When it comes to success on the High Street, supply chains are an unsung hero
A fully functioning supply chain is crucial for success. Advanced technology plays a significant role in optimising these supply chains, ensuring that High Street businesses can meet customer demands promptly and effectively. From real-time data integration to automation, various technological solutions are transforming how these organisations manage their supply chains. Let’s explore these solutions and the impact they’re having.
Tackling supply chain complexities
The complexities of modern supply chains require innovative solutions to maintain a competitive edge. Last year, 52% of businesses cited their plans to increase investment and overall budget towards their supply chain. High Street organisations must manage inventory, ensure timely stock replenishment, and streamline operations to provide a seamless customer experience.
Laurence Malthouse, Solutions Sales Director at Gamma, emphasises the importance of data integration in supply chains: “It’s making sure that the data from those shop floors is being transmitted to and from the warehouses, to and from the distribution centres in the right way at the right time, in the right amounts to make sure that the stock itself is turning up.”
Effective data integration ensures that inventory levels can be tracked in real-time, reducing the risk of stockouts and improving overall efficiency. This proactive approach allows High Street businesses to anticipate customer needs and adjust their operations accordingly.
The role of RFID and electronic shelf labels
Technologies like RFID (Radio-Frequency Identification) and electronic shelf labels are revolutionising inventory management. These tools provide real-time updates on product availability and help automate the restocking process.
Mark Kershaw, Gamma’s Sector Head, discusses the benefits of RFID: “You’ve got RFID technology that allows you to track those tags to understand what your stock is in store, and potentially how that stock’s moving around and potentially leaving the store without being paid for.”
With RFID, inventory can be accurately monitored, ensuring that products are always available and reducing the likelihood of theft. Electronic shelf labels further enhance efficiency by providing up-to-date pricing and product information without the need for manual updates.
Automation in supply chains
Automation is another key component in optimising supply chains. By automating routine tasks, greater focus can be applied to more strategic activities that enhance the overall customer experience. After all, 86% of consumers would leave a trusted brand after only two poor experiences.
Hannah Lipczynski, one of our Business Development Managers, highlights the importance of automation: “If you’re a supermarket, for example, very large volumes going through, very transactional, then things like your margins are probably quite thin. So, anything to do with productivity gains, as you’ve mentioned, electronic shelves, that can all automate your supply chain and make sure shelves are stocked with the right products at the right time.”
Automated systems such as robots for shelf stocking and self-checkout kiosks improve operational efficiency. These technologies can reduce labour costs by up to 50-65%, while also minimising human error. Above all, these changes can assist in giving customers a smooth and efficient shopping experience, while also having a positive impact on the bottom line.
Real-time data and proactive stock management
Knowledge is power, and on the High Street, real-time data is essential for proactive stock management. By using advanced analytics, High Street businesses can better predict demand patterns and adjust their inventory levels accordingly.
Laurence points out the significance of real-time data: “Before you even get to the stock, if you’re dealing with the supermarket, for example, the actual produce, perhaps, making sure that you have, let’s say, automated, robots, automated shelf stacking, making sure that at the end of the day, the supply chain is always giving that customer what they need.”
Making sure your tech is up to snuff ensures that products are always available, and shelves are never empty. Anticipating customer needs means that their shopping experience can be greatly improved, leading to higher customer satisfaction, while also helping to streamline operations to drive revenue and growth.
Enhancing supply chain visibility
If you can’t see it, you’ll never know. So, maintaining visibility is crucial in managing complex supply chains. With advanced tech, High Street organisations can gain a comprehensive view of their operations, from the warehouse to the store floor.
Hannah elaborates: “It’s interesting because there’s so much beyond that shop front that you necessarily see. The technology on the shop floor is really important, but also of most importance is that data.”
By having access to detailed data on inventory levels, order status, and delivery times, businesses can make informed decisions and optimise their supply chains. This visibility helps to identify bottlenecks and implement solutions to improve efficiency.
Integrating third-party services
No business can go it completely alone – relationships with other businesses can enhance operations across the board. These sorts of third-party services and relationships are becoming increasingly important in retail supply chains. By integrating these services, High Street organisations can offer more convenience to their customers.
Mark notes the role of third-party services: “Third parties are a massive part of any real retail network now because people often want to kill two birds with one stone. So, you need Wi-Fi that can support all of those third parties, those lockers, those distribution centres, those parcel pickup spots.”
Integrating third-party services such as delivery lockers and parcel pickup points allows customers to complete multiple tasks in one visit.
The impact of managed networks – and managed service providers
All this tech needs to function. That’s where managed networks come in, playing a vital role in supporting advanced technology in retail supply chains. They ensure that all systems are connected and functioning efficiently. But it’s not just that; it’s the relationship between the High Street and managed service providers.
Laurence explains: “The role of the managed service provider was somewhat siloed to looking at bandwidth and purely networks and uptime and downtime. What we’re seeing now is a fairly complex supply ecosystem where all those suppliers have to perform well together and communicate together to help our retailers drive those digital initiatives.”
By providing a robust and reliable network infrastructure, managed service providers can help these businesses implement and manage advanced technologies effectively. This support is crucial for maintaining a seamless and efficient supply chain. It is important to note, too, that finding the right managed service provider is key; the relationship is just as important as the tech.
Future trends in supply chain tech
The future of retail supply chains lies in continuous innovation and the adoption of emerging technologies. From AI-powered analytics to blockchain for enhanced transparency, the possibilities are vast.
Mark envisions the future of supply chain technology: “The next big wave will be satellite, and I think that’s going to have a real big impact on retailers and how they work.”
As new technologies emerge, it’s vital to stay ahead of the curve and maintain a competitive edge. By continuously investing in advanced technology, and fostering relationships with managed service providers, High Street businesses can ensure that their supply chains remain efficient and responsive to customer needs.
Don’t break the chain
So, as is abundantly clear from our experts, optimising retail supply chains with advanced tech is essential for success. By leveraging technologies like RFID, electronic shelf labels, and automation, businesses across the High Street can streamline their operations and enhance the customer experience. Real-time data and supply chain visibility are crucial for proactive stock management, ensuring that products are always available when customers need them.
But it’s also about great relationships with managed service providers – you need to find the right partner to elevate your chances of healthy growth.