E-commerce has lately become India’s fastest growing and most exciting channel for varied commercial businesses. The Indian e-commerce market is expected to grow to US$200 billion by 2026 from US$ 48.5billion as of 2018. This surge in e-commerce has forced retailers to rethink the execution of brick-and-mortar operations and, to a greater extent, supply chain operations. However, the move to omnichannel fulfillment isn’t the only change influencing retailers’ modernization strategies.
With economic uncertainties lingering longer than expected, retailers and their suppliers feel pressured to stockpile goods as a cautionary measure. This is to avoid inventory shortages, which often lead to fulfillment delays, lost sales and lost customers.
The challenge is that warehouses and distribution centers are approaching maximum capacity. Retailers and supermarkets must find new ways to maximize available floorspace if they want to meet customer expectations and contain supply chain costs during unsettling times.
They must also implement new warehousing workflow structures to increase fulfillment velocity. Marketing tactics such as next day delivery perks and ‘back in stock’ emails fill up consumers’ inboxes each day, hoping to incentivize both impulse and repeat purchases. Buyers who are urged to ‘buy now’ expect retailers to ‘deliver now.’ If the quality or speed of service is lacking, they’ll simply go to competitors who can meet their demands. Hence, retailers must modernize their warehouses in order to survive.
There are a few ways to accommodate all the different items that customers will want in the next few years and make it possible to deliver those goods with the velocity required to satisfy customers’ high standards:
Adding warehouses and expanding floorspace
According to Zebra’s Warehousing Asia Pacific Vision Study, decision makers have reported increasing the warehouse footprint and adding new facilities. Further, about 88 percent of decision makers are in the process of or planning to expand the size of their warehouses by 2024, with 85 percent anticipating an increase in the number of warehouses during this timeframe. Online shopping has pushed organizations to reconfigure their supply chains and find space in, or close to, large cities.
The ongoing success of digital retail businesses such as Amazon, ASOS, eBay and Ocado – as well as smaller e-commerce start-ups – are a testament to what can be achieved by expanding warehouse space.
Mobilizing employees with enterprise-grade mobile computers, augmented reality and more
Warehouse efficiency starts with employees – the backbone of an organization. Mobilizing operations staff with smart computer technology is the best place to start, as it delivers actionable intelligence that workers need to carry out tasks quickly and accurately.
Today’s rugged enterprise-grade Android™ mobile computers have built-in barcode scanners, touch screens and key capture, retrieving and distributing data needed to collate orders, confirm inventory availability and location or prepare items for shipping. These sophisticated devices can also pool data from multiple sources, such as sensors or RFID locationing systems, and connect with advanced technologies, such as augmented reality (AR) or automation systems, to simplify complex processes. For example, an AR application on a smartphone can tell a worker the precise location of an item on the pick list or where to put away items.
As a bonus, most retailers are already using Android devices in their stores. So, there is continuity in mobile platform management, even if warehouses workers are using Android handheld computers with dual key-based and touch screen data input options, while store associates are using all-touch mobile computers.
Moving from a ‘system of record’ to a ‘system of reality’
Retailers need enterprise-wide visibility to remain agile amidst changing economic conditions and consumer expectations. They need visibility across all fulfillment channels to ensure they have what their customers want, when and how they want it.
That’s where mobility solutions, track-and-trace systems and even Internet of Things (IoT)-powered automation comes in. Together, such technologies enable retailers to ‘sense’ what is happening and what is stored within the warehouse and store in real time. However, records and reports alone don’t deliver results. They inform actions which deliver results.
That’s why ‘modernization’ must be focused on creating a ‘system of reality’ that also enables retailers to ‘analyze’ the enterprise intelligence gathered via mobility, sensor and IoT solutions. Once they understand exactly what needs to be done, it is easy to direct mobile-enabled workers or even co-bots in the warehouse to carry out certain actions to produce better outcomes to support in-store or online operations.
Hyperconnected warehouses will help you capture your edge despite evolving challenges
In the dynamic landscape that we live in today, retailers who want to remain competitive, maintain customer loyalty and stay profitable in store and online must modernize their warehouses. They should embrace technology to sustain traditional operating principles and build a smarter operation that optimizes inventory and elevates the customer experience in today’s ‘now economy.’
DISCLAIMER: The views expressed are solely of the author and ETRetail.com does not necessarily subscribe to it. ETRetail.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
