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Digital Transformation of Retail Supply chain

Cloud Services / Dynamics / IT Transformation / Technology Advisory

Digital Transformation of Retail Supply chain


“Don’t let the digital supply chain scare you. Big data, IOT, cloud, AI, drones and deep learning are just ways to improve the supply chain” -SupplychainToday


It is evident that the Retail business have seen the adverse effect on supply chain operations due to the emergence of pandemic in 2020 which puts lots of pressure on supply chains, exposing several drawbacks and serious shortcomings. As we crossed through the pandemic with invention of trends which showed how the way consumer shop has also changed. This also transparently proved that supply chain operations can be a differentiator which makes brand value for your business and customers. However, it is vital to digitally enable your supply chain to complete customer expectation and lower overall expenses. Let’s first dig into what is digital transformation exactly. It can be defined as a process which objective is to improve an entity (can be an organization, system, or supply chain) by triggering important changes to its properties through combination of information, computing, communication and connecting technologies. Here, the application of Industry 4.0 technologies for rebuilding and reconfiguring global supply chains, cannot be ignored.

Digital Transformation benefits for Retail Supply Chain:

Warehouse operators are working towards order fulfilment and many related challenges and investing in innovative technologies and digital processes to adapt their supply chains. It is a new mindset which implement technology that works together alongside humans and existing processes. Here are the main benefits of a digitally transformed supply chain that can help the brand to stand unique.

Same day and Next day delivery

42% of warehouse operators says consumers are raising expectations on fast shipping times which can be around same day/ next day delivery. According to My Total Retail, when a company does not offer same-day delivery, nearly one-third of consumers feel frustrated. 74% consumers are more likely to re-purchase from the retailer if they receive same-day delivery. But it is vital that for the same day and next day delivery needs automated workflows and strategically inventory management. An Integration between your eCommerce platform and order management system to sync new orders in time to your warehouse to pick and pack for the next day delivery.

Omnichannel fulfilment

For faster delivery of products retailers offers various delivery options such as Buy Online, Pickup Instore (BOPIS), curb side delivery or pick up locations. 68% of consumers have made multiple purchases with BOPIS. Their main reasons for using it are saving on shipping costs (48%), speed (39%) and convenience (28%). BOPIS can be profitably implemented by integrating your ecommerce and brick and mortar operations for a smooth experience to the customers.

Real time Inventory visibility

For the seamless operation of supply chain, it is required to have a global view of inventory and orders across multiple sales points allowing you to be aware of the location of your inventory. So, the accurate information of entity availability across various sales channels can help in increased purchases. Visibility into real time inventory also offer a chance to retailers to planned moved their inventory within their warehouse and fulfilment centers. The efficient inventory management optimizes the overall costs and help in rising revenue.

Lower cost and improved shipping service

An online ecommerce results in rising cost of shipping and delivery due to transportation, warehousing, inventory storage and packaging and material expenses. Digitally transformed Supply chain can help lower this cost like following:

  • Eliminating serious mistakes such as late or wrong shipments.
  • Dynamic order routing to the most efficient supplier.
  • Accurate demand forecast to keep the inventory on-hand.
  • Automatically assigning orders fulfilment centers.

Resilience in supply chain

Disruption in supply chain due to the pandemic was seriously unexpected. The early adoption of the right technology, people and processes can help a business prepared for the future. Retailers need to build resilience to keep prepared for any challenges that future brings. It is not a fast process, but we think every retailers needs professional help to navigate the complex maze of digital transformation.


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