Month: July 2023

Categories
Technology

5 Top Expert Tips to Unlock Inventory Efficiency Like a Pro

In the ever-evolving landscape of online commerce, businesses face razor-thin profit margins, fierce competition, and the critical significance of each dollar. Navigating this challenging symphony requires adept conductors with its surging demands, intricate supply chains, and market volatility.

However, amid these complexities, poor inventory management is a common obstacle that threatens businesses. The consequences of inefficient inventory practices extend far beyond inconvenience; they can result in substantial financial losses that significantly impact the bottom line. To thrive in this competitive environment, mastering inventory management is indispensable.

In a recent captivating interview with IMRG, our Co-founder, Anshuman Agarwal, unveiled his wealth of knowledge and expertise on the “5 Top Tips To Make Inventory More Efficient.” During this exclusive conversation, Anshuman delved into the critical strategies and industry best practices that can empower retail businesses to optimize their inventory management, streamline operations, and achieve unparalleled efficiency.

Whether you are a seasoned retail giant or an ambitious e-commerce startup, these invaluable tips are poised to revolutionize your inventory management game, providing you with a formidable competitive edge in the bustling marketplace.

Five top tips to make inventory more efficient

Tip 1: Unleashing the Power of Granular Planning

Did you know? By addressing the issues of overstocking and understocking, businesses can achieve a significant 10% reduction in inventory costs. 

In the fast-paced world of fashion, precision is paramount. Anshuman advises that retailers delve into granular planning rather than relying on generalized strategies. Instead of clustering stores, analyzing the unique demand patterns of individual outlets is essential. By closely monitoring daily inventory and sales, businesses can accurately gauge their true potential while identifying areas that may be causing sales losses. 

Furthermore, a deeper examination of specific product attributes, such as sleeve type, fit, and others, can reveal crucial insights into what precisely drives demand. Armed with these granular insights, retailers can make more informed decisions, avoiding the pitfalls of overstocking, restocking, and potential sales loss.

Tip 2: The Art of Automated Buying

In the dynamic world of fashion retail, lead times can stretch as far as six to nine months, accompanied by varying minimum order quantities (MOQs) from diverse vendors and categories. Navigating these intricacies requires a finely-tuned, automated buying process. According to research released by Logistics Trends & Insights, Atlanta, and American Global Logistics (AGL), a majority of retailers, comprising 72%, intend to transform their supply chain operations by incorporating real-time visibility through automation and analytics. 

By leveraging historical data and precise sales projections, automated buying empowers retailers to make well-calculated decisions regarding inventory levels when new stock arrives. This streamlined approach minimizes uncertainties and optimizes inventory with remarkable precision, ensuring success in the fast-paced market.

Freeing retailers from manual tasks allows them to focus on strategic planning and creative endeavors. The symbiotic partnership between human creativity and data intelligence marks a new era of retail excellence, empowering fashion retailers to thrive in a competitive landscape.

Tip 3: Embracing the Efficiency of Automated Replenishment

Many brands fall into the trap of relying on manual and sporadic store replenishment procedures. Recognizing this critical issue, Anshuman passionately advocates for the implementation of automation as the ultimate solution. By harnessing the power of automated replenishment systems that continuously analyze sales trends in real time, retailers gain the upper hand in decision-making for each store’s inventory needs.

The automated system’s prowess doesn’t stop there. It cleverly identifies the nearest alternative style to replace any stocked-out item, ensuring a seamless replenishment process and averting potential sales losses. With this cutting-edge approach, businesses can bid farewell to the haunting spectre of stockouts.

Embracing more frequent and accurate replenishments is the key to unlocking success. By doing so, retailers stay ahead of the curve effortlessly, accurately predicting trends and efficiently meeting customer demands. In Anshuman’s vision, automation is the catalyst for empowering retailers to make informed and timely choices, ultimately propelling their brands to new heights.

Tip 4: Catalyzing Omnichannel Retailing

The omnichannel retailing experience has evolved into a cornerstone of modern retail success. Businesses can maximize customer satisfaction and drive conversions by seamlessly integrating physical stores, websites, and social commerce platforms. The key lies in maintaining a single view of inventory across all channels. Real-time inventory synchronization is crucial, enabling customers to access available products regardless of their chosen shopping platform.

This fosters a seamless shopping experience, making purchases, returns, and stock access effortless for customers. Embracing a robust omnichannel retailing solution elevates efficiency and enhances the overall customer experience, leading to tremendous success in the competitive retail landscape. The future of retail lies in the hands of those who can adapt to these changing dynamics and cater to their customers’ needs, ensuring continued growth and prosperity for their businesses.

Tip 5: Opting for Inter-Store and Dark Store Fulfillment Wisely

With a vision to amplify efficiency, Anshuman recommends retailers should delve into the innovative realm of dark stores. The traditional model of servicing online orders from physical stores often incurs heavy operational expenses, hence the emergence of dark stores as an enticing prospect. These establishments, acting akin to compact warehouses, promise an upgraded and cost-effective system for online order fulfillment.

Dark stores, strategically designed, enable a remarkable reduction in logistics expenses and a noticeable boost to profit margins. Their true essence lies in their ability to swiftly and consistently restock online orders. This not only leads to an enhancement in customer experience – with orders reaching the doorstep faster and more reliably – but also ensures more effective and efficient utilization of inventory.

Anshuman’s push for the exploration of dark stores is a testament to the fact that innovation in retail is ceaseless and that embracing it can truly revolutionize how businesses operate while simultaneously optimizing profits and customer satisfaction.

Final thoughts

Mastering inventory efficiency is a crucial component of a successful retail business. With Anshuman Agarwal’s expert advice and the five transformative tips – granular planning, automated buying, automated replenishment, omnichannel retailing, and discerning inter-store and dark store fulfillment – retailers can unlock unparalleled efficiency gains, simplify operational complexities, and deliver unmatched customer satisfaction. Embrace these strategies, and watch your inventory management soar to new heights of effectiveness and profitability.

Let’s build a future where efficient inventory management sets the stage for retail triumph.

Catch the complete conversation with IMRG here:

Five tips to improve inventory

 

 

Categories
Warehouse Management

Top 5 Warehouse Management Systems in India for Optimizing Your Supply Chain Efficiency

Top 5 Warehouse Management Systems in India for Optimizing Your Supply Chain Efficiency

Have you ever contemplated the intricacy involved in operating a selling platform like Amazon, Flipkart, or eBay? The immense challenge lies in managing billions of products, catering to millions of buyers, and handling a vast array of warehouses, employees, and machines. Due to this monumental scale, manual management of these processes becomes exceedingly arduous. This is precisely where a Warehouse Management System (WMS) can make a significant impact by enhancing efficiency and reducing errors.

However, with numerous options available, choosing the right one for your business can be challenging. In this blog, we will compare five leading WMS solutions: Increff, Infor, SAP, Unicommerce and Vinculum (in alphabetical order). By evaluating their key features, and benefits you can make an informed decision that aligns with your business requirements.

Key features of an Ideal WMS System

An ideal Warehouse Management System possesses several key features that contribute to its effectiveness and efficiency. Here are some essential features that make a WMS ideal:

  • Inventory Management: Comprehensive inventory control, real-time tracking, accurate stock levels, and visibility across multiple warehouses or locations. It should enable efficient order fulfillment and prevent stock outs or overstock situations.
  • Order Processing and Fulfillment: Streamlined order processing and fulfillment workflows, automating tasks such as order allocation, picking, packing, and shipping.
  • Integration Capabilities: Seamless integration with various systems and platforms including e-commerce platforms, marketplaces, shipping carriers, and other essential software solutions to exchange data and streamline operations.
  • Real-time Visibility and Reporting: Immediate access to inventory levels, order status, and performance metrics.
  • Warehouse Optimization: Features for layout optimization, slotting, and picking strategies.
  • Scalability and Flexibility: Ability to accommodate growth and adapt to changing business requirements.
  • Mobile Functionality: Mobile apps or responsive interfaces for improved efficiency.  Mobile apps or responsive interfaces enable warehouse staff to perform tasks, such as receiving, picking, and inventory updates, using handheld devices, improving productivity and accuracy.
  • Integration with Automation Technologies: Support for robotics, conveyor systems, and barcode scanners.
  • Exception Handling and Alerts: Mechanisms to detect and address issues, with proactive notifications.
  • User-friendly Interface: Intuitive and easy-to-navigate interface, requiring minimal training.

Top 5 Warehouse Management Solutions in India

Increff

Increff WMS is a cloud-based solution specifically created for Direct-to-Consumer (D2C) brands, retailers, and third-party logistics providers (3PLs) to ensure precise inventory management, error-free operations, efficient multitasking through inventory serialization and rapid employee training. Increff is an effective web-based software for multi-channel order fulfillment and warehouse management. Its WMS solutions offer a comprehensive overview of inventory across all marketplaces and enable seamless order management. Increff provides the following services:

  • Manpower management
  • Simplified operations
  • Designed for scalability
  • Complete tracking with 100% scan-based system and integration of unpaid principal balance
  • Integration with multiple systems
  • Streamlined end-to-end operations through a single interface
  • Remote deployment of warehouse management system in under 7 days.

Key features:

  • Intelligent Inventory Management: Utilizes advanced algorithms and real-time data for accurate inventory visibility, batch tracking, and automated stock replenishment.
  • Robust Order Processing: Automates order workflows, including allocation, backorder management, and optimized pick list generation, reducing errors and ensuring prompt fulfillment.
  • Warehouse Optimization: Implements intelligent storage allocation, optimized picking paths, and efficient put-away strategies to minimize travel time and enhance resource utilization.
  • Seamless Integration: Integrates with ERP, CRM, and e-commerce platforms for smooth data flow and real-time updates, eliminating data silos and enabling end-to-end visibility.
  • Data Analytics and Reporting: Provides customizable reports and actionable insights into warehouse performance, order accuracy, and inventory turnover, facilitating data-driven decision-making.

Pros:

  • Ability to reveal the final component of an SKU and meet the demand for it.
  • Complete tracking of even rejected items for full transparency.
  • Individual-level measurement of performance, including speed, productivity, and error rates.
  • Elimination of the need for cycle counts.
  • Addresses labor hiring challenges – requires basic literacy skills to operate.
  • Resolves attrition concerns – only 5 minutes of training per screen.
  • Real-time synchronization of inventory and orders, with enhanced integration across online platforms to resolve order excess problems.
  • Enables the generation of any type of report or Management Information System (MIS) without the need for software coding, as data is captured at a highly detailed level.

Infor® WMS

Infor offers its flagship Warehouse Management Solution, known as Infor® WMS. This system enables businesses to achieve agile fulfillment by combining advanced warehousing capabilities, customizable rules, integrated labor, task, and inventory management, as well as 3D visualization in a single user-friendly solution. This unified approach allows businesses to comprehensively evaluate their requirements, incorporate value-added services, prioritize tasks, and eliminate bottlenecks. By doing so, Infor facilitates the attainment of perfect order fulfillment while enhancing throughput and reducing costs.

Key features

  • Receiving & Put-Away: Streamline scheduling, inspections, put-away, returns, cross-docking, and flow-through. Configure locations dynamically. Support voice and RF activities, as well as mixed, rainbow, and multi-pallet operations.
  • Inventory Management: Optimize fulfillment in multi-site and multi-owner operations. Reduce obsolescence with rotation rules and LPN-controlled tracking. Enhance visibility down to bin location level. Conduct real-time, system-driven cycle counting.
  • Picking & Replenishment: Support order, cluster, and consolidation picking, as well as dynamic replenishment. Incorporate voice, RF, ecommerce, kitting, and allocation requirements. Improve stock rotation and space utilization with automated triggers.
  • Wave & Task Management: Prioritize and interleave tasks for B2B and B2C fulfillment. Use configurable rules to optimize cycle times, balance workloads, and build shipments. View outstanding work with flexible graphic queries.
  • Labor Management: Measure, assess, and view DC activities to increase operational efficiency. Identify bottlenecks and balance resources related to inventory, location, workflow, labor, or equipment. Utilize engineered labor standards and real-time performance metrics to inform scenario analyses.
  • 3D Visual Warehouse: Visualize DC activity using an embedded, interactive interface. Infor WMS system serves as a virtual decision hub, allowing users to ‘see’ workflow, bottlenecks, and at-risk inventory. Seamlessly initiate corrective action to alleviate delays and increase productivity.

Pros

  • Advanced inventory management
  • Real-time visibility into warehouse operations
  • Process automation for increased efficiency
  • Labor management for optimized workforce productivity
  • Integration capabilities with other enterprise systems
  • Scalability and flexibility to adapt to changing needs
  • Built-in analytics and reporting for data-driven insights
  • Mobile functionality for improved mobility and efficiency

SAP

SAP offers a versatile warehouse management software (WMS) that enables sellers to efficiently handle a large quantity of goods while conducting agile operations through streamlined and accelerated warehouse processes. Its key features are:

  • Flexible Deployment Options: SAP provides both on-premise and cloud-based deployments, allowing sellers to choose the most suitable option for their specific needs and infrastructure.
  • Comprehensive WMS Solutions: The software offers a comprehensive set of warehouse management solutions, encompassing various aspects such as inventory control, order fulfillment, and warehouse optimization.
  • Integration with Quality, Production, and Track-to-Trace Processes: SAP’s WMS software seamlessly integrates with quality management, production management, and track-to-trace processes. This integration ensures a holistic approach to warehouse operations and enables end-to-end visibility and control over the entire supply chain.
  • Real-time Control of Warehouse Automation Equipment: The software enables real-time monitoring and control of warehouse automation equipment, such as automated picking systems, conveyors, and robotics. This feature enhances operational efficiency and accuracy while reducing manual labor requirements.

Pros:

  • Comprehensive functionality
  • Integration capabilities with other SAP modules
  • Scalability for handling high volumes of goods
  • Real-time visibility into warehouse operations
  • Support for warehouse automation

Unicommerce

Unicommerce WMS software solution is a powerful tool for e-commerce businesses, streamlining warehouse operations with features like inventory management, order processing, integration, and analytics. Unicommerce’s advanced WMS software recognizes the dynamism necessary in a warehouse solution, whereas conventional warehouse management software merely handles the stock location and stock level of commodities in a warehouse. Unicommerce helps you:

  • Centralize the critical functions that are required in omnichannel retail situations
  • Maintain healthy stock levels and ensures location-allocation in numerous warehouse sites
  • Manage 6000+ warehouses
  • Automate purchase management while tracking and routing shipments.

Key Features:

  • Inventory Management: Real-time visibility into inventory levels, multi-warehouse tracking, stock transfers, and automated reconciliation.
  • Order Management: Centralized order processing, order tracking, order splitting, and bulk order processing for multiple sales channels.
  • Warehouse Operations: Wave picking, batch processing, automated task allocation, and efficient pick, pack, and ship processes.
  • Returns Management: Track return orders, automate inspection and re-stocking processes, and facilitate refunds or replacements.
  • Integration and Compatibility: Seamless integration with sales channels, marketplaces, and ERP systems for data synchronization and eliminating manual data entry.

Pros:

  • Streamlined operations
  • Multi-channel support
  • Scalability
  • Built-in analytics

Vin eRetail WMS (Vinculum)

Vin eRetail WMS (Vinculum) is a cloud-based system that assists businesses in effectively handling their inventory, order fulfillment, and logistics. It offers real-time oversight and control over warehouse operations, boosting overall efficiency and customer satisfaction. The solution simplifies catalog management for multiple marketplaces by providing tailored import templates. It ensures precise inventory tracking, batch management, virtual bundling, and efficient logistics with shipping rules and guidelines. Additionally, it seamlessly integrates with ZPL/EPL-supported printers, eliminating the need for external printing platforms. By employing batch and wave picking methods, it improves inventory accuracy, productivity, process efficiency, and space utilization.

It provides the following services:

  • Specific templates tailored to each category for consolidating all product-related information onto a single platform
  • Intuitive interface allowing users to easily access and review item details and select desired marketplaces for listing
  • Creation of marketplace-specific upload templates for streamlined preparation
  • Cloud storage for maintaining and managing master data
  • Real-time payment and inventory reconciliation with seven available options
  • Sales analytics dashboard for monitoring performance
  • Monthly business analysis report for comprehensive insights

Key Features

  • Inventory Management: Vin eRetail WMS solution simplifies inventory control by tracking stock levels, monitoring product movement, and automating replenishment. It provides accurate inventory information for multiple warehouses and sales channels, ensuring better control and minimizing stockouts or overstocks.
  • Order Fulfillment: The system automates order picking, packing, and shipping, streamlining the fulfillment process. It optimizes order routing, assigns tasks to warehouse staff, and provides real-time updates, improving order accuracy and reducing fulfillment time.
  • Warehouse Optimization: Vin eRetail WMS system optimizes warehouse layout and resource utilization. With features like bin mapping, put-away strategies, and picking algorithms, it minimizes travel time and maximizes productivity. It supports advanced order picking methods such as batch picking and wave picking.
  • Integration and Scalability: The WMS seamlessly integrates with e-commerce platforms, marketplaces, and shipping carriers, facilitating smooth data flow and automated processes. It supports scalability, enabling businesses to handle increased order volumes and expand operations without disruptions.

Pros:

  • Increased efficiency
  • Enhanced visibility
  • Improved customer satisfaction
  • Scalable and flexible

Final thoughts

Ultimately, the choice of a warehouse management system depends on your business needs, size, industry, and budget. It is essential to thoroughly evaluate and prioritize the features and capabilities that align with your specific requirements.

By implementing an efficient WMS, businesses in India can optimize their supply chain operations, reduce costs, enhance customer satisfaction, and gain a competitive edge in the market. The top five systems highlighted in this blog provide excellent options for companies seeking to improve their warehouse management and drive overall supply chain efficiency.

Remember, investing in the right WMS is an investment in the future success of your business, so choose wisely and embark on the journey toward an optimized supply chain.

Categories
Warehouse Management

5 B2B Order Management Essential Capabilities You Can’t Ignore

5 B2B Order Management Essential Capabilities You Can't Ignore

Gone are the days when B2B customers were content with a lackluster experience. The tide has turned, and B2B buyers now crave the same level of satisfaction they receive as consumers. Surprisingly, the B2B Future Shopper Report 2023 reveals that a staggering 46% of B2B buyers feel frustrated with their online purchasing encounters. What’s more alarming is that 40% of global B2B buyers have ditched their suppliers in the past year alone. It’s evident that the world of B2B commerce is evolving rapidly, with B2B e-commerce projected to skyrocket to a whopping $3 trillion by 2027.

In this transformative landscape, traditional methods just won’t cut it. Manual processing, spreadsheets, and outdated legacy applications or ERPs designed for back-office tasks can no longer meet the demands of B2B order management. To succeed, companies must embrace a new approach—one that encompasses flexibility, agility, scalability, customization, intelligent decision-making, real-time inventory visibility, and customer-centric capabilities.

For B2B organizations, it’s high time to reevaluate their approach to order management. In this blog, we will explore five essential order management capabilities that no B2B supply chain can afford to overlook.

5 key features a B2B Order Management Solution

Real-time Inventory Visibility

A comprehensive order management system should provide real-time visibility into inventory levels across multiple locations and channels. This capability ensures timely restocking, prevents stockouts, and avoids overstocks. By implementing centralized inventory management, businesses gain a unified view of their inventory, allowing quick assessment of stock levels, monitoring replenishment needs, and tracking product movement. Enhanced visibility enables proactive inventory management, minimizing stockouts and overstocks. Real-time updates ensure accurate inventory counts, enabling reliable information for selling systems. Balancing customer satisfaction and cost control ensures the availability of the right products when customers need them.

Real-time Order Tracking

Real-time order tracking is a fundamental capability in B2B order management, delivering transformative benefits. It provides visibility and transparency throughout order fulfillment, reshaping business operations and customer interactions. With real-time order tracking, businesses boost customer satisfaction, proactively resolve issues, ensure timely delivery, optimize operations, and improve communication.

  • Customer Satisfaction: Real-time order tracking provides B2B customers with visibility and transparency, leading to increased satisfaction and confidence in the buying process.
  • Proactive Issue Resolution: Businesses can quickly identify and address any potential issues or delays in order fulfillment, allowing for proactive communication and problem-solving to maintain a smooth customer experience.
  • On-time Delivery: Real-time order tracking enables businesses to closely monitor orders, ensuring timely delivery and meeting the strict timelines and dependencies of B2B customers.
  • Operational Efficiency: Access to real-time tracking data allows businesses to analyze their order fulfillment processes, identify areas for improvement, streamline workflows, and optimize resource allocation, leading to improved operational efficiency.
  • Effective Customer Communication: Real-time order tracking facilitates accurate and timely updates to customers regarding order status, shipping information, and estimated delivery times, enhancing transparency and minimizing customer inquiries.

Unit of Measure (UOM)

This is a crucial aspect of inventory management in a B2B OMS because it enables efficient shipping of inventory in bulk and facilitates seamless stock transfers. Here are several reasons why UOM is important in this context:

  • Bulk Shipping: Many B2B transactions involve large quantities of products being shipped from one business to another. The UOM allows for standardization and consolidation of inventory units, enabling efficient packaging, handling, and shipping of goods in bulk. Instead of shipping individual items, which can be time-consuming and costly, businesses can optimize logistics by grouping items into larger units of measure (e.g., pallets, cases, or cartons).
  • Accuracy in Stock Transfers: When businesses transfer inventory between different locations or warehouses, having a consistent UOM ensures accurate and seamless stock management. Each location can have its own preferred UOM for receiving and tracking inventory, ensuring compatibility and minimizing errors during transfers. It simplifies inventory reconciliation and reduces the risk of discrepancies or misunderstandings between the transferring parties.
  • Inventory Control and Replenishment: Effective inventory management relies on accurate tracking and control of stock levels. UOM helps businesses accurately measure and monitor inventory quantities, facilitating timely replenishment and preventing stockouts or excess inventory. By setting reorder points and utilizing UOM-based inventory control methods, businesses can optimize their supply chain, improve customer service, and reduce carrying costs.

Integration with Partners and Suppliers

B2B supply chains require seamless integration with partners and suppliers for effective collaboration. An ideal order management system supports standardized communication protocols like EDI and APIs, enabling real-time data exchange. Integration enhances supply chain visibility, optimizes demand forecasting, and reduces lead times, enabling businesses to respond swiftly and improve performance.

Managing partner codes for B2B marketplaces and ERPs is crucial for seamless integration. These codes serve as unique identifiers, allowing accurate tracking and differentiation. By assigning partner codes, the system efficiently manages orders, inventory, and data associated with each partner. Mapping these codes to external systems establishes a reliable connection.

Partner codes streamline order processing and fulfillment by quickly identifying associated partners. This enables efficient order routing and accurate inventory allocation. Automatic application of pricing and contract terms based on partner codes ensures consistency and reduces errors.

Pool-Based Inventory Exposure and Allocation

In a B2B Order Management System (OMS), the use of pool-based inventory exposure and allocation brings numerous benefits, that include

  • Optimized Inventory Management: Pool-based inventory exposure ensures efficient allocation of inventory across B2B sales channels, preventing overstocking and stockouts while maximizing utilization and reducing carrying costs.
  • Fulfillment Flexibility: Reserving inventory specifically for B2B sales channels guarantees availability for fulfilling B2B orders, meeting the unique needs and preferences of B2B customers, such as larger quantities or specialized products.
  • Improved Order Accuracy and Efficiency: Pool-based inventory allocation streamlines order processing, reduces errors, and minimizes overselling by providing accurate inventory tracking and dedicated allocation for B2B sales channels.
  • Enhanced Customer Experience: B2B customers benefit from improved product availability and reliable order fulfillment, leading to higher satisfaction, stronger relationships, and repeat business.
  • Scalability and Growth: Pool-based inventory management supports business scalability and growth by efficiently allocating inventory across multiple channels as B2B operations expand, avoiding bottlenecks and optimizing operations.

By investing in a good OMS that offers these capabilities, B2Bs can improve their order management processes, increase customer satisfaction, and boost their bottom line. But, it is important to note that regardless of whether the business operates in a B2B or B2C environment, there are several key features that a good Order Management System (OMS) should possess. These features not only enhance operational efficiency but also contribute to the overall success of the business. Some of these essential capabilities include:

Routing and Splitting: A robust OMS should have the ability to intelligently route orders to the most suitable fulfillment centers or distribution channels. It should also support order splitting, allowing the system to divide orders with multiple items and fulfill them from different locations if necessary.

Omnichannel Order Handling: With the rise of multichannel selling, an OMS should be capable of seamlessly managing orders from various sales channels, such as online stores, marketplaces, and brick-and-mortar locations. This ensures a consistent and unified customer experience across all touchpoints.

Returns and Exchanges Management: Handling returns and exchanges can be a complex process, but a good OMS should have built-in capabilities to efficiently manage these scenarios. It should provide easy return initiation, automated refund or exchange processes, and real-time visibility into return statuses.

Fast Inventory Synchronization: Timely and accurate inventory updates are crucial to prevent overselling and stockouts. A reliable OMS should offer real-time inventory synchronization, ensuring that inventory levels are accurately reflected across all sales channels and preventing discrepancies.

Seamless Integration: A robust OMS seamlessly integrates with e-commerce platforms, webshops, and multiple WMS. This enables smooth syncing of product information, order details, and customer data, ensuring effective order management. Integration with various WMS platforms optimizes inventory management, order routing, and fulfillment across multiple locations, enhancing operational efficiency.

Store Fulfillment Options: In an omnichannel environment, where businesses may have physical retail stores alongside their online presence, an OMS should facilitate store fulfillment options. This allows customers to place orders for in-store pickup or ship-from-store, providing greater convenience and flexibility.

By incorporating these key features into their OMS, businesses can establish a strong foundation for effective order management, regardless of whether they operate in a B2B or B2C setting. These capabilities empower businesses to streamline their operations, enhance customer satisfaction, and ultimately drive growth and success in the increasingly competitive marketplace.

Categories
Technology

How to Succeed in Retail: Overcoming Supply Chain Challenges with the Power of Advanced Tech Innovation

Overcoming retail Supply Chain Challenges with the Power of Advanced Tech Innovation

As we navigate through the uncertainty of our current times, the age-old adage, “necessity is the mother of invention,” proves accurate once again. Retail businesses are experiencing an unprecedented era of turbulence – inflation is mounting, consumer behavior is evolving at an astounding pace, and the retail landscape is shifting, necessitating more agile, innovative, and sustainable approaches.

Faced with these challenges, how do retailers keep their heads above water? The answer lies in adopting advanced technologies.

#1 Challenge: Can algorithm-driven approaches help in decision-making?

In today’s dynamic retail landscape, businesses have realized that data is not merely an offshoot of transactions; it is a treasure trove teeming with invaluable insights. The hero of this evolving narrative is algorithm-driven retailing, where the alchemy of advanced analytics transmutes raw data into actionable insights, facilitating strategic decisions in the blink of an eye. 

As per Gartner’s estimations, by 2025, algorithmic retailing is set to unlock over $1 trillion in the total value for retailers. This powerful approach tackles the intricacies of consumer behavior, seasonal patterns, market realities, and supply chain trends with unparalleled precision.

Recent research by Harvard Business Review (2023) reveals the transformative impact of this data-driven approach – retailers leveraging algorithmic merchandising have witnessed a significant 15% boost in average order value and an impressive 25% uptick in customer retention rates.

The forward-thinking predictions by Gartner further underline the potential of algorithm-driven retailing. Moreover, it equips retailers with unmatched agility to respond to market shifts. The swift and precise decision-making capability powered by algorithms allows businesses to adapt their strategies promptly and effectively, confronting the hurdles of inflation and supply chain disruptions.

An often underappreciated aspect of algorithm-driven retailing is its contribution towards environmental sustainability. By finessing order quantities and curbing overstocks, it reduces waste and fosters eco-friendly business practices. By 2025, it’s estimated to diminish out-of-stock situations by a staggering 80% and escalate inventory turns by 25%. This data-powered strategy enhances customer satisfaction and profitability by accurately forecasting demand, fine-tuning pricing, and deftly curating product assortments to mitigate the risk of overstock or stock shortages.

By harnessing the power of advanced algorithms, businesses can predict demand with higher accuracy, optimize pricing, and deliver personalized customer experiences on a grand scale. In essence, adopting algorithm-driven retailing is akin to having an indefatigable retail scientist working round-the-clock, continually refining your business operations.

#2 Challenge: Can automation and digitization improve warehouse efficiency?

As the heartbeat of a retailer’s operations, warehouses are transitioning from traditional stockrooms into technologically advanced nerve centers, bolstered by the power of automation and digitization. This revolution is not only redefining the nature of warehousing but also underlining its strategic role in today’s competitive retail landscape.

According to a report by LogisticsIQ, the warehouse automation market is expected to grow from $14 billion in 2020 to $30 billion by 2026, with an impressive CAGR of 14%. These figures underscore the robust trust and investment businesses are placing in warehouse automation and digitization.

Automation delivers unprecedented operational efficiency. It streamlines workflows, reduces errors, and dramatically enhances productivity. Furthermore, manual tasks such as order picking, packing, and shipping can be automated, freeing up valuable human resources for strategic tasks and decision-making.

Digitalization, on the other hand, provides retailers with real-time visibility and control over their inventory. With digital systems, businesses can track product movement, manage stock levels, and respond to changes in demand promptly. According to Zebra Technologies’ Warehouse Vision Study, 77% of decision-makers plan to invest in Warehouse Management Systems (WMS) and digitize their inventory, picking, packing, and restocking processes by 2024.

Moreover, automation and digitalization facilitate predictive analytics, enabling businesses to anticipate future trends, manage resources effectively, and make data-driven decisions. This ability to anticipate and respond to market fluctuations can offer retailers a significant competitive advantage in the dynamic world of e-commerce.

#3 Challenge: Can stores address fulfillment challenges?

In the ever-evolving retail landscape, the boundaries between online and offline shopping are rapidly fading. As consumers demand faster deliveries and better availability of products, retailers are forced to rethink their fulfillment strategies. But amidst this transformation, a new model called “fulfillment from store” is emerging, offering a glimmer of hope for sustainable retailing.

Imagine a symphony of brick-and-mortar stores that serve as more than just customer engagement points. These stores become dynamic micro-fulfillment centers, poised to deliver products with unprecedented speed. This vision is becoming a reality as retailers redefine their physical stores as local distribution hubs, unlocking their incredible potential.

One of the remarkable benefits of the “fulfillment from store” model is the drastic reduction in last-mile delivery costs. McKinsey reports that last-mile delivery expenses account for a staggering 41% of total supply chain costs. By utilizing physical stores as fulfillment centers, retailers can significantly cut down on these expenses. Not only does this lead to cost savings, but also contributes to the reduction of carbon footprints, laying the foundation for a more sustainable retail ecosystem.

Furthermore, this model empowers retailers to bring products closer to their customers, resulting in faster delivery times. The Forrester Institute conducted a study in 2023, revealing that retailers adopting the “fulfillment from store” model reduced their delivery time by an impressive 27%. This not only enhances customer satisfaction but also fosters customer loyalty, as shoppers value swift and reliable deliveries.

Additionally, the consolidation of online and offline inventories enables retailers to optimize their stock levels, reduce overstock and markdowns, and avoid the detrimental effects of out-of-stock situations. By harnessing the power of technology and strategic inventory management, retailers can create a harmonious balance between meeting customer demand and minimizing waste.

While the “fulfillment from store” model holds great promise, challenges remain, particularly within the fashion industry. The implementation of store fulfillment strategies in marketplaces has been constrained primarily by technological limitations. Brands encounter difficulties in deciding which products should be made available on which retail channel and incur elevated expenses when delivering individual items from stores to customers’ residences.

However, with innovation and collaboration, these challenges can be overcome. Technological advancements can empower brands to streamline their inventory management systems, ensuring that the right products are available online and in physical stores. Collaborative efforts between retailers, logistics providers, and technology companies can help drive down the costs associated with last-mile delivery, making sustainable retailing a viable reality.

Ultimately, achieving sustainable retailing requires a collective effort from all stakeholders. Retailers must embrace innovative fulfillment strategies, leverage technology to optimize inventory and forge partnerships to address logistical hurdles. 

#4 Challenge: Can sustainable retailing be truly attainable?

As we navigate through challenging times, the issue of greenwashing has become increasingly prevalent in the business world. Greenwashing refers to the deceptive practice where companies make misleading environmental claims, leading consumers to believe that their products or services are eco-friendly or sustainable when in fact, they are not. Beyond being a matter of bad business ethics, greenwashing undermines the collective efforts to reduce the environmental impact of human activity.

In order to truly achieve sustainable retailing, it is crucial for companies to move beyond greenwashing and embrace genuine environmentally friendly practices. One key aspect of sustainable retailing lies in the use of advanced technology. By incorporating cloud-based inventory management systems, retailers can minimize waste by accurately matching supply with demand. This reduces the need for overproduction and excess inventory, thereby decreasing environmental harm. Furthermore, algorithmic retailing can optimize logistics and transportation routes, leading to a reduced carbon footprint for the retail industry.

The Retail Industry Leaders Association (RILA) has reported that retailers utilizing advanced technologies have successfully reduced greenhouse gas emissions by 19% in 2022 compared to previous years. This showcases the positive impact that embracing sustainable practices can have on the environment. By adopting these technologies, retailers not only benefit their bottom line through increased efficiency but also contribute to the overall goal of achieving sustainability.

However, sustainable retailing goes beyond technological advancements. It requires a holistic approach that encompasses various aspects such as responsible sourcing, ethical manufacturing practices, waste reduction, and the promotion of sustainable products and services. Companies need to be transparent and accountable in their environmental claims, ensuring that they adhere to recognized standards and certifications that validate their sustainability efforts.

 

While sustainable retailing poses challenges, it is not an unattainable goal. It requires a shift in mindset and a commitment from companies to prioritize environmental responsibility over short-term profits. Consumers also play a vital role by demanding transparency and holding companies accountable for their environmental claims. By supporting genuinely sustainable brands and products, consumers can drive the market toward a more sustainable future.

Innovate or fall behind – The ball is in your court

The retail industry stands at a critical crossroads. As challenges mount, technology emerges as the lifeline for survival and prosperity. The path forward may be challenging, but the promise of advanced technology illuminates the way. To thrive in the future, retailers must wholeheartedly embrace these transformative technologies. It is no longer a choice but an imperative for survival and growth. The time is now to adapt, innovate, and harness the power of technology for a successful future in the ever-evolving retail landscape.

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Smart Merchandising Warehouse Management

How to sell effectively on online marketplaces?

How to sell effectively on online marketplaces?

Success in the fast-paced world of diverse marketplaces hinges on selling efficiently. As an e-commerce seller, you face a daunting challenge: standing out in a crowded digital marketplace while streamlining your operations to meet customer demands swiftly. To navigate this intricate landscape, you need the right tools and strategies to optimize your selling process and stay one step ahead of the competition.

Recent statistics demonstrate the undeniable impact of marketplaces in the retail industry. An eMarketer’s Worldwide eCommerce Forecast report indicates that 2023 e-commerce sales will contribute 20.8% of the total retail sales at $6.31 trillion. With millions of potential customers just a click away, it’s clear that embracing marketplaces is essential for businesses seeking exponential growth.

In the words of retail magnate Jeff Bezos, “Obsess over customers: when given a choice  between obsessing over competitors or customers, always obsess over customers.” These words underline the central pillar of successful marketplace selling – prioritizing the needs and expectations of your target audience. 

However, achieving this customer-centricity requires a robust infrastructure seamlessly integrating inventory management, order processing, and fulfillment. By harnessing the power of technology, businesses can supercharge their selling capabilities, enhance operational efficiency, and elevate customer satisfaction to new heights.

This blog will delve into the fundamental strategies and best practices that will empower you to sell efficiently in marketplaces. 

Understanding the online marketplace landscape

E-commerce has transformed the way businesses and customers interact. While earlier, you would go to your favorite shop and restaurant if you wanted to buy some clothes or have food, things have changed now. 

With internet access and countless online platforms, it has become easier to compare multiple options and choose the best. This poses a very fundamental challenge to businesses in offering customer service, product availability, pricing, and more.

But the online landscape also gives businesses a serious advantage. It is the access to a vast customer base, allowing them to tap into a global audience that would otherwise be challenging to reach. 

Moreover, marketplaces provide a tremendous advantage in terms of built-in traffic. With millions of potential buyers browsing marketplace platforms daily, sellers can capitalize on the high visibility and exposure, significantly reducing the need for extensive marketing efforts and customer acquisition strategies. The changing dynamics between customers and businesses mean companies must adapt and change their strategies to sell efficiently on these online platforms.

Strategies for efficient selling in Marketplaces

How to sell effectively on online marketplaces?

The online marketplace landscape is a dynamic and ever-evolving ecosystem that presents many challenges and immense opportunities for sellers. To stay relevant in the market, businesses need to rethink their strategies and stay updated with the latest trends in the e-commerce landscape.

1) Branding

Building a strong brand presence instills trust and credibility among online shoppers. A well-defined and consistent brand image sets you apart from the competition in a marketplace environment where multiple sellers offer similar products. Customers are more likely to choose a brand they recognize and trust, which can lead to increased sales and customer loyalty.

A survey conducted by Salsify in the United States suggests that 43% of consumers are willing to pay extra for the brand they trust. This highlights how important branding is to sell in online marketplaces. As a brand, you must also revamp stories about your classic core products, which you end up reordering from time to time.

Effective branding helps you create a unique identity that resonates with your target audience. A strong brand can also evoke emotions, forge deep connections with customers, and shape their perceptions of your products. 

All in all, branding is a really powerful tool for selling effectively in online marketplaces. By establishing trust, creating a differentiated identity, building emotional connections, and leveraging brand advocacy, you can increase your visibility, attract loyal customers, and drive sales in the competitive marketplace.

2) Inventory optimization 

Optimizing your inventory is crucial for ensuring efficiency in managing online sales in marketplaces. Now there are a lot of aspects to this. Firstly, brands must expose 100% of their inventory on all marketplaces instead of segregating stocks for different sales channels. It will ensure that no matter which platform a customer finds you on, they can access all your stock. This can increase sales by 2 to 3 times.

Brands must also strive to understand style performance. As an online brand always searching to satiate newness in your customers, you might end up buying huge depths in quantities for new styles, which will later end up in landfills. The correct way here will be to launch new designs in small Minimum order quantities/MOQs and check the style performance day to day over a short time. Assessing the Rate of sale (ROS) then and the inventory left in the warehouse, the brand can then take a call on whether to order the style in a large quantity. 

However, the most important aspect of inventory management would be real-time visibility of all your stock, preventing overstocking and stock-outs. It helps track product movement and will allow you to make informed decisions regarding the replenishment or discontinuation of products. A study by Zepra shows that reducing stock-outs and overstocks can lower inventory costs by 10%. 

Real-time inventory visibility also prevents discrepancies, improves operational efficiency, and ensures high order fulfillment . This improves customer satisfaction and loyalty which will benefit your online marketplace ranking in the long run. 

3) Work with data

Data plays a vital role in selling over online marketplaces by providing valuable insights and enabling data-driven decision-making. By analyzing customer data, including demographics, purchase history, preferences, and browsing behavior, sellers can identify trends, patterns, and buyer personas. It can also provide valuable insights into market trends, competitor performance, and customer demand. 

However, with the increase in sales comes the problem of making the in-season decisions of what to put a style on an offer, discontinue it, market aggressively, or re-order it. These decisions are crucial since they directly impact each sales partner’s revenue uplifts and margins.

For this, Increff has built the MS Analytics module to help brands take intelligent actions for each style for every sales partner by recommending data-backed actions at a very granular level. It analyzes the sales KPIs (quantity sold) and the online metrics (page views) data for a particular period and recommends actions like Re-ordering, Marketing, Liquidating & Killing against each style code for every sales partner.

According to Mckinsey Global Institute, data-driven organizations are 23 times more likely to acquire customers, 6 times as likely to retain customers, and 19 times more likely to be profitable! This approach helps businesses make data-backed decisions, optimize product listings, refine marketing strategies, and allocate resources effectively.

4) Store fulfillment 

Store fulfillment can enhance online selling by leveraging physical retail locations to fulfill online orders efficiently. It enables faster delivery to customers because online orders can be fulfilled from stores instead of warehouses which are generally located much farther away. This increases customer satisfaction and improves the overall shopping experience, giving sellers a competitive advantage in the online marketplace.

Fulfilling orders from stores also allows sellers to leverage the inventory available in their retail shops to fulfill online orders. This ensures that customers can access a wider range of products, including those that may be out of stock in centralized warehouses. By tapping into local store inventory, sellers can provide a seamless shopping experience, reducing the risk of lost sales due to stockouts and increasing customer loyalty.

With store fulfillment, businesses can also implement the BOPIS (Buy-online pick in-store) model, which combines the convenience of online shopping with the immediacy of brick-and-mortar stores. Data from FitSmallBusiness suggests that the BOPIS industry is going to grow at 19.7% annually, reaching $703.2 billion by 2027.

It allows customers to browse, buy online, and then pick up their purchases in-store. It is a great way to sell for businesses as it increases the footfall in the stores, leading to more impulse buying.

Conclusion

Marketplaces have revolutionized the retail landscape by providing a platform that connects buyers and sellers on an unprecedented scale. So, it is clear that if businesses want to unlock their full potential, they need to do so by growing online sales. The easiest way to do so is by managing inventory efficiently and fulfilling orders quickly and reliably. 

Brands must also stay on top of offering exceptional customer experience as they can be easily replaced in the e-commerce landscape if they don’t. Customer service expert Shep Hyken says in her Forbes article that 58% of customers are even willing to pay extra for better service.

And ultimately, staying in touch with the latest market trends and incorporating them into the business’s marketplace strategy is paramount for selling online.

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Smart Merchandising

How to Increase Retail Sales During Peak Season: 3 Ways a Retail Tech Partner Can Help

Increase Retail Sales During Peak Season

The peak season sales is a make-or-break time for every retailer, offering a significant opportunity to boost revenue and increase profits. In fact, over the past decade, the average annual retail sales growth was 3.6%, but since 2019, there has been an incredible 30% growth in retail sales. However, managing the surge in demand and traffic during peak season sales can pose significant challenges. To optimize operations during this critical period, relying on gut feeling alone can be risky for businesses, as it is subjective. This is where technology comes in.

Without the right technology in place during peak season sales, businesses risk encountering significant obstacles such as stock shortages, slow checkout lines, and suboptimal customer experiences. These challenges can lead to lost sales and revenue, as customers may choose competitors who can handle the increased demand better. Additionally, retailers may be forced to offer heavy discounts to move excess inventory post-season, reducing their profits.

By investing in the right technology solutions, retailers can equip themselves to handle the surge in demand during peak season and avoid costly mistakes. Furthermore, technology partners can provide valuable insights into customer behavior and preferences, enabling retailers to tailor their offerings for maximum impact and increase retail sales.

In this article, we will explore how the right peak-season technology partner helps you optimize your operations during peak-season sales, from inventory management to order fulfillment and more.

How to maximize sales in retail with help of a retail tech partner

Here are a few reasons why the time to shop for a peak-season partner is now.

Get Ahead of the Game

NRF forecasts that retail sales during 2023 will grow between 4% and 6% over 2022. The sales holiday shopping season is always busy, and this year is expected to be no different. In fact, with more people used to the concept of online shopping due to the pandemic, it’s likely to be even busier than usual. By starting your search for a retail solution partner now, you can get ahead of the game and avoid the rush. This will give you time to evaluate different options and find the partner that best meets your needs. Retailers are expecting inflation which will have an immense effect on both retailers and consumers. People will not buy as they usually do, and retailers will see a dip in profits. A retail solution partner will help you navigate through the tough time by reducing manpower, optimizing storage, inventory transparency, and more. 

Read more about peak seasons here.

Meeting Needs is Made Easy

The global e-commerce market is expected to total $6.3 trillion in 2023. Ensuring that the right products are in stock at the right time is crucial to meeting customer demand and maximizing sales revenue. Allocate your products wisely. Plan which products should go to which store based on consumer data like affinity, men-to-women shopper ratio, etc. The life of merchandisers will get easier if they know which stores require what items. By choosing a partner now, you can analyze historical sales data, forecast future demand, and establish appropriate inventory policies and procedures – which are important to meet the needs of the shoppers.

Ensure Smooth Operations

You do not want to deliver late orders and lose customers. Inventory management, processing orders, ensuring on-time delivery – a good partner can help ensure that everything runs smoothly. Optimize warehouse operations to handle huge order surges during the peak season and avoid hiring an extra workforce to handle such surges by means of a peak season partner. Order routing and splitting can ease the burden on your warehouses, leading to faster order fulfillment. You can also get stores into the picture for faster fulfillment of orders via the store fulfillment model. By choosing a retail solution partner now, you’ll have time to integrate their services into your operations and ensure everything works properly before the busy season starts.

To learn more about it, read here.

In conclusion, maximizing peak season sales is critical for retailers to achieve sustainable growth and profits. With the rapid increase in retail sales, it’s more important than ever to leverage technology to optimize operations during this critical period. Based on the mistakes made in the last season, dilute the inventory by sales like End of Season Sale. Use the Dynamic Markdown technology to find the right percentage of discount to be given on each product.  By partnering with the right technology solution provider, retailers can equip themselves with the necessary tools and insights to meet customer demand, manage inventory effectively, and provide a seamless customer experience. As the sales holiday shopping season approaches, it’s essential to act fast and secure a reliable technology partner to avoid costly mistakes and lost sales. 

The time to act is now, so don’t hesitate to start your search and get ahead of the game. 

Remember, the right technology partner can help you achieve your peak season goals and pave the way for long-term success. Book a demo today!

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Smart Merchandising

How to transform your Fashion Merchandising Strategy for maximum Customer Satisfaction?

Customer satisfaction via Fashion merchandising

Keeping up with changes in customer behavior is vital for retailers seeking to thrive in a competitive market. A pivotal factor in achieving success lies in transforming your fashion merchandising approach to prioritize customer satisfaction. 

Did you know that an impressive 86% of consumers are willing to pay more for an enhanced shopping experience? Furthermore, customers are willing to pay a premium of up to 13% (and even as high as 18%) for luxury and indulgence services, solely driven by exceptional customer experiences. Additionally, hyper-customization significantly impacts spontaneous purchases, as 49% of buyers have made impulse buys after receiving a more personalized experience. 

Join us as we unveil actionable strategies to elevate your merchandising game and surpass customer expectations.

The Experience Evolution – Shifting the Narrative Post-Covid

“The future of retail will be built on one-to-one commerce, where retailers build relationships with individual customers and treat them as individuals, not just as numbers.”- “The Return of One-to-One Commerce”, The Economist

Over the last two decades, there has been a significant shift towards personalized customer experiences. This trend has only intensified in the post-COVID era as retailers recognize the growing importance of catering to individual preferences and needs.

Leveraging technology and data analytics, retailers can now provide tailored offerings based on individual preferences, including customized product recommendations, personalized pricing, and tailored promotions. Considering this, the importance of building one-to-one relationships with customers and delivering personalized experiences to drive loyalty and business growth is emphasized. 

While the rise of e-commerce initially shifted focus away from personalized interactions, the pandemic has prompted a re-evaluation, with retailers realizing its value. By embracing data-driven personalization and meeting customer demands for individualized experiences, retailers can position themselves for success in the ever-evolving retail merchandising landscape.

Evolution of Fashion Merchandising

In 1883, the introduction of the Cash Register revolutionized business operations, enabling automated recording of transactions and inventory. Prior to this, businesses relied on manual record-keeping. In the 50s, shopping malls emerged, offering convenience and a variety of activities. 

In the next decade, big box stores like Walmart provided larger, self-service versions of department stores. In 2010, Warby Parker transformed online shopping by offering customers the option to try on products virtually. E-commerce then became the preferred method of buying, offering research opportunities and dependence on social media influencers in today’s world. The relatively nascent metaverse, a virtual-reality space, allows users to work, play, shop, and socialize. 

It is evident that transitioning towards customer-centric merchandising is becoming more and more necessary – but what does this entail in practical terms? To understand this, we must first define merchandising and its multifaceted tasks that vary across companies. Merchants serve as strategic drivers and collaborators throughout the product life cycle, from design and planning to assortment management, encompassing decisions related to product, store, and sales decisions. 

The methods for making these decisions have evolved, with limited data and tools. Today, technology enables the connection of multiple data sources and automates previously manual processes, facilitating a shift from a product-centric to a customer-centric merchandising approach. Merchandising involves planning, selecting, distributing, and measuring the success of products delivered to consumers. 

It entails category strategy, providing value, and maximizing performance through cross-functional collaboration. Successful navigation of this workflow and addressing industry shifts leading to more consumer-centric assortments and improved financial outcomes. 

End-to-end merchandising process

Essential Factors for Achieving Customer-Centricity

Embarking on the most significant merchandising transformation in decades can feel overwhelming. With numerous avenues to explore, knowing where to begin becomes crucial. To help you navigate this transformative journey, we have distilled the process into five essential steps. These steps will serve as a solid foundation for your merchandising revamp, ensuring a successful start to your journey toward customer-centric excellence.

Gain Insights into Your Most Profitable Customer Segments

To effectively consider your customers during the fashion merchandising process, shifting from a product-centric mindset to a customer-centric approach is essential. Avoid relying on the “average” customer concept and recognize that not all customers are created equal. 

Analyzing customer purchase history, calculating customer lifetime value (CLV), segmenting customers based on profitability, conducting surveys or interviews, utilizing data analytics and CRM tools, and monitoring profitability metrics can help identify and prioritize your most profitable customers. Tailoring your strategies to cater to these valuable customers will maximize your business’s success.

Nike doesn’t just sell products. It tells customers what they want. Nike serves as an exemplary fashion brand that successfully shifted to a customer-centric approach. They gained insights into customer preferences and needs through data analytics and market research. By leveraging digital technologies like the NikePlus loyalty program and the Nike Training Club app, they personalized experiences, providing tailored recommendations, exclusive content, and customized products. Placing the customer at the core of its strategy allowed Nike to build stronger relationships, leading to increased loyalty, higher sales, and substantial market growth. 

Develop an Insight-driven Product Range to Attract and Retain High-Value Customers

Once you have a clear understanding of your value-based segments, you can create assortments that not only attract them but also foster customer loyalty. You can uncover patterns and preferences that resonate with high-value customers by analyzing customer data, including purchase history and feedback. 

Collaborating with merchandisers and designers is essential to translating these customer insights into actionable product concepts. You can refine and improve your product range to meet their expectations through iterative testing and gathering feedback from high-value customers.

Read more about the enduring merchandising strategies for the fashion-forward that will withstand the test of time here.

Optimize Buy Quantities with a Data-driven Approach

Informed buying decisions are crucial for retailers, encompassing product selection and quantity. Leveraging data analytics, retailers can analyze customer buying behavior and preferences to identify potential bestsellers and address underperforming products, optimizing their assortment mix and reducing excess stock. 

Comprehensive computations considering key attributes enable optimal decision-making. Data also helps identify top-sellers and Never-out-of-stock items (NOOS), facilitating effective assortment adjustments and capitalizing on emerging trends. Quantifying purchase quantities should be guided by customer-level repeat purchasing behavior, ensuring the right products are available for the right customers to maximize full-price sell-through.

Hirawats, a fashion retailer, achieved a 36% revenue growth and addressed challenges by leveraging our Merchandising Software. Increff software improved forecasting accuracy, identified slow-moving products, and enabled efficient core category reordering, leading to benefits like increased sales accuracy, improved inventory turn, and reduced sales opportunity loss.

Read more about Hirawats success story here.

Tailor Promotions to Customer Preferences and Buying Behaviour

Understanding the customer-driven profitability of your business provides a fresh perspective on your promotion strategy. By leveraging digital data, you can analyze if low sales stem from low product views or poor conversion rates. This information helps optimize promotion spending and determine when to use broad promotions (e.g., 50% off all shirts) or tailored customer-focused promotions (e.g., 50% off size XL and S shirts in store A based on the DNA of that Store). 

It’s also essential to consider competitor promotions. However, connecting and analyzing the available data can be challenging. Utilizing a merchandising experience platform simplifies data analysis, freeing up time to focus on decision-making. Implement dynamic pricing strategies, offer targeted discounts based on buying behavior, maintain promotion consistency across channels, and deliver personalized offers through relevant channels for each customer segment.

Discover how our merchandising software helped a luxury designer retailer overcome the challenge of dynamic discounting here.

Align Product Exposure Logic with Customer and Profit Considerations

Physical retailers have long-established practices for managing in-store inventory and layout changes due to the cost of change. In the digital realm, algorithms drive product exposure through marketing channels and on-site merchandising platforms. However, these algorithms often have separate objectives and are controlled by different teams. 

To optimize merchandising decisions, it’s crucial for merchants to have control over boosting or burying products dynamically based on inventory and personalized customer attributes. Many existing merchandising systems focus on click-through rates, while product feed engines prioritize advertising returns. 

Online shopping continues to grow, and brands need data-driven insights to make informed decisions on inventory distribution, marketing, liquidation, and style rankings based on revenue per page view and conversion rates. Read more on how to embrace an omnichannel approach to product exposure and delve into the era of phygital operations here.

Applying a customer lens to merchandising decisions

Transitioning to customer-centricity is a gradual process, but acting promptly is crucial. Assess your organization’s position, apply a customer-focused perspective, and prioritize profitability. Start moving in the right direction to cultivate a customer-centric culture supported by effective tools and systems. Here are the essential elements for bringing everything together.

  • Conduct regular market analysis to compare your assortment and pricing structure with key competitors in the customer’s shopping landscape.
  • Gain visibility into competitors’ assortments and pricing strategies globally while also understanding regional nuances in each market you operate in.
  • Customize your assortment and pricing strategies to cater to the customers’ preferences in different regions and channels.
  • Identify your most profitable customers and prioritize their preferences when planning your assortment.
  • Determine purchase quantities based on customer-level repeat purchasing patterns.
  • Personalize promotions based on customer profitability rather than focusing solely on the product.
  • Evaluate the effectiveness of product exposure based on profitability, inventory status, and customer attributes.
  • Analyze inventory levels, page views, and final conversions to assess performance.
  • Shift the focus from analyzing return rates at a product level to a customer-level analysis.
  • Regularly evaluate and optimize the inventory, considering the profitability, customer engagement, and conversion rates.

We acknowledge your competence as a merchandiser, and it’s evident that your current merchandising process is well on its way to becoming customer-centric. We commend your progress so far but remember that you don’t have to navigate this journey alone. The next step for you is to infuse customer-centric thinking throughout the entire product journey.

At Increff, we specialize in assisting retailers and brands like yours in making data-informed decisions. Schedule a call with our experts today to discover how we can support you in achieving true dynamic merchandising.