transforming retail supply chain forum square management

For several years, the retail sector has been experiencing an upheaval with crises or changes that have become normal and impact all players in the sector, distributors, suppliers, logisticians. Increased demand from customers who always want more service, personalization and ease of use, acceleration of technological innovations, increased environmental demands and price elasticity are the main challenges that retailers must face.

Faced with these new paradigms, theecosystem retail it must accelerate its transformation to meet customer requirements and the global context, while remaining profitable and competitive. 3 main strategic areas seem to be driving this transformation.

Accelerating supply chain decarbonization

1er key shaft is the acceleration of the decarbonization of the supply chain, which mainly requires reducing the carbon footprint of transport and reducing packaging. These transformations have already begun. Carrefour, for example, in partnership with ENGIE and Air Liquide, intends to operate its fleets with biogas from leftover food in its stores.

Rungis International Market, for its part, launched a customer delivery pooling study with 4 pilot wholesalers in the ORGANIC sector. In addition to meeting increasing customer demands and reducing costs, this grouping would reduce CO2 emissions by 20%.

On the packaging side, resellers will have to, in order to apply the law, allocate 20% of their sales area to bulk products by 2030, which will require a review of the organization of the stores (shelves, maintenance, etc.) and new investments.

Putting the customer experience at the heart of retail strategy

The 2th axle it involves putting the customer experience at the heart of the strategy. While customers still value identifying with a brand, the need for personalization is growing stronger. Take the example of Nike, which offers its customers the “Nike By You” service, allowing everyone to create a unique model.

It is no longer enough to offer a product, the brand must provide a complete service, leading to an evolution of the business model from selling products to offering services. This is the case, for example, of Decathlon, which is testing a daily equipment rental service or Netflix subscription that allows the user to use all the products in a store without having to buy them.

What is the pricing strategy?

the 3th axle concerns the pricing strategy🇧🇷 In an omnichannel context where it is very easy for customers to compare prices, it is more than ever necessary to ensure price positioning in line with the image of the brand and the service offered, while guaranteeing profitability. The current inflationary context further complicates the business.

Responding to these new challenges means for brands an integral transformation of their organisation, from the shopping center to the point of sale, not forgetting distribution and the warehouse. The structure of supply chain It is essential to be able to:

– Ensure product availability in different circuits. To do so, it is necessary to reconcile supply, demand and business objectives: this is the role of S&OP, a collaborative process that aligns all functions with a shared and achievable ambition.

– React and make the right decisions in the face of an unforeseen event. This entails end-to-end visibility into flows and exploration of management data. This is what supply chain control towerspredictive and decision support tools based on artificial intelligence.

– Reduce costs and increase efficiency. The implementation of mechanized and robotized warehouse solutions contributes to this. In the case of home delivery and transport, a mechanized solution can, for example, make it possible to divide the cost of preparing an order by 2.

Finally, support for the sales teams that work at the points of sale is fundamental to the success of this retail transformation🇧🇷

The whole selling power must be accompanied in the evolution of his profession mainly in 3 areas:

– Attend and anticipate customer needs to better advise them on their purchases and offer them new services or related purchases.

– Domain of back office and logistical processes related to new consumption patterns (home delivery, drive, quick commerce for example)

– The daily integration of actions related to the QSSE (Quality, Health, Safety, Environment) especially in food retail.

In conclusion, to respond effectively to these new contexts and drive the transformations described above, agility must be at the heart of the methodology to be implemented. This implies a profound change in the corporate culture: accepting to start even if everything is not framed, being in a logic of testing and learning, and not hesitating to question the models, opening up to experiences or innovations beyond the retail sector🇧🇷

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