Consumers Have a lot of Choices and are progressively More Demanding:
- Consumers require a higher range of high-quality, less costly goods with multi-channel accessibility.
- However, there is a substantial gap between what customers want from an omni-channel retailer and the capacities that most traditional distributors have today, starting with a supply chain that is less than streamlined
- Supply chain systems, procedures, and infrastructure need to be improved, altered, or created, and deployed to deliver just-in-time, consistent, cost-effective service to various markets and channels to satisfy customer demand.
Complexity and change, management operational inefficiency
- Probably the most challenging thing for a traditional retailer to do is to manage omni-channel complexity and the related modifications needed throughout supply chain systems, procedures and facilities, but it is essential if the retailer's objective is to keep or create reliable, timely and effective activities.
- Moreover, an absence of data, information silos, and absence of visibility across key supply chain functions hamper the absence of communication, cooperation, coordination and consistency across organisations.
- Dependence on manual or cumbersome procedures with pre-existing technologies and facilities not suitable for new omni-channels is costly, susceptible to errors, and limits the flexibility and capacity of distributors to compete efficiently with retailers deploying technologies specifically intended for new omni-channels.
Pace from Technology
- Retail omni-channel's growing significance drives the need for more flexible, extensive technology and systems.
- Retailers need to create fresh methods to serve their clients but are often burdened with legacy retail and supply chain structures that are not intended for these new channels of product service.
- Supply chain activities can require up to five distinct software systems at an average distributor. Discrete and disconnected legacy systems often don't lend themselves to seamlessly promoting the complete end-to-end customer engagement that is an omni-channel retail objective.
With trucker shortage last-mile deliveries
- An increasing shortage of truck drivers for distributors is becoming a larger problem. This is expected to become a larger issue for distributors as more than 70% of all U.S. freight tonnage moves by truck.
- A latest Convey shoppers study discovered that 98% think shipping has a brand loyalty impact and that 84% say they are unlikely to shop again after just one adverse experience.
- In order to improve their services, researchers are working on the potential of drones and autonomous vehicles to decrease future stress.