Logistics in the Retail industry

Tuesday, July 9, 2019

Consumers, their demands and needs are constantly changing, and that is why retail and eCommerce companies are in a race to adapt to it. The biggest impact of these trends can be seen in retail logistics, where factors such as rapid delivery and the growing adoption of mobile devices are driving change.

The deliveries in a day or two have become popular and now it can be said that even demanded by the final consumer, the supply chain has been streamlined and adapted to these transformations, and therefore we present in this text some trends that have had greater impact on retail logistics.

These and other trends are the driving force of the change in retail logistics, the innovation that emerges from these trends will benefit not only the consumer, but also retailers and logistics companies to improve processes, increase performance and give companies a competitive advantage.

1. Earlier (and longer) holiday shopping seasons

According to eMarketer, shoppers are visiting retail and online retailers much earlier for the holiday season. Statista reports that 35.5% of digital shoppers planned to start their holiday shopping before Thanksgiving.

This means that the holiday shopping season is getting longer, and starting even before the beginning of traditional shopping, which is black friday. This means that the distribution centers must be prepared for a higher demand for cycles that can cover a full quarter, perhaps more, considering the period of performance that extends up to the month of January.

2. Consumer demand for omnichannel retail experiences.

Experienced consumers are beginning to expect omnichannel retail experiences from their favorite brands, which translates into a consistent and consistent experience across all channels, including online, mobile and in-person. If a customer purchases an item online, for example, the omnichannel model means that the customer can return the item to any brick and mortar location, regardless of where it was purchased.

For retailers who keep online inventory separate from the brick and mortar inventory, this can quickly complicate logistics, especially if those distribution centers are located at opposite ends of the country.

3. Big data / integrated integration technology

Integration technology is another important trend affecting retail logistics, as logistics companies recognize the need to share data transparently and reliably with customers. For example, real-time location tracking along with real-time traffic updates makes it possible to optimize delivery windows.

Adopting these trends allows retailers to better share data throughout their supply chains, connect with customers in more meaningful ways and track inventory more efficiently. The use of software that aggregates data, on demand, helps retailers and logistics companies to make big decisions in an instant and can save time during audits and reorganizations.

4. Adoption of collaborative robots.

This applies to all warehouses, but especially to distribution and retail distribution centers that always strive to improve collection times. Collaborative robots, such as Chuck from 6 River Systems, help improve productivity and efficiency by streamlining selection routes and improving selection rates.

They are particularly attractive for retail distribution and compliance, as the retail industry experiences significant seasonal peak periods (for example, the holiday shopping season mentioned above). Because collaboration robots do not require a new infrastructure, warehouse operators can rent additional robots to accommodate seasonal demands and return them after the peak period.

5. The growing demand for home delivery

Amazon is often considered the driver of the fast trend of home delivery, thanks to its guaranteed two-day delivery through Amazon Prime. Since 96% of Americans have shopped online, it is a trend that is not likely to disappear in the background soon.

Although common stores are still important, there is no denying that retailers must be ready and able to meet the demand for fast delivery. For this, many companies are turning to the technologies mentioned above, such as mobile collaboration robots to improve collection times and speed compliance, as well as integrated integration technology and big data to optimize delivery routes, all with the goal of delivering products directly to consumers’ doors faster than ever.

At DICEX we seek to innovate and move forward with technology to provide our clients and strategic partners with integral solutions that benefit their businesses. Retail logistics is in constant innovation looking to meet the final consumer and their demands, to remain in the market must be added to the changes and provide excellent customer service.