The secret to retailer success lies in evolving the store into a place
to solve customer problems, relying on the speed and convenience of
fulfillment to compete in today's unified commerce environment. On the
store execution level, store managers are trying to master the
combination of order fulfillment, inventory visibility and staffing
needs to keep up with customer demands, according to JDA
Software Group, Inc.'s second
of the Store Manager Survey (tweet
Overcoming Frustrations and Challenges
As the lines between online and in-store continue to blur, order
fulfillment (29 percent) and limited staffing (29 percent) are evenly
split as the biggest challenge for retailers at the store level (tweet
this), followed by inventory visibility (24 percent) and
scheduling/workforce management (18 percent).
When it comes to challenges with store inventory, survey respondents
find that inaccurate data (31 percent) and limited stock and slow
replenishment (31 percent) are the biggest challenges for operations (tweet
this). However, the majority of store managers (64 percent) are
using technology in some capacity to check store inventory availability,
whether it be real-time inventory visibility via mobile or wearable
devices (33 percent) or a central computer system (31 percent).
"Based on the results of our Voice of the Store Manager survey, it's
clear that retailers are making progress to better handle operations in
today's retail environment, but inventory and staffing needs are often a
bottleneck," said Jim Prewitt, vice president, retail industry strategy,
JDA. "It's not a question of whether stores will evolve, but rather a
question of 'to what?' Successful retailers are looking at how quickly
their supply chain and store operations need to react and adapt (tweet
Fulfillment Options on the Rise
While there has been a lot of speculation around a retail apocalypse,
new fulfillment options are offering ways for stores to provide ease and
convenience to busy customers while driving traffic back into stores.
Forty-four percent of respondents said their stores offer buy online
ship from store services; additionally, 41 percent offer buy online
pickup in-store (BOPIS), 40 percent offer buy in-store ship to home, and
38 percent offer buy online return in-store (BORIS).
According to store managers, BOPIS services (41 percent) and buy online
ship from store services (40 percent) have seen the largest increase in
customer usage. Though all fulfillment options rely heavily on inventory
visibility and staffing for pick, pack and ship in order to meet
customer fulfillment timelines:
The other area for improvement for stores is the influx of inventory due
to BORIS offerings, with two in three store managers reporting some
difficulty with the service. Thirty percent of respondents are unsure of
what to do with the additional inventory received through BORIS
services, and lack direction as to whether to keep it at the store or
return to a distribution center or even another store. Additionally,
nearly 30 percent of store managers reported a staff-related concern
with regard to BORIS.
Finding the Right Team Members
With the rising popularity of the "gig economy," more than 40 percent of
store managers are already reporting that a small number of their store
staff (less than 25 percent) are part of the gig economy (tweet
this). One in four store managers are exploring the possibility of
leveraging additional labor - such as short-term contractors or
freelance workers - outside of the traditional workforce.
According to respondents, 60 percent of store managers plan to hire the
same amount of temporary labor for the 2017 holiday season as they did
last year; while 24 percent plan to hire more this year. However, the
focus of the seasonal staff may be changing to meet customer demand;
over 40 percent of seasonal holiday hires will be for fulfillment at
stores/warehouses and not customer facing (tweet
this). This was even higher among respondents in rural areas, who
were far more likely (61 percent) to hire fulfillment staff rather than
customer-facing staff. The other fulfillment area that store managers
are planning to increase hiring for is BOPIS, with one in three
respondents hiring temporary staff specifically for the service this
"As store operations change with increasingly complex order fulfillment
capabilities, the demands for staffing will change as well," said
Prewitt. "Based on our survey results, we predict there will be an
uptick in tailored staffing hires for both BOPIS and ship-from-store
JDA collected responses from 252 U.S.-based retail store managers in
August 2017 via a third-party provider to determine the findings of its
2017 Voice of the Store Manager Survey.
Tweet this: New
#JDASurvey says: successful #retailers don't close doors, they open
windows to fulfill customer expectations: http://bit.ly/2xrBW1R
About JDA Software Group (News - Alert), Inc.
JDA Software is the leading supply chain provider powering today's
digital transformation. We enable companies to improve their ability to
plan, execute and deliver by better predicting and shaping demand,
fulfilling more intelligently and quickly, and improving customer
experiences and loyalty. More than 4,000 global customers use our
unmatched end-to-end solutions portfolio to shorten their supply chains,
increase speed of execution and profitably deliver to their customers.
Our world-class client roster includes 73 of the top 100 retailers, 71
of the top 100 consumer goods companies, and 13 of the top 16 3PLs.
Running JDA, you can plan to deliver. www.jda.com
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