As retail e-commerce sales worldwide are expected to grow by 56 percent over the next years, reaching about 8.1 trillion dollars by 2026, retailers cannot ignore the enormous potential of an online presence. But getting into each customer’s shoes to map their journey, understand their needs, and fulfill their demands can be quite challenging.
Arm your online sales data with analytics capabilities that can help you turn raw sales data into actionable insights to facilitate quick and informed decision-making, thus helping them offer the right products at the right time for sales maximization.
Here’s how Increff Online Analytics can make this happen
Apparel companies, be they haute couture or mass-production chains, are at all times burdened with an inventory glut. This glut eventually results in deadstock that generates 53 million tonnes of litter for landfills each year in addition to the environmental consequences of the production of the garment itself. Approximately 30% of the clothing produced each season is never sold. As much alarming as these figures look, it is expected to further lift and increase to a blaring 150 million tons by the year 2030.
The crux of the matter is how we tackle this issue effectively and efficiently from the roots. It is at this stage that we shed light on the importance of accurate planning, and how an easy tool can help merchandisers optimize this process. Introducing Increff Merchandising Software.
By analyzing and studying past sales, revenue, discounts, size cuts, and stock-outs, Increff Merchandising Software helps determine the ideal assortment mix at a granular level. It enables merchandisers to optimize the inventory at a store-style level and produce accurate data reports that act as a foundation to study sales trends from past seasons and focus on consumer trends and bestsellers. Clients can bet on their best performers and reduce overstocking substantially by redefining the sales pattern with better clarity.
Better planning and distribution have made a difference of up to 25% less inventory holding among users of Increff Merchandising Software.
Inter-store transfers also help to move the stock around and increase sell-through. Here the available stock among stores in a region is moved to a store where it has better performance potential. This will give the styles one last chance to perform before they go into discounting and sales. Increasing the visibility of styles also gives the last chance to rectify mistakes made in planning and selling the purchased stock.
The mammoth task of ensuring a sustainable future in its true essence only requires discipline and structure that we at Increff help merchandisers achieve via our Planning module. The industry has been guilt-ridden due to its major contribution to damaging the environment and we must approach the future cautiously. Let’s use intelligence in playing our part judiciously in this journey by using smart analytical tools to build a sustainable and resilient future.
Check how Increff smart technology solutions can help you walk on the path toward sustainable retailing. (LINK HERE).
Retail is one of the most data-driven industries, from sales data to inventory details – every data point offers an opportunity to make your retail business more efficient and successful. The right data at the right time can help you understand customer behavior, estimate demand requirements, build forecasts, and make informed decisions.
Here’s how the Increff Business Intelligence module can help you turn raw sales data into actionable insights and facilitate quick and informed decision-making.
Creating a highly competitive retail supply chain depends on how well you’re able to control/reduce your costs. Incurring unnecessary costs can mean that your processes aren’t efficient enough, your funds are blocked in too many fixed assets, or your supply chain isn’t performing at an optimum level. These factors could pile up costs, impact margins, affect your competitiveness, and eventually make your business falter.
Keeping costs under control is therefore one of the most essential aspects of supply chain management. Let’s look at 5 sure shot techniques that can help you reduce your costs:
Transportation accounts for about 40 to 50 percent of logistics costs, and 4 to 10 percent of the selling price of final products. Reducing the distance between your warehouse and customer clusters is, therefore, necessary to control overall costs. The closer your warehouse, or fulfillment center, is located to your customer cluster, the quicker fulfillment will be, which also means a significant reduction in fuel consumption. Regional Utilisation (RU), the idea of fulfilling maximum orders locally, is one of the topmost solutions for cost management in supply chains today.
RU becomes even more effective when coupled with new-age merchandising solutions. Powered by data insights, this enables brands to conduct Pincode level analysis to place the right products at the right warehouse, or store, as per demand in a particular market. Shelving the right styles and size combinations can boost regional sales significantly while saving costs on logistics.
As a brand expands, operating from a centralized warehouse can raise distribution costs and impact business quite significantly. In fact, as per Logistics Bureau, up to 12 percent of companies are unprofitable after distribution costs are taken into account.
This can be tackled with Distributed Warehousing which enables brands to expand into other regions, and support efforts toward regional fulfillment. Fulfillment of orders from various local and widely distributed warehouses is quick and cost-effective.
Technology solutions like Increff Cloud warehousing allow brands to rent out spaces based on regional requirements. This means investment in warehouse infrastructure is not required and brands are able to convert CAPEX into OPEX thus controlling their overhead costs. In recent times, this has been further augmented with the rapid rise of 3PL players with whom brands can partner for renting warehousing spaces and adding value to the supply chain.
Costs incurred due to human labor is another significant portion of your expenditures. These include their wages, training and development costs, costs incurred in hiring additional/ad hoc labor during peak season sales, and adjusting manual errors committed by the workforce.
With new-age WMS and merchandising solutions, brands can successfully avoid a lot of unnecessary labor costs and reduce errors in decision-making. Simple UX/ UI facilitates easy training which is extremely useful during crunch times when the technically skilled workforce is scarce or expensive. The ease of use increases the fungibility of staff and maximizes the use of the available workforce.
Automated solutions ensure continuous, seamless workflow with minimum decision-making errors. Digitizing inventory through serialization allows easy scanning of individual pieces of inventory for efficient tracking and reduces training time to 5-10 mins. This minimizes efforts and costs related to elaborate training and development of the human resource operating the system.
Make data-backed decisions
Holding on to obsolete inventory can add up to 25 to 30 percent more to the unit cost of your products. Besides, the capital tied up with this inventory could account for about 15 percent of opportunity costs. Obsolete inventory is mostly a result of the inability to forecast demand accurately.
However, new-age merchandising solutions backed by relevant data enable brands to create product assortments with the right styles and sizes. This helps them meet the customer demand perfectly, without causing problems of overstocking or under-stocking, both of which impact costs, the former causing wastage and the latter calling for in-season redistribution.
New-age solutions facilitate analysis of future demand over a time horizon of the next season or business year. Analyzing past sales data helps create a favorable estimate of the upcoming season stock requirements so the right quantity can be placed in the right location. Manufacturing the right quantity as per demand avoids overproduction, unnecessary expenditure, and resource wastage.
Last mile connectivity is known to be the costliest part of the supply chain and accounts for about 53 percent of the total shipping costs. This calls for transforming order fulfillment through omnichannel retail, which is a fluid vision of fulfillment that allows customers to receive their orders in the faster possible time.
Fulfillment options like Buy-Online-PickupIn-Store (BOPIC), store fulfillment, curbside pickup, home delivery, etc. are getting popular. Conversely, a customer visiting a store who is unable to find the desired product can make use of the ‘endless aisle’ online option to purchase it and get it delivered at home or the nearest store. This doesn’t just offer immense customer ease, but also allows brands to resort to the most cost-effective fulfillment option.
Cost control is the first step towards business process efficiency and with the above-given tips, brands can simply rule the roost among their competitors. Effective cost control has great benefits for not just the business stakeholders, but also the environment and society at large.
You could be one of the most seasoned merchandisers and yet you could fall for some common supply chain mistakes. Often these result in inflated costs, poor workforce management, sub-optimal processes, delays in fulfillment, and lots of confusion and errors. It is necessary that these mistakes are brought under the scanner and fixed before they leave a severe dent on the business growth.
Below we discuss 7 common mistakes that need immediate attention.
1. Choosing too many tech vendors
It could be quite tempting to implement multiple tech solutions from different vendors, considered experts or specialists, at multiple stages of the supply chain. However, this can result in creation of silos, and a lack of coordination among different processes especially if there are separate screens to track the progress of each stage. Multiple dashboards require extensive coordination and great resource time in management, it affects inventory visibility and reduces clarity, leading to a fragmented workflow.
Instead of installing separate tech solutions to monitor individual processes e.g. OMS, WMS, Returns Management, etc. within a warehouse, it is beneficial to find the right tech partner with a single comprehensive solution to ensure seamless workflow and inventory accuracy. A single view of inventory provides one source of truth and ensures transparency within the warehouse to boost efficiency by making coordination between different arms of retail operations easier.
2. Inappropriate use of data
Making the maximum use of data is crucial to take accurate supply chain decisions, cutting costs, and ensuring the right products reach the right customer clusters. Inaccurate analysis or working manually on tedious Excel worksheets can lead to incorrect interpretations and missed sales opportunities.
Install algorithm-based, intelligent merchandising solutions that automated decision-making to minimize human intervention, offer quick decisions, and ensure accurate merchandise planning, buying, and allocation. By drilling down analysis to the individual store level, decision-making becomes highly granular and accurate. This also enables brands to shelve the right stock at the right store in the right quantity, thus avoiding over or under-stocking and capturing sales effectively.
3. Ill inventory health in stores
Fashion brands are especially sensitive to the health of the inventory in stores because the demand changes rapidly with seasons and trends. With expanding business requirements, brands could overlook the importance of keeping the right stock, in the right quantity, at the right location, and at the right time. This leads to problems like aging stock, leftover stock, and inadequate size and style. Stock brokenness can lead to the unavailability of popular styles and a significant loss of sales.
Ensure you conduct an accurate demand forecast for the upcoming season and regularly replenish the stores to meet in-season demand spikes. Pull back slow-moving inventory to make space for better-performing styles. By maintaining the health of the inventory, you also minimize the possibility of running out of popular styles. Investing in good inventory management software enables you to minimize human errors, streamline merchandising, and maintain a healthy inventory.
4. Poor cost management strategies
A number of poor management practices can lead to an unnecessary increase in costs. This starts with the overproduction of goods which overshoots the estimated market demand causing overstocking, obsolescence, and wastage. A mismatch in supply and market demand can cause wastage or shortage, and subsequently a rise in transportation costs due to in-season redistribution. As brands expand their territorial footprint, ordering from a faraway centralized warehouse can become costly. Likewise, investing in warehouse infrastructure where you hope the demand would increase, also means unnecessarily blocking precious resources.
Use data-backed solutions to accurately forecast demand for a particular customer cluster. Merchandising solutions can help you stock the right styles and sizes for each market, ensuring zero wastage. With distributed warehousing and collaboration with 3PL partners, you can avoid investing in warehousing infrastructure, and convert your CAPEX into OPEX. Likewise, with regional utilization brands can ensure that most of their orders are fulfilled locally, and transportation costs are reduced dramatically.
New-age technology solutions like Increff Cloud Warehousing, enable automation and offer a simple UX/UI to avoid the need for costly and time-consuming training. This increases the fungibility of your manpower and reduces dependency on expensive skilled labor.
Brands that focus only on one sales channel (say a website or social media) and develop myopia for all the others are likely to face the heat of intense competition. This is because customers are increasingly looking for quick fulfillment and ease of delivery from multiple points of contact with the brand. Brands which are unable to rise up to this new trend are likely to become irrelevant as omnichannel begins to dominate order fulfillment.
Create a walled garden of brand touch-points and experiences around your customers. Adopting omnichannel fulfillment and the latest fulfillment practices such as BOPIS, curbside pickup, or in-store pickup, enhances customer convenience and satisfaction. Omnichannel is also a cost-effective practice as it enables the brands to choose the most economical option to deliver goods to the customer.
Brands could commit the mistake of ignoring their returns management as an auxiliary function of their supply chain. This can cause delays in returns logistics, slowing down of resale, stockpiling and obsolescence, or in-transit damage. Lacking the data about the reasons for return or the most repeatedly returned items could lead to regular repetition of past mistakes.
Have an automation-based returns management solution in place that will streamline the entire returns process. It enables you to sort and grade the returned goods, resell the good stock, and redirect the refurbished stock to the secondary market. This minimizes waste and enables brands to earn maximum value from the returned goods. Serialization enables 100% tracking of inventory and capturing the exact reason for returns in the barcode. Repeatedly returned products can be easily quarantined, analyzed, and removed from circulation to prevent unnecessary expenditure.
Discounting could seem like the easiest way out to clear the stock at the end of the season, or during periods of slow sales. However, excess and indiscriminate discounting don’t just impact your margins, it also affects your brand image. Excessive discounting dilute the reputation of your brand and your customers may find it hard to trust the pricing of your products in the future.
Increff Markdown optimization solution enables brands to offer the right percentage of discount, just tipping the balance towards conversions, and preventing an excess drop in margin. This depends upon the ongoing performance of an item and the status of its inventory.
The mistakes discussed above could cost your business dearly as the intensely competitive marketplace of today leaves very little room for inefficiencies. Brands, therefore, need to plug all the possible loopholes and ensure the highest possible efficiency in their supply chain processes.
While robotics has a significant role in automation, it is not the only way to achieve it. Robotics consists of robots/ machines substituting human labor, automation brings together machines, software, and upgraded technologies to perform tasks that are otherwise performed manually. In fact, investment in robots is a rather expensive affair! New-age warehouse management systems are smart and affordable to introduce automation in your warehouse.
Many fears of job losses are associated with the idea of automation. However, these fears are largely unfounded as automation merely seeks to supplement and empower human effort. By taking over critical decision-making and manual labor, automation boosts efficiency in processes and enhances accuracy many times over.
In this blog, we bring forth the vast number of ways in which automation is reshaping the tasks and functions of supply chain management, and turning warehouses into incredible high-tech facilities!
Serialization of inventory: Serialization and barcoding allow effective tracking of inventory in the warehouse. It allows auto-mapping of inventory located at the time of picking, thus saving significant time and manual effort in searching for the same. Some activities are clubbed together and consolidated with serialization, thus making the process faster.
Much of our supply chain efforts revolve around seamless communication in mapping and locating the stock. Items can be easily scanned using wireless devices such as Bluetooth scanners, smartphones, handheld terminals, and barcode scanners. Wireless devices enable an easy workflow as the staff can conveniently carry them around to read barcodes and capture data in the central repository.
Simple UX/UI: Solutions offered by Increff are easy-to-use and cost-effective owing to their user-friendly UX/UI which doesn’t require any specialized or prolonged training. Besides, in case of any errors by the staff, the system automatically blocks the user from advancing further, unless the wrong entry is resolved. This eliminates any chances of errors creeping into the system, which could snowball into costly mistakes right across the warehouse and beyond.
Holidays and end-of-season could be strenuous for employees but a simple and user-friendly UX/UI can go a long way in reducing stress. An easy-to-use UX/UI permits collaboration and sharing of resources during peak hours to maximize manpower utilization. A user-friendly UX/UI ensures zero dependencies on skilled labor, so it’s easy to recruit extra hands in the time of need. The training time of 5 minutes, makes the system highly cost-effective and adaptable.
Automated pick-list generation: Picklists can be generated basis channel and SLA priority. There’s no need to put the same styles or SKUs in the same bill. Serialization identifies barcodes and bins, to automatically generates picklists for wave-wise picking. The picker can then perform wave picking to save time and effort. Each item is picked and scanned. In case the picker chooses the wrong item, it will be automatically rejected by the system. This helps reduce errors in picking.
Put-to-light storage: To save time and boost efficiency while storing the products on the warehouse shelves, light devices are used to direct the operators. This semi-automatic technique enables the operator to ‘put’ the items in the right pigeon-hole where the light flashes.
Infinite scalability: Serialization enables the warehouse staff to perform chaotic putaway. All the items are brought to the same sorting table. Barcodes are then scanned to read the order-related information after which the items are sent out on their respective routes. Chaotic putaway and storage allow maximum warehouse space utilization, and deal with remarkably huge volumes!
Seamless returns management: Barcoding captures all the information of the returned products, especially their order history and reason for return. The reason for returns can be analyzed to find the most regularly returned items (which also have a greater likelihood of being defective). Analyzing customer buying and returning patterns can provide insights to design future strategies to curb returns. Besides, visibility and traceability of returned items are essential to avoid losses and delays. This is again made possible by the serialization of each item.
Eliminating paper processes: Increff is an efficient multichannel, web-based WMS and order fulfillment system that offers a real-time (less than 15 seconds) order inventory sync feature. Serialization and barcode scanning eliminates paperwork within the warehouse and every step gets recorded in the system. Manual errors can be traced back to the warehouse worker and adequate corrections can be made to prevent such errors in the future.
Automation is finding a tremendous application in the field of warehouse management. It has opened up new vistas for businesses, making them more proactive while handling their inventory and ensuring a high standard of service to customers. Despite all these outstanding features and futuristic benefits, automation-based solutions are highly cost-effective in terms of their upfront costs, training and development, integrations, and up-gradations.
Warehouse automation is fast becoming one of the essentials of supply chain management. But there are some very common myths that have been making rounds in the industry and believe it or not, even the most seasoned professionals may fall for them. In this blog, we clear the air around some preconceived notions surrounding warehouse management systems. So let’s get started.
Myth 1: Automation is suitable only for large brands and retailers
Larger and well-established brands definitely require a robust automation infrastructure, as they simply cannot operate their mammoth business processes manually. But this doesn’t mean that the smaller brands can afford to do without automation.
Strategic planning in today’s highly competitive business environment requires a highly data-driven approach right from the beginning. There’s very little margin for error, especially for brands just coming into the industry and up against formidable competitors, both new and old.
Fast-changing business environment especially demands that brands receive a continuous stream of real-time inputs and leverage automation to make well-informed decisions. Automation also boosts the efficiency and accuracy of business processes like picking and packing, thus enabling the smaller brands to save on some precious resources.
Myth 2: Adopting advanced warehousing means we must completely change every process
A drastic change in technology can significantly hamper the ongoing warehouse processes. When migrating to an advanced WMS solution, many brands are in fact apprehensive of bringing their warehouse processes to a halt.
These fears are entirely unfounded. New age warehousing solutions are often on plug-and-play rather than the rip-and-replace model. This means there is no pressure on brands to suddenly upgrade to a new system and do away with the old processes. The migration with solutions like Increff WMS is smooth, gradual, and well-planned, causing absolutely no disruptions to the ongoing warehouse operations.
The word ‘automation’ instantly conjures up images of a massive assembly line with robotic arms fixing parts into automobiles. But that’s a very narrow view of the idea of automation. In reality, a number of technologies — both physical and digital — come together to set up automation in a business process.
Transformation in warehouse management is all about automating the movement of inventory within and out of the warehouse with minimal human assistance. It seeks to eliminate repetitive, labor-intensive, manual data entry, and analysis tasks, with automation-driven processes. Most often automation in warehouses simply refers to the use of software to replace manual tasks.
Automation begins with the serialization and barcoding of all items, which makes them traceable both within the warehouse and throughout the supply chain. These are scanned and tracked using Bluetooth scanners and handheld terminals (HHT). The use of digital solutions such as warehouse management systems, merchandising software, and returns management systems allows brands to manage their inventory, take assortment-related decisions, and handle returns with greater efficiency.
Myth 4: New WMS will require expensive, time-consuming training
Advanced technology may appear rather formidable and hard to handle. It may often lead to resistance amongst the staff due to fears of the unexpected. For business owners, it could mean added costs of elaborate training interventions. But a cursory look at some of the new-age software solutions is enough to bust this myth.
WMS solutions like Increff WMS offer an incredibly simple UX/UI and workers can get started on the system with just 5 minutes of training. This makes cross-functioning of your existing staff easy and precludes the need to hire any specialized workforce for operating the system. In times of labor shortage, this feature can especially come in handy and help brands save costs on skilled labor. Besides, the implementation and deployment of the solutions are very quick and effective.
Quite contrary to the prevailing notions, therefore, new WMS solutions facilitate and empower your workforce, rather than pose a threat to it.
Myth 5: Warehouse operations must shut down during audits
Audits are a frequent feature of warehouse management and can be quite time-consuming. This doesn’t mean the normal warehouse operations must be suspended during audits. With new-age warehouse management solutions, audits can be performed with utmost accuracy, while operations in the warehouse go on as usual.
Contrary to the above myths, new-age warehouse management systems powered by automation, make warehousing highly efficient, easy, and cost-effective. As business competition intensifies, automation is fast becoming an essential prerequisite for brands, no matter how big or small.
As retail and e-commerce turn into highly competitive spaces warehouse management is also becoming more and more challenging. Customers these days expect lightning-fast deliveries, convenient shopping experiences, and easy returns. This requires greater flexibility, proactive handling, and a technology-driven warehouse management system backing the sales channels.
With new trends such as omnichannel taking full effect, the challenges are further complicated as warehousing now requires a highly customer-centric approach. Competition is getting increasingly intense as smaller brands operating neck to neck with established giants, seek to carve out their place in the market. This often results in dropping margins and demands greater efficiency to stay afloat.
As such, accurate inventory management, optimum picking and packing, transparency, and traceability of items are some of the must-have features of warehouse management systems, to ensure the highest levels of customer satisfaction and brand loyalty.
Let’s take a look at the top 5 challenges in a warehouse today, and ways to tackle them effectively.
Inventory tracking during BAU (Business as usual) and during peak sales period
As businesses expand, tracking the inventory manually can be extremely tardy and hectic. Inventory digitization and serialization ensure seamless inventory tracking within and outside the warehouse. This is all the more crucial during peak sales periods like the end-of-season sales or festive sales since only an automated system can ensure continuous, real-time tracking when the stakes are the highest. Barcoding and serialization help cut down human errors and inaccuracies. This enables warehouse personnel to log the inventory correctly and locate it easily as and when they wish to move it.
2. Efficient Picking and Packing to Meet SLA Requirements
Undue delays and inexplicable inaccuracies can turn out to be the most difficult challenges in meeting SLAs. This, in the long run, can result in an increase in the rate of returns, higher customer churn, and loss of revenue. These issues can be tackled with efficient picking and packing so that only the right products in the right quantities are shipped.
Increff WMS express picking enables auto picklist-based SLA and channel priority to ensure express delivery orders are dispatched on priority. Pick efficiency is enhanced using the wave-wise picking technique. This way the picker doesn’t have to go to the same aisle multiple times to pick. With its image-assisted picking and packing, Increff ensures 100% order picking accuracy.
3. Minimizing Wastage and Obsolescence
Poor stock management is one of the leading reasons for wastage and obsolescence. Perishable products can especially be sensitive to expiry dates and highly prone to wastage. With automated solutions like Increff WMS, retailers can put in place an alert notification for batches approaching their expiry or sell-by date. Commonly known as the FEFO (First Expiry First Out) technique, this significantly avoids wastage and obsolescence in warehouses, especially for brands dealing in Pharma, Cosmetics, and Consumables.
4. Maximizing Resource Efficiency and Productivity
As more and more players emerge and compete in the market, there’s growing pressure on each brand —both big and small—to improve their bottom line, maintain healthy margins, and boost productivity. By offering a simple UI, Increff enables brands to maximize the efficiency of their warehouse staff with the training of no more than 10-15 minutes. This is especially crucial during peak sales when brands have to hire additional personnel or conduct cross-functional training from within their staff.
The system generates auto-alerts at every step and will not allow the warehousing staff to move ahead without resolving the previous error. This ensures every step is captured in the system and the errors get corrected at each step and are not amplified. By capturing the picker ID in the system, there is greater traceability and accountability for errors.
Combining and executing multiple steps in the process also ensures high performance. Increff enables picking and auditing simultaneously, thus cutting down on any potential downtime.
5. Faster re-commerce and returns management
In the year 2020, Americans returned goods worth a whopping $428 billion which made for a return rate of 10.6%. Quite clearly, managing returns is a serious challenge that brands must overcome proactively to ensure optimum profitability. Time-consuming returns may lead to loss of sales as products may not be visible on the sales channels immediately.
To reduce the chances of loss of sales, WMS solutions enable brands to conduct a quality check of the returned goods, and sort them as resaleable, refurbishable, and rejected. In case the goods are rejected, capturing the exact reason for rejection can help in the correction of future errors, conduct vendor analysis, and staff training. With the right labels, tags, and barcoding, there are zero chances of mixing the returned goods, keeping the whole returns process streamlined.
Having the right warehouse management system in place can help deal with all the above challenges with greater ease and agility. In fact, a cutting-edge WMS ensures brands stay ahead of the competition and ensure the highest levels of customer satisfaction and brand loyalty.
Cutting-edge technology has left no sector of the economy untouched and is turning out to be one of the biggest drivers of efficiency, customer experience, and profitability. In the last few years, the retail industry has also been experiencing some transformative technological interventions that are reshaping the way business is done. At the very heart of this transformation is the growth in ICT (Information & Communication Technology) and digital technology. This is going to have an impact on how the industry will evolve in the coming years. In this blog, we talk about the top 5 technology trends that are at the forefront of this global transformation in retail.
Omnichannel retail seeks to provide an unprecedented number of options to customers in terms of shopping and delivery. It puts customers right at the center of the retail process. Omnichannel allows customers to interact with the brand at multiple touchpoints and switch between channels while shopping for products. Customers making a purchase on a brand’s social media page can pick up the product from their brick-and-mortar store.
Omnichannel provides customers a consistent shopping experience across diverse platforms, both online and offline. This however creates new challenges for brands at the backend and compels them to be more agile and flexible with their fulfillment process.
Omnichannel is driven by a robust technology infrastructure. Connecting all the retail channels and integrating the assortments of all warehouses and stores is essential, and is done using automation-backed solutions. Inventory barcode and serialization facilitate easy tracking of items as they move fluidly across channels. Likewise, analytics and automation help position products at the right locations which helps reduce delivery time as well as logistics costs.
As new players enter the retail fray, customers are spoiled for choice, not just in terms of product options but also in the speed of delivery. Same-day delivery is gradually paving way for delivery within a few hours’ time. This requires rethinking the product placement and logistics on the part of the brands.
Accurate forecasting and data analysis, coupled with automation, can help brands make better decisions and place the right products close to their customer base. In-season sales and inter-warehouse transfers can further help meet the changing demand of the local market. More and more brands are now opting for distributed warehousing and on-demand warehousing, allowing brands to place the most sought-after products as close to customer clusters as possible.
3. Automation of processesto reduce dependence on skilled labor
One of the most formidable challenges that companies faced during the pandemic was the shortage of skilled labor. This often made handling of equipment and technology difficult as most of the workforce lacked adequate training.
But with technology solutions like Increff WMS, there is a greater role for automation and much lesser reliance on a trained or skilled workforce. The UX/UI is often very simple and easy to use. Besides, the automatic pop-ups act as warning signals in case of any errors in the input, and prevent the user from advancing, unless the error is cleared at each step. This means just about anyone with basic training can operate the system and keep the show running.
4. Meaningful partnerships for value addition and hyper-localization
The hyperlocal delivery industry is expected to grow up to $3634 billion by 2027 at a CAGR of 17.9% between 2019-2027. An increasing number of brands are now relying upon local partners for their last-mile logistics and other specialized tasks.
Hyperlocal partners are most effective in supplying goods like drugs and groceries that require quicker fulfillment. They reduce the reliance on the larger supply chain and provide for better business continuity in case of disruptions elsewhere. However, establishing a meaningful partnership with hyperlocal players means brands must integrate with them seamlessly on a robust technology platform, making them a part of their supply chain.
5. Sustainable retailing
Using technology and automation to route goods through the shortest possible pathways means savings for brands and other stakeholders, and also reduced levels of emissions. Greater levels of accuracy mean the reduced likelihood of returns and therefore elimination of additional transportation. By leveraging options like distributed warehousing and placing goods closer to the customers, brands are also able to create shorter supply chains, maximize sales and boost sustainability in retail for a better future.
With technology as the main driving force, these crucial trends are all set to reshape the retail industry and make a lasting impact on how the business is going to evolve from here on. Quite evidently, these trends are expected to create value for all stakeholders, including the environment.
Increff management has a wonderful combination of rich merchandising experience and cutting edge technology, one of the biggest challenges for fashion retailers has been continuously improving first quality sell-through, which Increff has really been helpful by improving the relevant merchandise available on the floor.
CEO, Celio Future Fashion Pvt. Ltd.
Increff management has a wonderful combination of rich merchandising experience and cutting edge technology, one of the biggest challenges for fashion retailers has been continuously improving first quality sell-through, which Increff has really been helpful by improving the relevant merchandise available on the floor.