There was talk at the D3 Retail Supply Chain Summit in New York, of the billions (with a “B”) of dollars that key retailers will be investing in technology, infrastructure and store overhauls over the coming months. With a particular focus on the “last mile," the top retailers are investing heavily to deliver the omnichannel experience demanded by new generations of shoppers. These were some of the top priorities discussed.
The last mile
The days of traditional checkout at the cash register are quickly fading. Today, shoppers want to research, see and order product and then choose whether to have it shipped, pick it up in-store, or have it delivered to some other location. This is completely redefining the traditional distribution model that retailers have used for decades and where and how inventory is stored and accessed. Increasingly, the store may be a fulfillment center, serving as a pick-up location for inventory ordered online. Technology is critical to enabling this kind of flexibility. RFID is needed to enable precision inventory-level tracking. Mobile or touchless checkout ensures customers don’t get caught in in-house shopper queues. Drones or pick-up lockers may be used to offer customers additional last mile receiving options. The investments made in this area render retailers more agile, more efficient and more appealing to customers, which yields a strong ROI.
Total store upgrades
Other retailers are embarking on massive store updates, investing billions in comprehensive renovations that feature the latest technologies, upgraded infrastructure and innovative formats to accommodate a new kind of retailing. With the financial investment and time required to pursue these kinds of overhauls, savvy retailers are piloting technologies and layouts to identify challenges, investigate use cases, track results and prioritize investments based on return. With this valuable data in hand, they can greatly improve their chances of a successful, on time and on budget rollout and subsequent return.
Business intelligence (BI)
Retailers are focused on sorting through endless available data and leveraging BI to drive intelligent and prioritized decision-making that saves money, conserves resources, and drives change. Consider some of the applications:
- Using BI in real time to determine the shortest, fastest shipping route to ensure on time delivery
- Using BI to perfectly staff stores according to likely daily traffic, having enough but not too much support
- Tracking customer shopping patterns and news trends to optimize special promotional displays to maximize sales
In the end, innovation at scale is important, and the speed of deployment is critical in light of the velocity of change today. Retailers can help cover their bases by ensuring infrastructure is sufficient to support all of these new technologies. Experienced integrator partners like Telaid can help speed and secure the process. The discussions at the D3 Retail Supply Chain Summit are yet another proof point showing that retailers are on the move.
