As retailers dive into perfecting the logistics essential to true omnichannel retailing, they are wading into tricky waters that involve new complexities and require more precision than ever.
Retail logistics is a moving target, increasing in complexity as shoppers continually demand more convenience, speed and precision. Retailers are under real pressure to step up their game. When thinking about “the last mile,” retailers historically focused primarily on the actual shipment and delivery of goods. But retail logistics today are vastly more complex than simply ensuring that the right product is delivered to the right customer at the right time.
As it turns out, there are a growing number of aspects to retail logistics.
Integrity– Perhaps the most obvious example of product integrity is verifying that food is properly handled and stored at the right temperature during and between transit to ensure quality and safe consumption by the consumer. However, product integrity is not limited to food and beverage. For other retailers, product integrity means that products should be handled with care during transit, not damaged or broken. Ensuring integrity as a product makes it way from the source to the consumer’s home, requires monitoring conditions all along the way to identify breaches or problems. IoT devices are proving instrumental in this process as well as blockchain technologies.
Security – Security means that the product arrives in the right hands, securely. There is a growing trend of packages being taken from front doors upon delivery. Retailers and logistics providers are seeking new solutions to combat theft of delivered product with mechanisms that allow delivery agents to unlock cars, homes and/or lockers for secure delivery of the items. All of these solutions, however, require additional coordination, mobile applications and advanced tracking.
Modified versions– Consumers today expect a full range of services that offer convenience and customization. Perhaps they want their grill, swing set or furniture order assembled. Or maybe they want their items packaged separately and gift wrapped. All of these options require retailers to have systems in place that can accommodate precision tracking by the item or package.
Reverse logistics– Returns are nothing new for retailers. However, with the introduction of e-commerce, things have become slightly more challenging. Retailers must be able to accommodate return shipments, process credit appropriately, provide a replacement item quickly, or confirm a refund. The operation must be nimble and precise to effectively handle these processes.
These are just some of the capabilities required of today’s retail logistics team and facility. While these transactions are not necessarily glamorous, each one contributes to the consumer’s experience with your retail brand. If a return is not properly processed and the customer has to call back 4 times to get is resolved, they may decide to shop elsewhere. If their order arrives broken, they may post negative comments about your company on social media. Your brand perception and value are closely tied to your ability to deliver on every part of the process – not just the in-store or online shopping experience.
Why is this important? Well, it means realizing that there truly is more to logistics than shipping and delivery. It also means you need to seriously consider deploying technologies required to deliver seamless, precision logistics. It calls for evaluating your current technologies and infrastructure to understand where gaps may exist and then building the plan to bridge those gaps over the coming months. Start thinking differently about “the last mile” to stay ahead of your competition and consumer demands.
