Retail is changing. We all know it. It is changing right now. In just about every conceivable way.
Well, not exactly. Retail is changing only as much as the visions, tools and budgets of retailers and their solution providers enable it.
The retail supply chain has billions to invest. So where are the purchase orders? They are spending, but slowly and in smaller projects. This is largely, but not entirely true.
Retailers, and their supply chain partners are investing billions — each month — with solution providers, software vendors, systems integrators and consultants that have moved past the if, when, why discussions of the retail revolution.
They are investing in solutions – with those solution providers – that have the sharpest understanding of the current, hyper-flux state of retail. They are investing with companies that understand not only the retail need for cost management, but also customer retention and agility.
They are investing with companies that can help them maintain, or enhance their balance.
Retailers can ill afford trade-offs in their operations. What they must be able to find and fund are tools that support the aggressive pursuit of balance in those strategies and tactics that influence customer experience.
- Inventory management/cost reduction OR out of stock mitigation?
- Enhanced digital OR on-site experience?
- Bolder promotions OR more authentic customer experiences?
- Value-based position OR premium branding?
- Enhanced training in customer management OR merchandising?
Without this balance, retailers and their partners will not be able to manage costs without shedding customers – they will not be able to add customers without absorbing margin-eating costs. Are you with us?
It may sound as if we are suggesting that in order to grow and profit, the retail supply chain needs to do everything, and do it perfectly. Not exactly. What we are saying is that the traditional trade-offs that are so deeply ingrained in IT and operations management analysis of technical and tasking options needs to be challenged by the IT and operations managers – and their technology suppliers.
For it is being challenged with just about every single customer interaction in the new retail.
During the next couple of weeks, we will be sharing snapshots of the work that we have been doing with some of the leading suppliers of retail supply chain solutions. Our goal is to help you frame your view on this, your position in this, your approach to this.
Come back again next week when we dive a little deeper into one of these issues.
Tags: cost reduction, customer management, inventory management, merchandising, mobile technology solutions, retail, supply chain