Catering for empowered shoppers

Changing customer habits requires new supply chain thinking and solutions, says Swisslog.

Traditionally retailers have relied on shoppers visiting their stores and have looked to grow revenue through a number of means such as more choice, promotions or low pricing policies, says Swisslog's Patrick Seibel, Senior Consultant, Epping/Sydney (Australia) in his blog.

You can read Patrick Seibel's full blog by clicking here

Patrick says: “However, increasingly, customers do not always want to go the store, rather they are looking for greater convenience. Seeing the change in buying habits some retailers are providing a home delivery service, which is good for the consumer, but inefficient in a Distribution Centre: the DCs are usually designed to replenish stores, but not for picking end consumer orders.

“Convenience is a growing trend which impacts all of us in many forms. Convenience applies to how we buy the product and how we receive it. This has quite some impact on the supply chain which not only has to respond to smaller orders but also greater choice.

“It is also challenged by new distribution channels. A mix of distribution channels ranging from bulk delivery in pallet quantities to single item (unit of sale) store-ready picking are driving complexity into an already cost-pressured supply chain model. Add to this the need to preserve product integrity (temperature, humidity, shelf life) for best-in-class customer service. It is a challenge which will separate the wheat from the chaff.”