Consumers may not have a deep understanding of how the retail supply chain works, but they may reward brands whose operations have optimized the delivery of a great or differentiated shopping experience. For example, when the item they order is ready to pick up or arrives at their doorstep in a timely manner, they have a compelling reason to give that retailer repeat business.
The benefit of retail efficiency
Strengthening the retail supply chain is arguably more important than ever as companies confront challenging economic headwinds. A survey from Gartner® found that 74% of firms are trying to improve retail efficiency by adding more suppliers and locations in their global supply chain.1 However, other research found that supply chain firms are anticipating a number of threats. A quarter of firms said they are concerned about cyber attacks, while slightly more (27%) cited concern about the possibility of extreme weather events.
Some retail supply chain issues may be beyond a brand's control, but there are technologies available that can help them build agility and resilience around those within their control. Here are four of the top technologies brands are turning to.
A supply chain partner could attach sensors connected to the Internet of Things (IoT) to a truck before it sets off, for example. If something happens along the way, such as a weather issue, 5G could reliably supply retailers with details about what's going on, allowing them to notify customers earlier.
Real-time retail asset tracking
Retail supply chain management is focused not only on whether products make it from a factory floor to a retail shelf but also whether or not they arrive in good condition. That's just one of the advantages brands can gain from using IoT sensors to track assets wherever they are. Real-time asset tracking tools allow brands to collect a wide variety of data—such as temperature or whether an asset has experienced shock or vibrations. LTE-M networks make this technology accessible to retailers and many other organizations. This could be why Gartner® is predicting 25% of supply chain decisions will be made via intelligent edge ecosystems through 2025.2
Robotics
According to recent survey data published in Supply Chain Quarterly, 52% of the business leaders surveyed currently are using or plan to deploy robotics in their workplace. It's not hard to understand why: robotics can help to bring increased reliability of supply chain operations—from picking up items in a warehouse to loading them onto trucks.
In some cases, investing in robotics can free up time for employees to concentrate on more complex problem-solving activities. As experts told the New York Times, robotics could also address longstanding labor shortages in the retail supply chain while boosting productivity, reducing the risk of human error and improving overall retail efficiency.
Digital twins
What if you could create a model of what the ideal supply chain looks like? That's the premise behind digital twins, which allow retailers and other organizations to represent the various entities that get products from point A to point B.
Digital twins combine cloud computing, artificial intelligence, sensors and other technologies to learn more about the physical supply chains they represent. This can allow business leaders to make smarter decisions about how to identify common problems and boost retail efficiency. Other business benefits include improved performance through real-time insights, predictive capabilities and remote monitoring.
Fleet tracking
Important retail supply chain communication isn't limited to what happens within a store or a warehouse. It's also critical that those driving products across long distances be able to stay in constant contact with their team and partners.
In fact, Verizon's 2022 Fleet Tracking Report showed that 57% of firms cited improved customer service as the biggest benefit of deploying fleet-tracking technology to support their operations. This was followed by areas such as improved vehicle maintenance and productivity.
The right fleet tracking solutions can allow drivers to plan more efficient routes while facilitating communication between dispatchers and those on the road. Tracking fleets also means brands can be updated about vehicle locations without constantly calling drivers. Data on tough road conditions or weather issues also can improve employee safety.
With new technological advancements, opportunities to enhance retail efficiency and provide elevated customer experiences will only continue to expand. In other words, there's a lot more in store as brands hope to reimagine customer experiences in 2023 and beyond. As the flow of goods proceeds, retail efficiencies can be hampered by an inability to see where supply chain bottlenecks occur and when. That could change with the adoption of 4G LTE and increasingly 5G, which provides the ability to transmit large volumes of data quickly with low lag times.
Learn more about how to make the most of retail supply chain technology by building the network infrastructure needed for the future of retail.
The author of this content is a paid contributor for Verizon.
1 Gartner, Gartner Survey Reveals 51% of Supply Chain Leaders Increased the Number of Network Locations in the Past Two Years, Barbara Ruane, August 2022.
2 Gartner, Gartner Predicts 25% of Supply Chain Decisions Will Be Made Across Intelligent Edge Ecosystems Through 2025, Sarah Hippold, January 2022.
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