Retail Supply Chain Execution: New Requirements To Meet New Demand


The new retail consumer simply doesn’t care about “channels” anymore. Today almost 60% of retailers sell online, and about a third sell through a downloadable mobile application as well. Digitally-enabled and increasingly mobile shopping patterns have fundamentally broken the serial nature of the retail model. While retailers have spent more than five years learning how to sell to digitally enabled consumers across channels, they still have to address the core systems that support those selling activities in a way that will sustain profitability. Due to emerging cross-channel fulfillment opportunities, the majority of retailers in this 2015 study by Retail Systems Research acknowledged a need to rethink their supply chain strategies from the ground up.

Insights from the study include:

  • Average and lagging retailers are distracted by such industry buzz as “same day delivery” while Retail Winners see new fulfillment options as valuable opportunities to be seized.
  • Average and lagging retailers are far more likely than Retail Winners to report that the marketing department’s increasing influence is driving unintended supply chain consequences.
  • Retail Winners put more value on technology-enabled operational capabilities related to supply chain execution—especially predictive demand analytics that utilizes customer data from digital channels.