Study: Retailers lack supply chain oversight
Most U.S. retailers haven’t taken a critical step to obtain full supply chain control, according to a new study from Gravity Supply Chain Solutions.
According to the survey of 500 U.S. and U.K. retail executives, 85% of U.S. retailers haven’t completed the digitization processes -- using a cloud-based platform with real-time visibility, and automation capabilities, required to give them full control of their supply chain. Without these capabilities, the study advises retailers will struggle with speed to market, hampering their ability to efficiently allocate supply with demand, which in turn results in lost sales.
Despite this slow rate of digitization, the study finds that 60% of respondents see digitization as critical to creating seamless omnichannel retail experiences.
Retailers still relying on manual supply chain management processes most frequently listed cost (46%) as the main impediment to supply digitization. Another 29% cited the inability to justify cost as the most significant blocker to supply chain digitization.
For those yet to undergo digitization, 44% believe the lower cost of operation would be the strongest benefit, followed by higher profit margins (40%), and greater customer experience (36%).
For those who have fully digitized their supply chains, 76% say they believe their organization has enough data and insight to make the right decisions about its supply chain. More than 55% say that order tracking across all touchpoints has improved the customer experience, while 53% say personalization of products has increased.
According to the survey of 500 U.S. and U.K. retail executives, 85% of U.S. retailers haven’t completed the digitization processes -- using a cloud-based platform with real-time visibility, and automation capabilities, required to give them full control of their supply chain. Without these capabilities, the study advises retailers will struggle with speed to market, hampering their ability to efficiently allocate supply with demand, which in turn results in lost sales.
Despite this slow rate of digitization, the study finds that 60% of respondents see digitization as critical to creating seamless omnichannel retail experiences.
Retailers still relying on manual supply chain management processes most frequently listed cost (46%) as the main impediment to supply digitization. Another 29% cited the inability to justify cost as the most significant blocker to supply chain digitization.
For those yet to undergo digitization, 44% believe the lower cost of operation would be the strongest benefit, followed by higher profit margins (40%), and greater customer experience (36%).
For those who have fully digitized their supply chains, 76% say they believe their organization has enough data and insight to make the right decisions about its supply chain. More than 55% say that order tracking across all touchpoints has improved the customer experience, while 53% say personalization of products has increased.