Retail organizations are facing a seismic shift in the markets they serve - from multiple channels to international expansion. But are the systems in place to fulfill orders and manage returns across this altered and highly complex landscape?
Walmart, Macy's, JCPenny, Marks & Spencer, Façonnable, American Apparel, and others are implementing item-level RFID in a big way. Last year, well over one billion apparel items were tagged. That number is expected to rise substantially this year.
There are several overarching themes driving the push for more automation inside the four walls. Some relate to changing demographics in the labor force, others to how consumers are shopping today, and let's not overlook the constant striving for more efficiency, productivity and cost reduction.
Analyst Insight: Retail has reached a number of crucial tipping points. The economy, online shopping, technology, store relevance and other factors are driving companies to the crossroads where business strategy meets the supply chain. Traditional thinking around customer satisfaction, distribution networks and operations is obsolete given the huge impact of these tipping points on all supply chains. Going beyond the crossroads means having the right business strategy and having the right supply chains. - Jim Tompkins, CEO & President, Tompkins International
Consumers are much more interested in free delivery and lower prices than in the same-day delivery of goods ordered online, according to a survey conducted by The Boston Consulting Group. Only 9 percent of the 1,500 U.S. consumers surveyed cited same-day delivery as a top factor that would improve their online shopping experience, while 74 percent cited free delivery and 50 percent cited lower prices.
Jason Denmon, apparel industry executive with Fortna, offers advice on how companies can utilize a common distribution center for servicing multiple brands or channels - and why it's so tough to get it right.
Analyst Insight: As traditional retailers feel the sting of Amazon's long tail whip, e-commerce and retail are merging into omni-channel strategies. In the Connected Age everyone is always connected to everything, always on, and location based. Just as the power shifted from manufacturer to retailer, the power in the retail channel has now shifted to the consumer who can buy anything from anyone, anytime, from anywhere. You better know your customer and your market to succeed. - Rich Sherman, Supply Chain Discipline Expert at Trissential
Analyst Insight: Retail is in a dramatic transformative phase. Consumers' multichannel access and shopping and web commerce vs. in-store shopping have retailers experimenting with many new approaches and technologies. Multi-merged channel expectations put fulfillment front and center as a major concern - no more relegating supply chain to the backwaters of retail management!
- Ann Grackin, CEO, ChainLink Research
Analyst Insight: Multichannel fulfillment can be defined as optimizing the supply chain's capabilities to simultaneously receive and process orders from multiple ordering channels and fulfill them from the source that provides the highest level of consumer satisfaction and lowest fulfillment cost to the retailer. This model for fulfillment is both customer - and cost-driven and, therefore, the new de facto standard for the retail supply chain. - Joe Vernon, Manager of North America Supply Chain Technologies, Capgemini