3) Communication with clients is key in a digital world...
Gavin Masters from Maginus kicked off the day 1 afternoon session with logistics being the new retail as a theme.
Interestingly, it was highlighted that in a bid to meet consumer demand for next-day delivery and actually offering this, it was self-inflicted pain by retailers. It was seen as a form of customer service, but instead it was about the ease of buying and impulse buying. This in turn has resulted in increased returns, adding costs and complexity to the supply chain.
Retailers are failing to evaluate the true cost of their eCommerce operations, with too many external factors and no visibility in one place and therefore can't ensure it is profitable. It is therefore important to maintain a commercial performance baseline, measuring the true impact of a promotion, event or outage and mitigate the cost of upgrading aging platforms.
So what can UKWA members, especially those offering fulfilment services for retail clients do?
You need consistent two-way communication with clients to understand the demand in the supply chain, including the marketing plan in order to predict peak periods. For example promotions on end-of-season fashion items will likely see increased sales but also increased returns, but what do you do with these obsolete products?
KPIs are important! Use them to measure cost per order, cost per order line, cost per consignment and percentage of revenue cost to fulfil!
Image Right: Photo by SHD Logistics on Twitter