How retail supply chains are impacted by digitization, sustainability and other trends
4flow has published a pre-study as part of its study series “The future of retail supply chains”. The pre-study, “Trends in retail supply chains”, focuses on key trends in the retail space and their impact on supply chains and logistics. It was compiled by 4flow research.
In response to social, technological and economic trends, businesses need to continuously adjust and develop their products, services and corresponding logistics processes to meet consumer requirements and keep costs at a minimum. Dependent on customer demand, retail businesses especially must pay attention to trends to make strategic logistics investments. This premise provides the motivation for the pre-study “Trends in retail supply chains”.
The pre-study focuses on four disruptive trend categories with associated trends in the retail space – digitization, omnichannel retail, urbanization and sustainability. The implications of each trend for logistics and supply chain are discussed. Due to digitization, for instance, customers have grown used to the new standards enabled by digital technology and expect transparent, reliable and fast delivery. While these expectations bring challenges in terms of supply chain visibility and inventory availability, the trend also provides solutions for other challenges. Digitization helps businesses respond to labor shortages with automated solutions, for instance, and improve their logistics processes with big data and AI applications.
Sustainability, too, has a wide-reaching impact on retail supply chains. From sourcing to sales and warehousing to transportation, the study outlines sustainable methods especially relevant to retail businesses – including direct trade, low-emission delivery options and the efficient use of resources in warehouses and at points of sale.
“With this pre-study, we’re excited to share insights about key trends we see disrupting the way supply chains are managed in the retail sector. From sourcing to warehousing to transportation and even the point of sale, retail supply chains need to be attuned to shifting customer expectations, technological developments and the regulatory framework – and that requires familiarity with the trends shaping the way everyday consumers make purchases”, said Wendelin Gross, head of 4flow research.
4flow research is 4flow’s supply chain innovation lab. In collaboration with renowned research institutes and leading enterprises, the team conducts insightful research and evaluates new methods in studies and pilot projects. 4flow research addresses topics in logistics and supply chain management by taking a scientifically based, results-driven approach. Qualitative and quantitative research methods are combined with cross-functional know-how from all 4flow business lines.
Readers of the pre-study will gain insights into key market developments with the potential to shape the future of logistics in the retail industry. Following sections of the study series “The future of retail supply chains” will build on these trends and provide models and results for some of the most important challenges in outbound and inbound retail supply chains, as well as inventory management.