Kinaxis: Supply Chain Resilience During Sports Tournaments

With the European Championships in Germany this summer, alongside the Copa América in the US, supply chains must be prepared for sudden shifts in the market to ensure they stay resilient throughout every late winner, each VAR check and those dreaded penalty shootouts.

For Fergus van Niekerk, Vice President of Global System Integrators at global supply chain platform Kinaxis, that has been his focus this summer.

As a global leader in modern supply chain orchestration, Kinaxis’ software helps brands by providing them with the agility and predictability needed to navigate today’s economic, environmental and geopolitical disruptions. By combining its patented concurrency technique with a human-centred approach to AI, Kinaxis empowers businesses of all sizes to manage their end-to-end supply chain network, from multi-year strategic planning through to down-to-the-second execution and last-mile delivery.

Fergus spoke to Procurement Magazine about building resilience for their clients during these sporting tournaments.

How can manufacturers and retailers resiliently prepare for supply chain disruptions during sports tournaments?

Investing in supply chain resilience is essential for maintaining customer satisfaction and avoiding shortages during sports tournaments. One of the most important ways to mitigate disruptions is through additional capacity in the supplier, manufacturing and distribution network.

This can be achieved by a number of mechanisms, including carrying inventory above expected demands, which is especially important for items like sports shirts of smaller teams who go on to have an unexpectedly good run in a tournament – like Austria at this year’s Euros.

How are the most successful brands maintaining their supply chain resilience- what separates them from the rest?

Successful brands are those investing in advanced tools for real-time decision-making and scenario planning. These allow them to run "What If?" situations to plan for the future and pivot quickly when disruptions occur.

'Disruptions' doesn’t always imply negative events; they can be unexpected opportunities, like a celebrity endorsement or a sports Cinderella story.  

For example, when Travis Kelce's No. 87 jersey saw a 400% spike in sales after Taylor Swift appeared at a Chiefs game, it showcased the need for supply chain agility.

With Swift touring in Europe over the next month, imagine the surge in demand if she walked out on stage wearing a Netherlands jersey.

Similarly, if Austria did go on and make it all the way to the Euros final, it could create a fan frenzy, turbocharging jersey sales and creating a significant cause célèbre worldwide. Apparel manufacturers and retailers would be scrambling to produce and secure merchandise as quickly as possible, likely at a high cost.

What is the best approach for supply chain orchestration?

The best approach is to adopt a holistic approach to supply chain orchestration. Not only does this prevent similar issues but it also prioritises transparency and agility across all stages. 

Are brand’s supply chains better prepared when a sporting event comes round, or is it difficult to gauge where the demand will be?
Proper forecasting is absolutely key ahead of big events like major sporting tournaments, so brands will generally be prepared to match demand around events that are marked out in the calendar well in advance. That being said, its crucial to be agile to ensure that unexpected disruptions, good or bad, don’t impact the bottom line. 

How can brands quickly pivot to meet demand? 

The best way a supply chain can pivot to meet unexpected demand is by ensuring preparedness for a range of possibilities! This preparedness can take a variety of forms across different industries, but businesses will be best served by building resilience and creating additional capacity across the supply chain in order to mitigate the impact of any pivot forced by unexpected demand.

What technology is being introduced to make issues like this disappear?

AI and ML-powered technology can significantly enhance demand forecasting and simulation scenario planning, allowing issues like this to disappear. For instance, by analysing historical data and leveraging real-time analytics, retailers can anticipate a surge in demand and adjust their production and distribution strategies accordingly. This proactive approach ensures that when surprises happen, companies are ready to meet the demand head-on.

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