We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Retailers slow to automate supply chain processes
Forward Thinking

Retailers slow to automate supply chain processes

February 14, 2019
Supply Chain Quarterly Staff
No Comments

Few U.S. retailers have fully digitized their supply chains, citing cost as the main barrier, according to a study from Gravity Supply Chain Solutions, released this week.

The study shows that 85 percent of retailers have yet to digitize their supply chains—meaning that they are using a cloud-based platform with real-time visibility and automation capabilities—despite agreeing that digitization is crucial to creating a seamless omnichannel experience. Without digitization, the study authors say, retailers must rely on manual processes that do not give them full control over their supply chain, risking the quality of the customer experience.

Study findings include:

  • Just 15 percent of U.S. retailers have fully undergone digitization of the supply chain process;
  • 60 percent of U.S. retailers say they see digitization as critical to creating seamless omnichannel retail experiences;
  • At 46 percent, cost is cited by U.S. retailers as the largest barrier to digitization;
  • Lower operation costs (44 percent), higher profit margins (40 percent) and customer experience (36 percent) are seen as the greatest benefits to digitizing by those yet to do so.

For retailers relying on manual supply chain management processes, cost is perceived to be the main roadblock to digitization. The study authors say this could be attributed to a fear of failing to deliver a return-on-investment considering that a further 29 percent of retailers cited the inability to justify cost as the greatest obstacle to supply chain digitization.

"Clearly, the supply chain is the final frontier of retail digitization, and while retailers are anxious about the cost, not moving from manual spreadsheet-based supply chain management towards digitized processes could cost them a whole lot more," Graham Parker, CEO of Gravity Supply Chain Solutions, said in a statement announcing the findings.

Retailers that have digitized their supply chains are reaping big benefits, the study shows. Better decision making is one key area: 76 percent of respondents that have digitized say they believe their organization has enough data and insight to make the right decisions about its supply chain. And more than 55 percent say that order tracking across all touchpoints has improved the customer experience while 53 percent say personalization of products has increased.

The Gravity Supply Chain Solutions study polled 500 retailers from the United States and the United Kingdom.

Technology
  • Related Articles

    Retailers to focus on supply chain strategies in 2019

    Best-in-class retailers have greater supply chain visibility than peers

    Report: Manual processes, lack of visibility lead to big losses in the cold chain

Recent Articles by Supply Chain Quarterly Staff

APM Terminals to add capacity at Port of Mobile

Cargo volume down in Oakland

Safety experts to headline National Forklift Safety Day 2022 program on June 14

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing