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Retail Business Review | Tuesday, October 25, 2022
Adopting integrated integration technologies enables merchants to communicate data more effectively throughout their supply chains for connecting with customers.
FREMONT, CA: E-commerce and rising digital literacy have transformed retail logistics. Urbanization and dual-income households influence consumer choices and perceptions in emerging and industrialized economies. Retail and e-commerce enterprises are racing to adapt to consumers' evolving needs, impacted by technological advances and cultural shifts. Rapid delivery and smartphone use are driving transformation in retail logistics. Retail logistics is known for siloed data and manual operations, but this is changing as retailers implement and integrate new technology, employ warehouse robotics, and automate supply chain activities.
Demand from consumers for omnichannel retail experiences: Smart consumers are beginning to anticipate omnichannel shopping experiences from their preferred brands, such as a seamless and consistent experience across channels such as online, mobile, and in-person. For instance, a customer purchases an item online in that case, and the omnichannel approach allows the buyer to return the item to any physical store, regardless of where the item was originally purchased. It can quickly complicate operations for businesses that maintain distinct online and in-store inventories, especially if their distribution hubs are on opposite sides of the country.
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Embedded integration technology: Embedded integration technology is another crucial trend affecting retail logistics, as logistics organizations recognize the necessity to communicate customer data seamlessly and consistently. For instance, real-time location tracking and traffic updates make it possible to improve delivery windows. Embedded data platforms make it feasible to link and integrate data by exploiting built-in capabilities. RFID technology is another example. RFID can give real-time location and data when coupled with other systems, such as inventory management software, resulting in fewer backorders and more precise estimations of delivery timelines and shipping costs.
Escalating need for home delivery: While the price has been a critical differentiator of retail services for a long time, efficient last-mile delivery is gradually gaining ground. There was a massive increase in retailers offering same-day delivery, primarily due to consumerization. In the aftermath of the pandemic, supply chain disruptions have caused delays and lengthier delivery times, but these capabilities are likely to recover as the globe returns to normal. Customers are pressuring retailers (particularly those in food, beverages, and pharmaceuticals) to offer same-day or next-day delivery, a demand that few businesses have been able to match.
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