Retailers can leverage technology to solve supply chain problems

Retailers Face Persistent Supply Chain Issues That Demand Solutions

In a recent report by Deloitte, the experts recommended that in 2022, “retailers should continue on the path of sanitation they began at the start of the pandemic to realize long-term and sustainable benefits.” In fact, according to the report, 2022 could present opportunities to update and restructure outdated supply chains, revamp inventory management systems, and find innovative ways to transform the physical shopping experience in the era. digital.

“This will likely require whole new ways of thinking and long-term commitments from retailers, but these efforts could forever change the way retailers do business,” according to Deloitte. “That future starts today, addressing near-term retail challenges with an eye to the future.”

True supply chain resilience will likely require significant changes at all levels. This type of change does not happen quickly. “But retailers can’t afford to wait, given that 80% of executives we surveyed believe consumers will prioritize inventory availability over retailer loyalty over the course of the year. to come,” the report said.

The pandemic has changed employee expectations as well as the ways customers shop. Both changes have affected the supply chain: changing employee expectations have contributed to labor shortages, and the convenience of online shopping has increased customer expectations for product availability. “Organizations need more credible information and technology upgrades to develop agile systems that can handle new consumption scenarios,” Deloitte wrote.

LEARN MORE: Read what tech leaders say retailers need to do to reimagine the in-store experience.

Technology can solve supply chain problems and provide competitive advantage

The Deloitte report notes, “One of the key lessons from the pandemic is that consumers have reset their level of reliance on technology and digital platforms.”

The report includes survey results that indicate retailers plan to invest in e-commerce, digital marketing and automated checkout technologies this year. “Over the next five years, executives are buying into the prospects of digitizing the physical world, such as voice commerce, unmanned stores and the sale of digital goods,” the report said.

The report included survey findings indicating that the technology investments many companies are making to address supply chain challenges include tools such as digital inventory management, supply chain analysis software, warehouse management systems from vendors such as Nvidiaand traceability in real time.

All of these tools can mitigate the effects of supply chain disruptions. As the report states, “Executives are making this a higher priority, and forward-thinking retailers should strive to automate their processes as much as possible and consider making significant investments in automated driving technology and last mile delivery”.

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