The so-called “retail apocalypse” is completely overblown, but it does indicate that the retail industry is undergoing a transformation, driven by changes in the way consumers shop across all touchpoints. While it's true that e-commerce has certain advantages over traditional brick-and-mortar, physical stores have their own benefits, which aren't as easily replicated by the likes of Amazon.com. The two key assets of the traditional retailer are people and locations.
The trouble is, many retailers don't leverage these assets to maximize full potential, making it increasingly difficult to differentiate and compete. Those retailers that can figure out how to differentiate themselves in the crowded retail landscape are the ones striving and staying ahead of today’s e-commerce behemoths.
Today’s customers want the flexibility to choose the way in which products are delivered. Sometimes cost is the driver, other times it may be speed or convenience. Nonetheless, the end goal is to keep customers happy while driving down costs. The key to breaking through the retail noise: unlocking the potential that every retailer has in its people and locations.
1. Ensure 360-degree visibility into the supply chain
Today’s consumers shop their own way, at their own time. As such, retailers need the flexibility and real-time visibility to serve consumers, 24/7. One such way is full visibility into products, leveraging locations and inventory as warehouses and reducing out-of-stock items by fulfilling them from all locations. This sets the correct expectations with customers, while optimizing shipping costs, delivery speed, labor costs and even the number of boxes shipped.
2. Choose the right fulfillment option
For most retailers, there are now multiple fulfillment options, including distribution centers, stores and drop-shipping directly from vendors. Retailers must understand which fulfillment options meet the needs of both the buyer and the seller, in both B-to-C and B-to-B scenarios. Not to mention, choosing the right option is critical for companies that want to keep their costs down while still meeting ever-evolving customer expectations.
3. Always think customer service first
The supply chain isn't perfect, but success lies in anticipating potential problems and keeping customers informed along every step of the fulfillment process. This includes handling customer calls, flagging issues for intervention, and managing orders from beginning to end.
4. Perfect in-store execution to lower costs
For retailers, leveraging store locations as warehouses helps reduce costs and increase customer service. Customers can buy online and then either pick up in-store or have it shipped from the store. By deploying functionality in the cloud, companies can get up and running quickly without having to worry about scaling for peak, upgrading software or managing backups.
In the simplest, and perhaps most cliché, terms, the customer is always right. Every decision, be it in adopting certain technologies, hiring certain employees or choosing a store location, should revolve around the wants and needs of the customer. If this goal stays top of mind, the impending “retail apocalypse” will barely seem like a bump in the road.
The article is authored by Ashish Dass, Vice President and Managing Director, South Asian Subcontinent, Infor.