Retail Supply Chain Management
When retail, wholesalers, and suppliers work together, there are significant benefits for each type of business and, most importantly, the end consumer.
Today’s consumer expects the products they want to be in stock at all times. They expect your business (and your suppliers behind you) to anticipate when they need the product and they expect it to be available to pick up in store or be available on your website ready for delivery to them the next day.
This is asking a lot of today’s retailers. In a world of unlimited choice, how can you make sure that you can be there to service the customer when expected and at the speed desired?
Retail supply chain management - benefits
Supply chain management and its successful deployment brings the following benefits to online and real-world retailers.
Real time stock information
You will know exactly what you have in your stock rooms and warehouses at all times – a complete visibility of stock. Using your own knowledge of fluctuating customer demand, you’ll increase accuracy of stock forecasting.
Track & Trace
You’ll be able to track your assets through the supply chain to improve efficiency as a retailer. Total transparency at every stage gives you an undoubted advantage over your competitors and will improve relationships with suppliers and customers alike.
Decreased purchasing and stocking costs
When you increase your accuracy of stock forecasting, coupled with your historical knowledge of the levels of demand for particular lines, your purchasing department will only order the stock you need for the fulfilment of orders. That means less money tied up in inventory and a lower actual cost of ownership per item destined for sale.
More competitive pricing for your customers
As your costs lower and the costs lower of your upper supply network, your cost per unit (both in actual terms and transportation terms) goes down. The lower your overall purchase price and your cost of ownership per item, you can lower the price your customers pay or increase your profit margin.
No matter how skilled your warehousing and customer-facing staff are, if you can reduce manual data entry and use less paperwork as part of your business processes, team members will be able to spend more time on more productive and profitable activities.
To meet customer demand is more than just ensuring that the items they want to buy are available. Even online, retail is a human experience. Customers enjoy talking with your staff members, whether face-to-face or online, and time staff had invested in inventory duties can be redeployed into meeting and exceeding the expectations of customers.
Staff mobility and data capture
Using the latest in portable and mobile technology, staff can capture data and access real-time information while on the move. This means they won’t need to leave the customer to find out the answers to the questions they’ve been asked. They’ll be able to check inventory levels, deliveries, and even update tasks – all while out on the floor.
Diversity of stock offering
You’ll be able to make better buying decisions based on what your customers really want, thus freeing up money that may have been spent on otherwise undesirable stock. Instead, you can offer a wider range of more appealing products and services which will boost customer satisfaction, not to mention sales.
Better relationships with suppliers
With increased information about the level of likely demand for stock over a defined time period, you can share this with your suppliers. This visibility of your likely orders over the coming weeks and month (both in terms of lines and quantities) allows your suppliers and wholesales to benefit from decreased purchasing and stocking costs too as they will not order more for you than you need.
Reduced transportation costs
As you work more closely with your suppliers, you can order on a fewer occasions over the year. This allows you to fully utilise the capacity of your own transportation network or your delivery partner’s network. That means a lower cost of delivery per unit purchased.
Retail supply chain management – tools
VisionID works with online and offline retailers on the retail supply chain management requirements.
Retail supply chain management brings down your costs of purchase, reduces your cost of ownership, improves your profitability, and gives your staff more freedom and mobility to interact with your customers.
Ultimately, it’s your customers that drive your supply chain and by integrating: …
- the enhanced experiences of your customer-facing staff,
- real-time statistics from the sales volumes you bring through,
- purchasing prediction information meaning your cash outlay is best utilised, and
- your buying team’s understanding of the marketplace
…your business makes more money by offering customers on-demand product availability, a wider range of products, and a competitive price advantage over retailers in your space.
To find out more about building your retail supply chain management solution, please contact us or call +353 (0)52 618 1858.