Skip to content
Search AI Powered

Latest Stories

How Increased Visibility Improves the Retail Supply Chain

There’s no denying that we live in an increasingly digital world. Everything we want or need can be obtained with just a click of a button or swipe of the finger. But as technology advances, consumers gain more and more power – and with more power comes higher expectations for a great customer experience.

As online shopping continues to grow at a rapid pace, retailers’ supply chains are forced to keep up with demand and provide unprecedented levels of convenience to help businesses drive customer loyalty and achieve consistent revenue streams. Retailers can no longer rely on traditional or outdated supply chain processes if they want to stay competitive with e-commerce giants. That’s why many of them are beginning to shift their focus and give their supply chains a high-tech makeover. According to the recent Zebra Retail Vision Study, 72 percent of retailers plan to reinvent their supply chains with real-time visibility enabled by automation, sensors and analytics.


In regards to automation, 65 percent of retailers plan to invest in inventory and supply chain automation by 2021. Because multichannel shopping has become the norm, inventory accuracy is more critical than ever as products from both brick-and-mortar and digital channels flow through the supply chain. Studies show superior omnichannel support requires 90 percent inventory accuracy or greater, but the retail industry is not where it needs to be. As an industry, retail inventory accuracy falls much lower at around 65 percent.

To improve accuracy, many retailers are budgeting for digital upgrades that enable automated, real-time inventory visibility via Internet of Things (IoT) technologies such as RFID. Using RFID platforms increases inventory accuracy to 95 percent, while out-of-stocks can be reduced by 60 - 80 percent with item-level RFID tagging. So, it’s no surprise over 70 percent of retailers plan to provide, or are currently providing, item-level RFID technology.

Along with RFID, retailers are also turning to analytics to enhance visibility as well as inventory demand and forecasting. According to Zebra’s study, 75 percent of retailers plan to invest in predictive analytics by 2021. If retailers can determine what’s selling and what’s not, they can better manage inventory to keep customers happy and avoid stock-outs and overstocks. The study indicates one of the key sources of customer dissatisfaction today is out-of-stock merchandise, and McKinsey & Company found reducing stock-outs and overstocks can lower inventory costs by 10 percent.

Retailers are also migrating from siloed supply chain processes to unified commerce models. These models ensure end-to-end, digital and brick-and-mortar enterprise visibility of store associates, shoppers and merchandise. Taking this approach allows stores to double as distribution centers, getting customers what they want and in their hands faster — which means no longer having to solely rely on warehouses to get the job done and providing a better overall shopping experience.

The Latest

More Stories

5 scary thoughts about disasters and disaster relief

It’s almost Halloween, and if your town is anything like mine, your neighbors’ yards are already littered with ghosts, witches and tombstones. 

Clearly some of us enjoy giving other people a scare. Just as clearly, some of us enjoy getting a scare.  

Keep ReadingShow less

Featured

Keep a clear focus on enterprise priorities.

"Spot solutions are needed to help a company get through a sudden shock, but the only way to ensure agility and resilience going forward is by addressing systemic issues in a way that is intentional and focused on the long term and brings together clear priorities, well-designed repeatable processes, robust governance, and a skilled team." - Harvard Business Review

From Low Cost to Best Cost

An article published by McKinsey & Co. in August observed, “over the past year, many companies have made structural changes to their supply networks by implementing dual or multiple sourcing strategies for critical materials and moving from global to regional networks.”

This structural change pivots on the difference between low cost and best cost.  The shift extends through Tier 1 Suppliers through lower tiers.  The intent of a low-cost supply chain strategy is to present a low price to customers. A best-cost strategy adds factors beyond cost to the equation, like risk, lead time, and responsiveness.

Keep ReadingShow less

Digital Freight Execution: Making Win-Win Connections

As global supply chains become increasingly complicated, there are now more digital connections and business collaborations in the global shipping industry than ever before. Holding freight data in opaque, disconnected silos and relying on outdated methods of communication is not just inefficient - it’s unsustainable.

The global supply chain is no longer a linear process. Whereas before it was simply about moving freight from point A to B, now there is now a multitude of options for transporting that freight, each with its own unique set of capabilities and constraints. 

Keep ReadingShow less

No wonder we are short of labor in the supply chain.

America’s posture in world trade, and the underlying supply chains, are more than robust.  According to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the United States balance of trade in goods and services deficit dropped to $70.6 billion in July.  Exports hit the highest level in real dollars since tracking began over 70 years ago.  During the recovery from Covid,, with reshoring and shifting market demands, are holding imports flat..

This success is happening despite the global disruption caused by Ukraine.  Expect our labor shortages to continue.  Expect wage pressure to continue.  Expect inflationary pressures across the supply chain to continue.

Keep ReadingShow less