In grocery retail, the speed of decision-making directly affects money. If the product is purchased too late, the shelves become empty, and sales are lost. If the demand is overestimated, there are still surpluses in the warehouse, which then have to be written off.
According to industry research, out-of-stock losses in retail can reach 4-8% of the category's turnover. To avoid such a situation, the company needs to build processes.: synchronize purchases and sales, monitor the budget in real time, and work with data. In this article, we'll look at how retail digitalization helps minimize losses and speed up management decisions.
How to deal with management issues in retail?
Digital retail solutions help identify and eliminate bottlenecks that lead to financial losses. They record data on purchases, balances, delivery dates, and sales, allowing them to quickly notice deviations from planned targets. This works with centralized data storage and regular updates. For example, a BI system can detect an increase in write-offs for a specific product category or delays from a specific supplier.
The following are examples of what retailers most often encounter in the course of their work.
1. Fragmented supply chains
In large networks, suppliers, warehouses, and stores operate through different channels: mail, spreadsheets, and messengers. This creates confusion, delays, and data loss. The development of a retail platform will unite all participants into a single system where purchases, approvals, delivery statuses and documents are in one loop.
2. Lack of control over the procurement budget
When orders are generated in different departments, there are overspending, duplication of items, and inconsistent purchases. The centralized system allows you to see the limits in real time, compare the plan and the fact, monitor deviations and analyze costs.
3. Overloaded managers and the human factor
The dependence of operational processes on a single manager increases the risk of errors and delays. Manual processing of applications and reconciliation of invoices may result in errors and lengthy approvals. The risk is particularly high in the absence of regulated digital approval routes. Automated systems distribute tasks and record statuses, reducing dependence on a specific employee.
4. Lack of analytics
It is difficult to assess effectiveness without analytical tools.: which suppliers break deadlines, which categories make the most profit, and where losses occur. Modern systems display this data in an understandable way.
5. Risks of supply disruption
Working with unverified suppliers or the lack of a history of interaction leads to delays and losses. This can be avoided by keeping a register of suppliers, keeping a history of cooperation, and automatically reporting violations.
6. The complexity of assortment management
In retail, the product range can include tens of thousands of items. Product data may be duplicated, discrepancies in the cards and erroneous orders may appear. The unified NSI database (regulatory and reference information) eliminates duplicates and ensures the correctness of information for all divisions of the network.
