Let’s Get Digital
Transitioning to a cloud-based platform with real-time visibility and automation capabilities is crucial for retailers to maintain full control of their supply chains. Yet 85 percent of U.S. retailers haven’t digitized their supply chains, finds research from Gravity Supply Chain Solutions.
Although only 15 percent of U.S. retail businesses have digitized their supply chains, 60 percent of respondents recognize the need for digitization to create seamless omnichannel retail experiences.
What is causing the holdup? Cost is the primary reason for relying on manual supply chain processes, say 46 percent of respondents. That hesitation can be attributed to a fear of failing to deliver ROI, considering that a further 29 percent cite the inability to justify cost as the most significant obstacle to supply chain digitization.
However, a majority of respondents do recognize the value in completing digitization:
- 44 percent say the lower cost of operation is the strongest benefit.
- 40 percent say higher profit margins are the greatest draw.
- 36 percent are encouraged by the potential for greater customer experiences.
These perceptions aren’t far off. Of those who have already fully digitized their supply chains, 76 percent say their organization has enough data and insight to make the right supply chain decisions, while more than 55 percent say order tracking across all touchpoints has improved the customer experience. And 53 percent say personalization of products has increased.
The survey’s key takeaway? The majority of retailers understand the value of supply chain digitization and that it presents a massive opportunity to improve customer loyalty and meet consumer demand in the most efficient way possible.