Retailers baulk at cost of supply chain digitalisation
Three out of five retailers believe digitalisation is critical to creating seamless omni-channel retail experiences, but the cost of implementation is an obstacle for half of retailers, according to a survey by Gravity Supply Chain Solutions.
The survey found that 86 per cent of UK retailers haven’t completed the digitisation processes (using a cloud based platform with real time visibility, and automation capabilities) required to give them full control of their supply chain.
The research found that many of the retailers that are yet to complete digitisation projects say they do however recognise the value in doing so. Lower cost of operation was seen as the most popular benefit among those yet to digitise (34 per cent), followed closely by greater customer experience (31 per cent), and higher profit margins (26 per cent).
Gravity chief executive Graham Parker said: “Clearly, the supply chain is the final frontier of retail digitisation, and while retailers are anxious about the cost, not moving from manual spreadsheet-based supply chain management towards digitised processes that provide speed, efficiency and informed decision making, could cost them a whole lot more.”