Capgemini: The Rules Of Retail Have Changed
Modern businesses have had to constantly adapt their processes over the last few years, with technology playing an increasingly prominent role as it develops and becomes more intelligent. The transformation of merchandising and supply chains is an incredibly complex process, and can be detrimental to business if not carried out properly. A process that can be highly beneficial to organisations, could harm it in both the short and long term.
Consumer expectations have grown unprecedentedly, with technology playing a far greater role in people’s lives than ever before. With same-day delivery and e-commerce becoming so readily available and easy to use, especially throughout the COVID-19 pandemic, shopping habits and the need for in-store demand has changed dramatically.
In the company explores its holistic approach to the complex challenges facing supply chain networks and the management of them. From end-to-end merchandising processes, through to the integration of consumer data, Capgemini’s platform is capable of accelerating the performance of a retailer to ensure that they are delivering the correct products and services to their consumers, on time and as efficiently as possible.
The belief that a one-size-fits-all approach will work for a supply chain and retail environment is beyond detrimental for operations, and retailers cannot afford to have this mindset. The Capgemini planner explores this in greater detail, helping businesses understand how it can partner with them to begin overcoming barriers and developing the customised operating model required to drive supply chain and retail success.
Gartner research has found that, by 2023, approximately half of the world’s large global companies will be implementing AI, advanced analytics and Internet of Things (IoT) innovations throughout their supply chain operations.
Modern customers expect new products and services that can’t be controlled, through mediums such as social media, SEO, influencer marketing and online content. Increased ease of orders have led to consumers demanding that purchase orders can be fulfilled on their own terms, at their convenience.
Improved transparency is another thing that consumers and supply chain stakeholders expect in the modern business world. With corporate social responsibility becoming more of a priority for people, the impact that businesses, their retail and their supply chains have on the world is important now, and it matters that people can see that the brands they’re purchasing from are having a positive impact on the environment.
Pandora and IBM digitise jewellery supply chain
Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery.
The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales.
A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.
Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.
Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption.
"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added.
Pandora’s pivot to digital
The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand.
“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”
Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”.