Few industries could have predicted the massive shifts that the COVID-19 pandemic would have on the supply chain process, which continues to be one of the biggest concerns on inventory management today. In retrospect, the COVID-19 pandemic has uncovered many of the long-standing vulnerabilities and risks that have existed within brands’ supply chains.
For some brands, the pandemic has forced a hard look at their processes. In others, it has opened new opportunities for innovation, growth and competitive advantage.
3 Challenges Facing Beauty
The beauty industry faces a trio of key supply chain challenges: consumer behavior shifts, SKU proliferation and shipping complications.
1. Consumer-driven Changes
Because the pandemic is still unfolding, its long-term effects are not yet fully known. What is known is the continued shift of the consumer, further accelerating the evolution of what they value, how they buy, and how brands need to shift to earn their business and loyalty.
Manufacturers in the beauty industry have been a crucial link for years in a long supply chain—a midpoint where raw materials are transformed into finished products for resale directly to the consumer, distributors, wholesalers and retailers. This featured a linear and predictable process through many years of standard operating procedure improvements.