New Research Indicates Need for Solutions to Address the On-Demand Consumer
The retail sector has evolved perhaps more during the last 12 months than it has in the previous three to five years. The progression of online retail, coupled with consumers’ want-it-now mentality, have retailers across the world looking for ways to improve their supply chains. The 2018 Retail Supply Chain Report, commissioned by Teknowlogi and eft Supply Chain and Logistics Business Intelligence for the D3 conference, examined retailers’ progression during the last 12 months in terms of improving their supply chains’ quality and velocity.
Results from the study indicate that retailers are in dire need of practical and relevant ways to understand and predict shopping behaviors while delivering an on-demand consumer experience. The retail environment continues to be shaped by economic factors, societal shifts and changing consumer preferences and demands. However, through technology, we’ve been able to create a path forward that will enable retailers to “live on.” Innovative technologies―with very practical applications for real-world business challenges―will give retailers the ability to survive and thrive in our on-demand world.
Among the report’s key findings:
- Only 17 percent of retailers say they have full visibility over their inventory, including in stores, in transit and in returns. One of the biggest variables affecting and challenging inventory optimization and forecasting has been end customers who have turned the retail marketplace on its head. They’ve gone mobile, they’ve demanded “now” delivery, and they don’t want to pay much for it.
- Origin of demand (81 percent) and cost (77 percent) are the top forces shaping retail distribution network design. Network design is fundamentally an equation of weighing up cost versus origin of demand. It’s an ongoing process that needs to be constantly measured, strategized and readjusted as costs change and consumer expectations evolve.
- Forty-six percent of retailers say that the customer experience (CX) has become a crucial part in measuring supply chain performance and accountability. In 2016, the majority of retailers considered CX only a company goal and had no formal measurement for its impact on supply chain performance. Fast forward to 2018 and respondents are actively measuring its impact using key indicators such as Customer Satisfaction (CSAT), Net Promoter Score (NPS) and Customer Lifetime Value (CLTV).
As you read through the full 2018 Retail Study, please take note on how your organization compares to those who participated in the survey. We believe you will find the study results to be aligned with many of your organizational challenges and opportunities, as well.
Let us know how your retail supply chain is performing in this on-demand world.