The post last week covered the extraordinary and permanent change to consumer expectations. Retailers focused on competitive service have to confront fulfilling orders from anywhere, at any time.
Unlimited inventory at all retail locations and distribution centers would solve the problem, but would ruin bottom line profitability.
Some retailers are evolving faster than others. The approach of leaders is to optimize inventory based on understanding their customer’s predicted behavior, adjusting the flow of product within their borders, and tailoring their supply chain delivery to accommodate demand forecasts.
What This Means to Your Small Business
Retailers will want to work with you on the delivery of product to fit their demand forecasts. More flexible distribution networks and more frequent shipping will affect your shipping requirements.
Over time, expect more orders and delivery to more locations, including distribution centers, directly to stores, and direct delivery to the end consumer.
Retailers have an expanding vocabulary that affects you as they become more sophisticated in their response to consumer’s omni-channel expectations. The next two blog topics will review retailer buzz words with which you need to be familiar.Retailers’ Responses to the Extraordinary Change in Consumer Expectations by Steve Brewer