Monday, October 31, 2016

RETAIL VISIBILITY

Visibility is not enough. Retailers, especially omnichannel, need inventory velocity.


As omnichannel needs grow, retailers slowly invest in visibility

Dive Brief:

  • Increased omnichannel needs are driving retailers to slowly overhaul their in-store systems, although at times discounting digital solutions, according to a recent Retail Systems Research benchmark report.
  • Improved order management and inventory visibility are among retailers' top priorities for 2017, with 46% and 37% planning an upgrade within the next year, respectively. 
  • Additionally, budgets show 1 in 4 retailers will implement analytics to evaluate crosschannel data over the next year, in efforts to understand and optimize omnichannel sales.

Dive Insight:

Precision of accurate, quick visibility is a necessity for retailers and competing without it is impossible in today's demanding market. But perhaps more importantly, improved visibility can serve to increase purchases, according to OrderDynamics CEO Nick McLean.
While delays in access spark customer frustration and disloyalty, high product replacement speed and inventory availability can lead to additional sales: The likelihood of an in-store upsale is about 70%, McLean told Supply Chain Dive. 
"When you have what the customers want, chances are a further purchase will occur," he said. "Retailers that can deliver what the customer wants, when she wants it, will consistently win business. Also, the sooner a return is processed, the sooner it can become available for resale, let alone product replacement by the original buyer."