If one word, or rather two words, summarize what will be the trend in the near future for trade activities, it is digital transformation. The optimization of processes by means of digital tools is an increasingly widespread norm that brings with it new and higher standards of quality, and of execution, fulfillment and response times to the market, i.e. agile and dynamic movements. In addition, digital transformation relies on something that no activity, especially field activities, should ever lose, which is flexibility and adaptability to change.
Blue Yonder research of 300 senior retail and e-commerce executives reveals that by 2021, 50% plan to automate their entire distribution centers to improve their customer-facing positioning. E-commerce has been growing steadily and, with it, so has the automation of distribution networks. 14% of retailers have automation in their distribution locations today and 21% expect full automation in the next 12 months, representing the 50% growth we mentioned.
The point of retail automation seems to be crucial: 64 % of retailers currently offer online shopping services, with click and collect and contactless shopping experience. Another important point is modern distribution options. According to a Teamcore analysis, emerging micro-distribution centers will double in the coming years, driven by an emphasis on customer-centric distribution. Clearly, this means a larger and more dispersed network of retailers to supply.
The challenges are, therefore, to address real-time inventory visibility and organization. In the reports cited above, 36% of retailers expressed as a priority that they need to implement real-time improvements in visibility and inventory management. For 51%, the problems are due to stock-outs in distribution centers, and are the point to be strengthened to drive higher sales and margins in all sales channels.
The answer to these challenges lies in the same dynamic movement that drives them: digital transformation. Thanks to a geo-management tool such as GDW Trade, GoDoWorks empowers companies and equips their marketers to guide improvements in their activities and generate intelligent actions supported by clear, consolidated and updated information.
Process optimization strengthens labor productivity in the field and generates improvements in inventory management, pricing and promotions, and in the location of collaborators, improving all aspects of supply to meet the demands of the trade.
At GoDoWorks, we are dedicated to working alongside companies that today, more than ever, must reorient their processes towards this increased productivity.