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Retail Business Review | Wednesday, March 01, 2023
Some of the retail logistics trends to watch out for are the growth in the mobile commerce industry, the adoption of embedded integration technology, and big data analytics.
FREMONT, CA: The emergences of e-commerce, and rising digital literacy have transformed retail logistics. Urbanization and dual-income households are also influencing consumer preferences and perceptions across emerging and developed economies.
A number of technology trends and cultural shifts are influencing retail and e-commerce companies in a race to adapt to the ever-changing needs of their consumers. These trends are most evident in retail logistics, where factors such as rapid delivery and mobile adoption are driving changes.
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Retail logistics is impacted by the following trends:
Mobile commerce continues to grow: The economy was strong before the covid-19 pandemic, and consumers were spending more. In light of the widespread proliferation of smartphones, it's no surprise that mobile commerce has gained traction. During the covid-19 outbreak, brick-and-mortar retailers were forced to temporarily close in the U.S., and consumers avoided retailers that remained open as a form of social distancing, resulting in an increase in e-commerce sales. According to eMarketer, 43 percent of ecommerce merchants reported an increase in sales during the pandemic. Electronics, housewares, and office supplies, which increase comfort and enable people to accomplish more while staying at home, saw a sudden surge in demand, while non-essentials like jewelry and consulting services saw a decrease in demand as consumers cut spending on non-essentials.
Omnichannel retail experiences are in high demand among consumers: Consumers are beginning to expect omnichannel retail experiences from their favorite brands, meaning a seamless, consistent experience across channels, including online, mobile, and in-person. Omnichannel means a customer can return an item to any brick-and-mortar location, regardless of where they purchased it.
When retailers separate their online inventory from their brick-and-mortar inventory, logistics can become complicated - especially if distribution centers are located on opposite ends of the country.
Embedded integration technology: As logistics companies recognize the need to seamlessly and reliably share data back and forth with customers, embedded integration technology is another major trend impacting retail logistics. For example, it is possible to optimize delivery windows using real-time location tracking and real-time traffic updates. Connecting and integrating data is made possible through embedded data platforms, which leverage built-in capabilities.
RFID technology is another example. In combination with other systems, such as inventory management software, RFID can provide real-time location and quantity data, resulting in fewer backorders and more accurate estimates of delivery times and shipping costs.
With embedded integration technologies, retailers can better share data throughout their supply chains, connect with customers in more meaningful ways, and track inventory more effectively.
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