning Supply Chains as Resilient, Sustainable, and Human-Centric Systems in a Post-pandemic World. In Operations Research Forum (Vol. 4, No. 3, p. 60). Cham: Springer International Publishing.
Online
Challenges faced during implement supply chain. 2023. Online Available through: < https://www.extensiv.com/blog/supply-chain-management/challenges>
Employee’s retention strategies. 2023. Online Available through: < https://www.forbes.com/advisor/business/employee-retention-strategies/>
Importance of communication in supply chain. 2023. Online. Available through: < https://www.linkedin.com/pulse/how-important-communication-successful-supply-chain-mackenzie-white-6xsbc#:~:text=Communication%20is%20a%20critical%20factor,%2C%20Customer%20Satisfaction%2C%20and%20Efficiency. 
