The one-size-fits-all sales approach is outdated. In the store, intelligent systems are needed to provide the customer with a personalised experience. Key elements for this are individual and personalised recommendations from the current product range and simplified processes that give stores associates more time for the customers.
In this webinar you find out how “Data Driven Empowerment” activates cross-selling potential, increases the number of articles per receipt and finally leads to satisfied customers and happy retailers.
The hype about cloud-based systems continues: There is hardly a software system that has not stepped into the cloud. Many applications, especially in the business environment, rely on an “infrastructure-as-a-service” or “platform-as-a-service” model, where existing solutions are simply hosted and operated by a large cloud provider.
In addition, there are true “software-as-a-service” solutions that are available for a monthly fee with guaranteed performance.
Regardless of the actual model chosen, the cloud offers enormous advantages for retail companies, especially with respect to RFID-based inventory management.
Advantages of inventory analysis in the cloud
- IT infrastructure does not have to be operated and maintained by the retailer: Focus on core business
- Lower costs: in comparison to individual operations
- Flexibility: For store openings and closings, and even for the operation of pop-up stores
- Easier integration with existing systems: standardised, open APIs
Smart processing of data at scale
Compared to traditional inventory management, an RFID-based approach brings one thing in particular from a system perspective: More data. Frequent, even permanent and real-time stock takes and tracking of each individual article movement generates more data than before. More data is not necessarily an advantage, and must be processed and stored somewhere. In addition to the – almost unlimited – storage space that cloud-based systems offer, here is another decisive advantage: On one hand, sufficient computing capacity is available for complex and -intensive processing steps, which can be activated simply and automatically “when needed” (“scaling up” and “scaling out”). On the other hand, in cloud-based systems, the application of modern algorithms such as machine learning methods are significantly simplified in order to actually benefit from operational data.
What does data reveal?
This gives retailers access to a broad portfolio of analytic tools, algorithms and necessary infrastructure, without having to become a specialist in the implementation and operation of complex systems and tools for large-scale data analysis. Sounds abstract? The following examples show concrete use cases:
Analysis of the performance of individual articles:
While classical analysis is mostly limited to sales data, new technologies allow far deeper insight into what is happening in the store. With RFID-based inventory management, in addition to sales data, other parameters can be precisely measured and correlated. Derived from this, influencing factors are used to determine in which store the sales probability for certain articles is actually the highest. What is the result of the analysis? Easy to follow recommendations for the sales personnel in the store in order to make the most of the potential of the sales area. Sales personnel receives notifications directly on the smartphone which is processed as soon as possible.
Raw data from the store network – Derive meaningful KPIs – Processing and feedback to the store
Evaluation of periodic inventory data:
The classical stocktake: Not very popular, cumbersome and lengthy – still needs to be done 1-2 times per year for audit purposes. However, an RFID-based system makes it very easy. Reason enough to increase the frequency for better data accuracy. This quickly results in several thousand data records per year. Nevertheless, these datasets contain far more information than just the ordinary inventorydifferences that need to be accounted for in the ERP system: A targeted analysis quickly identifies trends about problematic items, allowing timely countermeasures. As far as the operational process is concerned, smart algorithms can raise additional potential: The classic approach of “one RFID-based stocktake per week” is not necessarily optimal or necessary in every store. Detego InReports suggests the ideal time for a stocktake and can even predict how many people will be needed to complete the process in the desired time. It provides support where it makes sense.
These scenarios show how current methods and algorithms from the world of data analysis, when cleverly applied to inventory data, can show operational benefits.
While this might sound simple, practical implementation is far from easy due to the amount of data that needs to be processed and complexity of procedures used.
Specialized systems that leverage benefits of the cloud can help address this and gain data driven insights rather than pure intuition. This is accessible in a scalable infrastructure that comes with predictable cost within a simple SaaS model.
What needs to be taken into consideration by retailers
Aside from all the advantages, there are also aspects in the use of cloud-based systems, which requires rethinking and possibly even making changes to the existing infrastructure.
Infrastructure
Make sure your infrastructural equipment is bandwidth-rich to enable you to run store applications in the cloud with satisfactory performance and to adequately size Internet uplinks for today’s and tomorrow’s applications.
Data collection in the store
Make sure to install optimal WIFI in your stores. That is what customers expect nowadays. Not only do customers interact with their smartphone while shopping, persons accompanying them do so too. That is an aspect which should not be underestimated in order to keep customers in the store and offer new services.
„Shared“ versus „Dedicated“-Cloud-environments
Many software packages allow operation either in a so-called “shared environment” where resources are shared with other companies, or in a “dedicated environment” which is operated exclusively for a particular customer. Both variants have their advantages and disadvantages. While “shared environments” are generally cheaper to operate, there are some dependencies, e.g. in terms of performance. “Dedicated environments” usually offer more flexibility but also entail higher costs.
Lock-In to a Cloud-Provider
Cloud software packages that can be transferred at any time from one cloud to another if necessary are advantageous. This bypasses a long-term dependency on one of the classic cloud providers, e.g. Amazon, Google, Microsoft and Co. It is recommended to make sure that the software you use is not dependent on a particular provider, but can also be operated flexibly with another provider.
Conclusion
Your inventory data contains information going far beyond the typical inventory differences or what ordinary sales data can tell you. Smart analytics and state-of-the-art processing helps you to unlock this potential – a new way where cloud-based systems flex their muscles.
Did we spark your interest?
Due to lack of an overall stock view, retailers and in particular, their sales personnel are not able to provide customers with reliable information e.g. on article availability. This results in disappointed customers who eventually buy somewhere else, which in turn leads to an enormous loss of revenues for retailers.
Get new insights on how a single stock view significantly changes the fashion retail industry and what positive effects come with it.
Detego, a market leader in real-time business intelligence for the fashion industry, is launching a new mobile solution for retailers which will give faster and cheaper access to the benefits of digital connectivity. Thanks to imbedded radio-frequency identity (RFID) tags on every product, benefits include being able to painlessly carry out stock-takes on smartphones and near hundred percent inventory accuracy, so fewer gaps on the shelves and no lost sales from missing sizes.
“Most retailers are aware of the advantages of RFID and want to constantly monitor the movement of goods, but many are put off by the perceived high costs of system integration,” says Detego’s chief executive, Uwe Hennig. “With the cost of tags having fallen dramatically over the last few years, the time is right to launch a new, leaner version of our software so that retailers can quickly see for themselves the gains being made in smart tracking devices and the endless opportunities of joining the Internet of Things.”
Detego’s InStore Lean Edition provides a “quick-start” solution for retailers that want to start small and possibly scale over the entire store network later on. Available via the cloud, it is being targeted at retail chains, pop-ups, franchisees and brand store owners that don’t necessarily want to invest in large-scale IT projects, he says.
The new software allows retailers to constantly monitor inventory in real-time and automate the replenishment process, not to mention improve both the availability of products and customer service. A clear path of scaling makes it possible to roll-out the software and later add other Detego products or functions at any time, including additional applications for all in-store processes and omni-channel services such as “click&collect”, as well as managing inventory throughout the supply chain, and comprehensive analytical features.
“The fashion retail industry in particular requires a fast introduction to the digital age, but at the same time a future-proof solution that is scalable,” adds Hennig.
Nowadays, fashion retail is not restricted to one single sales channel only. Fashion retailers rather provide their customers with a whole variety of different channels. Hereby, the customers’ expectations are clear: they demand a smooth shopping experience across all channels. Reliable stock information builds the basis for any satisfied omni-channel customer. A successful “one-face-to-the-customer” strategy can only be achieved with a real-time view on the overall stock; regardless of whether it is being checked in the store, in the franchise store, at the wholesaler or in the online shop. The resulting 100% article availability across all channels guarantees a satisfied customer who may buy again.
Which solution fits everyone?
The one-fits-all approach represents a scalable sizing concept within the fashion industry. Transferred to the IT landscape, the challenge is to integrate all channels in a way that the customer perceives them as one single entity.
Integrated system landscape: Real-time stock view for retailers as well as customers.
Why integrate all channels?
- Brand stores
- Stores of franchise partners
- Concession stores
- Online shop
Customers do not distinguish where and from whom they buy: in the brand store or its online shop, in the department store or in a franchise store. Customers are looking for a specific article and expect a certain price and quick delivery.
System landscape requirements:
- Real-time view on item-level
- Constant updating of involved systems with regards to stock movements
- Central stock view (for stores, franchise partners, wholesalers) on item-level (real-time) as a single-point-of-truth
- Access to stock information for all sales partners in real-time
- Real-time information on item-level also for customers
- Real-time analysis of article movements, aging structure, replenishment performance to optimise article availability
Analysis for everyone
Of course, an evaluation of individual sales channels can be useful to determine its success. However, only an analysis of all the channels, taking into account the entire branch network and all sales partners and online sales, is decisive for the assessment of the collection-, product range- and, above all, the omni-channel success.
Consumer Engagement for everyone
Successful labels roll out their new collections in a multi-channel strategy across all sales outlets. In addition, social media as well as viral campaigns inter-relate with one another. The aim is to offer various touchpoints for customers to interact with brand and articles. A stronger relationship with the brand and more time spent – in the store and in the online shop – lead to more sales.
Detego offers fashion retailers a reliable platform for inventory management, analytics and customer engagement across all channels.
Platform advantages:
- Scalable: Just as your business requires. Start small. The platform expands itself.
- Modular: In-store management, analytics & reports, consumer engagement – choose what is necessary.
- Flexible: SaaS for switching on and off specific services as needed.
- Manageable: All services on one single platform. Accessible for everyone.
- Economical: Investment protection for the seamless integration of existing systems.
Did we spark your interest?
The retail shopping experience is changing rapidly, but one thing remains constant: Customers walking into brick-and-mortar stores want to find the articles that interest them, in the size, style, and colour they prefer. Detego’s innovative software suite provides the real-time insights retailers need to meet customers’ desires—not only by providing complete transparency into every article from the warehouse to final sale but also by enabling a more personalised and positive customer experience.
As part of the Intel® Responsive Retail Sensor ecosystem, Detego solutions give fashion retailers a competitive advantage through unified commerce, increased sales, and a superior in-store shopping experience.
Customers drive retail strategies with their various and versatile demands. They want the ability to shop anytime, anywhere while expecting a consistent brand experience in the store, on the web and using mobile apps. Customers anticipate immediate access on an article’s availability across all channels – and fast delivery! Failure means losing a customer to a competitor. They’re only a click away. Meeting these expectations requires a digital transformation of the stores and efficient omni-channel retailing. But how to implement these strategies successfully? With an intelligent business base.
The one-size-fits-all sales approach is outdated. In the store, intelligent systems are needed to provide the customer with a personalised experience. Key elements for this are individual and personalised recommendations from the current product range and simplified processes that give stores associates more time for the customers.
In this webinar you find out how “Data Driven Empowerment” activates cross-selling potential, increases the number of articles per receipt and finally leads to satisfied customers and happy retailers.