Retail
It’s not all doom and gloom!
Danny Hudson, director of UK & Europe at FarEye discusses how retail and logistics businesses can thrive in 2023.
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nflation, growing energy crisis, supply chain disruptions and geopolitical tensions have pushed the world to the brink of a recession. A
KPMG survey says that with the risk of a recession looming, 40% of businesses have paused their digital transformation strategies and another 37% plan to take such steps in the next few months. While companies are cutting down their
investments in technology, there is no better time to use technology as a strategy to streamline operations and bring down costs. By adopting the right tech stack, enterprises can push for growth even during times of economic slowdown. According to Gartner, investing in the right digital initiatives at the right cost can blunt the negative effects of economic pressures in the short term and build a long-term competitive advantage. Businesses worldwide are pouring millions of dollars into their
operations despite a steep decline in earnings. According to a CNBC report, Walmart, Amazon, and Target are prioritising investments in technology to revitalise their supply chains and make them more resilient and customer-centric.
How last-mile technology can help enterprises during a recession Te last mile accounts for nearly 53% of the total shipping costs. Supply chain leaders can leverage technology to optimise their last mile operations to reduce cost and drive growth even during
30 | March 2023
uncertain times. Technology can reduce supply chain costs from 9% to 4% and, in return, double profits.
Experts believe that last mile delivery profits
could decline by as much as 26% in a period of three years if the optimisation process is not put in place – and when companies transform digitally, they can see bottom line improvements in the high teens (15-20%). With route optimisation, enterprises can
take advantage of artificial intelligence (AI) and machine learning (ML) technologies to plan the best routes for their delivery vehicles –
reducing empty miles and saving on fuel costs. Route optimisation technology improves on-time deliveries and increases first-attempt delivery rates, leading to a reduction in the costs involved in making multiple delivery attempts, storage of parcels, and handling of the delivery personnel. AI and ML also help organisations accurately predict consumer
demand and conduct effective capacity planning, thereby reducing unnecessary wastage of energy and resources.
Enhanced real-time visibility When enterprises invest in improving visibility in the last mile, they become better equipped at identifying gaps in their operations. By plugging those gaps and increasing efficiency, companies take a step towards greater productivity and minimisation of costs.
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