In the logistics and supply chain process, the large number of operations and assets involved make it a critical area for the retail sector. Therefore, improving operating margins at each point in the supply chain has a direct impact on business results.
Optimizing resource planning (human, material, and financial) and automating business operations, increase process efficiency, reduce operating costs, maximize operating margins, and improve service levels.
During the supply chain process, there are different points at which to act to improve operating margins. From the factory to the store, through transportation and warehouses, processes can be optimized and decisions can be automated.
During the manufacturing process, companies must make complex daily decisions, such as the manufacturing volume of each product, taking into account limited resources. Considering at all times the stock coverage and the production and delivery lines performance.
Predictive and prescriptive analytics-based production planning optimizes these processes taking into account forecasts, stock, production centers, delivery times and costs, etc. Achieving optimal production planning.
Transportation & Logistics
One of the main challenges for logistics operators is to deliver at the lowest cost without compromising service quality. Volatile demand, high fuel costs and low profit margins mean that good resource planning makes the difference between profitable and unprofitable delivery.
Optimal planning, taking into account fleets, loads and distribution routes, will be essential to improve margins in inbound, outbound and reverse logistics.
It is important to have a global vision of the process in the warehouse, from the order reception and its picking, to its departure to the different destinations. These operations can be greatly optimized with efficient order management supported by optimal warehouse staff scheduling.
Predictive Analytics and Machine Learning greatly help optimize warehouse inventory management. Predicting the volume of orders and their lifecycles, to ensure the optimal level of service at all times.
The store is key in the entire supply chain planning. Store activity data can be used to predict future demand, which will be used in warehouse, production and logistics planning and management.
It is possible to use different analytical techniques for store resource planning and management, such as establishment, product (inventory management, replenishment), or employees (schedules and tasks).
Manage inventory and replenishment in an optimal way, ensures a good supply of products to not lose sales or have surpluses. Optimally distributing products among stores to avoid stock breakage.
Good staff management will also be essential to reduce costs, as up to 40% of a store’s total costs at the end of the month may be due to labor costs.
In addition, employees have the greatest influence on customers’ purchasing decisions. Advanced Analytics predicts the volume of visits the store will have at any given time, in order to adjust the schedules and tasks of each employee with the visits of customers. Achieving to have the right employee at the right time and place to assist customers and increase the conversion rate.
Advanced Analytics-based solutions do not look like they will be reduced in the coming years, especially in the retail sector. In fact during the next 3 years, more than 3/4 of the companies in the retail sector plan to invest in solutions based on this technology.