On Demand Market Needs
The on demand retail sector has evolved more during the last 12 months than it has in the previous three to five years. Retailers across the world looking for ways to improve their supply chains. This is because of the progression of online retail with consumers’ want-it-now mentality.
Teknowlogi and EFT Supply Chain and Logistics Business Intelligence
We both commissioned the 2018 Retail Supply Chain Report. They wanted to make the report available in time for the D3 conference. The report examined retailers’ progression during the last 12 months. It examined how they improved their supply chains’ quality and velocity.
Results from the study show an important finding. Retailers are in dire need of specific tools. In particular, practical and relevant ways to understand and predict shopping behaviors. They need to do this while delivering an on demand consumer experience. The following continue to shape the retail environment:
- Economic factors
- Societal shifts
- Changing consumer preferences and demands
But, through technology, we’ve been able to create a path forward that will enable retailers to “live on.” Innovative technologies pairs well with practical applications for real-world business challenges. Together, they 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. This includes in stores, in transit and in returns too. End customers are the biggest variables affecting and challenging on demand inventory optimization and forecasting. They 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.
The top forces shaping retail distribution network design are:
- Origin of demand at 81 percent
- Cost at 77 percent
Network design is also an equation of weighing up cost versus origin of demand. It’s an ongoing process. It also needs to be often measured, strategized and readjusted. This needs to happen often since costs change and consumer expectations evolve.
On Demand Customer Experience
Forty-six percent of retailers say customer experience or CX is the most important. It plays a crucial part in measuring supply chain performance and accountability. In 2016, the majority of retailers considered CX only a company goal. It had no formal measurement for its impact on supply chain performance. Fast forward to 2018. Now, respondents are active in measuring its impact. They now also use key indicators. Moreover, these include:
- Customer Satisfaction (CSAT)
- Net Promoter Score (NPS)
- Customer Lifetime Value (CLTV)
The 2018 Retail Study is an informative read. As you go through it, please take note on how your organization compares to those in the survey. The study results may also align with many of your organizational challenges and opportunities.
Let us know how your retail supply chain is performing in this on demand world.