Supply chain disruption has become a constant reality for retailers. From geopolitical tensions and shifting trade conditions to demand volatility and supplier fragmentation across Asia, the operating environment has become significantly more complex and unpredictable. The steady flow of goods to store shelves or through to eCommerce fulfilment is no longer guaranteed, placing pressure on retailers to maintain availability while managing risk.
This shift is forcing a fundamental rethink of traditional retail supply chains. To continue meeting customer expectations, retailers are shifting towards more adaptive, more resilient data-driven operations that can respond reliably and dynamically to change as it happens.
To explore the implications for retailers, Retail News Asia spoke with Steve Cheung, President, Dematic Asia, China and MEAabout how retail supply chains need to evolve across Asia to address ongoing supply disruptions.
- How much does supply chain performance now shape the overall retail customer experience, especially for online shoppers?
Supply chain performance is intrinsically tied to the customer experience today, particularly in eCommerce. Customers no longer separate the front-end brand from the back-end operations. What matters is whether the product is available, is low cost, delivered on time and arrives as promised.
If a product shows as in stock but can’t be fulfilled, or delivery is delayed, that becomes the customer’s experience of the brand. Even what might seem like a small delay can have a bigger impact. It doesn’t just affect that one order but influences how customers see the brand and whether they come back.
As online retail continues to grow, customer expectations are increasingly shaped by leading marketplaces, with speed, accuracy and reliability now expected as standard. So supply chain performance is no longer just an operational metric. It now directly affects conversion, repeat purchases and long‑term brand loyalty.
- What are the risks to retailers when product availability becomes inconsistent due to disruption, particularly in eCommerce?
In eCommerce, customers don’t have the ability to see or experience the product physically, so they rely entirely on the service. That makes them much more sensitive to availability, delivery and overall fulfilment performance across the fulfilment network.
When availability becomes inconsistent, the impact is immediate. If a product is out of stock or delivery timelines aren’t clear, customers can easily switch to another retailer. Over time, the bigger risk is loss of trust. If customers feel a retailer can’t reliably meet their expectations, they are less likely to return.
There are also operational impacts. Retailers often respond by expediting shipments or holding extra safety stock, which increases costs and reduces efficiency. Without the right fulfilment strategy and operational visibility, what starts as a supply issue can quickly affect both margins and long-term customer relationships.
- Many retailers are still reacting to supply chain disruptions as they arise. How can a more agile, data-driven supply chain benefit retailers?
A reactive approach makes it very difficult to stay ahead of disruption. By the time the issue is visible, it’s often already impacting operations or the customer experience.
A more agile, data-driven approach allows retailers to respond earlier and with more confidence. With accurate, real-time and historical data, they can identify patterns, adjust inventory and make faster decisions, whether that’s reallocating stock optimising inventory positioning, or adapting fulfilment strategies.
But the key starting point is data accuracy. If the data isn’t right, even the best systems or automation won’t deliver the right outcomes. Retailers that get the data right are in a much stronger position to improve responsiveness, maintain availability and manage disruption more effectively.
- Where do automation and real-time visibility make the biggest difference for retailers facing supply disruption?
Automation and real-time visibility make the biggest difference when retailers need to maintain consistency or adapt to change under pressure. When demand changes or supply becomes uncertain, manual processes are difficult to scale and often introduce variability.
Automation helps deliver consistent throughput, accuracy and performance, regardless of labour availability or demand spikes. It reduces reliance on manual intervention and supports more predictable operations, especially in high-volume and fast‑moving fulfilment environments.
At the same time, real-time visibility gives a clear view of inventory, order status and operational performance across the network. That allows retailers to make faster, better-informed decisions, whether that’s reallocating stock or adjusting order and fulfilment priorities. Together, they give retailers much greater control when conditions are less stable.
- For retailers looking to make their supply chains more resilient, where should they prioritise investment – automation, systems, or process change?
In reality, it’s not about choosing one over the other, as all three need to work together as part of a well‑designed fulfilment operation. Process is the starting point. Retailers need to understand how inventory flows, where the bottlenecks are and how decisions are being made. Without that, it’s very difficult to get the full value from systems or automation.
There’s also no one-size-fits-all approach, particularly in retail where demand patterns and fulfilment models vary significantly. Retailers need to consider what’s right for their operation, their timelines and how their demand profile may evolve over time. From there, systems provide the visibility and intelligence needed for better decision-making, and automation improves consistency, throughput and accuracy. The key is taking a longer-term view rather than focusing only on short-term fixes.
- Retailers are trying to avoid both stockouts and excess inventory. How can they strike the right balance today?
This has become much more complex as demand patterns continue to shift and fulfilment networks become more dynamic. Holding too little stock risks lost sales, while holding too much ties up capital and increases the risk of markdowns.
The key is improving both forecasting accuracy and operational responsiveness. Retailers need better visibility into what is selling, where inventory sits across the operation and how quickly it can be replenished. This is where data, analytics and increasingly AI are playing a bigger role.
Buying patterns are also changing more quickly, which makes traditional forecasting models more challenging. So rather than relying on excess inventory as a buffer, retailers are focusing more on positioning stock intelligently and moving it efficiently. That helps maintain availability while protecting margins.
- How should retailers be thinking about future-proofing their operations in an increasingly unpredictable environment?
Future-proofing isn’t really about predicting what will happen next, but about building the capability to respond when it does.
Retailers need to design supply chains that are flexible, scalable and able to adapt as demand patterns and operating conditions change. A modular, scalable approach is key here. Instead of making fixed, short-term investments, they need solutions that can be expanded or adjusted over time as their operations evolve.
It’s also important to work with experienced partners who understand how to design fulfilment operations for these conditions. Supply chains today are not static; they require systems that can evolve alongside the business. The retailers that take a longer-term, design-led approach are much better positioned to stay competitive and navigate disruption in what is a very fast-moving and unpredictable environment.
For more information please visit: https://www.dematic.com/
