The rise of discount retailers has placed an increased pressure on the Big Four supermarkets to cut costs and compete for the attention of price-conscious consumers.
Large supermarkets need to identify areas where profit can be increased and operations improved. It was reported during the Easter period that Easter eggs had run out days before the celebrations. The Daily Mail reported that supermarkets had miscalculated the demand and shoppers had been disappointed that they were unable to purchase the products they wanted. Several retailers had run out of chocolate eggs online but sufficient stocks were still available in stores.
Points to consider for grocers:
- Integrated inventory for online and in store stock.
- Crucial that staff scan and track products correctly to gain a truly accurate view of a product’s location
- Understanding where stock is, how it can be efficiently transferred and where the demand for a particular item is, can prevent shortfalls by ensuring that stock is more readily available across channels.
- Implement an agile solution that provides a clear overview of which products are available and where. Investing in this kind of technology has long-term benefits, protecting a retailer’s reputation and increasing revenue as consumers need not look elsewhere for the product they want.
- Invest in various multi-channel platforms to improve efficiencies in the supply chain which is a key step towards enhancing a retailer’s offering.
- Flexible warehousing and transport enables retailers to offer a more diverse range of services to customers and will increase the likelihood that orders are fulfilled in more challenging circumstances