Retail
A stepping stone to AI Mastering and understanding data is critical to adopting new technologies such as generative AI, and being able to have a 360-degree view of business execution is the stepping stone to adopting this valuable technology. For example, French retailer Carrefour recently combined the
power of process intelligence with the potential of generative AI. Te retailer, which operates in 40 countries with more than 14,000 stores, is experimenting with using generative AI to compare quotes from indirect buyers, using ChatGPT combined with data derived from process intelligence. Te retailer reported that their proof-of-concept experiment
could analyse quotes from buyers in just 10 minutes, rather than the 30 minutes it takes when done manually, potentially saving the organisation thousands of Euros. Carrefour is now examining how to apply this combination of process intelligence and generative AI to other areas such as marketing and human resources (HR), highlighting the time and financial savings to be made.
Returning value UK customers returned 27% of clothing alone in the past year, bought from online retailers. With returns costing retailers billions a year, process intelligence can not only make the returns process more efficient, but also zoom in on issues that are causing customers to return items. Process intelligence can enable retailers to ‘get ahead’ of the
The advantages of process mining Process mining works on top of existing systems, so retailers don’t need to ‘rip and replace’ their existing technology. Tis offers a useful vantage point for business leaders to fix issues. Data integration and process mining work like an MRI scan, offering a complete picture of how processes work, and identifying hidden value opportunities within systems. One leading retailer was able to achieve a 31%
improvement in shipment utilisation, thanks to process intelligence. Process intelligence enabled this retailer to take a top-down view and improve collaboration between different teams in supply planning, transportation and distribution. The company used process intelligence to minimise the number of trucks sitting idle, which cut transportation costs, and reduced road miles and carbon emissions, helping the company to achieve its ESG goals. In the back office, process mining can also improve efficiency, helping to automate manual processes, and avoiding problems such as duplicate payments or unjustified discounts.
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problems that lead to returns, while spotlighting and identifying the errors which result in orders being sent back or cancelled in the first place. Swiss luxury retailer, Globus, used process mining to identify the root problem leading to returns at their businesses, finding an inefficiency lurking ‘between’ different systems which caused customers to return goods. Due to this hidden inefficiency, it was possible for one customer to reserve an item online, and another to buy the same item. Globus used process intelligence to reduce the overall cancellation rate by 20%, and also introduced a logistics dashboard which enabled the organisation to visualise throughput times and return rates in real time. For today’s customers, efficient returns are part of essential
customer service, and sub-optimal service can drive customers away. Well-marshalled ‘reverse logistics’ in returns, driven by the insights from process intelligence, mean that returned products can be rapidly resold. Tis means businesses don’t struggle with overstocked and understocked items, while keeping costs for transportation, storage and handling of returns down.
Building the future of retail Retail is facing a period of change as online shopping booms and cost- conscious shoppers search for bargains. Process intelligence will be a key tool for retailers hoping to stay ahead of these trends, and will help to drive customer satisfaction in important areas such as returns. Process intelligence will be a key tool for leaders in the retail
sector in the coming years. It’s an opportunity to not only streamline business processes, but also provides a crucial way to harness and understand data. Tis will be a key stepping stone to adopting generative AI, and the time to seize the opportunities of data integration and process intelligence is now.
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