Shaping the resilient retail supply chains of the future

Commerce has undergone a monumental shift in both supply and demand since the onset of the COVID-19 pandemic. Disrupted supply chains and inventory shortages presented significant challenges, leading to over-supply and over-investment in warehousing. Three years on from the pandemic, businesses are only beginning to overcome these obstacles. But now they must also contend with customers that expect both pre-pandemic service and post-pandemic innovations. The call for seamless customer experiences is louder than ever.

These evolving engagement and execution frontiers underscore the importance of holistic commerce strategies and the platforms needed to support them. An integrated ecosystem of solutions is essential in building a resilient supply chain in this unpredictable environment.

Where is retail headed?

As the dust settles on the pandemic, retail foot traffic shows signs of recovery, but remains notably lower than pre-COVID levels. Meanwhile, the appetite for online shopping grows. More than half of the respondents in a recent Deloitte survey found the convenience of online retail hard to resist. Younger demographics, in particular, are quick to appreciate the benefits of digital purchases, indicating a willingness to pay premiums for faster delivery options.

Continued consumer engagement online and through eCommerce channels is indicative of the ongoing trend toward an integration of bricks-and-mortar and online shopping. Immersive technologies and seamless connection between physical and digital stores are primed to generate new avenues of growth. Yet with elevated customer expectations comes a caveat: a poor experience can lead to brand abandonment. A study by Khoros highlighted that 67% of unsatisfied customers shared their grievances, with 65% switching to alternate brands.

As a result, it is harder than ever to satisfy customers. Even though there are more readily available substitute SKUs, material scarcity has led to stockouts, disrupting the consumer purchase journey. The intricate web of the global supply chain, with its geographically dispersed suppliers and distribution centers, is particularly vulnerable. Much of this fragility stems from a lack of visibility and control over end-to-end processes.

Predicting the exact trajectory of retail is challenging. However, one thing remains certain: customer expectations are becoming even more demanding. Retail brands that can meet, or exceed, these expectations will secure their customers’ loyalty. Regardless of the direction retail takes, agility is key to responding to new challenges and making the most of emerging trends.

Where does the integration of commerce come in?

The unification of commerce is a business strategy that combines all commerce systems to provide a consistent shopping experience across all selling channels. By enabling real-time tracking of cross-channel customer data, unlocking enterprise-wide inventory insights and providing access to order histories, an integrated commerce ecosystem empowers retailers, 3PLs, wholesalers and B2B suppliers. It also delights customers by giving them the flexibility to purchase products and navigate the experience seamlessly, whether digitally or in-store.

Unlike omnichannel strategies that focus solely on customer-facing experiences, a holistic approach to commerce delves deeper, integrating with back-end system data. All facets of the commerce operation – from POS and CRM to inventory and order fulfillment management – are accessible within a single view. This makes it much easier to keep track of what is happening across the entire business in real time, giving businesses the power to optimize marketing strategies, inventory management and product offerings. This in turn provides opportunities to drive efficiencies, brand loyalty and sales. Recent research by Bain and Aptos indicated that 76% of retailers believe a well-executed unified commerce strategy has a significant impact on overall sales revenue.

What constitutes a unified commerce system?

The order management system, warehouse management system, eCommerce front end stores and enterprise resource planning are just a few examples of unified commerce systems. These are what make a company’s supply chain continuous, bringing the right platforms together to drive harmonious execution. Their goal: to meet the customer’s needs and create brand loyalty, while driving accuracy, speed, efficiency, profit margins and – fundamentally – agility to adapt to a rapidly evolving market.

Benefits of an integrated ecosystem:

• Seamless omnichannel experience: Commerce systems enable customers to effortlessly purchase and return items from any location or platform, creating a cohesive experience whether they shop online, in-store or through mobile apps.
• Real-time inventory management: By synchronizing sales and inventory data, harmonic systems prevent overstocking and out-of-stock scenarios, thereby optimizing inventory levels and reducing lost revenue opportunities.
• Transparent communication: A system that can convey all updates and changes instantaneously and accessibly to every team member, helps to reduce the likelihood of errors and miscommunication.
• Efficient order fulfillment: A unified view of inventory across all storage locations, makes it simpler to fulfill orders from the most convenient and cost-efficient warehouse.
• Improved insights and personalization: The system gathers customer data across all touchpoints, offering sophisticated data analysis for more personalized marketing and tailored shopping experiences. Integration with customer relationship management tools provides even deeper customer insights.
• Consistent branding and service: Regardless of the channel, customers receive the same brand message and the same level of service and information, enhancing brand loyalty.
• Operational efficiency: By bringing together disparate systems into a single platform, UCS streamlines operations and reduces manual interventions and resource wastage.
• Enhanced security: Unified platforms often come with robust security protocols, ensuring that customer data is protected across all channels.
• Scalability: As businesses grow, commerce systems can scale to accommodate new products, services and markets without the need for extensive additional investments in technology.
• Market responsiveness: The agility afforded by adaptable systems enables[DW2]  businesses to quickly adapt to market trends, behavioral changes or supply chain disruptions.

The future of holistic commerce platforms

The importance of holistic commerce platforms for achieving omnichannel success will continue to grow. These platforms will be characterized by cloud-native, microservices-based and API-first architectures, to further facilitate seamless updates and scalability.

Enhanced customer experiences will be supported by a broad spectrum of capabilities and integrations, from order management and inventory visibility to marketplace connectors and dropship options. Furthermore, AI and machine learning will amplify the platforms’ prowess, enabling more personalized customer interactions, efficient demand prediction and cost-effective inventory management.

In a world where the only constant is exponential change, unified commerce and integrated platforms stand as cornerstones for continued success. They empower companies to deliver on customer expectations seamlessly, irrespective of market dynamics. Crucially, they give businesses the capabilities to weather disruption, build more resilient supply chains and forge a future of opportunity and growth.