Key Points
The Coresight Research team was in New York for the National Retail Federation’s (NRF’s) Big Show. In the Supply Chain and Logistics Workshop, we heard about the dramatic shifts taking place in sourcing and allocation.
These are our key insights from the event:
· Technology enables business transformation and the synchronization of logistics elements, from planning to delivery.
· Retailers will form alliances to better leverage the opportunity to integrate systems.
To see more from NRF 2020, read our coverage of day 1, day 2 and day 3.
At the NRF 2020 Supply Chain and Logistics Workshop in New York, we heard about the dramatic shifts taking place in sourcing and allocation.
These are our key insights from the event:
Technology and Innovation Enable Business Transformation
Technology facilitates the synchronization of logistics elements throughout the supply chain, from planning to delivery. Innovation in business processes can redefine the customer experience in addition to yielding savings, increasing efficiency and even enhancing the company’s sustainability profile.
Retailers can use 3D technology to design, develop, digitally create and customize products—and to shorten manufacturing timelines—reducing the need to make samples, which creates waste. A laser can replicate vintage jeans or create a pair made to order; an ozone machine recreates a distressed look without the heavy use of water and the huge quantities of waste that the water process produces.
We saw many examples of companies implementing a variety of innovative technologies across a range of applications.
- Walgreens employs technology to offer express pickup and delivery in stores.
- Best Buy has enhanced its omnichannel abilities by launching Buy Online, Pick Up in Store services.
- Nordstrom has partnered with robotics supply chain company Attabotics to use robotics at its fulfillment centers.
Retailers Will Form More Partnerships To Leverage Synergies
We expect more retailers to either partner with companies that have complementary capabilities or consolidate, in order to integrate ecosystems and share technical data. This would also bring advantages of scale. Retailers will most likely seek partnerships with non-competitors or retailers in complementary sectors, but we would not be surprised to see even direct competitors teaming up when it makes sense for them to do so.
For example, Walgreens now offers pickup services for Kroger customers for grocery and personal care orders. The pharmacy store chain has also partnered with Sprint, and each offers one another’s services: Sprint Express has locations inside some Walgreens stores, while Walgreens gift cards are offered to new customers at Sprint stores.
Source: Coresight Research
