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Expeditors
Accelerated Adoption: Technology In Retail Supply Chains
Bryan Ransford
Global pandemic lockdowns set off a series of disruptions and delays that put “supply chain” in the headlines and at the forefront of everyone’s minds. These troubles exacerbated the operational issues and dependencies already present in modern-day supply chains.
As a result, many technology companies zeroed in on the supplychain sector for opportunities to develop, market, and deploy new applications. However, most of these enterprises lack an operational understanding of how complex supply chains work in real-world scenarios and circumstances. At a time when teams are already stretched thin, introducing a new platform into your supply chain can stretch resources to the breaking point, even if that new platform is the key (eventually) to unlocking greater efficiency.
This brings us to digital modernization. You may ask yourself, “Is digital transformation even necessary for my business?” recent history has proven that necessity. If you are not digitizing your business, you are already behind the curve and at a disadvantage. A retailer with no online sales channel in 2020 or 2021 was left questioning whether it would survive the extended store closures.
It is estimated that technology initiatives and adoption in the retail industry were accelerated by an average of three years as a result of the pandemic. Encountering issues like supplychain disruptions, inventory imbalances, and new fulfillment processes, retailers recognized the need to be more nimble and responsive to changes in the market. This level of acceptance gives the retail industry a significant advantage when it comes to adopting new technologies.
The retail industry is under immense pressure to deliver goods quickly and efficiently, while also managing costs and complying with regulations. To manage these priorities, complex global supply chains have been set up using extensive vendor networks across multiple geographic regions, subjecting them to significant regulatory burdens. Technology can provide visibility to products (at any point in the supply chain); measurement of supplier performance; identification of trends; agility to change quickly; and control of compliance to reduce risk.
IoT-powered sensors can provide real-time visibility to the supply chain, helping to identify issues and optimize operations. Trade compliance software can help to streamline customs procedures and avoid delays. Ocean cargo forecasting can be used to design a more efficient supply chain that minimizes disruptions. By taking advantage of these technologies, retailers can improve their bottom line while also providing a better customer experience.
The retail industry is under immense pressure to deliver goods quickly and efficiently, while also managing costs and complying with regulations
If you have decided it is time for your business to invest in a new digital platform or tool, it can be daunting to know where to start. Maybe you have heard horror stories of businesses that have wasted time and money on pointless technology upgrades. It can be difficult to know which platforms are worth investing in—and even more difficult to implement them successfully. Many platforms require significant up-front investment and it can take years before you see any return on that investment. Plus,
who is responsible for implementing the new system? The executives who made the decision to purchase it? The IT department? And what happens if things go wrong?
Before signing a contract with one or more of the several emerging SaaS platforms vying for your business, you should consider the following:
Is the platform or tool relevant to a specific problem you are currently facing?
Are you buying a software or a service?
What will the onboarding look like?
How much effort will it take to implement?
Will this platform or tool give you an advantage that will be a differentiator for you amongst your competitors?
What is the rate of change in your industry?
How will this impact the team?
Once the tool is implemented, are there any additional, ongoing costs?
Will your data be private?
When considering new technology solutions to support the supply chain, there are many factors to consider. One of the most important is if it was developed with an understanding of the challenges faced in real-world supply chains and how to eliminate or improve your response to those challenges.
Expeditors have taken the first-hand experience in supply chain gained from over 40 years of working with diverse industries across many geographies to develop the platforms in our digital solutions group. Whether it is trade compliance management, sensor-based visibility, carrier control, and management, or data modeling and engineering, the solutions offered originate directly from the evolving needs of the customers and industries we serve.
Recognizing the importance of building flexibility and resiliency in your supply chain for the next disruption is critical. And having technology built by experts in the discipline will provide greater assurance that the technology delivers what you need.
