Retailers today are faced with unprecedented challenges ranging from shifting retail formats, an overabundance of consumer choice, fast-changing technology, a greater focus on quality and price, and a tough economic climate. Besides the ever-changing nature of the retail industry, country-specific politics, trade and tariff law, international relationships and quality control have further added to the woes of retailers. Retailers must optimize their supply chain, but before that, they need to gain detailed insights into the challenges that some are currently Read more on retail IoT -https://bit.ly/2VIb7Sl facing.

1. APRIL EDITION - 2020
Topics
Top Challenges in the Retail Supply
Chain and How to Overcome Them
Why IoT Edge Devices is the future
of retail industry
b2b2csolutions.com

2. Top
Challenges
in the Retail
Supply
Chain and
How to
Overcome
Them!

3. INTRODUCTION
Retailers today are faced with
unprecedented challenges ranging
from shifting retail formats, an
overabundance of consumer choice,
fast-changing technology, a greater
focus on quality and price, and a
tough economic climate. Besides the
ever-changing nature of the retail
industry, country-specific politics,
trade and tariff law, international
relationships and quality control
have further added to the woes of
retailers.
Retailers must optimize their supply
chain, but before that, they need to
gain detailed insights into the
challenges that some are currently
facing.

4. Top Challenges
in the Retail
Supply Chain &
Logistics
SLIPPING PROFIT MARGINS
- A PERFECT STORM OF RETAIL
CHALLENGES
The profit margin in the retail industry is one of the
lowest across all sectors as retailers face constant
pressure to deliver a razor-thin profit margin. Top
executives working in the retail industry are
prioritizing increasing profit margins for their
operations. However, that remains a herculean task
for retailers as the majority of the consumers are
highly price sensitive. Additionally, the advent of
online shopping has given the consumer a tool to
compare prices across various retailers, which
makes it impossible for retailers to sell for a higher
price. The increasing cost of raw materials,
overheads, and operations add to the misery of
retailers who are already struggling with a meager
profit margin.

5. OPERATIONAL INEFFICIENCY -
MANAGING COMPLEXITY AND
RAPID CHANGE
Managing complexity and rapid change is
probably the most difficult thing for a retailer to do,
yet it’s necessary if they want to maintain an
efficient operation. The retail supply chain usually
lacks visibility across key business departments. The
silos of information existing across each business
unit make it difficult for companies to achieve
operational efficiency. The resistance to opt for the
latest ERP systems to keep pace with the operations
function as opposed to the traditional spreadsheets
doesn’t help the cause.

6. TREND RESPONSIVENESS -
THE EVER - CHANGING CUSTOMER
The modern-day customer is very insistent on
getting the best quality goods at the lowest
price possible. The availability of goods
through multiple channels, customer support,
and choice variety has urged the customer to
seek more options and variety while making
a purchase. The retail supply chain struggles
to keep up with varying customer demand as
they have to stock more seasonal rages and
assortments to keep their customer satisfied.
Additionally, they have to provide such a
large variety of goods just-in-time to serve
customers scattered across multiple markets
and channels.

7. OMNICHANNEL INTEGRATION -
IT’S NOW OR NEVER
Consumer behavior changes very quickly. Now with the
growth of eCommerce, consumers have plenty of choices
before making a purchase decision. Although
eCommerce has a dramatic impact on consumer
behavior, reports show that consumers still love to make
purchases for most products in-store. They usually go to
the internet to search for product information and
compare the price, but would still buy it offline. And
eCommerce is just a part of the bigger picture. When
you merge all your sales avenues, you can reap in profits
like never before.
That’s right. Consumers today use at least three channels
when shopping, spend up to 10 times more and
generate 25-50 percent more profit, with a much higher
rate of customer loyalty. Consistency of product offering,
quality, price and customer experience is required across
all channels. To ensure the success of consistency across
multichannel programs, retailers must align
organizational objectives, transform business processes,
streamline order and inventory management and deliver
consumers pertinent information.

8. TECHNOLOGY SOLUTIONS AND
IOT - THE FUTURE OF THE RETAIL
INDUSTRY
There are many technologies developed for various
businesses that offer various prices and benefits.
Retailers have been looking for the best-automated
solutions to simplify their business processes, yet their
choices often fall on the wrong software, either they’re
difficult to use or don’t have abilities to overcome retail
challenges.
We recommend that you choose a system that’s
specifically created for the retail industry to help you
automate all your retail operations, from managing
inventory and sales to managing prospects and
customers. In addition to easy-to-use, the software
should also provide ease of integration with other
systems, such as barcode scanners and POS. Most
importantly, you need to understand your requirements
very well to help you control your budget wisely and
find the right software faster. And this is where the
Internet of Things (IoT) comes in. If used well, IoT can
catapult your retail stores to the next level faster than
Usain Bolt.

9. HOW TO OVERCOME THESE
CHALLENGES
Going forward, to respond quickly to increasingly
unpredictable consumer demands and ever-more
complex markets with targeted product
development and sourcing decisions, retailers
and brands will need to ensure that their design,
merchandising, logistics and suppliers are more
integrated process-wise than ever before. They
will need a carefully selected stable of sourcing
regions as well as supplier partnerships setup to
provide them with a high degree of control,
agility, and visibility into the end-to-end supply
chain. To simplify global sourcing, retailers need
to transform by adopting collaboration and
becoming more social throughout the enterprise.
Their supply chain business processes from plan
to pay should be streamlined and integrated on a
single intelligent collaboration platform in the
Cloud.

10. BLOCKCHAIN - BUILD A VISIBLE
COLLABORATIVE SUPPLY CHAIN
Blockchain has been making headlines ever since the
cryptocurrency boom of a few years ago. However,
while cryptocurrencies failed to translate into a
replacement for traditional currencies as some
predicted, the blockchain technology which underpins
them shows great promise for many industries.
The transparent ledger concept on which blockchain
operates is perfect for supply chains as it enables all
parties with an interest in a shipment to access and
track the progress of that shipment. Should
something go wrong with a shipment - temperature
control falling outside of acceptable parameters
resulting in spoiled products, for example - the point
at which the error occurred can be established and
dealt with.
Blockchain is short on real-world success stories right
now. However, with huge brands such as IBM and
Amazon Web Services also working to bring
blockchain technology to enterprise applications, we
will likely see these hurdles overcome in a short time.

11. SWIFT RESPONSE-FLEXIBLE,
ABLE AND READY
Accurate, real-time information
integration and sharing provide
flexibility, responsiveness and the ability
to make informed decisions.
Technology-enabled process solutions
such as Retail PLM and integrated
strategic sourcing help retailers to
streamline their supply chains to
manage growing complexity and fast
track their product development.
Collaboration internally within the
operational areas and the external
extended supply chain of partners,
suppliers and vendors are essential to
providing flexibility and the ability to
react quickly to meet delivery dates.

12. AUTOMATION AND ROBOTICS
– THE NEXT LOGICAL STEP
One answer to the shortage in labor is the onslaught of automation and
robotics technology. Amazon now has a workforce of over 100,000 robots
working in its warehouses - picking orders and moving stock around.
Robots and artificial intelligence-powered automation are helping firms
use data more efficiently and effectively than ever before. By breaking
down the silos - separate data streams which previously had no way of
interacting with one another - in enterprise data, artificial intelligence
helps disparate sections of the business communicate and cooperate as
one.
Amazon and many other brands, including Dominos and Food Panda,
have been experimenting with using drones - both aerial and
ground-based - to complete the last mile of delivery. This final leg of a
product's journey to the customer's address is the most labor-intensive and
expensive for brands, so the ability to complete it with robots has the
potential to further reduce costs and increase efficiencies in this area.
Internet of Things technology is allowing for stronger connections between
devices, allowing containers, sensors, data centers, vehicles, and more to
communicate with one another and cooperate at a previously impossible
level - all without the intervention of human operators.

13. CONCLUSION
As with any industry, retail
logistics has its share of
challenges to overcome.
However, by embracing the
opportunities presented in
this article and other
contemporary business
practices, these challenges
can be met, and the retail
industry can grow into a
more effective and
profitable machine.

14. Why IoT is
the future
of the retail
industry

15. HOW MILLENNIALS AND THE INNOVATION
OF IOT IS CHANGING THE RETAIL INDUSTRY
It is no secret that millennials have taken reign as the current
largest generation and have thus become the driving force of
consumer demands, both online and offline. And with a need
for an omnichannel experience, many retailers are burdened
with frictional challenges that are hard to fulfill. From the
supply chain and order fulfillment to the in-store experience,
it’s becoming exponentially challenging to meet the
expectations of consumers who have blurred the lines between
the physical retail and digital space. While innovative
organizations have been leveraging technology like mobile
and smart devices to improve the customer experience, many
fall short. They are still searching for an efficient way to
capture consumer data and measure ROI accurately.
However, the rapid advancement of the Internet of Things (IoT)
will soon change the future of retail. Falling costs of the
physical technology, the progress of the cloud, and new SaaS
solutions will make it easier and more efficient for retailers to
deploy smart devices of all types throughout their stores. These
tools deliver real-time, cross-platform dashboard visibility of
data, helping to close the gaps in omnichannel retail, improve
the customer experience, and create the store of the future.

16. Key challenging
areas for
retailers!
MILLENNIALS
As the largest generation,
millennials already have a spending
power of $1.4 trillion and represent
30 percent of all retail sales in
2020. And unlike their
predecessors, they’re also a
problematic segment that demands
a personalized experience with
modern shopping patterns, high
expectations, and very little
patience. Many retailers are still
struggling to implement the
technology-driven, seamless, and
customized expertise that millennials
demand, and those who fail to
adapt will be left behind.

17. A DEMAND FOR OMNICHANNEL
FULFILLMENT
In a world where consumers continuously want to buy,
pick up and return items from anywhere rapidly and
efficiently, retailers can’t keep up. More than 70 percent
of retail and consumer goods CEOs believe that
omnichannel fulfillment was a top priority and reported
they were under threat from other online and big-box
retailers offering same-day delivery. Many were also
worried about failing to meet customer expectations
across all channels and managing costs of fulfillment.
Retailers are challenged with integrating their supply
chains with high speed, visibility, and efficiency from the
warehouse to the customer, and everything in between.
It primarily impacts fashion retailers who must quickly
turn over seasonal inventory, introduce new fashions
with no history of sales and carry an ever-growing mix
of designs, colors, and sizes. Fashion retailers that lack
visibility and ability to put products in the hands of
customers quickly won’t survive.

18. INCREASING LABOR WAGES
As retailers develop omnichannel strategies that
balance the needs of physical and digital
channels, they’re also facing rising labor costs
and a demand for more excellent customer
service. Simply cutting hours or workforce can
have adverse effects by reducing the customer
experience. With no clear, designated solution,
many are experimenting with automation,
simplifying processes, and improving work
design.
Technology like tablets, sensors, and digital
signage can supplement and better enable
human associates to serve customers more
effectively. Self-serve kiosks, mobile payments,
and apps can also allow customers to do more
themselves, reducing the workload on staff.

19. IOT EDGE DEVICES ARE THE BUILDING BLOCKS OF THE STORES OF THE FUTURE
Shortly, IoT devices will reshape themselves to be a wholesale solution to the retail industry. Under the tutelage of
industry pioneers, these IoT devices will work in tandem throughout the entire retail system – transmitting,
receiving, and processing data to ensure everyday decisions are automated and provide information for humans
to make other critical decisions. This in-store experience of the future will optimize both customer and
operational benefits.
In this store of the future, when a customer walks through your retail store door with an enable app, it will
immediately trigger beacons near an entrance. The smart system will then automatically read the customer’s
shopping history. It will then start pushing notifications with information and other essential details like promos
and discounts about products that might appeal to them.
Internet-enabled digital signage will also drive content to stores in real-time, all customized to the preferences at
each store. The IoT ecosystem will give the customer an almost real-time experience of simultaneously shopping
in both the physical and digital worlds. In tomorrow’s retail world, customers will use smartphones or wearables
to quickly scan items for price checks, pull up information or reviews, or post social media commentary. Smart
shelves in the store will detect when inventory is low, and even place new orders with vendors.
That’s right. As mentioned earlier, in the future, IoT devices will all work in sync throughout the entire retail
system.
Smart shopping carts will help customers navigate aisles based on their shopping history, and smart price tags
can enable retailers to quickly and easily change prices to respond to demand. Robots with touch screens may
even move throughout the space to approach and assist customers, while other “smart robots” could work
autonomously to replenish stock and assemble products. All the while, smart devices in manufacturing facilities,
distribution centers, and stock rooms will collaborate to offer real-time insight into customer demand.

20. Areas for IoT
Application
DATA ANALYTICS AND
MEASUREMENT
IoT will collect infinite amounts of data,
offering retailers endless ways to better serve
their customers. Smart devices will soon
automate customer identification and avoid
the need for phone numbers, cards, and
manual entry at the point-of-sale. These
devices will also make such customer data
more detailed, accurate, and actionable. It
will be processed and used throughout the
entire retail ecosystem to create an
environment where the retailer can predict
interest, options, price sensitivity, and
fulfillment preferences as soon as a customer
walks in the door.

21. HOW CUSTOMERS INTERACT
WITH THE RETAIL STORES
IoT will expedite and enhance customer interactions in
the future. The customer will use kiosks, digital signage,
and their app to interact with the retailer. Heat maps will
also help measure how customers move about the store,
how they respond to the placement, and how long they
spend browsing at products. IoT devices will allow
companies to understand their customers’ needs like
never before, better anticipate preferences, and adjust
designs and inventories to meet those demands.
At the same time, retailers will also have to address
privacy and security as IoT collects vast amounts of data
from consumers. Retailers will need to conduct security
risk assessments, minimize the data they collect and
obtain and test security measures before launching
products.

22. RETAIL STORE ENTRANCE
In the future, most of the
components that impact the
shopper experience will be
handled in the digital world.
Digital efforts will support even
touchpoints in the store. When the
customer arrives at the store, with
the app downloaded on their
phone, it will trigger digital
signage with personalized content
based on purchase history. A
store associate can also be
notified of a wearable about the
customer’s arrival and potential
interest.

23. USE OF MOBILE PAYMENTS
Check-out friction and shopping cart
abandonment have cost the retail
industry billions of dollars. Retailers
will soon adopt seamless payment
systems that allow instant payments
from anywhere in the store via a
mobile device, kiosks, and
associate-assisted tablets. Mobility
and self-service by the customer will
radically change the check-out
process in the future, reducing lines
and speeding up transactions. The
use of mobile wallets has already
risen dramatically with the adoption
of NFC readers, with payments
forecasted to reach $410 billion by
the end of this year.

24. A NEW WAY OF MERCHANDISING
IoT will reduce fiction in merchandising by
anticipating customer wants and making it
more targeted and effective. Proximity
sensing lightbulbs, beacons, sensors, and
geofencing will enable stores to engage in
highly personalized merchandising similar
to an optimized online experience. When
combined with robust data about the
customer, retailers will be able to
broadcast personalized offers to customers
in the store. Data from heat mapping will
also open new ways for apparel retailers
to optimize their store layout to find the
most effective arrangement of products.

25. CONCLUSION
After years of promise, IoT has
truly arrived, and it is here to
stay. If you are a retailer and
you are looking for a
long-haul, then, please, we
urge you to digitize your retail
space with the help of IoT edge
devices as soon as possible.
That’s right. You have to make
the jump real more quickly if
you don’t want to be left
behind.

26. KRISH’S OWN WORDS
ON RETAIL 2.0
• Over the years I have always been pondering about the future of brick and
mortar retail. I came to believe that Brick and Mortar is here to stay.
• What needs to change is how Brick and Mortar go to the market and
connects with customers.
• While the newest GenZ and the older Millennials want a great in-store
connected experience they also start their shopping Online.
• It is my firm belief that there is a lot of learning that can be brought into the
brick and mortar to convert to the new click and mortar.
• From digital marketing at the point of shopping, audience tracking, and
measurement, retail Analytics at the brick n mortar there are a lot of digital
innovations that can be integrated into the shop design.
• Hence we decided to offer Retail As A Service to help brands focus on what
they do best, design their merchandise and we do the rest.
• This concept came from the airline industry. Airlines don't buy planes, but
they lease planes.
• Brick N Mortar. Retail should break away from the physical store and be
ready to move to where the customers when, where and how they want to
be met.

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