Most global retailers are only at an early stage of digital supply chain adoption, according to a new report from Blue Yonder and WMG, University of Warwick. The Retail Supply Chain Digital Readiness report benchmarked the digital supply chain readiness of 104 global retailers, revealing that only 15% currently have prescriptive or autonomous supply chains (Level 3 and Level 4 on a scale of 1-4). However, the report also reveals that retailers harbour digital transformation ambitions, with more than half (61%) of retailers saying they want to achieve a prescriptive or autonomous supply chain by 2025.
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@BlueYonder and @wmgwarwick Study: Only 15% of Global Retailers’ #SupplyChains are Prescriptive or Autonomous
Manual demand and replenishment planning processes slowing retailers down
The report shows retailers are not able to react to changes in demand in real-time, with only 8% refreshing demand planning processes on a real-time basis. More than one fifth (22%) of retailers currently use spreadsheets for this process, but almost three quarters (74%) want to switch to prescriptive or autonomous technology in the next five years.
At present, more than half (61%) of retailers manage omnichannel inventory as separate channels. However, three quarters (75%) wish to achieve full omnichannel capability in the next five years, with 41% aiming to use AI to evaluate optimum inventory locations for each customer transaction. One quarter (25%) currently still use spreadsheets to manage replenishment analytics, but retailers know they need a more intelligent approach, with nearly half (46%) planning a fully autonomous approach in five years’ time.
Pricing strategies are too static
The report reveals that when it comes to pricing, the majority of retailers work from a static promotional calendar, with only 13% continually optimising prices dynamically. At present, just 11% of retailers assess multiple factors, such as inventory, margin, and waste, for promotions, but nearly half (46%) expect to be doing this in five years’ time. Currently just a small number use AI (11%) for markdown and promotion; however, in five years’ time they say this will have increased to 43%.
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