Retailers Focus on Supply Chain Efficiency
More retailers will adopt technology solutions to use customer
information in ways that improve supply chain efficiency in
2005, according to new research by the NRF Foundation (Washington)
and BearingPoint Inc. (McLean, Va.).
Other key findings of the study, “Retail Horizons:
Benchmarks for 2004, Forecasts for 2005”:
- 57 percent of retailers plan to replace or upgrade their
point-of-sale systems within the next 12 months.
- 33 percent of retailers will focus on redesign and relocation
of stores this year.
- 25 percent of retailers plan for half of their merchandise
assortments to be private label.
- 21 percent of retailers list outsourcing as a priority for
2005.
”In today’s competitive environment, retailers
understand the importance of leveraging their customer information,”
said Scott Hardy, a managing director with BearingPoint, one
of the world’s largest business consulting and systems
integration firms. “Shopping data collected from the
store level can be leveraged as valuable real time data and
shared throughout a retailer’s supply chain network
of suppliers, factories and distribution centers to meet anticipated
product demand.”
”Retailers realize that in order to improve their businesses,
it is important for them to reinvest in new technologies and
programs,” said Tracy Mullin, president and chief executive
officer of the National Retail Federation (Washington). “Consumers
are rewarding retailers who utilize resources to feature new
merchandise, new technology and new ideas.”
The study suggests several approaches retailers can use to
gain competitive advantage:
Create true supply chain visibility with a synchronized
demand network that provides trading partners with optimal
flow-through of product and near-real time sharing of forecasts
and demand signal.
Link disparate systems for common connectivity to aid streamlining
operations.
Target and segregate high-value customers from low- and
no-value customers, and provide the right combination of product
and services to earn loyalty.
The study surveyed more than 300 retailers from a wide assortment
of department, specialty, apparel, grocery and home center
stores, with as few as one store to more than 2,000 stores.
For information about ordering the study, visit the online
NRF Bookstore at www.nrf.com/bookstore. [April 2005 PET AGE]
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