Entry of big smart stores on the internet has put up turbulent time for grocery retailer sector. Adding to it, growing popularity of discount retailers is pressurizing supermarkets for price cuts and hence efficient competition demands effective cost management. In addition, glitches in forecasting across various retail channels have created issues for major retailers. Hence reworking on the supply chain has become a matter of great importance. Identifying areas where profits can be increased by either improving operations or trimming any unnecessary costs play a key role in improving the supply chain efficacy.
Forecasting & flexibility:
Accurate demand forecast is the key for efficient supply. Especially during peak seasons of demand, they can also pile the adequate stocks as backup in case the demand shoots beyond forecast. This avoids the probable outrage of loyal customers when they can’t find the product they want, when they need it the most. Most grocery retailers adapt the strategy where product would still be available on stores when it runs out of stock online. This balance between online and in-store stock, and its tracking and accurate update by staff becomes crucial. Precise information regarding stock traceability, timely product access and delivery on time across all channels prevents voids in supply chain.
During peak seasons, flexible storage and transport helps to deliver faster, and thereby helps gain an edge over the competition. This strengthens repetitive customer base.
Click and Collect:
This system is gaining popularity among grocery retailers. Here customer buys the products from his online kart and visits store to collect them. While customers can organize themselves for better tasks other than trying to locate the products, they still get to shop by visiting stores and collecting their selection at retailers’ take away kiosk. Shoppers have the ease of online shopping, while they don’t need to wait for the delivery to appear at their doorsteps.Retailers gain by cutting on their delivery costs.
Transparency of stocks throughout the supply chain needs a collective approach to start with. An agile and truly accurate technological platform that provides a clear overview of product accessibility is precisely the retailers’ need. Investing in this kind of system has assured long term benefits. Multi-channel platforms work even better in improving efficacy owing to their ease of access. Protecting retailers’ reputation and timely response to customer needs result in increased revenue and customer loyalty.
As the competition with the discount stores stiffen with grocery retail stores, smaller players in the retail industry must consider strengthening their weak supply chain links. To stay ahead in the industry, technological advancement like Rain+Move becomes a necessity to mitigate price wars to survive in business.