Guest contribution • 04.12.2023

Retail Logistics: The 10 most important trends and forecasts

What you can prepare for as a retailer

Producers, manufacturers and consumers are connected through distribution. However, in a fast-paced world with rapid technological progress, it is precisely this link that is under increasing pressure. 

It's no secret that the industry will change significantly in the coming years. But what can we expect? These 10 trends - some of which are already recognizable and can be found in retail - provide an outlook on the upcoming changes and show what companies and retailers need to prepare for to remain successful.

1.Supply chain automation: Increasing automation, driven by robotics and AI, will fundamentally restructure supply chains. Inventory management will be optimized through smart warehouses with technologies such as autonomous vehicles, state-of-the-art automated picking systems and predictive analytics. This will significantly reduce costs and increase operational efficiency. Consequently, a world-class warehouse management system (WMS) will become essential as it seamlessly connects automation with an enterprise resource planning (ERP) system, enabling smooth and efficient operations.

2. Data-informed decisions: Big Data and advanced analytics are central to shaping strategic decision-making processes and therefore the future of sales. Companies will rely on advanced predictive algorithms and real-time data analytics to make informed decisions, optimize inventory levels, accurately predict demand patterns and deliver personalized customer experiences. To fully utilize these data tools, retailers should move their ERP systems to the cloud. This will allow them to effectively develop the potential of advanced analytics and big data.

3. Last-mile delivery: Last-mile delivery has great development potential through drones, autonomous vehicles and delivery robots. These technologies enable fast, cost-efficient and convenient transport to the doorstep. In addition, crowd-sourced and shared delivery networks will optimize last-mile delivery and make it an important force in distribution.

4. Sustainable and environmentally friendly practices: Those who hear the voices of their customers must operate more sustainably. To remain successful, companies must proactively adopt environmentally friendly initiatives, such as eco-friendly packaging, integrating electric vehicles into their fleet and fine-tuning logistics routes to drastically reduce their carbon footprint. In this way, companies are meeting environmental challenges and addressing the growing market segment that values environmentally conscious products and distribution methods.

5. Rise of direct-to-consumer (D2C) sales channels: Direct-to-consumer (D2C) sales are experiencing steady and significant growth and are expected to one day bypass traditional sales channels altogether.   State-of-the-art tools and platforms enable direct contact with customers.  This promotes a personalized experience, enables data-driven marketing strategies and gives more control over brand messaging, brand-consumer relationships and customer loyalty.

Customers and their needs are becoming increasingly central, thanks to hyper-personalization, new product visualization methods and a focus on sustainability.
Source: Unsplash

6. Optimization through blockchain technology: Blockchain technology enables unprecedented traceability and transparency. This is because blockchain-powered distributed ledger systems can track and monitor products throughout the distribution network in real time. Blockchain technology can significantly increase trust and accountability within the supply chain by effectively combating counterfeiting, reducing fraud and ensuring the authenticity of goods.

7. Hyper-personalization and customer centricity: Hyper-personalization and the resulting explicit customer focus will also change the way (online) commerce works. Through advanced analytics, machine learning and artificial intelligence, companies will understand individual preferences and be able to offer carefully tailored products and personalized offers, driving customer satisfaction and brand loyalty.

8. Improved product visualization with augmented reality (AR): Augmented reality (AR) optimizes product visualization and has a lasting impact on the decision-making processes of consumers. The increasing prevalence of AR-enabled devices allows customers to experience products virtually before they buy, profoundly changing the online shopping experience: The gap between the physical and digital worlds is effectively bridged, ensuring a new level of trust and satisfaction for consumers.

9. Decentralized manufacturing through 3D printing: 3D printing technology is turning traditional manufacturing and distribution models on their head - goods can be produced locally, on-demand and with significantly less waste, creating distributed production networks. This change enables much shorter lead times and allows companies to create highly customized products that are tailored to individual consumers.

10. Collaboration and integration of ecosystems: The nature of collaboration will also change and the seamless integration of ecosystems will play a significant role. Companies must already recognize the value of strategic partnerships of data sharing initiatives and fostering close collaboration in critical areas such as logistics, inventory management and order fulfilment. These concerted efforts enable seamless end-to-end operations that help organizations achieve faster time-to-market, improved competitiveness and operational excellence.

Will Quinn, Director Industry Solution & Strategy at Infor

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