In today’s retail industry, delivering on promises and purpose is key to winning over consumers. Retail leaders are not only facing the challenge of using technology as a differentiator, but also adapting to new government regulations that prioritize sustainability. The good news is that sustainability and profitability can go hand-in-hand, especially in the retail supply chain.

Promises

Consumers want to know that retailers will meet their order promises. This means having the advertised products in stock and delivering them on time. Effective communication is also essential in case of any unexpected issues with the product or its delivery.

Purpose

Sustainable consumers are looking for end-to-end visibility into a product’s origins and want assurances of its sustainable development and transportation. They also care about the product’s sustainable end-of-life. Meeting all these criteria requires effort and diligence from retail leaders.

Facts about Retail Supply Chains

According to the IBM Institute for Business Value’s 2022 consumer report, the following statistics demonstrate the importance of promises and purpose in the retail industry:

• 82% of consumers prioritize environmentally friendly delivery options, even if they cost more.
• 73% of consumers consider traceability important.
• 71% of consumers willing to pay a premium for traceability.
• 48% of consumers are likely to shop elsewhere if a retailer cannot provide visibility into product availability.
• 63.7% of consumers go elsewhere if the desired product or service is unavailable.

3 Tips for Delivering on Promise and Purpose in the Retail Supply Chain

1. Earn loyalty with elevated options

Offer elevated shopping experiences that provide value, including fulfillment options, delivery promises, and flexible returns. These offerings can help build customer loyalty.

2. Gain trust with AI-optimized fulfillment

Use AI technology to gain real-time inventory visibility and deliver on promises. IBM Sterling Intelligent Promising enables retailers to make intelligent decisions about inventory placement, order fulfillment, and last-mile delivery for better profitability.

3. Leverage blockchain for transparency and sustainability

Implement blockchain technology to ensure transparency in the supply chain and address the demands of sustainable consumers. This technology can also help prevent product waste and optimize inventory.

How IBM Can Help Improve Transparency and Efficiency in the Retail Industry Supply Chain

IBM Sterling Order Management System (OMS) with Sterling Intelligent Promising

IBM Sterling OMS is a reliable and flexible solution that streamlines operations, enhances customer satisfaction, and maximizes profitability. With the built-in Sterling Intelligent Promising capabilities, retailers can execute orders with minimal errors, ensure improved performance, and balance fulfillment costs against service.

IBM Supply Chain Intelligence Suite (SCIS): Transparent supply

The IBM Supply Chain Intelligence Suite is a blockchain-based traceability platform that provides accurate product provenance information. It helps address consumer demands, increase operational efficiency, and optimize inventory by enabling end-to-end supply chain visibility and collaboration.

Frequently Asked Questions (FAQ)

Why is delivering on promises important in the retail industry?

Delivering on promises is important because it ensures customer satisfaction and loyalty. When retailers fulfill their order promises, consumers are more likely to trust and continue shopping with them.

How can AI-optimized fulfillment benefit retail supply chains?

AI-optimized fulfillment provides real-time inventory visibility, resulting in better decision-making regarding inventory placement, order fulfillment, and last-mile delivery. This leads to improved profitability and customer satisfaction.

What is the role of blockchain in the retail supply chain?

Blockchain technology enhances transparency in the supply chain by providing accurate and trustworthy information about product provenance. It helps meet sustainable consumer demands, increase operational efficiency, and optimize inventory.

How can IBM help improve the retail industry supply chain?

IBM offers solutions like the IBM Sterling Order Management System (OMS) with Intelligent Promising and the IBM Supply Chain Intelligence Suite (SCIS). These solutions streamline operations, enhance transparency, and optimize efficiency in the retail supply chain.