Why is Forecast Automation Important to deliver Omni-channel Retail Excellence?
Coronavirus pandemic has not only impacted how businesses operate; it has altered consumer habits, driven new demand patterns and a surge in omni-channel purchases. And for consumers to seamlessly enjoy a unified experience- Brands need to be consistent across all channels of sale. Omni-channel excellence requires a needle-like focus on value creation for both the customer experience and internal processes. Brands need to have a customer-focused vision to create breakthrough experiences as offered in the store. This could mean using the same design language, guiding customers on products suitable for online consumption, stock availability, delivery times, easy checkout and ability to earn loyalty points.
It is evident that changes ushered in by Covid are here to stay – One of the first steps in achieving omni-channel excellence is forecasting demand and aligning operations across all channels
“Study shows, businesses that adopt omni-channel strategies achieve 91% greater year-on-year customer retention rates compared to businesses that don’t.”
Sharpen-up Accurate Forecasting to Meet Your Omni-Channel Demand
In retail, demand forecasting is at the heart of planning; adopting a reliable and accurate forecast empowers retailers to optimize their supply chain, increase customer satisfaction, reduce wastage, optimize labor and even improve sales. A capable forecasting solution powered by Artificial Intelligence and Advance Analytics can enable efficiency, scalability, and agility to streamline operations at unlimited number of stores and SKUs.
A good forecasting solution will need to incorporate following parameters to generate reliable forecasts:
- Customer Buying behavior across sales channels
- Product Mix across Channel
- Impact of events and weather pattern
- Promotions
- Seasonality
- Day part trends
To succeed and thrive in what is likely to be the new normal with a step change in omni-channel demand, retailers need to stop using in-store forecasts to predict online demand. Using in-store sales trend as a benchmark for online sales may be counterproductive and can lead towards either stockouts or expiry. Any good forecasting platform will need to treat each channel of sales separately as the customer buying behavior may vary from what experienced with the physical store.
Retailers who want to be among the winners should begin with a holistic multichannel automation approach designed around an infrastructure that allows consumers to shift seamlessly between channels.
Make Omni-channel Strategies More Profitable & Effective
By using a robust omni-channel platform, retailers can optimize fulfillment and maximize sales while reducing the challenges of replenishing inventory, labor wastage – all while delivering an outstanding customer experience that drives loyalty. This can be achieved hassle-free with a reliable AI powered Automated Forecasting Engine.
Implementing a robust demand forecasting software is just a start- as the process is not just limited to forecasting, it includes synchronizing store operations with supply chain to achieve the future online demand. A highly reputed QSR brand recently implemented a comprehensive omni-channel strategy; They created a separate section within their stores to receive online orders, conducted time motion studies, trained team members for order processing that meet brand and customer service guidelines. This strategy was further boosted by integrating an AI based predictive workforce scheduling platform linked with demand forecasting for all channels viz – In Store, Drive Through, 3rd Party aggregators, Brand’s Own Mobile App.
This approach also amplified :
- Store Inventory Optimization
- Efficient Workforce Planning
- Faster speed of service