More than 80% of retail companies are currently re-evaluating their supply chain. This data from the Capgemini Research Institute confirms the transformation in which retail is immersed and the increasingly strategic importance that these companies attach to logistics. The objective is to be able to respond to new consumption patterns and the current economic and geopolitical context, to find new technological opportunities or the search for new savings margins.
A multitude of factors are redefining the known parameters of retail logistics with new trends that seemed to be defined in the medium and long term, but which are accelerating to become increasingly tangible elements in the reality of the market. We address 10 of the trends that are already being imposed in retail business logistics and that make visible the strategic nature of these processes in order to respond to and anticipate the great challenges in which this sector is immersed:
1. Supplier diversification
Some 79% of retail companies are already diversifying their supplier base to reduce risk and increase resilience, as Capgemini's report points out. This trend reflects a response to the disruptions we have seen in recent years in the international supply chain and how companies are acting to adapt to a global market that continues to be uncertain in order to anticipate potential new network bottlenecks.
2. Nearshoring
According to the same study, 83% of these companies are investing in bringing their production closer to consumer markets. This strategy, which we analysed in depth in the article "Is industry moving its supply chain closer to Europe?", aims to improve agility and reduce dependence on long and complex supply chains, resulting in faster delivery times and greater responsiveness to market demands.
3. Sustainability in transport
The transition towards low-emission transport strategies is gaining momentum across all industries. However, in the retail market it is also a response to the demands of its customers, as an IBM study revealed that more than 60% of consumers are willing to change their shopping habits to reduce their environmental impact.
4. Reducing delivery times
The ability to offer fast delivery has become a critical factor for customer satisfaction and, therefore, for retail companies. Companies are looking for ways to shorten delivery times to improve the customer experience and remain competitive. According to a Gartner report, 87% of supply chain managers considered agility and responsiveness a critical element for their operations.
5. Automation and robotics in warehousing
Automation in warehousing centres has become a tool demanded by many retailers to adapt to the need to shorten delivery times. The implementation of this technology is also valued as a protection mechanism in the face of the contracting difficulties that are beginning to be perceived on a European scale in warehousing operations.
6. Optimisation of inventories
The increase in stock held by retail companies in recent years, as a result of supply problems, has shown the importance of providing greater control over its management. Companies are demanding solutions to respond to peaks in demand, especially during peak seasons such as holidays, to avoid stock shortages and ensure a better customer experience.
7. Omni-channel logistics
The fusion of online and offline operations to offer a better customer experience is a trend that is being transferred to logistics. A good example is Mango, which is already designing its logistics developments under this strategy to unify the supply of B2B and B2C channels in order to optimise traffic.
8. Improved traceability
Retailers are demanding more technological solutions from logistics operators and, in particular, total visibility of the supply chain in order to identify and proactively manage any unforeseen event. In the same way, traceability solutions have become more widespread in the online channel so that customers also have maximum information about their orders.
9. Overnight distribution
Night-time logistics has established itself as a growing trend in retail, confirming the advantages it provides in terms of cost, speed of delivery, logistical efficiency, environmental sustainability and reduction of urban congestion. It is also a trend supported by public administrations, which promote this type of traffic because of its environmental and road management benefits.
10. Reverse logistics
Reverse logistics is an increasingly important strategic element for the retail market, as returns management is crucial to maintain customer loyalty, optimise costs and promote sustainability. This shift has led companies to look for specialised logistics operators to turn reverse logistics into a competitive advantage.
Do you want to talk to an expert in retail logistics? At Rhenus we are integrated logistics operators for the retail business, with global transport and warehousing solutions, from the supply of raw materials to the distribution of products, with extensive experience in sectors as diverse as textiles, perfumery and cosmetics, fast-moving consumer goods, home and lifestyle, and toys, among many others. Contact with us.